Located on the doorstep of the world class Port of Newcastle, one of Australia’s biggest bulk export ports.
Newcastle is the thriving hub of the Hunter region.
There is state-of-the-art communications and trade infrastructure, low land costs and highly competitive energy and water tariffs.
The area is easily accessible to labour services in Newcastle and the surrounding centres such as Maitland and Port Stephens.
Mayfield West was part of the former BHP works area.
Newcastle is a leader in vocational training; it has the Hunter Institute (TAFE), which is the largest provider of nationally recognised vocational education and training services.
The Newcastle and Hunter region offers many lifestyle advantages such as pristine beaches, national parks and internationally renowned wine regions.
Transport
10km (10 minutes) away from Newcastle CBD.
Adjacent to Pacific Highway which is the main arterial road into and out of Newcastle with connections to the F3 freeway to Sydney, Brisbane and the New England Highway.
5km (5 minutes) away from the Port of Newcastle and the associated rail facilities.
15km (15 minutes) away from Williamtown airport with direct flights to Melbourne, Sydney, Brisbane and North Coast.
Current Supply
There is very limited supply of strata industrial units over 350m2.
Majority of strata unit stock is in the 150 to 300m2 range.
Most developments seem to allow 1/200 for warehouse space and 1/40 for office space for the car space allowance.
There are several strata unit complexes for sale in the Steel River Mayfield West precinct.
Most of the complexes have sold all their stock over 300m2.
The smaller area units are the main stock left in each complex.
The consensus from most of the agents is that there is usually very little discount in the asking prices, $10,000 maximum.
The developers prefer to offer incentives rather than lower their prices and dilute the market.
The incentives range from stamp duty savings, and office fit out costs to 6 month rental guarantees.
The sales rates average around the $1350/m2 range for warehouse/mezzanine stock with small office components.
The sales rates average around the $1450/m2 range for warehouse/mezzanine stock with around 30% office components.
Units with high office (greater than 40%) space are achieving higher sales rates of up to $2000/m2.
The lease rates average around the $105/m2 range for warehouse/mezzanine stock with small office components.
The lease rates average around the $120/m2 range for warehouse/mezzanine stock with around 30% office components.
Units with high office (greater than 40%) office space are achieving higher rates of up to $180/m2.
Recent sales of investment units have been between 7.5% and 7.8% net. (management fees included as outgoings)
Surrounding Suburbs
Mayfield North, Tighes Hill, and Sandgate. All these suburbs are surrounding industrial areas. Most of these areas were former BHP land prior to BHP shutting down. Mayfield North mostly consists of older, large warehouses. Tighes Hill and Sandgate are well established industrial areas.
Planning There are plans to upgrade the Newcastle Port facilities with a third loading facility.
Newcastle Council has released a future master plan for the CBD, which will see a total rejuvenation of the current CBD area.
There are plans to upgrade the road infrastructure from the CBD to the Airport.
There are plans to upgrade the F3 with a link to Branxton and also a link through to Raymond Terrace, which would be a great improvement to regional and interstate travel times to and from Newcastle.
Opportunity
Buy good quality strata units with strong leases, preferably with areas larger than 350m2. With the opportunity to gain entry into a well located future industrial precinct.
To view property buyers agent services click here – Buyers Agent Services or call 1300 664 373.
Below is a map of Mayfield West
Below is a map of the Hunter Region
]]>http://www.prospergroup.com.au/blog/index.php?entry=entry080808-1203222008-08-08T00:00:00Z2008-08-08T00:00:00ZSuburb Profile - St Lucia Brisbane Below is a snapshot of the suburb St Lucia, Brisbane.
St Lucia, QLD 4067
Demographic profile
The population is 10,612. (2006 census)
47.8% of the population is aged between 15 and 24 with the median age of 23. (2006 census)
68% of the population has never been married as opposed to 33% average for Australia. (2006 census)
40% of the population work as professionals as opposed to 19% average for Australia. (2006 census)
There is a strong demand from the university for accommodation for students and staff, as well as for professionals who want to be close to the city but not in the typical high rise suburbs.
