Quarterly Report –

Real Estate Market

March Quarter

“Market Slowing”

The summary below is based on just released information from our main industry source, the Real Estate Institute of Australia (REIA). I hope that this information may help you in making informed decisions with regards to the future acquisition, disposal or rental of property.

The main body of statistics is found below and is taken from the REIA’s March Quarterly report (the latest release). In summary, the REIA states that the property market price growth slowed over this quarter after the previous quarter was the strongest in over a decade. The cessation of the First Home Owners Grant Boost and the increases in mortgage rates has contributed to the more moderate growth in median prices.

Adelaide and Perth led the way this quarter with increases of 4.5% and 3.1% in median house prices respectively with Melbourne showing a 2% fall as did Canberra with a minus .2%. Interestingly even with prices slowing this quarter the annualized rate of price growth in Australian cities was 18.7%, the highest since 2003. Canberra saw the highest price increase for other dwellings (units etc) of 8.5% for the quarter.

Rental markets have been solid with slight increases in rents with the exception of Darwin where rents for 3 bedroom homes dropped 12.6%. The vacancy factor in Canberra for the quarter was static at 1.0% and still remains the lowest in the nation, just below Sydney. The industry benchmark vacancy rate is considered to be 3%; vacancy rates lower than 3% indicate strong demand for rental accommodation. Rents for 2 bedroom other dwelling in Canberra jumped by 8.5 % this quarter to $445 per week, a rate greater than that for 3 bedroom houses.

I hope you find this information of interest and I am happy to discuss any aspect of the market with you in more detail at a convenient time.

Source: Real Estate Institute of Australia

Summary of Median Weekly Rents, Mar. Quarter 2010

Source: Real Estate Institute of Australia

Yours sincerely,

John Whiting B.A. (Hons), F.Fin.

0413 999646

12 July 2010

December Quarter

The summary below is based on just released information from our main industry source, the Real Estate Institute of Australia (REIA). I hope that this information may help you in making informed decisions with regards to the future acquisition, disposal or rental of property.

The main body of statistics is found below and is taken from the REIA’s September Quarterly report (the latest release). In summary, the REIA states that the property market continued to climb over the quarter and this is the third successive quarter that has recorded increases in median prices across all Australian capital cities.  The Australian median price of $481,310 is the highest since the December quarter 2007.

Darwin continues to see dramatic price increases with a jump of 15.4% for the quarter (up 42.5% for the year) followed by Melbourne up 6.7 %( or 11.6% for the year).  All other capitals saw price increases but at less than 5% (Canberra was up 3.3% for the quarter and is now up 6.9% for the year to date). Interestingly property prices in the Inner South, Inner North, Woden and Weston Creek were up over 15% for the year with only single figure increases in the Tuggeranong, Belconnen and Gungahlin areas.

Rental markets have been solid and Canberra remains the second highest capital city behind Darwin for both houses and flats. The vacancy factor in Canberra for the quarter was 1.0% and is the lowest in the nation. It would not be surprising therefore to see rents stronger in the December quarter statistics. 

I hope you find this information of interest and I am happy to discuss any aspect of the market with you in more detail at a convenient time.

Yours sincerely,

John Whiting B.A.(Hons), F.Fin.

0413 999646

                                      Source: Real Estate Institute of Australia

                              Summary of Median Weekly Rents, Sep Quarter 2009

                           Source: Real Estate Institute of Australia

September Quarter

The summary below is based on just released information from our main industry source, the Real Estate Institute of Australia (REIA). I hope that this information may help you in making informed decisions with regards to the future acquisition, disposal or rental of property.

The main body of statistics is found over leaf and is taken from the REIA’s June Quarterly report (the latest release). In summary, the REIA states that property prices have stopped falling and appear to be on the way up in all capital cities this quarter, with the Australian median house price up 5.1 %. Factors contributing to this change are increased investor activity and the revival of the second and third home buyers in the market. These buyers are selling established homes in many cases to first home buyers who prefer to buy established homes in 7 out of 10 cases.

Annecdotal comments from Mortgage Choice suggest that investor enquiry is high and they are preparing to hit the ground running in 2010 particularly once competition from first homebuyers, active since last spring, dissipates.

Darwin continues to see dramatic price increases with a jump of 19.3% for the quarter followed by Melbourne up 9% and Hobart up 6.7%. All other capitals saw price increases but at or less than 5% ( Canberra was up 2.2% for the quarter and now is down only 2.1% for the year to date).

Rental markets appear to have come off the boil in most of the larger capital cities with some lessening of demand. Canberra in particular gave a lot of last quarter’s increase back with a drop of 4.8% for 3 bedrooms homes although it remains the second most expensive capital city at $400 per week and also second for 2 bedroom apartments at $395 per week.

I hope you find this information of interest and I am happy to discuss any aspect of the market with you in more detail at a convenient time.

Yours sincerely,

John Whiting B.A.(Hons), F.Fin.

0413 999646

P.S. If you would prefer to get this report electronically in future

please let me know at john.whiting@blandfordia.com.au

Source: Real Estate Institute of Australia

                         Summary of Median Weekly Rents, June Quarter 2009

Source: Real Estate Institute of Australia

June Quarter

The summary below is based on just released information from our main industry source, the Real Estate Institute of Australia (REIA). I hope that this information may help you in making informed decisions with regards to the future acquisition or disposal of property.

The main body of statistics is found over leaf and is taken from the REIA’s March Quarterly report (the latest release). In summary, the REIA states that the housing market has been relatively weaker in the last quarter with the national weighted median house price decreasing by 4.7%. 

Quarterly results were mixed with median house prices increasing in Brisbane, Perth, Canberra   (+1%) and Darwin but decreasing in Sydney, Melbourne, Adelaide and Hobart. The annual statistics saw prices drop in all capital cities apart from Darwin and interestingly Canberra saw the smallest annual decline of 3.2%. 

This quarter has shown that with housing affordability increasing and rents continuing to rise or stabilize it is cheaper to own a home than to rent in Hobart, Darwin and Canberra when compared with average loan repayments. The largest increase for a 3 bedroom house rental occurred also in Canberra with a 6.3% increase. The quarter has also seen a substantial tightening in lending criteria and an overall increase in turnaround times for loan applications and this is impacting particularly on the first home buyer market. 

Sydney was the only capital city to see a decrease in vacancy rates for rental properties to 1.2% but no capital cities had vacancy rates greater than 3% with Canberra coming in at 2.5% 

I hope you find this information of interest and I am happy to discuss any aspect of the market with you in more detail at a convenient time. 

Yours sincerely,

John Whiting B.A. (Hons), FFin

john.whiting@blandfordia.com.au

0413 999646

         Summary of Median House Prices ($, 000), March Quarter 2009.

Source: Real Estate Institute of Australia

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Summary of Median Weekly Rents, March Quarter 2009

Source: Real Estate Institute of Australia