House Price Surge Continues 

  • By Peter Gordon
  • •
  • 04 Dec, 2019

Australia’s housing market is now five months into its recovery, as Sydney and Melbourne drive the turnaround with values up by 2.7 and 2.2 per cent respectively for the month of November.

The national index recorded an increase of 1.7 per cent for the month, with all capital cities but Darwin recording a lift in values.

Corelogic described this as the largest monthly rise in the national index since 2003.

The November results see Corelogic’s national home value index move into positive annual growth territory for the first time since April 2018, with Australia's dwelling values now 0.1 per cent higher over the past twelve months.

“The Australian housing market is now five months into an unexpected period of rapid recovery,” Corelogic head of research Tim Lawless said.

“The question is, how long can such a high pace of capital gains be sustained?”

Taking in the latest Corelogic data, BIS Oxford Economics says indicators show that sales volumes are still down “significantly on the levels of a year ago”.

As a result, BIS expects “quarterly price growth to slow significantly over the second half of this financial year to June 2020 as listings increase”.

Lawless said that the market is yet to be tested on higher supply levels, with advertised listing numbers remaining seasonally low through spring.

“Considering wages and household income growth remains low,” Lawless added, “economic conditions are losing momentum and housing affordability is once again worsening, from an already high base in the largest cities, there are likely to be some headwinds in maintaining such a fast recovery.”

“With interest rates likely to track lower in 2020, we could see additional stimulus counteracting some of these headwinds,” Lawless said.

RBA governor Philip Lowe last week said that the central bank had ruled out quantitative easing as an economic stimulus measure, but that it would become an option to “be considered” at a cash rate of 0.25 per cent, “but not before that”.

While Australia’s economy has been benefiting from low interest rates, ongoing investment in infrastructure combined with the stronger outlook in the resources sector, analysts have predicted rates to be cut to 0.25 per cent by April next year.

The index shows early signs of improvement in Brisbane’s market with growth of 1.8 per cent for the 3 months to November, and a slight 0.8 per cent uplift for the month.

Corelogic’s national dwelling value index has recovered by 4.7 per cent since hitting its trough in June, but nationally home values remain 4.1 per cent below their 2017 peak.

Four of Australia’s capital cities returned to positive annual growth, led by Hobart, up by 4.2 per cent, Canberra with a 3 per cent rise, Melbourne up 2.2 per cent for the year, and Sydney, up 1.6 per cent.

While the largest declines remain concentrated in Darwin, down 10.9 per cent and Perth.

Perth's housing rebound

While Perth's housing market is down 7.7 per cent for the year, it recorded a slight 0.4 per cent uplift in the November results.

Dwelling values have been trending lower since mid-2014, the index notes this is down a cumulative 21.3 per cent through to the end of November.

“Over the past thirteen years, Perth has seen house values move from being the most expensive across the capital cities to now be the lowest,” Lawless said.

“Great news for first home buyers, however Perth home owners have seen a material reduction in their wealth over the past five and a half years.”

Looking ahead, BIS noted that by June next year, it expects Sydney median house prices could be up nearly 14 per cent on the June quarter of 2019.

While in Melbourne BIS forecast house prices could increase 12 per cent over the year to June 2020.


Article courtesy The Urban Developer 2/12/19

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Introducing The Palms Estate, Cairns - The Northern Beach's Premier Address

By Peter Gordon • April 26, 2023

Quiet simply, the Palms is the place to buy!

The northern beaches of Cairns is the Nation's best location for property investors right now, and The Palms is the premier development in this boom region.

It has the best location being elevated and backing onto the rainforest. It will have amazing facilities with a shopping village, a primary school, parks and green open space, a water park and an expanse of wildlife corridors.

It has taken the developers three years to get planning approval for this unique development to be able to hit the market. There are only 300 lots spread across 85 acres of the best land in The Northern Beaches.  Residents will have an abundance of open space right at their doorstep.  The Palms is also the only Certified Enviro Development project in Far North Queensland.

> Cairns Snapshot

In the rivalry between Sydney and Melbourne, the winner is ... Brisbane

By Peter Gordon • April 20, 2023

Sydneysiders and Melburnians, put aside your equally outstanding flat whites for a moment. Stop bickering about whether great beaches beat cool laneways (they do) and desist from debating whether all baristas require waxed moustaches (ideally).

Because Brisbane is closing in on the title of Australia’s best city, and we must join forces to keep this subtropical upstart in its place.

Time  magazine recently named Brisvegas on its “World’s Greatest Places” list, and omitted our cities. It’s a huge shock (and who knew they still published Time  magazine?). But they might be onto something.

Time  points to the 2032 Olympic and Paralympic Games, which will be hosted in the maroon metropolis. Brisbane will do a fine job, even though it’ll baffle the world when rugby league is added to the schedule and Queensland is allowed to field its own team.

Time’s  most radical claim is that Brisbane is worth visiting now, but tourism is surging. Not only did Lin-Manuel Miranda recently drop in to catch Hamilton , but hundreds of Hamilfans flew up to watch his interview with Leigh Sales (presumably unaware that it would subsequently arrive on iView for free).

Incredible Lifestyle At An Affordable Price  Equity of approx $390K on completion

By Peter Gordon • April 6, 2023
This small duplex development just a short drive from Hervey Bay on Queensland’s beautiful Fraser Coast, offers an incredible lifestyle at an affordable price. With unprecedented demand and very limited supply, prices look set to skyrocket.

A leading local agent has appraised each side of these duplex's to be worth $665k on completion and rent for $495 per week. So that is massive potentail instant equity of up to $390K on completion, which is incredibly hard to find.
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