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Melbourne and Geelong Growth Areas Achieving a Robust Sales

The new house market continues to experience relatively buoyant purchaser sentiment, despite ongoing strict lockdown measures, with Melbourne and Geelong growth areas achieving a robust total of 1,532 lot sales in September.

Demand for new dwellings has undoubtedly benefited from the $25K Homebuilder Grant and collapse in turnover activity in the established market. Furthermore, buyer preferences are also shifting to the growth of areas, which provide the bigger hoes and greater space that is becoming increasingly desirable as more people work remotely, all at a more affordable price that is attainable for the first home buyers.

Melbourne & Geelong Property Market Sales-Investors AdvisorsGross sales increased by a solid of 194 lots of 14.5% from the previous month. More than half this escalation occurred in Wyndham, which clawed back market share lost to Geelong during the previous two months, after Geelong also witnessed the largest fall in monthly lot sales. Heading in September, Wyndham contained the greatest supply of titles/hear titled lots, which continue to be in high demand from purchasers in response to Homebuilder grant. Overall, 32% of total sales were titled lots, with a further 27% likely to be eligible for the Homebuilder Grant as they are expected to be titled before the end of March 2021.

However, the deterioration in economic and employment conditions has elevated price sensitivity among purchasers. This has led to an acceleration in the monthly rate of decline in Melbourne’s median price over September to 2.1% drooping to a value of $300,510. Although some of the fall was attributed to the reduction in the median lot size, the per sqm lot price was also down by 0.9% over the month. Significantly, lot pricing from both a median and per sqm perspective are now both at their lowest point since May 2019, which coincided with the trough in the previous market downturn.

The reopening of estate sales offices from October, albeit only for private appointments, is still likely to build on the momentum in sales activity in the growth areas. This has already manifest itself through improving enquiry levels during the first half October, as owner occupiers look to take advantage of the current enhanced incentives available.

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City of Logan Emerges as Global Investment Hotspot

Logan Real Estate as Investment Hotspot -Investors AdvisorsThe City of Logan is fast emerging as a global investment hotspot in south-east Queensland, buoyed by a strong economic track record, historic levels of infrastructure investment in the pipeline and business confidence on the rise.

Logan has continued to attract a number of multinational businesses and fast-growing start-ups looking to capitalise on the city’s growth potential and enviable location between Queensland’s capital, Brisbane and tourist destination the Gold Coast.

The launch of autonomous drone delivery services in Logan by Wing — a subsidiary of global technology company Alphabet — is just one of the businesses that have funnelled a total of $100 million of private investment into the city over the past 12 months.

Logan is just one of four locations in the world that now has access to Wing’s air delivery service, which flies a range of convenience items by air in just minutes.

Under the helm of chief executive James Ryan Burgess, Wing will focus their Queensland expansion plans in Logan first, with select households in the suburbs of Crestmead and Marsden already having access to the service.

Burgess said what made cities like Logan most attractive for investment was not only the demographic factors but the opportunities driven by growth.

“Logan is one of the fastest growing areas of Queensland, so that’s a great fit for us because drone delivery makes it much easier for people to get the things they need in rapidly expanding metropolises,” Burgess said.

“Logan is also a very innovative community, and the growth and excitement around the city makes it a great place for us to start our Queensland operations.”

Logan is located in the heart of south-east Queensland where around 70 per cent of the state live, and is predicted to be the second fastest growing city in this region.

In just over 20 years, Logan’s population is predicted to grow more than 50 per cent to around 548,000 residents.

This has led to an unprecedented level of infrastructure investment, with more than $18 billion of publicly funded projects under way to support the growing residential population.


Logan Real Estate as Investment Hotspot -Investors AdvisorsEarlier this year, a $1.2 billion agreement — the largest of its type by any government in Australia, was signed by local authorities and private developers to build essential infrastructure in Logan’s Priority Development Areas Yarrabilba and Greater Flagstone.

This follows the completion of Transurban Queensland’s $512 million Logan Enhancement Project in August, which increased freight productivity by reducing road travel times along some of the busiest transport routes in the region.

Major infrastructure projects in the pipeline has triggered a surge in commercial activity along the Logan Motorway corridor, with large national and multinational businesses including Metcash Hardware, DHL, Queensland Logistics Service, Huhtamaki and Pinnacle Hardware setting up operations in Logan’s industrial precincts.

It’s not only the city’s efficient transport connections and affordable land driving this investment, Logan has advantages beyond its borders.

Within a 40 kilometre radius, Logan has access to a regional catchment of over 2.6 million people, a vast network of suppliers and a diverse pool of potential talent for employers to draw from., the world’s largest on-boarding, compliance and professional development platform, recently relocated their headquarters from Brisbane to Logan to take advantage of this accessibility.