There is a high percentage of tertiary workers, 13% of the workforce as opposed to the Australian average of 1.8%.
Geographic profile
Located 4km south-west of Brisbane CBD.
The area is bounded by the river to the north, university to the east, golf courses to the south and an established residential area and train line to the west, which creates a peninsula suburb.
Property Market
Median unit price is $449,825 (Source: Property Data Solutions)
49% of housing stock is being rented as opposed to 27.2% for Australia. (2006 census)
The median weekly rent is $400 (Source: Home Price Guide)
Apart from the river front area there is very limited high rise buildings in the area and limited opportunities for future supply of high rise developments.
Recreation
The local residents benefit from the university infrastructure which includes excellent sporting facilities, cinemas, restaurants, an Olympic-size swimming pool, libraries and bookshops.
St Lucia and Indooroopilly Golf course.
Walking and cycling along the riverfront.
Close to Mount Coot-tha which has the Brisbane Forest Park and the Brisbane Botanical Gardens.
Schools
Ironside State School is the only primary school in the suburb. There are 2 primary schools, a high school and College in the next suburb.
The University of Queensland is the primary focus of St Lucia, the university and residential colleges cover a large proportion of the suburb.
Shopping Amenities
The suburb boasts its own commercial district that features supermarkets, cafes, restaurants and delicatessens.
Located close to major shopping centres at Toowong and Indooroopilly.
Transport
The CityCat stops at two terminals in St Lucia, the Guyatt Park CityCat Terminal and the University of Queensland Terminal.
There are regular bus services that ferry passengers to all the major points around the area.
The nearest train station to St Lucia is the Toowong Train Station approx 1km away.
Surrounding Suburbs
Toowong, West End, Highgate Hill, Taringa, Dutton Park, Indooroopilly and Yeronga.
Planning
The recently constructed Green Bridge which links the university to Dutton Park was a major planning initiative which has opened up St Lucia to the southern districts of Brisbane CBD.
The local council has placed development restrictions within the area which restricts any high rise buildings (building greater than 3 storeys) except along the waterfront.
Suburb Growth Rates & Predictions
Units Historical Growth (Residex) p.a 1 Years 18.1% 5 Years 14.14%
Results shown for 5 years is as of Dec 06 and 1 year is as April 08.
University of Queensland
Total number of students is around 37,500, from more than 117 countries.
Total staff is around 5,600 (2,408 academic and 3,253 general).
Total number of students that need accommodation is approx 6,600.
Total number of on campus accommodation is around 2,300.
Total number of student specific off campus accommodation in St Lucia is around 600.
The estimated shortfall in student accommodation is 3,700 places, which is taken up in St Lucia and the other surrounding areas.
St Lucia has a total of 4,036 dwellings of which 2,003 are apartments and 391 are townhouses, giving a total of 2,394 medium density dwellings. (2006 Census)
On campus accommodation rates range from $308 p/wk - $490 p/wk over a 34week period/ P.A, and if the students stay during non- academic time they are usually charged a higher weekly rate. This rate includes a single room, shared facilities and 3 meals per day.
Off campus accommodation rates average around $200 p/wk for 1 bed, $380 p/wk for 2 bed and $515 p/wk for 3 bed. These rates do not include meals.
Rents in the CBD continue to rise (by 24% in 2007) and vacancy rates fell to 3.7%, the lowest since the late 1980’s. This looks to continue over the next 3 years with net supply to be offset by net absorption (demand by tenants). This market may be more affected by a US slowdown. If the US were to slowdown as occurred in 2001, vacancies may rise to 6%.
Rents in North Sydney rose by 5% in 2007 however, this market remains oversupplied. Steady demand & low new supply should see vacancies drop to around 9% by the end of 2010. The North Sydney market may also see some over spill from CBD tenants looking to push out in search of cheaper rents and better deals. Parramatta rents increased by 11% during 2007 with potential for this to continue as vacancies fall.
Retail:
NSW Retail spending rose by 6.3% in 2007, the highest level since 2002 as job growth, rising population growth & good economic conditions lifted household income. Continued job growth (at least in the first half of 2008) should drive turnover at a faster rate in 2008, before slowing in the subsequent two years.
