fbpx
No Comments

Melbourne’s median house price forecast to drop to $740,000: BIS Oxford Economics

Melbourne’s median house price is set to drop to about $740,000 by June next year as the property market continues to weaken, one leading researcher says.

The Victorian capital peaked at a median house price of just under $870,000 about two years ago, on figures from BIS Oxford Economics.

“We think the market will bottom out in early 2020,” the group’s managing director Robert Mellor told a Melbourne conference on Thursday. “Our expectation is that there is still a fair bit of price decline to come through.”

Melbourne house prices are set to fall 13 per cent this financial year and 3 per cent next, he said

Unit prices are expected to fall 4 per cent this year and hold steady in the next.

The research comes as a chorus of economists have predicted further falls in an environment where banks have clamped down on lending under regulatory pressure and the scrutiny of the financial services royal commission.

AMP Capital’s Shane Oliver forecasts a peak-to-trough decline in Melbourne dwelling prices of 25 per cent and NAB tips about 15 per cent. Domain’s Trent Wiltshire expects Melbourne house prices to reach a trough around the middle of the year before edging higher.

Earlier, the Domain House Price Report found Melbourne house prices fell 8.4 per cent over calendar 2018 to a median $833,321.

Melbourne Median House Price Forecast to Drop to $740,000 - Investors Advisors
Melbourne house prices are expected to fall further. Photo: Eliana Schoulal

Mr Mellor warned potential buyers were cautious about purchasing in a falling market, while a low rate of turnover for established properties meant owner occupiers were hesitant to sell.

Other headwinds include the drop-off in investor demand and tighter lending standards. Well-publicised problems with flammable cladding and cracking in unit towers were not helping sentiment around apartments.

“Don’t expect a quick recovery here in Melbourne, given the magnitude of the last boom,” he said.

The right time to trade down would have been at the market peak, he said, but the right time for a first-home buyer to buy “is some time probably in the next 12 months”.

Although the federal election was creating policy uncertainty, Mr Mellor tipped Labor to struggle passing changes to negative gearing tax arrangements through the Senate even if it won government next month.

The policy might be implemented more gradually, or there might be changes to how much in interest payments an investor can deduct from their tax bill, or how many properties were eligible for the tax concessions.

Amid the weak market, Mr Mellor expects the amount of new residential building to fall, following the apartment boom of recent years.

A 23 per cent drop in total building commencements across Victoria is predicted for this financial year.

Dwelling commencements in Victoria are set to drop 24 per cent this year and another 18 per cent in 2019-20.

The steepest falls are expected for attached dwellings, where commencements are set to fall 42 per cent this year and 20 per cent next year, he said.

House commencements are expected to drop a more modest 6 per cent this year and 17 per cent next year.

Building approvals have already dropped 17 per cent over the first half of this financial year, he said.

The downturn is more heavily concentrated in Melbourne than regional Victoria. House approvals in Melbourne are set to fall 10 per cent this year and another 19 per cent next, while the rest of the state will see house approvals rise 2 per cent this year and fall 13 per cent next year.

Population growth would be a bright spot and support the housing market, alongside low interest rates and strong employment, he said.

This article was first published in www.domain.com.au. Here’s the link to the original article: https://www.domain.com.au/news/melbournes-median-house-price-set-to-drop-to-740000-economist-811497/

No Comments

A new survey shows how South Australians feel about their neighbourhoods

Australia Property investing

What makes a neighbourhood feel like home?

A new Life in Australia report, powered by global market research firm Ipsos and released today by realestate.com.au, attempts to answer this question, looking at the key factors that impact on quality of life in local communities.

Factors we feel make somewhere a good place to live in 2019

The report shows safety is at the top of most South Australians’ list when choosing a good place to live.

After that, we value high quality health services, affordable and decent housing, reliable and efficient public transport and access to the natural environment.

These were the top five attributes that study participants chose from a list of 16, ranging across transport, culture, education, health and environment.

How do we rate our local areas in terms of attributes including the economy, house prices, cultural amenities and congestion?

The report also ranks how people feel about certain attributes in their own localities, comparing their answers to those in similar surveys, dating back to 2015.

It shows South Australians are feeling more positive about the economy and their job prospects than they were four years ago.

But conversely, our confidence in affordable housing has dropped over the same time period.

