March Property Market Update

Sydney Continues to Set the Pace in Patchy Market

Our markets remain patchy with Sydney remaining the pace setter. Its comparable growth in the last 12 months in dollar terms is now the largest in recorded history. In determining this outcome we have adjusted past dollar growth period amounts by inflation. In the following table we present some interesting statistics.

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December Property Market Update

Brisbane to be the Standout Performer as Market Slows in 2015

It has generally been a better year for our housing markets with Australia wide house price growth being some 2.64 per cent better than last year and unit, or medium density, prices having increased by 2.37 per cent more than achieved in the prior 12 months.

In Table 1, we provide the growth rates for our markets as at the end of November 2014. This table shows Sydney was the major growth winner in 2014. Melbourne produced a lower, but very acceptable, level of growth. Continue reading

November Property Market Update

Investing in Sydney and the Nitty-Gritty of Negative Gearing

We have often spoken about the issue of a two speed economy. In the past few years, we were referring to the significant economic activity in the resource states compared to sluggish performance in the non-resource states. Today however, there is a deeper divide developing between the two – not in general economic activities – but in the housing markets.

In Table 1, ‘Monthly Summary’ we provide the growth rates for our markets as at the end of October 2014. This table clearly shows the very strong growth in Sydney and the significant price differences between the markets.

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September Property Market Update

Australia’s So-Called ‘House Price Bubble’

The media is rife with talk of a housing price bubble – particularly in Sydney. Are these reports correct? In short, probably not.

Are we going to see media stories about people getting into trouble with home buying? Probably, yes.

Before I explain, let’s look at the August statistics, which reveal interesting information about Sydney and Melbourne.

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June Property Market Update

Growth lower than expected in May

The growth numbers for May are not as high as what was achieved in recent months. In fact, there are a number of capital cities that have fallen in value. However, the monthly numbers are “beautiful” as far as I am concerned and they are what I had been hoping for.

Table 1 presents the Australian-wide outcome for May 2014.

Table 1

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May Property Market Update

Sydney property approaching boom mentality

The much dreaded Federal Budget has been presented and from a housing market perspective it is of little consequence. There was nothing that directly, or for that matter indirectly, impacted on property prices. However, the reduction in the corporate tax rate to 28.5 per cent from July 2015 adds a pressure to consider investing under a corporate structure where an investment property is not negatively geared. This is particularly so where the investment is going to be held for a considerable period. The difference between the discounted (50 per cent) capital gains tax (CGT) personal marginal rate and the corporate tax rate is now minimal and over time the benefit of the lower corporate tax rate on income could relatively quickly absorb the positive CGT discount benefit.

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April Property Market Update

Two ‘brave’ Budget decisions that would benefit tomorrow’s generation

Our markets are behaving as one would expect in a situation where:

  • The cost of a home has risen to a level where the number of first home buyers capable of being part of the current growth cycle is limited.
  • The RBA is letting all who want to listen know that there will probably be no further interest rate cuts and that all should expect rates to rise in the next 12 months.
  • Consumer sentiment is not unexpectedly strong given the various warnings about a rising unemployment level.
  • Very significant “jawboning” by our Treasurer that we all have to take pain to allow our Federal Budget to return to surplus and government debt levels to be returned to more acceptable levels.

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February Property Market Update

Sydney Market Reaches its Peak

We waited with anxious anticipation for consumer sentiment to improve last year as housing markets should have been performing well in early 2013, but this was not the case. Interest rates were low, which has historically caused property growth spurts. Gradually, sentiment improved and property markets started to show strong growth moving into the last quarter of 2013.

However, recent data indicates that Sydney, the lead indicator market, is starting to look soft and as though it has peaked (see Graph 1).

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December Property Market Update

Sydney and Melbourne moving to a renter’s market

Australian dwellings produced a satisfactory result for the year ending December 2013, indicating that the correction phase in the market has come to an end and growth is again presenting.

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October Property Market Update

Positive news for Australian property

Tis the season to be jolly’ with this year’s Christmas bringing good news to our property market!

Rents are down and there is capital growth in most capital cities. All players in the market will be, or should be happier and feeling more comfortable about their financial positions. This situation bodes well for a happier Christmas with things looking as though they will be better than they have been for a number of years.

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