NSW and Sydney are more open to any slowdown in the US economy. Although expectations are that any impact will be minor. Low levels of new supply will help the market maintain some stability should economic growth or retail spending growth not be as high as expected. Inflation level rental growth is expected over the next three years.
Industrial:
NSW has been one of the weakest economies since the end of the 2000 Olympics. Slow growth has been saved by high imports and storage requirements (warehousing), fuelled by steady growth in private consumption.
Demand for Industrial property should continue to remain robust at least to 2010.
41% of Sydney’s future Industrial supply is in the outer North West. This high level of supply will need a continued strong economy to ensure that some of the more speculative investment is leased up.
Rental growth averaged 15% in 2006 and 4.3% in 2007. Rental growth should be around CPI for 2008 given the high levels of supply, albeit demand is also strong at present.
]]>http://www.prospergroup.com.au/blog/index.php?entry=entry080714-1111312008-07-14T00:00:00Z2008-07-14T00:00:00ZProsper Group, Brisbane and Sydney Property Buyers Agent looks at the state of the residential property market Brisbane
Brisbane is continuing to show solid growth in property values with overall growth of around 3 percent for houses and units during the first four months of 2008. Brisbane house values are now 5 percent or $24,000 higher than Melbourne’s.
Sydney
Sydney value growth is flattening across the board, even in the traditional growth hotspots of the inner city and metrocoastal regions. Six to twelve months ago we were seeing steady growth of 2 to 4 percent in the Eastern Suburbs, North Shore and Northern Beaches. 2008 has been more volatile, with a month of growth followed by a month of decline; virtually a flat market. The exception to the rule seems to be the St George – Sutherland region where value growth has been much steadier. The best performing market during 2008 has been units in South Western Sydney where buyers are opting for units and town homes instead of more expensive houses.
]]>http://www.prospergroup.com.au/blog/index.php?entry=entry080707-1049232008-07-07T00:00:00Z2008-07-07T00:00:00ZBrisbane property market and outlook - A snapshot by Prosper Group, Buyers Agent Queensland’s population grew by 90,500 in 2007. International immigrants represented 33,500 of this total.
17,887 new dwellings were approved in 2007, which will do little to cater for the increasing demand.
Brisbane’s affordability levels are almost on par with NSW as loan repayments account for around 38% of the average family income. Three years ago the proportion in Brisbane was 28%, whereas NSW remains unchanged over this period. Further deterioration of affordability in Brisbane is expected due to the recent rate hikes.
Brisbane rental growth was 11.5% in 2007 and is likely to be around 10% in 2008 as there will be little relief in vacancies which is around 1.6%.
Rental growth in Brisbane has averaged almost 9% per annum since march 2005.
Brisbane median house price growth in 2007 was a surprising 16.5% underpinned by strong population growth and strong economic conditions. Price growth in 2008 should be around inflation, as an average.
Buyers agent, Prosper Group advise that when considering property investment opportunities in this market, investors should still adhere to the fundamental criteria of property selection. The property should be well located and have good position, have some scarcity value (not in high rise apartment blocks) and also have some opportunity to add some value to the property or increase the yield.
Motivated vendors who have high levels of debt are currently discounting stock to off load it and some properties are being sold up to 10% - 15% below previous valuations.
Opportunities exist for investors to buy well and lock in equity as well as cash in on rising rental yields.
Opportunities exist for homebuyers looking to enter the property market as some properties may be bought below replacement value. Many areas are discounting at present, so it may be a good time to buy and stop paying increasing rents.
Being a buyers agent we are frequently coming accross motivated vendors and as such are continuing to secure great deals for our clients.
To view property case studies click here – Buyers Agent
To view property buyers agent services click here – Buyers Agent or call us on 1300 664373.
]]>http://www.prospergroup.com.au/blog/index.php?entry=entry080617-1145392008-06-17T00:00:00Z2008-06-17T00:00:00ZFastest-growing rental properties in NSW The NSW Department of Housing Rent and Sales report, which covers every Local Government Area (LGA) in the state, showed that more than half of Sydney’s LGAs racked up double-digit increases in median weekly rents in the 12 months ending March.