We are also ranking our local areas lower on lack of road congestion (suggesting roads are getting busier).

And, while we are happier with our access to cultural facilities, such as museums, galleries and festivals than we were in 2015, the research suggests we feel less able to participate in sports and recreation this time around.

How South Australians Feel about their Neighbourhoods:Survey - Investors Advisors

Realestate.com.au chief economist Nerida Conisbee says South Australia’s economy is growing, and house prices are on the up.

A growing economy vs housing affordability

Realestate.com.au Chief Economist Nerida Conisbee says the report finding are largely positive for South Australians

“Across Australia, people are feeling more confident (in the economy) and Adelaide is no exception,” she says.

Ms Conisbee says confidence in SA’s economy is increasing due to employment growth and government spending announcements in recent months, including on submarine building and the Australian Space Agency, which is to be hosted in Adelaide.

The finding that housing feels less affordable is disappointing but not surprising, Ms Conisbee says.

“We’ve hit the highest median recorded for Adelaide and we haven’t seen prices coming back,” she says

“It’s not great that housing is getting more expensive but people feel that job prospects are getting a lot better.”

“There’s always two sides to economic success — on one side people have jobs and on the other, it drives population growth which does impact on housing.

Ms Conisbee says increased road congestion also “makes sense” because “Adelaide is growing”.

Real Estate Institute of South Australia CEO Greg Troughton says he was not surprised by the report’s findings.

“The affordability issue seems to be a little bit higher given the other states but I guess South Australians keep demanding quality accommodation at an affordable price,” he says.

“Safety, and health infrastructure have always been a focus. The reliable public transport is disappointing but can be expected to be low as many south Australians look to other modes of transport.”

This article was first published in www.realestate.com.au. Here is the link to the original article: https://www.realestate.com.au/news/a-new-survey-shows-how-south-australians-feel-about-their-neighbourhoods/

No Comments

Life in Australia: what we value about where we live

Living in a safe area with access to good health care services and affordable housing is more important to most Australians than having access to parks and cafes, according to new data.

The realestate.com.au Life in Australia Index report, powered by Ipsos, shows that 67% of the 9,515 Australians surveyed value feeling safe as one of the most important factors in making an area a good place to live.

This was followed by having high-quality health care services nearby (60%), affordable decent housing (58%) and good local job prospects (41%).

What’s important to residents in your city? Use our interactive to find out.

The study, undertaken last October, asked Australians to rank 16 attributes – such as local schools – as the main factors they seek in their ideal location, along with how well they feel their city rates for these same factors.

The data also shows a preference for reliable and efficient public transport (33%) compared to a lack of road congestion (19%), while access to the natural environment (32%) was more important than being able to view or participate in sports and recreation (7%).

A strong sense of community (26%) is also something Australians value about where they live.

Life in Australia: What we Value about Where we Live - Investors advisors

Why we feel less safe

Australians feel less safe now about where they live than they did four years, according to the realestate.com.au Life in Australia Index report and its 2015 findings.

The sentiment doesn’t surprise realestate.com.au’s Chief Economist Nerida Conisbee who says safety is the number one consideration for renters and home owners.

“These would be factors that would make or break, in terms of looking at a suburb. If it didn’t feel safe, you’d be very unlikely to consider that suburb,” she says.

And when it comes to safety, the high ranking also reflects people’s perception of public safety.

Life in Australia: What we Value about Where we Live - Investors advisors

Australians feel less safe now about where they live than they did four years, according to the realestate.com.au Life in Australia Index report and its 2015 findings. Picture: Getty

“I think it’s that thing of people thinking there’s more crime going on because of reporting (on crime) versus the statistics that show there is less crime. I think it’s the way information is disseminated that’s probably making a difference,” she says.

“The more you hear about it, the more you worry about it.”

Data shows the housing boom has led to a notable decrease in local affordable housing.

“If you have a look at that study that’s done on global housing affordability, all Australian capital cities are in the top 20 so it is a very big issue here compared to other countries and it’s top of mind according to this report,” she says.

Access to health services ranks highly particularly in rural or regional areas, says Conisbee.

“If you move to regional parts of Australia it becomes a far bigger deal if you don’t have a local hospital, let alone a local doctor service.”

Which is Australia’s most liveable city?

For the Index survey, residents in each capital city were asked to rate their hometown for its ability to delivering on the 16 aforementioned attributes – and Canberra came out on top.