Co-founder Vu Tran said running a global company from Logan was a strategic decision for and their future plans.

“Being in Logan has provided us with the opportunity and space we need to grow and also attract the talent that we need for our growing markets,” Tran said.

“Having businesses like Ikea, John Deere, Avery Dennison all based in the area means they are potential partners for us to engage with.” has offices in the United States, South Africa, Vietnam, United Kingdom and Malaysia, and is on track for further expansion, recently securing more than $30 million of investment led by M12, Microsoft’s venture fund.

The increasing investment in Logan is reflected in the city’s economic report card – an annual 3.9 percent increase in the Gross Regional Product in the year ending 2017-2018 and the highest percentage of jobs growth in over fifteen years.

The arrival of businesses like and Wing could mark the beginning of an exciting chapter in the city’s development.

For Wing, the city of Logan will be their largest investment in Australia to date and will play a role in shaping what the company will do in cities around the world.

“We’re really going to be investing here in Logan, learning as much as we can from the community and over time looking to apply that to other countries and cities that we may go to,” Burgess said.

“For now, it’s all our attention on Logan and making sure we offer a great service for the community.”


*Note: This article is originally posted in this link.

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Pros and Cons of Buying off the Plan - Investors Advisors

Many people are hesitant to “buy off the plan” because of the negative associations with this term. However, this reputation may not be really deserved. The decision whether to buy off the plan depends on personal finances, and whether you want to take a risk which may deliver fantastic returns but could just as well be a disaster.

Essentially, there are two key risks associated with buying off the plan. First, is the risk that the end product may not be high-quality and may not match your expectations. This is something that can manage by hiring a good conveyancer as well as making sure to buy from a reputable building company. We are not going to talk about this article, but rather focus on managing the second main risk of buying off the plan, that is the value of the property may change between when you sign the contract and the settlement. This could be either a good thing or a bad thing: as the value may have gone up or down.

What does “buying off the plan” means?

Essentially, it means that you are shown a property, whether a unit, commercial property, housing development, or something else that is yet to built. The timeline for construction may be 6, 12 or 18 months or more. You will receive information from the agent or developer about expected fees, yields, depreciation and other features, and will be asked to put down a deposit which secures the property at a certain price. You do not need to pay the balance until the property is built. From the developer’s perspective, this arrangement is highly advantageous as it helps them to secure
investment or financing for the development. A bank is more likely to issue financing for a project which already has commitments on a certain numbers of units. Furthermore, the more units which have been pre-committed, the better the terms of the loan.

How can I maximize this result?

If you want to be on the right side of property value exchanges, firstly you need to do due diligence. This means researching into the market, its cycles, how comparable properties are performing in the area, and so on.

It is also important not to overcommit. You should always keep the worst case scenario in mind: that the property’s value falls by 10% for example, and make sure you are covered in case this happens. Be sure to have the funds or equity available to cover this if necessary. On the other hand, if the value of the property goes up by 20 or 30%, you’ll be laughing!

Pros and Cons of Buying off the Plan - Investors Advisors
What are the risks of buying off the plan?

As mentioned, one of the key risks is that the value of the property may change between contract signing and settlement. In worst cases, this could mean that your bank won’t authorize your loan for the full amount because they value the property at less than the agreed purchase price. In this situation you may be forced to make up the difference from your savings or equity, because you have already committed to pay this amount to the developer.



Why this happens?

There can be two reasons this situation may eventuate: either market changes, or faults by property valuers. In the latter case, the property valuer has simply made a bad call. The bank may be overly conservative in their valuation because they are cautious to protect their investment, or the developer may be overly optimistic on their assessment. This can particularly happen if there are not many similar properties in the area to draw comparative figures , which can make the bank’s valuers cautiously undervalue the property.

Additionally, although the property market is not often violate, it can be difficult to predict property prices in the long term. This means if you are buying 12-8 months or more in advance, the price may change in this time, and sometimes even for the worse.

Benefits of buying off the plan.

On the flipside, this means that property values can go up, too. With some research (and some luck) you can feel the benefits of a rise in property price, and made a capital gain with little deposit and no interest, which is a pretty rare achievements!

We’re always hearing about the latest “property hotspot”. This is the newest hot suburb that everyone is saying you should invest in, and seems much better than any other are. It seems like if you miss out in investing here you will be doomed to a life of poverty and become a pariah among your property investor friends! However, the reality behind property hotspots is quite different. The truth is, by the time it becomes known as a ‘hotspot’ and is mentioned in the newspaper or on TV current affairs shows, it is probably not a real hotspot anymore. Getting involved at this point doesn’t do you favors, as prices are now peak because everyone is interested in the area.

Pros and Cons of Buying off the Plan - Investors Advisors

Worse still, in some cases, rent have actually stagnated even though property prices have stagnated. This means you could pay top dollar for a property without being able to recover your investment through rental income. You could increase rents, but this will likely price your property out of the local rental market.

