Off-the-plan sales to continue amid stage four lockdown

Technology implemented since Melbourne’s first lockdown is expected to keep househunters’ home dreams alive for the coming six weeks.

 

The city’s developers and new home builders have embraced virtual reality and online trading and are prepared to soldier on.

Last weekend Villawood Properties used an online ballot to sell 14 super-sized blocks of land worth an average $462,000 in the space of 40 minutes at a new estate in Sunbury.

The Sherwood Grange launch went “smoothly”, despite then-stage-three restrictions across Melbourne, chief executive Alan Miller said.

While demand had tapered since an initial spike in response to the government’s $25,000 HomeBuilder grants across late June and early July, it would continue online despite the city moving to a stage four lockdown, Mr Miller said.

Burbank Group managing director Jarrod Sanfilippo said the home builder would be very busy over the coming six weeks with a web portal needed to lodge applications for HomeBuilder expected to be online mid this month.

They were also seeing significant uptake of digital offerings including electronic document signing and their MyPlace3D software, which allows prospective homebuyers to design a home from their living room.

Castran Gilbert director Michael Lang said the project marketing firm was expecting to keep the market moving after the previous lockdown encouraged many developers to implement virtual tours and electronic contracts.

Read full article here – https://www.realestate.com.au/news/off-the-plan-sales-to-continue-amid-stage-four-lockdown/

Winter a prime time to sell as spring property market blooms early

Australia’s peak springtime property market is likely to land early this year as COVID-19 restrictions ease across the country.

The spring season has traditionally been the most effective and popular time to sell homes with the weather warming up and gardens in full bloom.


But property analysts and real estate agents say this winter could prove a wonder and a prime time to sell as markets start to pick up amid the winding back of government restrictions and newfound certainty amongst both buyers and sellers.

Buyers are back

Nerida Conisbee, chief economist at realestate.com.au, said the fallout of the COVID-19 pandemic, lockdowns and economic crunch had caused a short supply of stock, but more people were keeping a keen eye on the market and searching realestate.com.au.


“We are seeing a definite recovery in the buyer market so buyers are there and are very active on-site, but most importantly, they are also inquiring,” Ms Conisbee said.

“In terms of seller activity, we are starting to see a flattening out of listings in Sydney, so that is good news. Elsewhere it is still well down compared to the same time last year, but it’s definitely moving in the right direction.”


Ms Conisbee said rental markets were also on the improve after a surge in rental listings with the onset of COVID-19, with people moving in with relatives or to house-sharing arrangements. That increase was now petering.


Sales director at Marshall White – Stonnington, John Bongiorno, said “buyers are certainly coming back”.

“They’re not getting carried away by prices or getting carried away by the market or anything, they’re being sensible about what they’re paying,” he added. “I think prices are remaining static at the moment and that’s the way that I think it’ll be for some time.”

Read full article here – https://www.realestate.com.au/news/winter-a-prime-time-to-sell-as-spring-property-market-blooms-early/

Economists say house prices could fall as much as 20% if the recession lasts longer than six months

Martin Farrer / Friday, March 20, 2020

Economists say house prices could fall as much as 20% if the recession lasts longer than six months

 

The Reserve Bank’s dramatic $90bn boost for the financial system will not be enough to save the housing market from a possible crash as Australia heads into a coronavirus-driven recession.

Along with billions in emergency lending for small businesses, the RBA cut the cash rate to zero on Thursday in what would normally be a signal for buyers and investors to pile into property.

But with transactions likely to dry up amid a creeping nationwide lockdown, the long boom in the housing market faces its biggest test for more than a decade.

Some economists, such as AMP’s Shane Oliver, estimate that prices could fall as much as 20% if the recession lasts more than six months. A more limited downturn in which prices drop 10% is more likely, he thinks.

CoreLogic, the research firm that compiles data on the market, said on Thursday that the “extreme uncertainty and economic fragility” ushered in by the coronavirus pandemic made it difficult to expect any response to the record low borrowing costs from buyers and sellers.