The ACT and Australian capital was ranked most liveable in the country for the third year in a row, with residents feeling more positive about their city than the national average.

Perth has jumped two places to number two on the list of most liveable cities, thanks largely to a prosperous economy ranking higher with locals.

Adelaide has also jumped two places since last year’s survey, to the nation’s third most liveable city due to a growing economy and increased job prospects.

Brisbane residents reported feeling less safe, and a decline in affordable housing saw it rank fourth in the country for liveability.

Life in Australia: What we Value about Where we Live - Investors advisors

The ACT and Australian capital was ranked most liveable in the country for the third year in a row. Picture: Getty

Hobart dropped three places this year, with an increased cost of housing having a negative impact on its liveability ranking. It is now ranked fifth for liveability.

While Melbourne might be globally considered one of the world’s most liveable cities, that’s not what locals think, rating their city sixth for liveability.

Melburnians feel less safe in their city, despite statistics showing a steady decline in crime, and there’s been a noticeable drop in social cohesion as well.

Rising house prices and tighter lending conditions aren’t helping Sydneysiders feel better about their city, with locals rating it seventh for liveability due to the lack of local affordable housing.

Darwin sits at the bottom of the list with locals rating it the least liveable capital city in the country. The median house price sits at $442,000.

This article was first published in www.realestate.com.au. Here is the link to the original article: https://www.realestate.com.au/news/life-in-australia-what-we-value-about-where-we-live/

No Comments

Developers return to Townsville market with $24m unit project

Investorsadvisors

A $24 million residential apartment project with a focus on environmentally friendly design is set to be launched for a property in Little St, Belgian Gardens.

Plans for the 30-unit development, named Little Street Luxury Residences, include 20 single-storey apartments and 10 three-storey high-end townhouse residences on a 4892 sqm site.

Units will be priced from $495,000 up to $1.5 million.

Townsville-based development company Cable Property Developments are bringing the innovative project to the market.

M Property sales agent Martin McDonough said the directors of Cable had received numerous awards for their work and had a long-term commitment to the region.

He said the project was one of the first major unit developments to be launched in the Townsville market for some eight or nine years.

“We think the Townsville market is ready for this and that the city is on the rebound,” Mr McDonough said.

“We are bringing something new to the market that nobody has seen for some time.”

Mr McDonough said the project’s design took advantage of the site’s northerly orientation to capture cooling ocean breezes that would reduce reliance on electricity, while offering 180-degree ocean and island views just 3.4km from the Townsville CBD.

“Each residence within the development will include access to solar panels and options for battery storage, hot water supplied by heat pumps, recycled building materials, access to parking spaces wired for electric vehicles, energy efficient lighting and appliances and water efficient fittings,” Mr McDonough said.

“Little Street Luxury Residences’ blend of high-end finishes and luxury-style living with a commitment to sustainable design make this project unique for northern Queensland.”

The project will be developed over three buildings with a garden and outdoor space at the front of the property.

Units sizes range from 112 sqm to 283 sqm.

Mr McDonough said an expressions of interest campaign would be launched in the four to six weeks with construction expected to begin in late 2019.

This article was first published in www.realestate.com.au. Here is the link to the original article: https://www.realestate.com.au/news/developers-return-to-townsville-market-with-24m-unit-project/

No Comments

A Sydney suburb wearing a disguise: How Curl Curl hides its wealth with laid-back charm

Wealth comes in many forms, from over-the-top displays to the under-the-radar style of US billionaire Warren Buffet, who still lives in the modest home he bought in the 1950s.

Curl Curl, on Sydney’s northern beaches, has a median family weekly income nudging $3000 a week, well above the NSW average.

James Smyth, principal at SEA-Smyth Estate Agents, says this affluence wears a casual disguise.

“You could see someone wearing a T-shirt and board shorts and you won’t know they’re the CEO of a public listed company,” Smyth says.

How Curl Curl Hides its Wealth with Laid Back Charm? - Investors Advisors
Curl Curl is the kind of neighbourhood where CEOs go incognito in boardshorts and thongs. Photo: Steven Woodburn

Eighteen kilometres north of the Sydney CBD and five kilometres north of Manly, Curl Curl is famous for its outdoorsy lifestyle, from swimming and surfing, to running or walking along the waterfront paths.

