Agents had to employ crowd control staff as hundreds of buyers queued to buy in a new project in Chatswood. A pre-registration fee of $10,000 was first required to allow you the right to be able to que. Apartments sold to local Austraians as well as releases in Asia where some foreign buyers had the opportunity to buy. Most apartments were bought by locals.

Prices were starting for 1 bedroom at $488,000, 2 bedroom starting at $788,000 and 3 bedroom starting at $1,245,000.

 

 

source: North Shore Times  11 March 2011 

Capital city rents are set to rise by 7 % this year and rose faster than inflation in 2010,

RP Data said rents in capital cities rose 4.2 % in the year to December.

"We expect rents to increase by around 7 % during 2011," RP Data analyst Cameron Kusher said, adding rents would rise most for inner city units and the more expensive housing markets on metropolitan outskirts.

“For the coming year we expect rental markets to tighten further and rental growth during 2011 will likely eclipse that of 2010,” Mr Kusher said

The rise in rent comes amid an expected rise in inflation and while home prices are expected to remain flat, if not fall.

This week ANZ Bank and National Australia Bank released separate reports suggesting house prices will weaken amid higher rates and worsening affordability.

That affordability crisis will leave many renters in capital cities - where the bulk of Australians live - with little choice but to pay more for a home.

Australian Bureau of Statistics data released yesterday showed housing costs rose 0.6 % in the December quarter, taking the annual rise to 5 %.

Over the three months to the end of 2010, RP Data said rental growth was unchanged nationally even as it rose 1.4 % in capital cities.

Over the past five years, capital city rents have risen 44.2 per cent, to a median weekly price of $375.

“Vacancy rates remain tight in the capital cities, first home buyers remain relatively inactive, interest rates are at higher levels and new supply coming on-line is quite constrained,” the report said.

The official cash rate, currently at 4.75 per cent, is tipped to rise, as the Reserve Bank readies for an outbreak of inflation that it fears will result from Australia's tight labour market and on-going demand from Asia for Australian commodities.

 

Source: Domain:  Chris Zappone  27 January, 2011

The Australian property market was the clear front runner in 2010 with demand supported by low unemployment and tight supply adding to the upward, according to a global property market report.

But there is likely to be a slowing sales and downward pressure on prices in 2011, according to the Global Real Estate Trends reports from Scotiabank that looked at the performance of the 12 most developed markets.

Australia was heading for a property bubble but consecutive interest rate increases by the Reserve Bank of Australia (RBA), totalling 175 basis points since October 2009, alongside the expiry of the enhanced First Home Owners Grant in January 2010, succeeded in cooling its red hot property market to some degree, the report says.

The market slowed towards the end of the year. Average inflation adjusted home prices in the third quarter of 2010 were up 9.4% year over year compared with a 15.9% year on year increase in the first three months of the year.

‘We anticipate a further slowing in sales and price appreciation in 2011. While Australia’s close trade ties with Asia and resource wealth will continue to underpin a solid pace of domestic activity, higher interest rates will worsen already strained affordability. The RBA has recently taken pause, but we expect the resumption of a gradual policy tightening path in 2011, with short-term rates rising an additional 75 basis points by the end of 2011,’ the report adds.

The latest national figures from Rismark RP Data house price index seem to back up this analysis. They show that nationally prices fell 0.3%. But some areas, such as Melbourne are still seeing rising prices, up 0.4%. Also apartments are performing better, up 0.6% in Melbourne compared with a national drop of 0.1%.

The market is weakest in Perth, where average prices have fallen by 4.9%, or almost $25,000, since May. Average apartment prices in Perth are down $44,000. Home buyers in Perth have seen no capital appreciation since August 2007. Prices are also very weak in Brisbane, having dropped 2.3%, or $11,000, since their peak in May, with a 0.5% fall in November. While prices in Sydney fell 0.24% and are now 0.76% below the peak.

Rismark managing director Christopher Joye said the likelihood of further rate rises in 2011 meant it was unlikely that home owners would see any capital appreciation, with small nominal price falls a chance. Financial markets expect three more 0.25 percentage point rate hikes this year.

While ANZ Bank economics spokesman Paul Braddick said the decision to raise interest rates again has led to weaker property prices. ‘While the November interest rate hike further deteriorated home purchase affordability, general household financial stability and underlying tightness in market fundamentals are continuing to support, albeit weak, annual growth in house prices,’ he said.

‘We believe these market foundations combined with a strong domestic economic outlook, falling unemployment and limited forced selling will effectively place a floor under house prices in 2011,’ he added.

 

source: Properrtywire.com

Australian Property continues to be popular with Investors say 2 new reports. CB Richard Ellis has revealed that Sydney is the 4th Most popular Location for global investors after London, Paris and New York.

It found that foreign investors accounted for 42% of al Australian purchases - including office, retail and industrial property in 3rdQtr 2010.

A HSBC study showed that 42% of Australian expats are sending significant amounts of investment back to Australia into Australian property.

 

Source:  Australian Broker - November 2011 

 

Australia's Reserve bank has raised rates by 0.25% today.

The Cash Rate is now at 4.75%

The last rate rise was in May 2010

It has been the 4th rise in 5 Years

Economists were surprised believeing rates would remain stable after subdues Inflation figures.