Other factors to be cautious of include if the ‘hotspot’ has a lot of older properties which may be too valuable to knock down, but need a lot of money to bring to the standard needed to attract good tenants or resell for a decent price. Also be conscious of being drawn into an area where properties is simply out of your price range. A property hotspot may not be the right spot for you.

There are some great opportunities which will allow you to get in on the ground floor and develop the value of your portfolio. But identifying the best opportunities ahead of everyone else means you need to know what the perfect property investment for you is. This will depend on your investment strategy: renovate and flip or long term holder for example. Also what kind of property or type of tenant are you looking for? Knowing yourself as an investor will help you rise about the trends to identify the best opportunities.

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Brisbane house prices stall but market still one of Australia’s strongest

Brisbane remains one of Australia’s strongest property markets, despite house prices having ground to a halt in recent months.

As prices in Australia’s two biggest cities fall deeper into a downturn, Brisbane’s housing market has officially flatlined, with figures from the latest Domain House Price Report, released on Monday, showing an annual fall of 0.1 percent in the Brisbane local government area.

This equates to a $750 reduction in the overall median house price from $670,750 in March 2018 to $670,000 in March 2019.

The median house price fell by slightly more in the first three months of the year though, after finishing 2018 on a median of $675,000 compared with $670,000 in March 2019.

Median house prices

Source: Domain House Price Report, March quarter, 2019.

The figures for Greater Brisbane, which include the five LGAs of Brisbane, Ipswich, Redland, Moreton Bay, and Logan, showed the annual median house price was down slightly by 0.3 percent.

Domain senior research analyst Nicola Powell said Brisbane’s negative number was still considered a good outcome, particularly in the context of what was happening elsewhere in other capital cities across the country.

“Brisbane housing has had six years of continued annual growth, but now we’re seeing those house prices are flatlining,” Dr. Powell said.

“However, I will say that a fall of 0.3 percent is negligible. Homeowners in Brisbane may not be reaping big capital gains right now but it’s important to remember Brisbane is still a much better performer than most other capital cities.”

Median unit prices

Source: Domain House Price Report, March quarter, 2019.

Brisbane’s property market remains fragmented, with houses outperforming units for the seventh year in a row.

Unit prices in Brisbane’s LGA dropped 3.4 percent over the year to March 2019, as did units in Greater Brisbane, where units fell by 5.4 percent during the same time.

Dr. Powell said Brisbane units had fallen almost 10 percent below their price peaks in 2016.

There was a significant silver lining. “It means buyers are now buying units for the same price they would have paid in 2013, so the affordability is there,” she said.

“Listings-wise, the number of units listed for sale is shrinking, but they’re not shrinking enough to translate into price growth. That will still take time.”

Adcock Prestige, who sells some of Brisbane’s most expensive riverfront properties, said the most noticeable shift between now and 12 months ago was days on market.

“Where I used to sell a property in 30 to 60 days, they’re now taking around 75 to 100 days to get the same property sold,” he said.

“Price-wise, we’re tracking about the same. I’ve sold six multimillion-dollar properties in the past four weeks and all for good prices — none have been sold for less than what I thought they were worth.”

Adcock said he expected the market would pick up again after the federal election.

“Two to three weeks after the election, all the people who have held back from coming to the marketplace will come to the marketplace and reinvigorate it,” he said.

Brisbane House Prices [Strongest Market]-Investors Advisors
Jason Adcock has sold six multimillion-dollar properties in the past four weeks, including 45 Tristania Road, Chapel Hill, for $2.9 million. Photo: Adcock Prestige

REIQ chief executive Antonia Mercorella said she held concerns about the future of Brisbane’s property market, with the federal election leaving its fate hanging in the balance.

“Brisbane [both Brisbane LGA and Greater Brisbane] median house prices growth has been modest but steady over recent years. However, that consistent, steady growth is plateauing in the face of strong headwinds,” she said.

“The REIQ would like to be optimistic that, with rents holding steady and proving reasonably resilient in the south-east corner, this would encourage investors to continue buying investment properties.

“However, with Labor’s negative gearing reforms on the cards, it’s unlikely we’ll see investors overcome their fears and continue to invest. The financial benefits are simply not there.

“This will have dire effects on the market, and it’s likely that the modest plateauing in house prices that we’re seeing at the moment will become a more significant dip if Labor forms government.”

Brisbane House Prices [Strongest Market]-Investors Advisors
Brisbane house prices are holding at the moment but the REIQ fears this could be in peril if Labor’s negative-gearing policy gets through. Photo: SPACE Property Agents Paddington

Brad Robson, of Place Graceville, said prices had flatlined in his area following a flurry of activity in January but that sheer buyer numbers meant properties were generally still selling within 25 days.