Smyth’s family has a long history in the neighbourhood: his grandmother ran a milk bar on the oceanfront Carrington Parade in the 1950s.

He traces the birth of modern-day Curl Curl, with its comfortable family homes and small clusters of apartment buildings, to the mid-1990s, when would-be Manly buyers were priced out of that suburb.

How Curl Curl Hides its Wealth with Laid Back Charm? - Investors Advisors
Buyers can choose from homes in original condition, apartments and more recently built or updated residences. Photo: Steven Woodburn

“There was no negotiation: buyers were just coming in and paying the full asking price. Because they were coming from an area of money, they started building and renovating.”

Today’s house hunters can choose from homes in original condition, a small selection of apartments and more recently built or updated residences, often with impressive water views. They might need to be patient, as Curl Curl only has about 1400 homes, meaning “for sale” signs aren’t all that common.

How Curl Curl Hides its Wealth with Laid Back Charm? - Investors Advisors
You’ll find ample foodie options lining the beach. Photo: Steven Woodburn

Residents enjoy South Curl Curl Lifesaving Club’s cafe, and for a bigger range of dining there is the nearby Harbord Diggers and Freshwater village.

The B-line bus service has been warmly welcomed by CBD commuters – from nearby Brookvale, the commute takes roughly half an hour.

Smyth says two-bedroom apartments overlooking the beach are priced from about $900,000. Free-standing three or four-bedroom homes typically command between $2.1 million and $2.7 million.

How Curl Curl Hides its Wealth with Laid Back Charm? - Investors Advisors
The beach lifestyle is a key drawcard luring potential buyers to the area. Photo: Steven Woodburn

Will Bird and his then-fiancee were living in Perth when they travelled to the northern beaches to get married.

The couple rented a unit overlooking the surf club at Curl Curl and decided if they ever relocated to Sydney, this is where they would like to live. They have now called Curl Curl home for three years.

“I love the beach lifestyle,” Bird says. “Everyone says that but there’s no other beach in Sydney that gets such consistent surf. And for an urban beach, it’s still not overpopulated.”

Two homes in the area

1 Adams Street

1How Curl Curl Hides its Wealth with Laid Back Charm? - Investors Advisors
1 Adams Street, Curl Curl NSW. Photo: Supplied

On a level, 651-square-metre corner block less than 10 minutes’ walk from the beach and Harbord Lagoon, this two-storey home is configured in duplex style. Renovating or rebuilding might appeal.

Cunninghams have scheduled a March 23 auction and are quoting a $1.85 million bidding guide.

10 Gardere Avenue

How Curl Curl Hides its Wealth with Laid Back Charm? - Investors Advisors
10 Gardere Avenue, Curl Curl NSW. Photo: Supplied

This is the property’s first time on the market in 50 years. The house, on a 456-square-metre block and 300 metres from the beach, is largely in original condition, offering plenty of scope for improvement.

The March 30 auction is fast approaching, with Stone Real Estatehandling the campaign. Expect to pay between $2.5 million and $2.75 million.

This article was first published in www.domain.com.au. Here is the link to the original article: https://www.domain.com.au/news/the-sydney-suburb-wearing-a-disguise-how-curl-curl-hides-its-wealth-with-laid-back-charm-805737/

No Comments

Best suburbs to sell a home based on past 10 years of price growth trends

Long-time homeowners across Sydney are still reaping major windfalls from their home sales, despite recent falls in prices.

An analysis of sales records has revealed the average Sydney homeowner selling a property bought 10 years ago made about $475,000 in resale profit.

The average apartment seller who owned their home for the same period pocketed about $373,000 in median resale profit, according to the CoreLogic data.

The big profits were amassed in an otherwise subdued market.

Sydney’s median property price dropped nearly 11 per cent over the past year and the number of buyers reporting they’re actively looking for property fell about 25 per cent.

Realestate.com.au chief economist Nerida Conisbee said the profits showed the recent downturn had a minimal impact on sellers.

Best Suburbs to Sell a Home Based Price Growth Trends - Investors Advisors

Many of the historic homes across Strathfield are being restored by young families.

“Recent falls in prices are not that significant when you compare them to long-term trends,” Ms Conisbee said.

“Most homeowners benefited from an incredible run-up in prices over many years. They’re not affected by the weaker market in the same way as those who bought when prices were at their peak, and they’re not the majority of sellers.”