Rental properties in each of Sydney’s inner, middle and outer rings saw an increase in median weekly rents of $10 over the quarter, upping their rental figures to $430, $360 and $300 respectively.
For the outer ring – which includes the Blue Mountains LGA – this represented a rise of 3.4%, while the middle ring – which includes Manly and Parramatta – rose by 2.9%, and the inner ring – which includes Sydney and North Sydney – rose by 2.4%.
The median weekly rent rises over the last year were in double figures for all three rings, with the inner ring rising by 11.7%, the middle ring rising by 12.5%, and the outer ring rising by 11.1%.
This represented an annual increase in median weekly rents of $45, $40 and $30 for the inner, middle and outer rings respectively.
"While there’s this void of rental properties, rent will only go one way – and that’s up. Properties that were receiving $300 per week in rental income are now seeing offers of up to $350,” said Real Estate Institute of NSW president Steve Martin. “Rents are expected to increase in excess of 10% pa until some sort of rescue package is put in place. We need government incentives to bring property investors back into the market."
Rental hot spots
Canterbury and Marrickville were very popular among tenants looking for units, as both recorded annual rent rises nearing 20% in both the one- and two-bedroom unit categories.
Marrickville recorded annual rises of 18.2% for one-bedroom dwellings and 17.9% for two-bedroom units, while Canterbury saw rises of 17.6% (one-bedroom units) and 19% (two-bedroom units).
Marrickville also saw an annual double-digit rise of 16% in median weekly rents for two-bedroom separate houses, with Parramatta (19.6%) and Fairfield (25%) also seeing remarkable increases in the same category.
Median weekly rents for three-bedroom separate houses in Sydney’s SD saw healthy growth over the last 12 months, with rents rising by 23% in Ku-ring-gai, 22.9% in Leichhardt and more than 10% over half of the area’s LGAs.
The prime suburb of Woollahra racked up an impressive 28.3% increase in median rent to $1,925 for a four-bedroom dwelling in the three months to March, while the outlying suburb of Cessnock achieved a healthy 20% growth to $300 year-on-year.
"There’s an acute shortage of rental accommodation in Sydney and NSW, and as a consequence rents are increasing dramatically," said Martin.
"Last year a lot of investors sold their rental properties and cashed in on superannuation. These properties were bought by owner-occupiers, reducing the vacancy factor to less than 0.7%."
]]>http://www.prospergroup.com.au/blog/index.php?entry=entry080616-1641052008-06-16T00:00:00Z2008-06-16T00:00:00ZLatest state-by-state property forecasts from BIS Shrapnel BIS Shrapnel is forecasting another interest rate rise to come through in September quarter 2008. Despite a further rate increase, the average cost of renting is set to rise much more than the cost of buying in 2008/09 and 2009/10, due to the undersupply of new housing.
National population growth of 1.5 per cent is expected in 2008/09, the highest since the late 1980s. Australia is experiencing record net overseas migration inflows which is underpinning what is already strong underlying demand for housing, according to BIS Shrapnel’s Residential Property Prospects, 2008 to 2011 report. With construction of new dwellings below previous peak levels, a rising deficiency of dwellings is also evident in the extremely low vacancy rates and will drive strong rental growth in most cities.
BIS Shrapnel senior project manager and study author, Mr Angie Zigomanis, believes rising rents and improving credit conditions will be the key to the next upturn in prices in most capital cities.
“As credit conditions recover over the course of 2009, we expect banks will gradually pass on lower borrowing rates to customers. This easing will enable house price growth to pick-up in many centres during 2009/10 and 2010/11,” said Zigomanis.
BIS Shrapnel forecasts Brisbane, the Gold Coast, the Sunshine Coast and Darwin will show the strongest price growth through to 2011 due to significant pent-up demand in these markets and strong employment and wages growth, especially in Queensland.