“Buyers are still having children or still having kids move out and needing to downsize. Everything is still exactly the same as what it was,” he said.

“What is happening is that buyers are quite comfortable to seek out exactly what they’re wanting, as opposed to compromising and saying ‘let’s just do it because we might miss out otherwise’.

“I feel as though that’s the attitude at the moment — people are quite comfortable to pay what’s fair and reasonable, they’re just not willing to pay a record price.”

Peter Hutton, director, and principal of Hutton & Hutton at New Farm said Brisbane unit owners were more inclined to meet the market and lower their prices than house owners.

Brisbane House Prices [Strongest Market]-Investors Advisors
Homeowners in Brisbane’s more affluent suburbs are often choosing to hold their property rather than sell in a stalled market, says Peter Hutton. Photo: Tammy Law

“Firstly, there’s a greater number of investors in the market, so there’s more competition,” he said. “But the other thing is the people who own houses around here enjoy a high degree of equity, which means they can choose to hold their property and not sell if they can’t get the price they want right now.

“That’s what a lot of house owners are doing. There’s been a lot of stock withdrawn from the market since September last year — they didn’t sell so they’re not off the market. They’re not going to be forced to take a lower price and they’re relaxed about it.

“In New Farm, there’s always times where prices flatten out and we go into a period of being flat — that’s the trend now. We may not see any price growth for a little while. I think personally next year we’ll see rising prices in those desirable suburbs like New Farm.

“It’s not a bad situation to be in – it’s just a pause. I do think any buyer who secures a property today that appears to be a saving compared to 18 months ago, they are the winners in this. It will only be another six months until we’re back in another good year.”

This article was first published in Here is the link to the original article.

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Australia Median house prices in all but two capital cities decline in March quarter

House prices have fallen 7.8 per cent nationally in the past year, dropping in all but two capital cities, a new report has found.

Domain Group’s quarterly Domain House Price Report, released on Monday, shows that prices held up in just Hobart and Adelaide in the first months of 2019, while Hobart remained the only state capital to record a rise in unit prices.

“We are seeing a geographically broader downturn impacting more of our capital cities – even Canberra and those that have held strong to this point,” Domain senior research analyst Nicola Powell said. “Buyer confidence is low, with the ability to get finance impacting buyers across the country. It’s not just an issue for first-home buyers; all borrowers have been impacted.”

The Sydney and Melbourne markets remain in the throes of the steepest downturn in more than two decades, Dr Powell noted.

Sydney house prices were down 3.1 per cent over the March quarter, and 11.5 per cent year-on-year, recording a median price of $1,027,962.

The harbour city’s house prices have fallen 14.3 per cent from their mid-2017 peak, with Dr Powell tipping Sydney’s median could drop below $1 million in coming months, a low not seen since June 2015.

For the first time in three years, the price of a unit in Sydney dipped below $700,000, Dr Powell added.

Source: Domain House Price Report.
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Melbourne house prices fell for the fifth quarter running, down 2.4 per cent in the most recent period and 10.4 per cent year-on-year, with Dr Powell saying the downturn had filtered through from the high-end market and was being felt across the city.

With a median of $809,468, Melbourne house prices were now sitting 11 per cent lower than their highs of 2017. While unit prices held firmer, Dr Powell said they had “dropped for four consecutive quarters, pulling prices back 8.3 per cent from the peak notched a year ago”.

Despite the figures, Dr Powell noted that Domain had seen a rise in views for online listings in Sydney and Melbourne, indicating there was still considerable buyer interest, despite the slowdown.

Australia Median House Prices Decline in March - Investors Advisors The view Hobart town waterfront and residential district in a background (Tasmania).
Hobart again recorded strong price growth over the quarter. Photo: iStock

Hobart bucked the national trend, again recording strong growth, with house prices up 3.1 per cent in the March quarter and 7 per cent over the year, to $478,247. The city was the only capital to record growth over both the quarter and the year for houses and units, continuing its streak as the best performing city for capital growth.

“In the space of a year-and-a-half, Hobart has gone from the most affordable city in which to purchase a unit, to more expensive than Adelaide, Darwin and Perth,” Dr Powell explained. “If the pace of growth continues, Hobart unit prices are likely to overtake Brisbane’s in the coming months.”

Source: Domain House Price Report.
Capital CityMar-19QoQ

Coming in behind Hobart as the second-best performing capital, and one of just three to record an increase over the year, Adelaide’s house prices grew 2 per cent to $542,474. Unit prices fell from the record high achieved last quarter, down 1.3 per cent to $312,459.

Dr Powell said Adelaide homeowners had enjoyed close to six years of steady price growth, and it was now the third-most affordable city in which to purchase a house, overtaking Perth’s median for the first time since 1993.