Ms Conisbee added that sellers of homes in areas where there was rapid gentrification and population growth were in a particularly strong position.

“Those who own homes in the inner west would have done very well,” she said. “A lot of young people have moved in over the years and renovated the homes, making the region more attractive to other buyers and that’s pushed up the prices.”Andrew Winter: How to flaunt your Unique Selling Point

Sales data confirmed that detached house sellers in the Strathfield council area were getting the biggest resale profits in Sydney.

The average seller resold their house for about $1.18 million above the price they paid 10 years ago.

The growth equated to an 8.7 per cent jump in prices every year — a faster rate of average annual price increase than anywhere in Sydney.

The median price of a house in the area was under $1 million at the end of 2008 and is now $2.1 million.

The boost in prices followed a 15 per cent jump in the size of the local population between 2011 and 2016, when the last two censuses were taken.

Best Suburbs to Sell a Home Based Price Growth Trends - Investors Advisors

Strathfield is one of Sydney’s oldest suburbs and many of the homes have a long history.

Devine Real Estate principal Steven Devine said Strathfield also benefited from being at the “geographic centre” of Sydney.

“It’s a better bet for people like medical professionals than somewhere like the eastern suburbs because it’s easier to get around the whole city,” he said.

Mr Devine added that sellers who focused only on the past 18 months of price movements needed to consider the bigger picture.

“It’s true that you will have to accept a price that’s lower than you could have got a year ago. But when you consider the price you could have got three years ago, you’re still significantly up,” he said.

Best Suburbs to Sell a Home Based Price Growth Trends - Investors Advisors

Parramatta also had significant price growth over the past decade. Picture: AAP/Justin Sanson

Sellers in nearby Burwood, along with Ryde and Parramatta have also been scoring big wins.

Burwood house prices remain up $850,000 on what they were 10 years ago, while in the Ryde council area the median price difference is $909,000. House prices in the Parramatta LGA have swelled by $660,000 over the decade to hit a median of $1.19 million.

LONG-TIME RESIDENTS

They first moved there 44 years ago knowing little about the suburb — but Rod and Lyn Rimes say they lucked out by buying in Strathfield all those years ago.

The couple have watched their suburb transform into one of Sydney’s most popular areas and became heavily invested in its success along the way — Mr Rimes was a local councillor for many years and served as Strathfield mayor in 1985.

Best Suburbs to Sell a Home Based Price Growth Trends - Investors Advisors

Rod and Lyn Rimes have lived in Strathfield for 44 years.

“It’s a wonderful area,” Mr Rimes said. “When we first moved here there was little open at (Strathfield) square but that’s all changed.

“It’s become very convenient. You’re in the city now in 20 minutes.”

The couple are taking their much loved home at 54 Redmyre Rd to auction with Joe Campisi of Devine Real Estate on April 6 after deciding to downsize to something smaller.

“The house is still very much like it was in 1905 when it was built,” Mr Rimes said. “It’s got these lovely big rooms and high ceilings.”

This article was first published in www.realestate.com.au. Here is the link to the original article: https://www.realestate.com.au/news/best-suburbs-to-sell-a-home-based-on-past-10-years-of-price-growth-trends/

No Comments

Savvy buying: Experts tip Melbourne’s overlooked and underappreciated suburbs

In Melbourne’s inner ring, there are few suburbs that escape the attention of buyers looking for the best compromise between distance to the city, value, and amenity.

But agents say there are a few underappreciated pockets which are often overlooked by buyers for their size or perceived attractiveness or status.

East
Melbourne Suburbs Overlooked and Unappreciated by Buyers
17 Baker Parade, Ashburton is going to auction on March 16. Photo: Marshall White

While most of the east receives more love than other parts of Melbourne, a few key areas were overlooked by the more wealthy residents and offered aspirational buyers a chance to get a leg up into the leafy enclave, founding director of Jellis Craig Alastair Craig said.

“East Malvern, parts of Glen Iris, Ashburton, Ashwood and North Balwyn,” he said when asked to list suburbs he thought were unappreciated.

“We saw some really good growth in them and there are pockets in them that represent good value.

“Mount Waverley and areas like that, they’re still very popular areas. But there is a growing trend in those suburbs where prices have moved tremendously, including towards Doncaster.”