The correction in prices in the Sydney market is expected to lead to stronger price growth towards the end of the decade as demand pressures build, while BIS Shrapnel forecasts more modest growth in Melbourne, Adelaide, Canberra and Hobart over the same period, with Perth trailing even further due to the significant affordability barrier in that city. Outlook for price growth by region
Sydney
After declining in 2004/05 and 2005/06, house prices in Sydney stabilised in 2006/07 and BIS Shrapnel anticipates the Sydney median house price will reach $550,000 in June 2008.
BIS Shrapnel forecasts the Sydney median house price will reach $560,000 in June 2009, representing a 17 per cent decline in real terms from the March 2004 peak. However, this does not mean Sydney house prices will be undervalued. Zigomanis argues the drop in real terms brings Sydney house prices closer to an equilibrium level, as it reflects long-term price growth from previous market lows of around four per cent per annum in real terms -- this is consistent with the end of other property cycles.
BIS Shrapnel forecasts total growth over the three years to June 2011 to reach 18 per cent, with the strongest growth coming through at the end of the period.
Newcastle and Wollongong
Price levels in Newcastle and Wollongong are significantly lower than across Sydney, with these markets benefiting from the inward migration of residents due to a lack of affordability in the state capital. Total growth in the median house price in Newcastle over the three years to June 2011 is forecast to reach 18 per cent, while the total rise for Wollongong is forecast to be 17 per cent.
Melbourne
Melbourne has experienced strong growth in the median house price in the last 18 months. Following a cumulative rise of five per cent between June 2003 and June 2006, prices rose by 12 per cent in 2006/07, and were capped off by a further 14 per cent increase in the six months to December 2007, according to BIS Shrapnel. This growth was supported by strong underlying demand and a rising deficiency of dwellings, as well as very strong employment and income growth.
However, rising interest rates at the end of 2007 and into March quarter 2008 saw the median house price in Melbourne fall back to $432,500. Zigomanis believes this overstates the decline in the Melbourne market as the March quarter median in Melbourne is often lower due to reduced sales volumes during the holiday period.
Nevertheless, Zigomanis says the drop indicates conditions have eased in Melbourne and BIS Shrapnel forecasts the median house price will reach $455,000 at June 2008, representing price growth of 10 per cent for the financial year.
Rises in interest rates in 2007/08, and a further increase in September quarter 2008, will also have the desired effect of slowing economic conditions. Over the 2008 to 2011 period, BIS Shrapnel forecasts Melbourne’s median house price will rise by a total of 16 per cent, reflecting six per cent price growth in real terms.
Brisbane
House price growth in Brisbane accelerated to 12 per cent in 2006/07, after a pause in 2004/05 and 2005/06, according to BIS Shrapnel.
However, Zigomanis believes healthy underlying demand, together with strong wages growth and outperforming economic growth in Queensland have not only improved affordability for many, but also resulted in a return of confidence in the Brisbane market.
BIS Shrapnel forecasts Brisbane’s median house price will reach $422,000 in June 2008, a rise of 15 per cent for the year. Over the three-year period to 2011, the median house price is forecast to rise by a total of 22 per cent, or 11 per cent in real terms.
Gold Coast and Sunshine Coast
Zigomanis says house prices on the Gold Coast and Sunshine Coast have generally moved in tandem with Brisbane, benefiting from the same drivers of population growth as the capital (i.e. net interstate migration inflows and to a lesser extent, overseas migration).
In the Gold Coast, BIS Shrapnel forecasts prices will increase by 22 per cent over the three years to June 2011, with a similar rise of 22 per cent anticipated for the Sunshine Coast.
Townsville and Cairns
Price growth in Townsville and Cairns was very strong in 2006/07, with the median house price increasing by 34 per cent and 20 per cent respectively, according to BIS Shrapnel. However, price growth halted in the six months to December 2007 in Townsville and slowed in Cairns, suggesting that affordability is emerging as an issue in these regions.