Consumer confidence has been weak and existing economic headwinds, including high household debt, make the property market “particularly susceptible” to a fall in demand.

“As the coronavirus pandemic broadens, and the probability of an Australian recession increases, consumer confidence is trending lower from an already weak position,” CoreLogic said. “This will likely weigh on high-commitment consumer spending decisions, such as buying or selling a home.”

Confidence in the market has remained robust until now. Auction clearances were still relatively high last weekend – ending up at 65.6% in Melbourne and 68.1% in Sydney.

But market experts have begun to report a rush to sell amid the mounting crisis. Tom Panos, a Sydney auctioneer, said he had noticed more vendors rushing to “cash out”.

His view was supported by buyer’s agent Pete Wargent, who said he had noticed investors with multiple properties were looking to sell. But he thinks transactions are about to “drop off a cliff” in the lockdown.

“The reality is that monetary stimulus won’t help the housing market. Confidence in the property market is now very low, as is consumer confidence generally, and until that recovers we won’t see many transactions.

Read Full Article – https://www.theguardian.com/australia-news/2020/mar/20/australian-housing-market-will-hit-the-wall-in-coronavirus-recession-experts-say

State by state: A December update on Australia’s property markets

MICHAEL YARDNEY / Thursday, December 19, 2019

Sydney 

The Sydney property market is on the move, having recorded its quickest turnaround in decades.

Since bottoming out after the election in May, Sydney housing values have recovered 6.2% in the last three months, but the market remains 8% below the July 2017 peak.

Sydney house prices increased 3.1% over the last month (7% over the last quarter) while apartment values increased by 1.8% over the last month ( 4.2% over the last quarter.)

Despite the rise, Sydney dwelling values are still tracking around the same level as they were three years ago.

The recovery trend is most concentrated across the premium end of the housing market where values were previously falling more rapidly. 

Sydney house prices in the top quartile rose by 5.9% over the past three months while the houses prices in the lower quartile are up a smaller 3.2%.

The following metrics confirm the Sydney housing market is steadily improving:

  • The average selling time of a home is 31 days (it was 44 days a year ago);
  • Vendors are discounting their properties an average of 3.6% to affect a sale (6.3% a year ago); and
  • 6.8% fewer properties sold in the last 12 months compared to the previous year.

Currently investors are abandoning the off-the-plan apartment sector for many reasons, including concerns about construction standards, and many of those who purchased off-the-plan a few years ago are now having trouble settling with valuations coming in on completion at well below contract price at a time when banks are more reluctant to lend on these properties.

In the background, strong economic growth and jobs creation is leading to population growth and ongoing demand for property in Sydney.

At the same time, international interest from tourists and migrants continues.

The beginning of this new cycle is a great time to look at buying an investment grade property in Sydney which is currently offering investors an opportunity to buy established apartments in the eastern suburbs, lower North Shore and inner west at a discount to what they would have paid a number of years ago.

Read Full Article – https://www.smartcompany.com.au/industries/property/property-markets-december-2019/

Sydney property market records fastest rebound in decades

Sydney’s property market has recorded its quickest turnaround in decades, with house prices rebounding almost $50,000 last quarter, new data shows.

Houses prices regained almost one-third of the value lost during the two-year downturn, Domain’s September House Price Report, released on Thursday shows, with the city’s median up 4.8 per cent to $1,079,491.

The rapid recovery — four times greater than the next strongest quarterly rebound of 1.2 per cent following the 1994 market low — has defied all price forecasts.

Domain senior research analyst Nicola Powell said the quicker-than-expected upswing could be attributed to the slight relaxation of lending standards, interest rate cuts, a post-election boost in buyer confidence and improved affordability.

“We have seen a strong rise over the quarter,” Dr Powell said. “There is momentum gaining, so I do think next quarter we’re likely to see [a return to annual price gains].”