Australia Median House Prices Decline in March - Investors Advisors Adelaide, AUSTRALIA - Nov 21, 2018: Victoria Square historical centre of South Australian Capital city with old iconic building and new construction sites high view urban cityscape of Central Business District
Adelaide’s median house price has overtaken Perth’s for the first time since 1993. Photo: iStock

“House prices remain higher than Hobart, but galloping Hobart prices mean the price gap is at a 12-year low,” she said.

After six years of continuous growth, the nation’s capital is feeling the pressure with house prices in Canberra experiencing their steepest annual fall in a decade, down to $722,440. Despite the 2 per cent drop, Dr Powell said conditions in Canberra were anticipated to resemble a “short softening, rather than the correction currently unravelling in Sydney and Melbourne.”

She said the upcoming election was likely weighing on local confidence, but higher stock levels and difficulties securing finance were also to blame for the slower market activity. “I think this is an illustration of a market that would otherwise be growing if it wasn’t for the restrictions to credit,” she said.

Australia Median House Prices Decline in March - Investors Advisors
House prices in Canberra have seen their steepest annual fall in a decade.

It was a similar story in Queensland, where Brisbane house prices stalled for the first time since mid-2012, down 0.3 per cent over the year to a median of $563,666. Unit prices fell 5.2 per cent in the 12 months to $372,852.

Dr Powell said houses had outperformed units in Brisbane for the past six years. “Unit prices are 9.6 per cent below the mid-2016 peak, with buyers now able to reap the benefits of purchasing at 2013 prices,” she said, citing oversupply as a keen contributing factor.

“Although listing volumes are shrinking, it has not been enough to translate into price growth yet,” she added.

Property prices in Perth and Darwin continued to reflect the fact they are cities trying to claw their way back from the slump following the mining investment boom, Dr Powell said. At $529,997, Perth’s median house price had fallen 5.2 per cent in 12 months and is now 14 per cent lower than its 2014 peak.

Dr Powell said that while Darwin’s house price median edged 1.5 per cent higher over the year to $514,546, property prices continued to be affected by weak economic conditions.

“A recovery in Darwin’s housing market largely hinges on the government’s attempts at boosting the population, jobs growth and an improvement in the availability of housing credit,” she said.

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Perth house prices slide despite initial signs of market recovery

Perth house prices slide despite initial signs of market recovery

Perth’s median house price has dropped 5.2 per cent in the past year despite early indicators of encouraging signs of a market recovery, new figures show.

House prices fell 2.5 per cent during the March quarter to $529,997 compared to a median of $559,296 in March 2018, according to the latest Domain House Price Report, released on Monday.

Unit prices fell 1.1 per cent during the quarter and 5.6 per cent year-on-year to $347,596.

Domain senior research analyst Nicola Powell said despite the signs of a recovery during the first quarter of this year, house and unit price falls have gathered pace.

“House prices are now 14 per cent, and unit prices 16.6 per cent, below the 2014 peak,” she said. “The market recovery is going to be delayed in Perth on the back of the more restricted lending environment.

“If we had (the same) lending (conditions) before the tightening of conditions, I think we would be seeing more signs of recovery now, but that isn’t the case.

Source: Domain House Price Report.
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“You are seeing borrowers being assessed at around seven per cent interest – basically their assessment for a loan is much higher than current mortgage rates. I think, for some buyers, it means that they can’t get finance, or those that can get finance, their loan size is being reduced.”

Property analyst and valuer Gavin Hegney said the March quarter data was equivalent to a rate of an annual decline of 10 per cent.

He said there was an oversupply of just less than 10,000 properties for sale in Perth, which was concentrated in the lower end and outer suburbs, with properties selling well below replacement costs.

Perth house prices slide despite initial signs of market recovery
Prices for Perth houses and units slid again over the March quarter. Photo: iStock

“The numbers also show the banking royal commission and its impact on reduced lending capacity had a greater impact on the West Australian market than any other state in Australia,” he said.

“Particularly, given the fact we really haven’t seen growth in equity in homes, in probably between five years, and in some suburbs, the past 10 years.”

Peard Real Estate chief executive Peter Peard said sales levels were low and down about 40 per cent from a few years ago.

Source: Domain House Price Report.
Capital CityMar-19QoQ

Subdued buyer confidence, a lack of pay increases and declining property equity were among the combination of factors contributing to the state of the market, he believed.

“For summer, there has been pretty ordinary sales activity compared to historical years where it has been more buoyant at that time,” he said.

“Although in the top end there is a bit of movement even though values in that market are right down. (But) it is always good to buy and sell in the same market, whether it is good or bad.”

Dr Powell said buyers continued to have the upper hand.

“Improved affordability is providing the ultimate silver lining for prospective homeowners, allowing a purchase to be made at 2011 prices,” she said.

