The number of houses sold in Melbourne last year was the lowest since the mid-1990s, according to new figures from Land Victoria. Its Annual Guide to Property Values shows that 53,112 houses were sold in Melbourne last year, a fall of 13.35 per cent on 2009. It is a far cry from 2001, when the market was at its peak with 70,137 houses sold. Despite the fall in numbers, median prices and total values still rose. Victorian Valuer-General Robert Marsh said the total value of sales of all property in Victoria increased 1.4 per cent from $74.62 billion in 2009 to an estimated $75.68 billion last year. In Melbourne, the median jumped 18 per cent from $420,000 in 2009 to $495,000 last year. In general terms, for the past 10 years house prices have continued to grow, with Melbourne’s median house price rising 160 per cent – from $190,000 to $495,000 – between 2000 and 2010. The total number of units and vacant house block sales also fell last year. More than 25,000 units were sold in Melbourne, the lowest since 2004, while 12,473 house blocks were sold, a 43 per cent decline on 2009. It was the lowest number of vacant house blocks sold since 1996. Unit/apartment median prices in metropolitan Melbourne rose 12.6 per cent compared with 5.5 per cent for unit/apartment prices in country Victoria. Metropolitan house block prices rose $20,000 to $185,000. NEW APARTMENT COMPLEX The north end of the CBD is the latest Melbourne area to become home to a new apartment complex. Fulton LN is a 700-apartment project from Malaysian company S.P. Setia, set in Fulton Laneway between Franklin and A’Beckett streets. In its first foray into Australia, the company said the 107m tall building would deliver a mix of residential, commercial and retail tenancies. The distinctive architecture by acclaimed Karl Fender (FKA, Melbourne) offers one, two and three-bedroom apartments, a green arbour facade, garden terrace, gymnasium, pool, theatrette and an exclusive entertaining and dining space inspired by Melbourne chef Adam D’Sylva. Like most new developments, the environment is high on the agenda, with bicycle facilities, grey-water recycling, a water tank, natural ventilation, green wall and an average six-star energy rating. Prices start at $370,000 for one bedroom at 45sq m, $515,000 for a two-bedroom starting at 60sq m and $1,050,000 for three-bedroom dwellings starting at 115sq m. Details: www.fultonlane.com.au MORE FIRST-HOME BUYERS A softer housing market and stable interest rates are luring more first-home buyers into the market, according to mortgage broker Loan Market. Spokesman Paul Smith said 35 per cent of the company’s inquiries last month came from first-home buyers, a 10 per cent increase on May. “We have gone eight months without an interest rate rise and this has not only given a much-needed reprieve to households dealing with increased costs of living, but has encouraged those looking to purchase their first home,” he said. Mr Smith said Loan Market’s inquiries from investors were up 20 per cent in [...]
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MORE houses sold in Berwick than anywhere else in Melbourne in the year to April 30, the latest RP Data figures show. And the market was strong, with most buyers getting their asking price and selling within two months of listing. > > Should more land be released for housing in Berwick? Tell us below A total of 744 houses changed hands at a median of $450,000 – an increase of 11 per cent for the year and 54 per cent during the past five years. Second place went to Pakenham, where 694 houses sold at a median of $340,000 – an increase of 10 per cent for the year. To add extra comfort for Pakenham householders, the market moved up 2 per cent in the latest quarter. It was 4 per cent weaker in Berwick in the final quarter, but that did little to take the gloss off overall strong figures. Barry Plant Berwick principal Paul Dabb credited the strong performance in the suburb to the limited numbers of houses for sale, no new significant estates opening up and the appeal of established infrastructure and Berwick’s general amenities. “There is no questioning the appeal of the suburb. People are paying in the order of $350,000 for a block of land here now,” Mr Dabb said. O’Brien Real Estate principal Dean O’Brien agreed. “There’s no question there’s a shortage of property for sale in Berwick and this is helping keep prices firm,” Mr O’Brien said. “The consistency of interest rates, too, has helped throughout the mortgage belt area. “In the short term, at least, I don’t expect any great change to any of what we are now seeing.” [...] Sales of big-ticket commercial properties more than quadrupled between the