Nevertheless, median prices remain below that of south east Queensland, according to Zigomanis, and local economic conditions remain extremely strong, encouraging higher levels of migration to northern Queensland. At the same time, BIS Shrapnel expects high levels of construction will slowly erode the deficiency of dwellings during the next three years and price growth is subsequently forecast to slow during this period, with cumulative price growth of 16 per cent forecast for Townsville and 19 per cent for Cairns. Adelaide
After rising by only four per cent in 2005/06, Adelaide’s median house price growth picked up again to nine per cent in 2006/07. Momentum continued into the second half of calendar 2007, with a further 12 per cent growth in the six months to December, followed by a four per cent jump in the March quarter 2008, according to BIS Shrapnel.
While at the state level new dwelling activity appears to be matching underlying demand, Zigomanis believes the low vacancy rates in Adelaide suggest a dwelling deficiency exists in the city, and this has been driving price growth. Moreover, Adelaide’s median house price is the most affordable of the mainland capitals, even allowing for the healthy growth seen in the past 18 months.
However, given finance for owner occupation was down nine per cent during March quarter 2008 on the same period last year, BIS Shrapnel believes turnover could be softening in the Adelaide market in response to the rate rises that have come through since August. Zigomanis expects the Adelaide median house price will rise by 16 per cent over the three years to June 2010, reflecting an increase of six per cent in real terms.
Perth
House price growth in the Perth residential market peaked in December 2006, with a median house price of $460,000. This represents total growth of 178 per cent since June 2001, according to BIS Shrapnel. This increase has been supported by a rise in underlying demand and booming economic conditions led by strong investment in the resources sector.
However, the median house price was close to static in calendar 2007, as affordability constraints began to outweigh any impetus from booming economic conditions and as interest rate rises have hit home, according to Zigomanis.
Purchaser activity has also declined, with total lending for owner occupation in Western Australia falling by 12 per cent in 2006/07, and a further two per cent in the nine months to March 2008 in year-on-year terms, according to BIS Shrapnel. As a result, Zigomanis expects a June quarter 2008 median house price of $460,000, reflecting a two per cent annual increase.
BIS Shrapnel forecasts Perth house prices will remain flat in 2008/09, and grow only marginally in 2009/10. However, after the poor price growth during the three-year period to 2009/10, Zigomanis expects affordability will begin to improve, particularly given the strong wages growth forecast for the state. This will provide some upward pressure on prices in 2010/11, with the median forecast to increase by six per cent.
Hobart
After a 94 per cent increase over the two years to June 2004, Hobart’s median house price growth paused in 2004/05, before increasing solidly in 2005/06 and 2006/07. After consistently experiencing a net outflow of residents to the mainland states, Tasmania’s interstate inflow/outflow is now roughly in balance, according to BIS Shrapnel.
Zigomanis forecasts Hobart’s median house price will reach $320,000 in June 2008, however demand will become more subdued going forward, as a net interstate migration outflow develops. Higher interest rates from 2007/08 will also have an impact. As a result, Hobart’s median house price growth is forecast to rise by 14 per cent over the 2008 to 2011 period, reflecting an increase of four per cent in real terms.
Canberra
After a five per cent decline in Canberra’s median house price in 2004/05, prices have rebounded between 2005/06 and 2007/08, with the capital’s median house price reaching $457,500 in December 2007, according to BIS Shrapnel.
Price growth in Canberra has reflected the correction in 2004/05, and has been driven by a boost to interstate migration generated by continued strong growth in Federal Government employment and wages growth. However, Zigomanis warns this may not continue with uncertainty around public sector employment after the election of the new Government. Consequently, minimal median house price growth is expected in the first half of 2008 and BIS Shrapnel forecasts prices will increase by a total of 15 per cent over the three years to June 2011, which reflects a rise of five per cent in real terms.
Darwin
Darwin’s median house price increased by 25 per cent in 2005/06, maintained solid growth in 2006/07 and sustained momentum (albeit slowing slightly) into 2007/08, according to BIS Shrapnel. The Northern Territory has benefited from a boom in mining and resources investment, which has translated to a boost to demand as the net interstate migration outflow prior to 2004/05 has improved to a general balance during the past three years.
At $412,500 in December 2007, BIS Shrapnel believes Darwin’s median house price is relatively affordable compared to the other mainland capitals, particularly given the potential for higher levels of income in this region.