“Perth’s recovery is being hindered by a more restrictive lending environment at a time when local confidence is subdued under weak economic conditions. A sluggish economy is being dragged down by high unemployment, a tight consumer purse, and weak population growth.

“That said, Perth has seen extraordinary growth in the number of views per listing, figures have risen from the recent post-mining boom lows. The rise in views per listing provides a timely gauge of the change in buyer interest, which has been tracking higher since September last year.”

Mr Hegney said there was buyer interest in the more affluent suburbs of Perth, where purchasers were more confident in their jobs and of obtaining finance.

“What the banking royal commission tended to do is take out the upgrader market,” he said. “So when the top end starts to recover you normally would see the upgrader market start to recover and then it would flow through to the lower end of the market, but the timing of the reduced borrowing capacity meant the upgrader market never really started.”

This news article was first published in Here is the link to the original article.

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Warriewood, the budding suburb on the northern beaches that escapes the attention of tourists

The northern beaches attract sun-lovers of all persuasions, from born-and-bred surfers to thrill-seeking backpackers and bikini-clad glam-squads.

It’s impossible to escape the tourists at some of the area’s most famous destinations, including Manly and Palm Beach. But in between the tourist traps are the quiet achievers; suburbs loved by locals that fly under the radar compared to their star-studded neighbours.

Warriewood is one such neighbourhood. About 25 kilometres north of the Sydney CBD between North Narrabeen and Mona Vale, Warriewood has been quietly going about its business, building a reputation as a family-friendly place with parks, wetlands, a beautiful beach and newly renovated Warriewood Square shopping centre.

Warriewood Budding Suburb that Escapes Tourists Attention
The suburb is about 25 kilometres north of the CBD between North Narrabeen and Mona Vale. Photo: Steven Woodburn

Another drawcard? More affordable real estate than its fancier beach buddies.

The Dictionary of Sydney records that the northern beaches was once dotted with lagoons and swamps, including Narrabeen Creek flowing through the middle of Warriewood and Mullet Creek at the suburb’s southern boundary.

Logging made way for farming, then market gardening. In the mid-1900s, there were so many glasshouses that the suburb was known as Glass City. Nurseries slowly replaced fruit and vegetable growing until the 1990s, when the land was subdivided for housing.

Warriewood Budding Suburb that Escapes Tourists Attention
Housing in Warriewood didn’t truly take off until the 1990s. Photo: Steven Woodburn

“When I went to school, all along Warriewood Road was farmland,” says Marco Cimino, an agent at LJ Hooker Mona Vale. “It’s only in the past 18 years that it’s really started to change.”

Properties range from chic new builds along the coastline to established homes, new apartments and contemporary townhouses or homes in master-planned estates.

A typical two-bedroom apartment with two bathrooms and two car spaces costs about $750,000,” he says. “Townhouses range fromabout $1 million to $1.1 million. Houses can go from $1.35 million to $1.6 million, depending on size and location, to over $6 million on Bruce Street.”

Warriewood Budding Suburb that Escapes Tourists Attention
House hunters from the north shore are often drawn to Warriewood for its leafy pockets. Photo: Steven Woodburn

Cimino says investors and young families are the main buyer groups. He has also noticed house hunters from the north shore and West Pennant Hills joining local upgraders. “Some like the leafy aspect; it reminds them of the area they’ve come from.”

Anthony Marchese moved to Warriewood in 2007 after North Manly became too hectic for his young family.

“That was before a lot of the construction,” he says. “It’s such a family-friendly area now, with lots of dog parks, beaches, bike tracks, running tracks and easy access to shopping and schools, which ticks all the boxes for young families.”

Warriewood Budding Suburb that Escapes Tourists Attention
A variety of pristine outdoor settings makes Warriewood popular among families. Photo: Steven Woodburn

He has already upgraded once within the suburb and wouldn’t mind moving even closer to the beach.

“It’s pretty hard to find another suburb we’d want to move to.”

Two homes in the area

26 Shearwater Drive

26 Shearwater Drive Warriewood NSW
26 Shearwater Drive, Warriewood NSW. Photo: Supplied

This two-storey home on 312 square metres has bright, modern interiors, easy-care gardens, multiple decks and a nature reserve across the road. Each bedroom has built-in wardrobes, the main with a walk-in.

Expressions of interest close May 3, with LJ Hooker Mona Vale seeking offers of about $1.5 million.

109/5 Mallard Lane

Warriewood Budding Suburb that Escapes Tourists Attention
109/5 Mallard Lane, Warriewood NSW. Photo: Supplied

This north-facing apartment in the Oceanvale complex will appeal to downsizers and young families.

Communal amenities include lap, plunge and children’s pool, a gym, sauna, barbecue area and playground.