Mr Craig said in recent years urban sprawl made the relatively close suburbs more attractive.

“They used to be seen as too far out. Now they’ve improved services, they’re far more accessible,” he said.

Northwestern suburbs
Melbourne Suburbs Overlooked and Unappreciated by Buyers
36 Farnham Street, Flemington is for sale with an asking price of $890,000 to $970,00. Photo: Nelson Alexander

Western and northwestern suburbs are often seen as budget alternatives to the better-connected parts of Melbourne, but Seddon and Footscray are no longer the secret known only to savvy buyers that they once were.

Nelson Alexander agent Ryan Currie said Flemington was often overlooked, but was coming back into vogue as prices fell.

“People can definitely buy something sub a million in Flemington, when previously it was tipping over that,” he said. “Otherwise they were jumping it as a suburb. They were looking to get a bit more bang for their buck in Maribyrnong and Maidstone.”

But even then, Mr Currie felt Maribyrnong was underappreciated.

“It’s got a lot of upside to come, and it’s a good lifestyle suburb.”

Northeastern suburbs
Melbourne Suburbs Overlooked and Unappreciated by Buyers
17 Temby Street, Watsonia has an asking price of $1 million to $1.1 million. Photo: Jellis Craig

Just outside affluent Rosanna and Ivanhoe, Miles agent David Blythesaid Watsonia was making waves despite being little known to most.

As well as tiny, sleepy Watsonia, Mr Blythe said MacLeod wasn’t as popular with buyers as it should be.

“MacLeod and Watsonia shopping villages are really coming alive. Then they’re on the Hurstbridge line, which is about 15 to 20 minutes up the line from the city,” he said.

“The bang for your buck is great.”

Similarly, Mr Blythe said Heidelberg Heights was an underrated suburb due to its history as a housing commission area. “There’s a perception that’s not really reality,” he said.

“There’s pockets of Heidelberg Heights that are really good. The [best] road would be Waiora Road. There’s a really high calibre suburb, Rosanna, that’s literally [on the other side] of the road.”

Southern suburbs
Melbourne Suburbs Overlooked and Unappreciated by Buyers
10 Gardenia Road is one of four homes for sale in Gardenvale at the time of publication. Photo: Thomson

Finally, in the south is Gardenvale, one of the city’s smallest suburbs.

Gary Peer director Leor Samuel said the suburb was often overlooked because buyers didn’t know it existed.

“[Buyers] don’t [know] because you don’t ever search Gardenvale,” he said. “It sort of just pops up. They look at Elsternwick and Brighton.

“They say things like, I really love this area and homes rarely come up.

“It doesn’t have much turnover. There’s not even a median, so few homes go up for sale.”

Mr Samuel said the good-sized blocks and period homes made the oft-forgotten suburb a hit with buyers who do stumble upon it.

This article was first published in www.domain.com.au. Here is the link to the original article: https://www.domain.com.au/news/melbournes-overlooked-and-unappreciated-suburbs-809252/

No Comments

Sydney faces shortfall of more than 200,000 homes for low to moderate-income earners, report shows

Sydney needs to find room for 200,000 more homes to help low to moderate-income earners who face chronic rental stress, new research has found.

The biggest area of need is the inner south-west, according to University of New South Wales researchers, where 33,600 homes are needed within the next two decades just to keep up with demand at that income level.

Sydney has a huge backlog in social and affordable housing thanks to decades of undersupply, said research fellow Laurence Troy from the university’s City Futures Research Centre, ahead of the release of the research on Thursday.

The Parramatta region and the south-west also have a lack of appropriate housing and face a shortfall of 28,000 and 23,000, respectively.

“Social housing doesn’t currently deliver enough to even maintain the same share [of the market] and while affordable housing is being built by the community sector, it’s not enough to meet the current unmet backlog,” Dr Troy said.

A further 117,000 properties are needed across the rest of the state, which Community Housing Industry Association chief executive Wendy Hayhurst said indicated the urgent need for government action.

ADDITIONAL SOCIAL AND AFFORDABLE HOUSING NEEDED BY 2036
Region Dwellings needed
Inner South West33600
Parramatta28000
South West23900
City and Inner South17700
Blacktown15200
Inner West13500
Outer West and Blue Mountains13000
North Sydney and Hornsby11500
Outer South West10600
Eastern Suburbs10300
Ryde7000
Northern Beaches6300
Sutherland5400
Baulkham Hills and Hawkesbury3800
Source: City Futures Research Centre.