BIS Shrapnel forecasts the Darwin median house price will increase 21 per cent over the three years to June 2011, or a 10 per cent increase in real terms.
]]>http://www.prospergroup.com.au/blog/index.php?entry=entry080609-1632342008-06-09T00:00:00Z2008-06-09T00:00:00ZInterest Rates, Property Prices and the Economy The cash rate is currently 7.25%.
Economic growth (which drives jobs and demand) is expected to fall from 3.25% to 2.75%.
Unemployment is tipped to rise from 4.25% to 4.5%. (Reflecting the slowdown in growth).
Whilst the RBA has lifted its inflation forecasts from 3.5% to 4.5% by December 2008, the medium term outlook is then a fall to 3.5% - which supports claims that the cash rate should fall over 2009. This should see home interest rates fall and some life come back into the property market.
NAB thinks the cash rate will fall from 7.25% to 6% over 2009.
Economic forecaster, Peter Switzer states that the above forecast should come to pass so as long as the price of oil does not increase too dramatically. An increase in the price of oil may put further upward pressure on inflation (Goldman Sachs forecast that oil may rise to $US200 a barrel).
Peter Switzer states that if oil ‘goes sky high’ that we can count on a recession and then interest rates would fall big time to avoid a long drawn out one. A recession is defined as two consecutive quarters of negative GDP growth.
Despite rises in oil and the flow on inflation effects, the RBA has reduced the odds of a rate rise by the end of the year from 100 per cent to 70 per cent. This is mainly due to the slowdown in the economy and retail spending.
The RBA supports Westpac’s statement that the worst is over with regards to the ‘Global Credit Crunch’ and rates should ease in 2009. ]]>http://www.prospergroup.com.au/blog/index.php?entry=entry080606-1724302008-06-06T00:00:00Z2008-06-06T00:00:00ZSydney Property Market and Outlook for 2008 – Prosper Group, Sydney buyers agent Sydney property market and outlook:
NSW population increased by 72,000 people in 2007 (Sydney accounts for around 63% of this). Population growth was driven by international immigration (55,000), partly in response to the labour skills shortage.
New dwelling approvals totaled 30,500 in 2007, falling short of the 43,000 new dwellings required to house the growing population. The Sydney housing market continues to be undersupplied.
The vacancy rate in Sydney is 1.4%, placing more pressure on rents to rise in 2008.
Average rents for a 2 bedroom unit Sydney rents increased by 9.7% in 2007 and could rise by another 10% in 2008, which would take the average yield for 2 bedroom unit to 5.4%.
Rising interest rates and lower affordability are generally likely to hinder the chances of strong demand or price growth recovery during 2008, especially in the mortgage belt areas. The average Sydney household now spend 38% of their gross income (close to 50% of their net income) on mortgage payments.
Sydney is currently a two speed property market with the inner city and beachside suburbs continuing to perform well as demand for dwellings outstrips supply and generally better affordability (lower level of debt to income ratio). This is in contrast to the outer west and some regional areas that are experiencing severe mortgage stress and bankruptcy’s are at record levels.
Sydney’s annual median price growth to September 2007 was 3.4 % compared against the long term average of around 8.4%. To name a few of the standout performers over the last 12 months; Bronte units median price increased 15% (from April 07 – Apr 08), Petersham units 15%, Surry Hills units 16% increase, Manly units 14% increase and Maroubra units 9% increase.
Sydney buyers agent, Prosper Group advise that when considering property investment opportunities in this market, investors should still adhere to the fundamental criteria of property selection. The property should; be well located and have good position, have some scarcity value (not in high rise apartment blocks) and also have some opportunity to add some value to the property or increase the yield.
Motivated vendors who have high levels of debt are currently discounting stock to off load it and some properties are being sold up to 10% - 15% below previous valuations.
Opportunities exist for investors to buy well and lock in equity as well as cash in on rising rental yields.
Investors should show caution before buying in the western suburbs of Sydney as it may be some time before this area recovers.
Opportunities exist for homebuyers looking to enter the property market as properties may be bought below replacement value. Many areas are discounting at present, so it may be a good time to buy and stop paying increasing rents.