This article was first published in Here is the link to the original article.

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Ripple effect: How new developments influence the Canberra property market

What’s going to happen to the market when all these new developments have finished being built?

There’s no doubt that the residential building and construction industries have been pillars of strength for Canberra, by injecting millions of dollars to the local economy and providing a strong employment base.

We are a city that continues to progressively build upwards, with apartments driving Canberra’s new dwelling construction since 2010. Over the numerous years of development, a new residential landscape has been carved out across the territory.

A range of factors have influenced the increase in apartment construction – from constrained land supply, affordability considerations, rapid population growth, urban infill, the desire to be connected to employment hubs and amenities, as well as a growing cohort of residents who have embraced apartment living.

How New Developments Influence the Canberra Property Market
Building approvals in Canberra. Photo: Frank Maiorana

Development continues to provide the heftiest boost, accounting for just over 60 per cent of building approvals in the year to February, while house and townhouse approvals have each contributed a more modest one-fifth.

The year of 2018 produced a record high, with almost 4500 units approved. Apartments have hit the market in numbers unseen before, the majority being high-rise (towers with four floors or more). The previous multi-unit approval peak was mid-way through 2011 with just over 3500 approved. Townhouse development has fallen from the mid-2017 peak of almost 1600 approvals, sliding to 1325 approved in the year to February.

This hive of residential construction activity contributed $1.084 billion to the local economy during 2018, the third-highest value on record.

Our city has experienced a hive of construction activity that could be exacerbated when all development approvals come to fruition. Heightened development can have an impact – from prices to rents – outcomes that can be seen as both a positive and a negative, depending on which side of the fence you fall.

Growth in apartment prices has been non-existent for a number of years, growing at a mere 4.5 per cent over five years. The median unit price is 1.7 per cent lower over the past year, now at $426,719  – the same as recorded in 2016.

A large influx of supply can exacerbate declines in values, which have a domino effect on both households and developers financially. Declining apartment prices pose a significant risk to buyers who are yet to settle, particularly if the value is lower than the contracted price.

You could be a current apartment owner who is facing little-to-no capital growth, or a wishful home owner who is now faced with improved affordability.

Over the financial year to date, the highest volume of building approvals has been in areas that have strong links to transport, infrastructure and amenities – the suburbs of Belconnen, Gungahlin, Kingston and the CBD, with pockets of increased development stock being influenced by the type of buyer purchasing a new development and planning, which affects developers’ decisions and the supply response.

The top four suburbs for multi-unit development approvals are dominated by tenants rather than owner-occupiers. There is no doubt Canberra’s rental market is tight, as it is presently the second-most competitive Australian city, with vacancy rates at the low of 0.3 per cent and tenants faced with rising rents. The slice of the supply concentrated in rental dominated-areas will be welcomed by tenants, providing additional stock to ease rental price growth, and improve the vacancy rates.

Canberra is changing before our eyes with apartments likely to continue to provide new housing, as land supply and population growth motivate prospective home owners to purchase an apartment or perhaps townhouse.

This article was first published in Here  is the link to the original article.

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Town home prices get $875,000 wipeout in Australia’s weakest real estate market

Sydney and Melbourne prices may have begun to plummet but they would have to fall considerably further to be anywhere close to the largest in the country.

Sales data from the past five years has revealed Australia’s biggest real estate money pits remain concentrated in regional areas and are thousands of kilometres from the nation’s capitals.

Western Australian resource towns had the biggest drops in home values since 2013, with prices falling by up to $875,000 in some areas.

The towns with the biggest price drops included Newman in the iron ore rich Pilbara region in the northwest of WA and Derby in the Kimberley region.

Median house prices in these areas more than halved over the five-year period, shrinking from over $600,000 to under $200,000, the CoreLogic data showed.

Home Prices get $875,000 in Australia’s Real Estate Market
Homes in WA mining towns were affected by the end of the mining boom. Picture: AFP Photo/BHP Billiton

Even bigger losses were recorded in the WA coastal hub of Port Hedland and sister town South Hedland.

The typical value of a home in the port 1523km north of Perth was $1.27 million in 2013 but has since shrank to about $395,000.

South Hedland houses had a median price of $865,000 in 2013. Now the median is $195,000.

By contrast, house prices in Sydney’s worst performing suburb — inner west suburb Annandale — fell 2.9 per cent over the five years, with the median unit price shifting from $770,000 to $747,500.

Home Prices get $875,000 in Australia’s Real Estate Market

Port Hedland is about 1500km north of Perth.

International shifts in demand for iron ore were partly behind the falling values in resource towns, but a growing trend of fly-in, fly-out workers also depleted demand for the local homes.

Property prices and rents were further impacted by the rise of mining camps for local workers that bypassed the local housing markets of some mining communities.