first and second quarters of this year, CB Richard Ellis research has found. Investment sales of more than $20 million in the office, retail and industrial sectors reached $2.7 billion in the second quarter, a 432 per cent increase on the first quarter’s $638 million turnover. And turnover for the 2010-2011 financial year reached $8.9 billion, 32 per cent higher than the previous financial year. Melbourne dominated the market in the second quarter, continuing to enjoy the biggest single share of investment turnover with 41 per cent. CBRE global research and consulting executive director Kevin Stanley said the turnover for this year’s first quarter – typically a quiet time – had been the lowest for almost 20 years. Queensland’s floods and cyclones, the Japanese and New Zealand earthquakes and “general global uncertainty” were partly to blame, Mr Stanley said. Many mid-to-major transactions that had been in the pipeline since late last year were wrapped up in the second quarter, contributing to the spike in sales. CBRE’s analysis found that across Australia in the second quarter: THE office sector dominated sales, accounting for 52 per cent of turnover; THE retail sector experienced improved sales, accounting for 40 per cent of turnover; INDUSTRIAL sales were slightly below average at 8 per cent; and FOREIGN investors continued to be major players, buying 37 per cent of properties by volume against a long-term average of 10 to 15 per cent. CUT TO THE FRINGE Big businesses will need to look outside the CBD for office space over the next five years as rents soar, according to CB Richard Ellis. The company predicts rents in city centres will grow by 12 to 24 per cent during the next three to five years. As vacancy levels fall, space with green credentials and large enough floorplates will also become less available. With CBRE research showing comparable gross rents in CBD fringe suburbs average 32 per cent less than in the CBD, global research and consulting executive director Kevin Stanley said big businesses could be pushed to the fringe or forced to split operations between a CBD head office and city fringe premises for other functions. “Looking back, the gap between CBD rents and the fringe markets never closes,” Mr Stanley said. St Kilda Rd demonstrated a big gap, with its rents 35 per cent lower than in the CBD. On the other hand, CBRE’s national survey found the smallest gap between CBD and city fringe office rents was in Southbank, where the gap between its rents and those in the CBD is 18 per cent. Mr Stanley said that could be attributed to higher-quality buildings being constructed in Southbank in recent years. OFFICE DEMAND PEAKS AT BOX HILL Box Hill has recorded the lowest office vacancy rate in Australia, Colliers International research shows. The suburb has a vacancy rate of just 1.38 per cent for its 150,000sq m of office space. Colliers Melbourne East director in charge Rob Joyes said demand in Box Hill had already led to rent increases of 10 to 15 per cent during the past year, with more … [...] If you’re confused about the health of Melbourne’s property market, you’re not alone. There have been conflicting signals in the past few months, depending on who you talk to. The latest mixed signals come from finance experts, with financial comparison website ratecity.com.au saying homebuyers are slowly moving back into the market, while broker Loan Market says the Australian housing finance market is off to its worst yearly start in more than a decade. RateCity chief executive Damian Smith said data from the Australian Bureau of Statistics shows the total number of home loans taken out in April increased for the first time since December 2010, a sign that borrowers were more confident than a few months previously. But Loan Market chief operating officer Dean Rushton said the ABS figures for the first four months of 2011 showed the number of home loans approvals at their lowest level since 2000. “Consumer confidence remains low and we’re seeing them holding off spending and borrowing in most sectors,” he said. It’s no wonder buyers remain cautious as they wait to see what the market holds. MORTGAGE BROKERS ‘AT WAR’ That confusion is exacerbated by the war being waged at the moment by mortgage brokers on the government over the banning of home loan exit fees. The ban, trumpeted as giving homeowners more freedom to find cheaper mortgage rates, has been widely condemned by the Mortgage & Finance Association of Australia. It argues a ban on exit fees will act against the most competitive component of the mortgage market – the non-bank lenders – and take away the sector of the market that always kept interest rates low. The