7 reasons to buy…
The purchase of “off the plan” apartments continues to carry favour with domestic and foreign investors and for good reason. A recent SQM Research report also quoted Melbourne as a preferred place to buy. Some of the drivers are less obvious than others and here are 7 of them. Like any market, if it softens there…Read More→
Property doesn’t always go up…
While there is much coverage about the seemingly endless and meteoric rise in real estate values, it may be a shock to some people to hear that occasionally property is sold at a loss. In fact the recent “pain vs gain” report from CoreLogic RP Data, for June quarter 2015, shows 1 in 5 (20%) of…Read More→
2 signs of a turning market
Two leading market indicators on the apartment market are vacancy rates and settlement failure. These will usually both start to rise before new sales slow. The good news is we are not seeing worrying levels of either of these two signs at the moment. However while vacancy rates are regularly measured, settlement failures are not…Read More→
A new wave of apartment buyers…
The apartment market is enjoying a recent swing toward apartment living by owner occupiers who are now willing to buy off the plan. People who have lived in a traditional house all their lives, are buying off the plan, which shatters the well held view that owner occupiers would not buy a home they could…Read More→
But the median sale price is soaring…
It is perplexing for some sellers when their property doesn’t increase in value as much as the median price. It begs the question, “What is the median price anyway?” Firstly a couple of brief points to set the scene. There are several different asset classes including shares, fixed interest (bonds), cash, property, and commodities. With most asset…Read More→
A boost for apartment values
You may have seen the press over the weekend about new laws limiting the size of new apartment buildings in Melbourne’s CBD. Read it here. These interim planning laws limit the size and setbacks of new buildings and came into effect on Friday. Over the next 12 months “permanent” planning rules and the approval process will be…Read More→
who’s to blame for under-quoting?
We haven’t heard much in the press lately about under-quoting, which is strange given how strong the market is, and how often the sale price is exceeding the quoted price by some margin. So during this void of media hysteria and half truths about under quoting it’s timely to review it rationally. It’s a tricky…Read More→
Do tenants really need a car park?
Any developer will tell you it’s the single bedroom apartments, without a car space, that are the hardest to sell. Town planning rules require dedicated car parks for most units in new projects (esp non CBD) and the market place (in the form of investment buyers) demand it. But what do tenants think? In very…Read More→
10 million people in Vic by 2051
Last week the Victorian Gov’t released “Victoria in Future 2015″ which is the official state government projection of population and households from 2011 to 2051. You may have read a related article in The Age on Saturday as well. It forecasts there will be a natural increase of 1.7 million people (3.7m births less 2m deaths)…Read More→
Can int rates still fall?
Last week saw APRA’s announcement requiring the major banks (including Macquarie) to increase capital reserves against their mortgage book. APRA has no property market regulation responsibility, nor is it attempting to temper the market, but it is clearly concerned about the exposure banks have to this sector. APRA’s direction prompted several banks to increase their variable…Read More→
Is now a good time to sell?
It’s the question real estate agents get asked every day. The question has the presumption of market cycle timing and future direction. The market is strong now but the question is more about what will happen “tomorrow”. Of course no one knows for certain and we monitor market indicators closely to provide the most informed…Read More→
Negative Gearing change would hit tenants
There has been lots of discussion lately about potential changes to negative gearing. It would need to be a very brave (read, secure) government to remove or even tamper with it, as it would impact many asset classes… not just property. It is so deeply entrenched in our property market that any change would alter…Read More→