“It’s a huge total, but if we turn our back on it, all it will do is get bigger and bigger, and more difficult and more difficult to solve … it won’t go away,” she said.

Ms Hayhurst, whose organisation commissioned the research, said demand for social and affordable housing was greatest in the city’s outer regions because lower income earners had already been pushed to live there. But, she noted, this did not mean this was where the most new housing should be built.

Dr Troy added while it was more affordable to build fringe estates where land was cheaper, this would not have the same benefit as having a spread of social and affordable housing across the city.

Delivering such a huge amount of social and affordable housing would cost billions, with the report indicating government would need to chip in $3.3 billion a year under the preferred funding model to meet demand. More than $1.2 billion would be needed for housing in Sydney alone.

Dr Troy said a capital grant, combined with money available though the federal government’s bond aggregator, would be the most efficient way to fund supply long-term. He said if combined with any private housing development that in turn raised capital for social and affordable housing, annual funding needed for Sydney properties could drop to $345 million.

He said while an ongoing subsidy was often more appealing to governments than an upfront payment, it could be more costly in the long term.

Along with picking the right funding model, Ms Hayhurst said the delivery of social and affordable housing could be greatly affected by affordably housing targets, such as those put forward by Labor and the Greens, as well as by government giving up land – which could make up between 40 and 60 per cent of development costs – for redevelopment.

The findings come ahead of a cost of living rally to be held Thursday night, which will call for at least 5000 new social housing homes to be built across the state each year. The rally at Sydney Town Hall, expected to draw about 2400 community leaders and members, will also call for government action on housing insecurity, rental affordability and energy costs.

A spokeswoman for Social Housing Minister Pru Goward said the government was on track to deliver 23,500 new and replacement social and affordable housing dwellings over 10 years. An extra 3400 homes were expected to be delivered by community providers under an affordable housing fund.

The opposition was contacted for comment.

This article was first published in www.domain.com.au. Here is the link to the original article: https://www.domain.com.au/news/sydney-faces-shortfall-of-more-than-200000-homes-for-low-to-moderate-income-earners-report-shows-808928/

No Comments

Governments urged to spend billions to meet Victoria’s housing shortfall

Victoria’s social housing stock is in urgent need of new supply, with one researcher reporting a cash injection of $960 million needed in just the first year of a long-term overhaul.

The University of NSW’s City Futures Research Centre report, released on Thursday, showed that under a capital grant funding model, a further $744 million in land and cash will also be needed to build affordable homes across the state.

Separate figures show 225,600 new social and affordable homes will be needed in Victoria by 2036.

That number takes into account those under rental stress who are spending more than one-third of their income on rent.

Government Suuport to Meet Victoria Housing Shortfall - Investors Adviosrs
Melbourne urgently needs more affordable housing. Photo: Wayne Taylor

Report author Laurence Troy said while the outlay was huge, spending the money on social and affordable housing would mean cost savings for governments.

“Based on our modelling, the best and cheapest way for governments to deliver on our unmet housing need is to fund it through a combination of upfront grants and low-interest, government-supported financing,” Dr Troy said.

He said the federal government spent $11.8 billion on negative gearing and capital gains tax subsidies for property investors each year. Funding social and affordable housing until 2036 would cost an estimated $8.6 billion annually across the nation.

“Delivering below-market rental housing through the not-for-profit sector, as opposed to the private equity model, will save $3 billion a year by removing developer mark-ups and shareholder returns,” Dr Troy said.

The report comes as housing and community sector organisations ramp up the Everybody’s Home campaign in the lead-up to the federal election. The groups are demanding 225,600 more social and affordable houses in Melbourne alone.

The need is most pronounced in the inner city, western suburbs and south-eastern suburbs, according to the UNSW report.

Dr Troy said the cost of the existing housing market was adding pressure to low-income families in these areas.

“Higher cost housing [in the inner city] leads to people paying more rent and more chance of people being in rental stress. Meanwhile there are lower income earners [in other areas], which is how you end up with higher rental stress in those areas,” he said.

Dr Troy said governments should not just be building social and affordable housing in suburbs in need but across the city.

