30 posts tagged “rp data”
"HOUSING prices around the country rose nearly 2 per cent in August, the biggest monthly increase since researcher RP Data-Rismark began its tracking in 2005.
The August increase takes housing value growth to 7.9 per cent for the first eight months of the year, with Melbourne turning in the best performance -- an 11.6 per cent jump. ...
In a note yesterday, Mr Walters said an expected 25 basis-point interest rate rise next week, tighter lending standards, the Commonwealth Bank's move this week to lift its fixed mortgage rate, and the winding down of the first-home owner grant would all affect new development.
David Devine, managing director of Queensland-based residential developer Devine, said it was nearly impossible to secure funding from the banks for apartment and unit projects, irrespective of pre-sales.
Mr Devine said figures from researcher BIS Shrapnel showed there was demand for 175,000 new homes nationally each year."
"Unit values marginally outperformed house values in August, with units rising 2.1 per cent while houses gained 1.8 per cent." Source
See also, RP Data blog
Domain reports:
"Although the growth in Brisbane property values was subdued compared to a national increase of 5.9 per cent, South-East Queensland’s market notably did not suffer the dive of markets interstate in the year’s first quarter.
The median Brisbane unit price of $349,666 remained the most affordable of any capital city, and the average property "time on market" has been a testament to the fact.
Both apartments and houses in Brisbane are being snapped up by investors, upgraders and downsizers alike within 29 days the figures showed.
According to rpdata.com properties in Brisbane are providing a "very strong value proposition to potential buyers". The "value for money" in the river city has been underpinned by historically low mortgage rates and only small rises in unemployment."
Over the first seven months of the year Australian home values increased across every capital city, rising by 5.9 percent nationally.
Combined Brisbane house and apartment values up 3.8% to $437,175 for first 7 months of 2009
Brisbane Apartments were high performing, and outperformed Brisbane houses.
Brisbane Units - days on market = 26 days (almost the best in the nation)
Brisbane Units - 7 months to end of July increase - up 6.25%
Brisbane Units - 12 month Year on Year increase (at end of July) - up 6.58%
Brisbane Units - July 09 increase - up 3.26%
Based on Australia’s largest property database, owned by rpdata.com which includes roughly 145,000 sales for the first seven months of 2009, Australia’s housing recovery has continued in the month of July with solid across-the-board capital gains.
According to the market respected RP Data-Rismark Home Value Index, Australian home values rose by +0.9 percent in the month of July 2009. This brings total capital growth in the first seven months of 2009 to 5.9 percent.
Underpinned by historically low mortgage rates and only small rises in unemployment, Australian home values have now risen 1.8 percent past their February 2008 peak.
Rpdata.com
national research director Tim Lawless, said, “Not only has Australia’s
residential property market outperformed the other major western
markets, it has also provided superior returns compared to shares,
commercial property, superannuation, hedge funds and private equities.
Australia’s residential market has been further supported by low
mortgage default rates, at just 0.6 percent, compared with 5 percent in
the US and 3 percent in the UK.”
“Every mainland capital city has experienced solid growth during the first seven months of the year. “ Mr Lawless said.
"Brisbane Brisbane’s housing market has been
relatively subdued in comparison with Sydney and Melbourne. Home values
are up just 1.4 percent over the first half of the year compared to the
national increase of 4.5 percent. Despite the fact that South East
Queensland remains the population growth epicentre of Australia and the
city is home to some of the largest infrastructure projects in the
nation, growth in home prices has been relatively subdued. Market
conditions are improving, however, with houses and units taking just 29
days and 27 days respectively to sell. Brisbane’s unit values, at
$337,003, are the most affordable of any mainland capital city
providing a very strong value proposition to potential buyers."
RP Data
RP Data Auction Results
These results appear to be more accurate than other auction result sources.
See this chart for apartments with greatest number listed for sale. Chart is from RP Data's Property Pulse.
"The falls in Brisbane property values witnessed during 2008 appear to be a thing of the past. On an annual basis dwelling values in Brisbane are still down by -3 per cent during the year with house values falling -2.9 per cent and unit values declining by -3.4 per cent. Over the first four months of 2009 Brisbane has begun to once again show positive growth. During the first four months of the year house values climbed 1.9 per cent whilst unit values fell by -0.2 per cent despite the fact Brisbane is home to mainland Australia's most affordable unit market. Rental returns for houses have softened slightly and currently sit at 4.6 per cent whilst unit rental yields continue to improve and are now recorded at 5.4 per cent."
Home values continue to recover, recording a healthy 2.8% increase over the first four months of 2009
The RP Data/Rismark Australian Home Value Index out today confirmed that housing values around Australia rose by a healthy 2.8 per cent over the first four months to April 09—virtually wiping out the price falls seen in 2008 according to RP Data National Research Director Tim Lawless.*
Unlike the Australian Bureau of Statistics House Price Index, which excludes terraces, semi-detached homes, and apartments, the RP Data/Rismark International hedonic methodology, which is reported by the Reserve Bank of Australia, includes all dwellings. In addition, RP Data benefits from the largest sample of early property sales and property attributes (such as number of bedrooms, bathrooms and land area) of any index provider in Australia.
Over the first four months to April 09, every mainland capital city apart from Perth recorded an increase in home values with the most significant gains in Darwin (+5.3 per cent), Melbourne (+4.4 per cent), and Sydney (+3.9 per cent).
According to Rismark International Managing Director Christopher Joye, “Our analysis demonstrates that home values are rising in around 80 per cent of all suburbs with only the top 20 per cent of suburbs ranked by price suffering material falls.”