association’s latest salvo against the government follows its survey which shows the most important factor for more than half of those questioned over choosing a mortgage was interest rates, while exit fees were important for just 1.7 per cent of respondents. Association chief executive Phil Naylor said the survey undermined the government’s argument. “Banning exit fees will not boost competition among mortgage lenders,” he said. APARTMENTS ON PARADE Another week, another apartment development in Melbourne, this time in Northcote. Merri Merri Developments, a joint venture of some of the leading property development and construction professionals in Melbourne, is joining forces with Carabott Holt Architects to develop Parade, at 26-38 Merri Pde. Parade is a selection of one and two-bedroom apartments that boast uninterrupted city skyline views over Merri Creek. Architect Amelia Attrill said Parade’s exterior would utilise red and charcoal brickwork, timber paling balustrades and metal cladding to the upper levels. “This infill development has been designed to respect the existing Merri Parade streetscape,” she said. Prices start at $350,000. SWITCH ON TO SAFETY As winter starts to bite in Melbourne, building advisory service Archicentre has warned that electrical problems are one of the most frequent building faults revealed by the Victorian Government’s Home Renovation Service and are closely linked to hospitalisation and fatalities. Across Victoria, electrical hazards were reported in 23 per cent of homes inspected and many of them pose a fire risk. Archicentre state manager David Hallett said common electrical problems revealed during the inspections included defective wiring, unearthed power points and antiquated switchboards without residual current devices (safety switches) installed. “A large proportion of electrical problems have been caused by the owners themselves, or previous owners, personally installing additional power points,” he said. “This illegal wiring is extremely dangerous and increases the risk of house fires and can be deadly for occupants or visiting tradespersons. Electrical wiring should only be undertaken by a licensed electrical contractor.” Archicentre provides a free home safety inspection service in Victoria for aged or disability pension card holders, which is fully funded by the Department of [...] BOROONDARA’S blue ribbon property market will be put to the test in the next few weeks, with more $1 million-plus houses coming onto the market. David Morrell, of buyers’ advocate Morrell and Koren, said the top-end market ($3 million-plus) remained “untested” this year. “You’d need a cattle prod to start it,” Mr Morrell said. “Buyers and sellers are treading water. It’s the first to blink.” Buyer’s Advocate Mal James said clearance rates during the next few weeks would give a better idea of the market. Mr James said 29 $1 million-plus properties in Boroondara went to auction last weekend and 45 were scheduled to go under the hammer this weekend. Hocking Stuart Hawthorn director Glen Coutinho said the market had “opened strong with a good supply of listings”. “The majority of people are back from holidays and property inquiries are up,” Mr Coutinho said. “So far it’s a pretty even balance of buyers and sellers.” He predicted “reasonable growth” throughout the year, underpinned by a stable economy, good demand for quality and “reasonably low” interest rates. [...] Last month’s fall was linked to the ongoing hikes in Australian interest rates . Australia was the first economy to raise rates from a 50-year low as the economic downturn eased. Other major economies opted for lower interest rates to … [...] 3. Swiss mining giant Xstrata has announced that it will suspend projects worth A$6.6bn (£3.8bn) in response to the Australian government’s push for a new 40pc tax on mining profits. Australian interest rates on hold [BBC NEWS] Jun. 1. … [...] 3. Swiss mining giant Xstrata has announced that it will suspend projects worth A$6.6bn (£3.8bn) in response to the Australian government’s push for a new 40pc tax on mining profits. Australian interest rates on hold [BBC NEWS] Jun. 1. … [...] The Australian bank chief hinted that China’s need to stem growth was a major reason behind the decision to keep Australian interest rates on hold – signalling an end to the programme of rate hikes. Get in touch now for a live exchange … [...] Japan First-quarter Economic Growth Below Forecast · UK’s economic growth revised up · ‘Strong’ growth for India economy · Australian interest rates on hold · Manufacturing growth slows. Tags: australian, continued, developed, economy, … [...] |
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