Many of the camps were constructed by mining companies precisely because local rents and home prices had been skyrocketing, making the usually high cost of construction worth the investment.

Falling home values have dealt a particularly devastating blow to property investors who bought into resource towns during the height of the mining boom.

The owners of a four-bedroom house on Port Hedland’s Styles Rd have been trying to offload their property since 2013, but even after slashing more than $500,000 off the price have still been unable to sell.

They bought the property for $1.08 million in 2008. If they sold for their current listing price of $749,000 they would still lose $331,000.

Home Prices get $875,000 in Australia’s Real Estate Market

Selling properties in northwest WA has become a challenge.

The tense sales environment has evaporated real estate empires seemingly overnight.

Property investor Ryan Crawford had amassed 40 properties spread mostly across the Pilbara region by 2013, which he reported at the time as having a combined value of $32 million-plus.

Much of his property portfolio has since been foreclosed by banks, according to the West Australian. Part of the Crawford property empire was sold at a fraction of the buying prices, with documents filed in the Supreme Court in 2017 showing the proceeds fell short of what was owed.

This article was first published in Here is the link to the original article.

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What I wish the previous tenants told me before I moved in

What I Wish the Previous Tenants Told me Before I Moved In

Since moving back to Sydney two years ago, I’ve moved three times with my partner, and in that time there are a few things we wished previous tenants could have told us before we chose our rentals.

I like to think of it as crowdsourcing info, if you will, because as a tenant you have a measly 15-minute window to figure out if it’s the place you want to live in for the next six to 12 months among a sea of other properties that you are racing around the city to get to on the same day.

There’s only so much you can assess in that short-time span and it’s usually the plainly obvious — trying your best to measure up if the place is big enough to fit in your furniture from the last rental and whether the property’s condition is up to scratch to live in, because up until recently minimum standards in rentals were not a thing.

A rental review would go some way in helping pick up the inconspicuous problems.

In our first rental, we moved into a new build and, as you’d expect, everything was brand spanking new. It also had lots of extras included from a dryer to a dishwasher to ducted airconditioning, so we couldn’t really fault anything at first sight.

It wasn’t until we moved in that the shine wore off really quickly. While our apartment was finished, the thousands of others in neighbouring blocks weren’t and we were basically living on a construction site for six days of the week. Constant noise and dust was part and parcel of our six-month lease.

What I Wish the Previous Tenants Told me Before I Moved In
It’s easy to pick up the obvious during rental inspections but there’s plenty you discover only after you move in. Photo: Paul Rovere

New builds are also notorious for squishing a lot into not a lot of space. They’re often described as shoebox apartments but we preferred to describe it as more of a dungeon with only one opening in the entire apartment, which looked onto hundreds of neighbouring balconies.

The lack of windows in the kitchen, bathroom and laundry dimmed our spirits and it was only when we moved into our next two rentals did we realise the importance of direct sunlight and a natural breeze.

Which brings me to our second rental. It was by far the best we’ve ever had but hindsight is 20/20, right? It was a huge upgrade from our first in every way.

We were on the top floor of a red double-brick block of nine apartments and it felt like we were sitting among all the surrounding gorgeous gum trees.

We had a window in every single room — a bizarre luxury after our first place — meaning we could heat and cool down the apartment without the need for aircon for almost the entirety of summer because of the amazing cross-ventilation.

I could go on, but there were a few things we would have appreciated knowing even in this place. Parking was an absolute nightmare both in our garage and on the street, something that hadn’t crossed our mind until moving day.

We also quickly found out we had rowdy, chain-smoking neighbours, whose balcony was adjacent to ours with a nice, clear view into our home and who had a penchant for partying throughout the week. But I guess you can’t have everything.

What I Wish the Previous Tenants Told me Before I Moved In
Most size up a rental but it’s the inconspicuous problems like noise or water pressure that are hard to pick up during inspections. Photo: Ben Rushton

Our third rental has also had its fair share of surprises. The first and most noticeable issue is the outrageously loud traffic, which dies down considerably on a weekend – incidentally, when you normally check out a rental. You can’t hear over your Netflix at nighttime and the noise causes a murmuring through the windows in what should be the dead of night.

The other peculiar thing about this rental is the weak water pressure, which doesn’t allow two taps to run at once because it turns into little more than a trickle. It has left us coordinating when we take showers and do the laundry or washing up in the kitchen.

Funnily enough, we did remember to test the kitchen tap on inspection day and thought it ran well enough. But we didn’t get to running two taps from two different rooms at once because the apartment was packed with other prospective tenants and we were in a rush to get to our umpteenth back-to-back inspection of that day.

But I’m sure the previous tenants would have experienced the same water pressure issue. I wish they’d been able to tell us and I plan to tell whoever succeeds us in living at our current place.

This article was first published in Here is the link to the original article.