The return to capital growth comes as weekly rental rates start to level. Mr Lawless said, “Rental rates across Australia have powered ahead over the last three years, providing the best gross rental yields investors have seen for a long time. We are now seeing growth rates for weekly rents start to level due to decreasing rental affordability which is causing many renters to consider buying a home instead of renting. Gross rental yields are likely to peak over the coming months suggesting that now is probably the best time for investors to roll up their sleeves and become active,” he said. In terms of housing stock, units are continuing to outperform houses where over the first four months of 2009 values increased by 3.3 per cent while house values increased by 2.7 per cent. In closing Mr Lawless said “The stronger performance of the unit market is due to a number of factors. Comparing median house and unit values nationally, the price gap between is just over $90,000, so the value proposition of a unit is very compelling. Additionally, units are generally located closer to the city and along transport spines which is very appealing to many Gen Y and Gen X buyers,” he said.
See RP Data Index and Full Report
Brisbane
The slowdown during 2008 hit Brisbane
harder than many other capital cities, which is largely due to prices
perhaps overshooting the mark in ’07. Brisbane had a stellar run in
2007 with dwelling values increasing by 25 per cent over the calendar
year – the highest annual rate of growth of any capital city during
that period. Over the last 12 months Brisbane residential values have
fallen 3.4 per cent across both the houses and units market. Modest
growth has returned to the Brisbane market during 2009 with the first
three months of year seeing house values up 1.4 per cent and unit
values up 0.4 per cent. Rental returns are approximately on par with
the national average with houses providing a gross yield of 4.7 per
cent and units 5.4 per cent.
See the debate involving Chris Joye in the Business Spectator, and the Crikey response.
"Of the mainland capitals, Darwin (+2.8 per cent), Sydney (+2.4 per cent), Melbourne (+2.4 per cent), Canberra (+1.4 per cent) and Brisbane (+1.3 per cent) led the charge during this period. The laggards were Adelaide (-0.3 per cent) and Perth (-0.7 per cent)."
"The most expensive houses are in Sydney (median value $565,928) and the cheapest in Adelaide ($410,442). The most expensive units are in Perth (median value $439,042) and the cheapest in Brisbane ($330,390)."
See also The Age
"When the residential property market sneezes, the Gold Coast apartment market tends to catch pneumonia.
"It's a notoriously volatile area for property," says SQM Research analyst Louis Christopher. "The ups are great and the downs are just appalling." But local agents are reporting a raft of bargains in which buyers can snap up apartments that have fallen in price up to 20 per cent.
L J Hooker's Surfers Paradise principal, John Newland, says apartments that sold for $1.4 million last year are being marketed for quick sales with asking prices about $800,000. He also reports a two-bedroom apartment with ocean views that sold last year for $580,000 is now listed for resale at $449,000. And another listed at $530,000 has been discounted to $439,000. Surfers International principal Malcolm Catchpole says an apartment that sold last year for $555,000 and rented at $560 a week is now on the market for $359,000.
How low can they go?
RP Data research analyst Cameron Kusher says median prices on the Gold Coast have fallen 8 per cent since they peaked early last year.
"The prospects for the Gold Coast now that interest rates have come down so quickly are better than they were last November or October," Kusher says. "If you are in a position to buy, it's a good time to pick up a well-priced property. The Gold Coast might have further declines but it won't be significant."
Matusik Property Insights analyst Michael Matusik says the most dramatic price falls are in Gold Coast suburbs where premium and tourism-dependent holiday units are in oversupply. "Developers that have sold 60 to 80 per cent of the development are now looking for a profit or to break even so they quit the project and advertise apartments that were $1.1 million for $900,000," he says.
With the economic meltdown restricting finance and lending to developers, it's not surprising that large local property developers such as Raptis have collapsed and are now in administration. Raptis planned to build the $700 million Hilton Hotel in Surfers Paradise but administrators took over last month. "There will be a few more developers on the coast that will face tough times because of the way they've stacked their finance," Matusik says.
Economist Liam O'Hara says the Gold Coast market is "taking a battering" because many investors cannot get high enough returns to pay their mortgages. "There has been an over-investment in apartments and the debt is in yesterday's dollars so with a slower economy, that debt becomes more expensive," he says.
"As a small business or person taking on debt to buy strata apartments to rent out realises the cost of the debt can't be covered by the rental income, there will be more price falls." What's more, with Gold Coast apartments partly dependent on international and domestic tourism for rental income, they are vulnerable to the economic downturn.
Tourism and Transport Forum executive director Olivia Wirth says the number of domestic visitors to Queensland slumped by 7.3 per cent last year, compared with a national domestic tourism downturn of 4.5 per cent.
"Total visitor nights in Queensland fell to 72 million in the state's worst domestic tourism performance since 1998," she says. Kusher says too many investors paid too much for new apartments on the Gold Coast and failed to research what the properties were really worth. "In a strong market it's easy for people to pay over the odds for a property," he says.
"It's only when things slow down they discover their mistake."
Kusher points out that investors prepared to buy an apartment now and hold it for five years are likely to come out on top. "If you locked in a low interest rate and accepted that this downturn is unlikely to last for five years, then you could do well," he says.
...SQM's Christopher says there are "fundamental problems" with the entire South-East Queensland property market, which currently has about 34,000 properties for sale - more listings than Sydney.
"The population of South-East Queensland is only 60 per cent the size of Sydney so there are some serious issues," he says. "I speak to lots of developers and it's appalling in terms of the downturn and the forced sales."
For Full Story, See Domain
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