Median house prices
RegionMedianQoQ ChangeYoY Change
Blue Mountains$650,000-0.3%-4.4%
Canterbury Bankstown$860,0004.9%-3.9%
Central Coast$616,5002.8%-2.1%
City and East$2,180,0001.4%-9.0%
Inner West$1,550,0006.9%4.0%
Lower North Shore$2,330,0001.1%1.3%
North West$1,250,0009.7%3.2%
Northern Beaches$1,696,0004.7%-0.6%
South$1,125,0007.1%-5.5%
South West$695,0003.4%0.0%
Upper North Shore$1,620,000-0.3%-1.8%
West$700,0002.9%-2.1%
Source: Domain House Price Report, September Qr 2019.

Source: Domain

KATE BURKE| JOURNALIST | OCT 24, 2019

Read full article here
https://www.domain.com.au/news/sydney-property-market-records-fastest-rebound-in-decades-896383/

CBA tips apartment shortage by 2020

The construction downturn would bottom out by mid-next year and there could be a shortage of apartments by 2020, the Commonwealth Bank has forecast.

Strong population growth, a shortage of supply, and a kick back in home prices meant the building downturn would hit bottom sooner than expected.

“CBA estimates suggest an undersupply of apartments from 2020,” CBA economist Kristina Clifton said.

Read the full article here

Matthew Cranston
Economics correspondent

Australia’s Housing Market is Suddenly Heating Up Again

Article sourced ken from Bloomberg.
By Sybilla Gross, 8 Aug 2019, 5:00 AM
 
After a two-year slide, Australian house prices look to have bottomed out, sending buyers flocking back to the market.

Case in point: An auction for a four-bedroom house in the Sydney suburb of Ryde on Saturday attracted about 100 people. Spirited bidding pushed offers A$226,000 above the reserve price, before it finally sold for almost A$1.5 million ($1 million) — a buzz last seen during the boom years.

“A lot more people now are getting concerned that things are going to go up in the next six to 12 months so they’re trying to buy now,”

…turnaround in sentiment can be traced to three factors: interest rate cuts … mortgage rates to record lows; loosening of mortgage stress tests; and the surprise re-election of Scott Morrison’s government in May, which killed off the opposition labor party’s plans to wind back tax breaks for property investors.

Rising home prices may help underpin consumer spending by making homeowners feel wealthier.
Quantum Research Comment

“We are selling apartments at list price, and in Sydney at a 5-7% discount and that was in the first half of 2019, moving into late 2019 prices have established. The Blomberg article that 80,000 over-supply in apartments is somewhat over-simplistic, with new demand at a standstill and new buyers entering the market are 77,000 children complete HSC each year that eventually want to own a home. In March 2019 ABS state that in March ’19, only 17,000 new Apartments commenced, down 50% from its high in March ’16…”
Peter Gribble 10/8/2019

Full article is at: https://www.quantumresearch.com.au/australias-housing-market-suddenly-heating-3/

Australia’s housing market is suddenly heating up again

After a two-year slide, Australian house prices look to have bottomed out, sending buyers flocking back to the market.

Case in point: An auction for a four-bedroom house in the Sydney suburb of Ryde on Saturday attracted about 100 people. Spirited bidding pushed offers A$226,000 above the reserve price, before it finally sold for almost A$1.5 million ($1 million) — a buzz last seen during the boom years.

“A lot more people now are getting concerned that things are going to go up in the next six to 12 months so they’re trying to buy now,” said real estate agent Phil Allison, who handled the sale. As recently as six months ago, it was difficult to elicit a single bid at an auction for a house just around the corner, he said.

Read Full Article Here.

Australia’s Housing Market Is Suddenly Heating Up Again
By Sybilla Gross
August 8, 2019, 5:00 AM GMT+10 Updated on August 8, 2019, 12:01 PM GMT+10