Being a Sydney buyers agent we are frequently coming accross motivated vendors and as such are continuing to secure great deals for our clients.
To view property buyers agent services click here – Sydney Buyers Agent or call us on 1300 664373.
]]>http://www.prospergroup.com.au/blog/index.php?entry=entry080602-1417562008-06-02T00:00:00Z2008-06-02T00:00:00ZSydney Property Buyers Agent profiles Sydney property - Inner West Below is a snapshot of the key areas of Sydney’s Inner Western suburbs.
Sydneys Inner West
Five Dock: - Sydney property buyers agent profile
Five Dock is located only 8km from the CBD, and is well placed to take advantage of the recreational amenities of Parramatta River. The area has good shopping facilities, cafes and restaurants on the Great North Road, with an Italian theme and they compete well with Leichhardt’s famous Italian shops on Norton St for quality and service. The main suburb village centers around the shops on the Great North Road. There is limited unit supply in the suburb with Garfield St and King St been the most popular streets for units. There are numerous recreational facilities within a short distance such as golf courses in Canada Bay, Five Dock Park, and walking/cycling tracks along the water line of Hen & Chicken Bay and Iron Cove Bay. The area is well serviced by buses to the city with travel times varying between 20 min to 45 min depending on traffic. The area is located adjacent to Parramatta Rd and City West Link. The area is on the fringe of any aircraft noise entering or departing Sydney Airport.
Visit Sydney Property Buyers Agent for recent examples of Prosper Groups property buyers agent service in this area.
Abbotsford: - Sydney property buyers agent profile
Abbotsford is located only 2 km north of Five Dock’s village and 8km from the CBD. It has its own local shopping, café and restaurant facilities on Spring St, centrally located within the suburb. There is a high percentage of units in the area with very little turnover, which means that whenever something comes on the market there is always high demand. The area is bounded mostly by the Parramatta River, Abbotsford Bay and Hen and Chicken Bay, providing great walking/cycling tracks and parks on the foreshores. The area is located on a peninsula and as such has no through traffic and is a very quiet area. The area is well serviced by buses and the River Cat with direct transport to Circular Quay and the CBD. Many people prefer this form of transport as it very reliable, most times quicker than buses which get held up in peak hour traffic and it is a pleasant way to travel.
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Annandale: - Sydney property buyers agent profile
Annandale is only 4 km west of the CBD and close to Bicentennial Park and Rozelle Bay. It is close to good shopping facilities and the University of Sydney’s main campus. The area has wide tree lined streets and character period buildings. The area is located close to Parramatta Rd and the City West Link for access to the CBD by car or bus, and also Rozelle Bay train station. The main advantage of the suburb is that it is located adjacent to the prime suburb of Glebe which is very similar in character, at a more affordable price range.
Residex forecast 8%+ p.a. capital growth return over the next 5 years.
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Erskineville: - Sydney property buyers agent profile
Erskineville is located only 5 km from the CBD. It has good shopping, café and restaurant facilities. It is adjacent to Sydney Park with numerous sporting facilities, walking and cycling tracks. The area is well serviced by two train lines, with only a few stops to the CBD. The area is located adjacent to Newtown which is a very popular suburb for cafes and restaurants. A proposed future road project – the Inner west Motorway and the Southern Toll road which all start and end close to the area, could give the suburb a real boost.
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Marrickville: - Sydney property buyers agent profile
Marrickville is located 7 km from the CBD and adjacent to the Cooks River. The areas main demographic is young families and this is reflected in the medium price been in the affordable range for most young single income families. The area is well serviced by buses and trains. The main shopping facilities are located close to Marrickville station. There are numerous recreational facilities such as golf courses and walking/cycling tracks along Cooks River directly to the south of the suburb.
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For more information on Sydney Property or on Prosper Groups property buyers agent or advocacy service, please contact us on 1300 664373 or visit www.prospergroup.com.au ]]>http://www.prospergroup.com.au/blog/index.php?entry=entry080526-1132062008-05-26T00:00:00Z2008-05-26T00:00:00Z