National spokesperson for Everybody’s Home Kate Colvin said the cash figures would be surprising to politicians, many of whom might be unaware of how big the issue was in their electorates.

“I think this is an issue that people who struggle to pay the rent every week have been feeling for some time – and there are thousands and thousands of people every week,” Ms Colvin said.

Adding to the issues in Melbourne were the low rental vacancy rates – 1.8 per cent in January –  which saw people on extremely low wages struggle to compete in the private rental market.

More social and affordable housing across Melbourne, and Victoria, would help to reduce the pressure on rent costs.

“One of the other things the report is telling us is that the lowest cost way of delivering this housing is via upfront capital grants from a land contribution from government … it’s highlighting the need for both state and federal governments to look at their land holdings and contribute the land and capital that’s needed,” she said.

This article was first published in www.domain.com.au. Here is the link to the original article: https://www.domain.com.au/news/big-spenders-governments-need-to-spend-billions-to-meet-housing-shortfall-809270/

No Comments

World-first building in Melbourne to provide home for young people sleeping rough for as long as they need

It’s not the first time a “world-first” building is being claimed by Melbourne.

But when it opens in April, Melbourne City Mission’s Frontyard Youth Services in King Street will take the descriptor – and for good reason.  Near the corner of Flinders Lane, it will be a place where young people living on the streets, or at risk of homelessness, can find a home and get the support services they need 24 hours a day. A world-first, according to those in the youth services field.

Melbourne City Mission homelessness and justice general manager Wayne Merritt said there was an urgent need for a building offering accommodation and health, legal and drug and alcohol services for young people aged 16 to 25 in the city.

Between 30 and 60 young people seek crisis accommodation from Frontyard Youth Services each day. 

“I think, over the past six years, there’s been a noticeable increase in young people sleeping rough in the city,” Mr Merritt told Domain. “[And] we know when young people come to our services, we’ve only got one chance to help them, otherwise they’re gone.”

World-First Building in Melbourne for Homeless Young People
The refurbished Frontyard Youth Services building in King Street. Photo: Supplied

Frontyard’s redeveloped building is four storeys, with the top two floors providing 18 rooms for accommodation. It also features kitchens for young people to cook a meal, sensory rooms for quiet contemplation and offices and consulting rooms for health, mental health and legal services.

The building is not only a first for youth services, it is also a first of sorts for world-renowned Melbourne-based architects Fender Katsalidis and builders Built.

For both, it’s their first significant pro bono job in Melbourne. They teamed with the Property Industry Foundation to help deliver $8 million worth of refurbishment works, funded in part by the state government with other philanthropic donations.

Built project manager Luke Rankin said the build was challenging and inspiring for the company, which has previously undertaken other, much smaller, pro bono projects.

He said about 90 per cent of the internal building changed, meaning lots of work for the team involved.

“We’ll probably be lacking a bit of sleep by the time it opens,” Mr Rankin said.

World-First Building in Melbourne for Homeless Young People
The refurbished Frontyard Youth Services building in King Street. Photo: Supplied

Fender Katsalidis Associate director Jessica Lee and director David Sutherland said the design was undertaken with Melbourne City Mission to make the building somewhere young people would feel welcome and calm.

“We wanted to create a sense of comfort from the time of arrival [at the building] because it’s a very stressful time,” Ms Lee said.

Mr Sutherland said the initial brief was to add two floors to the existing building for accommodation. When it became clear that would not be approved under planning regulations, the decision was made to gut the building and design it.

Mr Merritt says the entrance features soft furnishings, lots of plants, natural light and wooden finishes – all which create a calm, open and warm feeling for young people suffering from heightened trauma and anxiety about entering.

“There are lots of lines of sight, so there are no surprises – they know what they’re stepping into,” he said.

The crisis accommodation has also been specially designed and will allow young people to stay as long as they need.

Mr Merritt said he is already expecting the 18 beds to be full when the building officially opens and hopes that the extra rooms can help Frontyard in their mission to reduce the number of young people who end up in a cycle of adult homelessness.

“It’s so exciting, it’s a really big project and is going to allow us to show the sector, Australia and the world what can be done,” Mr Merritt said.

This article was first published in www.domain.com.au by MELISSA HEAGNEY. Here is the link to the original article: https://www.domain.com.au/news/world-first-building-to-offer-home-to-young-people-sleeping-rough-808313/