Australia has continued to experience strong growth as opposed to the UK and US which are still in substantial economic difficulty

There is a general belief now that rates will remain stable for the next couple of months at least.

 

 

 

2 November 2010

PENTA  PROPERTIES  CELEBRATES  ITS  18TH  BIRTHDAY

 

The Directors and Staff wish to thank all of our clients for their longterm support

We at PENTA pride ourselves on our Longstanding Good Reputation,

Professional Service and

Integrity.

 

We look forward to the future

 

Deal with a Company You Can TRust

 

PENTA... The Leading Agent, Others Can Only Follow .....

 23 October 2010

Reserve Bank of Australia has kept official rates on hold at the monthly meeting today

Cash Rate remains at 4.5%

This has been the 5th month that rates have been kept on hold.

Reserve Bank believes inflation will be kept in their parameters between 2% - 3%.

The prospect, however remains that the four big banks may increase their own rates over the next few days - although this remains to be seen.

 

 

5 October 2010

House prices over the decades

 

Over the last three decades Australian house prices have recorded periods of extreme growth contrasted with periods of weakness. With the benefit of time, the peaks and troughs of house price growth tend to even out, with Australian house prices recording an average annual rate of growth of 8.4%. The Australian property market moves in cycles which are influenced by a wide range of factors including unemployment, interest rates, consumer confidence and of course previous rates of growth that impact on rental yields and levels of affordability. Over the last three decades Australian house prices have increased at the average annual rate of 8.4%. That’s a pretty decent rate of growth when you consider that prices double every ten years based on an annual compounding rate of 7.2%. In comparison, the rate of inflation has averaged about 4.6% over the last 30 years and 3.2% over the last decade. Of course, there have been some periods where growth rates have well and truly eclipsed this average rate of growth and periods where prices have well and truly underperformed. As an example of one of the weakest periods for Australian house prices, over the five years from 1990 to 1995 the median house price across Australia increased by just 2.8% per annum. The soft market conditions came at a time when Australia was entering the “the recession we had to have” and unemployment raced upwards from 5.8% in January 1990 to peak at 10.9% in December 1992. Mortgage rates during this five year period averaged 11.75% and peaked at 17%. At the other end of the spectrum, the most spectacular five year run was recorded during the ‘boom’ which ran from 2001-03 around most areas of Australia. Despite a slowing in growth rates between 2004/05, the five year period ending July 2005 saw average house price growth of 13.9% per annum. Currently the residential housing market is transitioning out of a strong growth phase, however economically the country is just starting to ramp up. Gross domestic product figures show the economy is once again growing at about 3.2%, unemployment is trending downwards, consumer confidence remains high and rental yields are showing the first signs of improvement after being eroded by value growth and lower rental rates during 2009. In contrast to the broad market drivers outlined above, we can expect there also to be factors that will dampen market demand. Interest rates are likely to increase at least once over the coming 6 months after increasing by 150 basis points since October last year. Population growth appears to have peaked and will most likely fall further as the proposed cuts to migration are implemented and housing affordability is likely to become more of an issue in the larger metropolitan markets around Australia. For prospective buyers it is worthwhile considering the long term trends in the market. The average length of tenure for Australian home owners is about 7.3 years; a time frame that is likely to smooth out the peaks and troughs of price growth encountered through the cycles. The economic and demographic foundations of the market remain solid which suggests that we are likely to see ongoing improvements in Australian house prices, albeit at a much more modest rate that what was seen between 2009 and the first quarter of 2010.   Source: RP Data - 17 September 2010

The Reserve Bank has left interest rates on hold, giving borrowers another month to breathe easy over mortgage repayment costs.  The central bank kept rates at 4.5% for the fourth consecutive month today.

The decision follows official figures that show economic growth has not forced an increase in inflation. Today's decision, however, raises the question of when the borrowers will face another official rate rise over the next few months.

At the moment, borrowers are paying $300 a month more than they were in October 2009, when the RBA began a cycle of rate rises to keep the economy’s expansion sustainable. There have been six rate rises since last October.

Australia’s economy grew by 1.2% in the second quarter, almost double the 0.7% pace in the first quarter. Second-quarter inflation, however, rose by 0.6%, less than the 0.9% in the first quarter.

The nation's big banks have been complaining about increased funding costs for months and they could move on rates independently of the Reserve Bank - a prospect that is more likely to happen once Australia's political logjam has been resolved.

 

source: Fairfax - 

Chris Zappone

September 7, 2010

THE dream of home ownership is slipping further out of reach of ordinary Australians as the nation faces its worst-ever housing shortage.  A national shortfall of 190,000 dwellings will widen to 466,000 by 2020, the Housing Industry Association (HIA) says, amid expectations of a rapidly growing population.

 

Residential developer Australand Property Group says the major constraint facing developers is a shortage of land being made available for greenfield sites and for urban infill.

 

"Generally it comes from a government level, how much land is being made available to fulfil those needs, whether it be at greenfields sites or urban infill."

 

HIA chief economist Harvey Dale says it takes an average seven to eight years for a greenfield site to reach completion, an unnecessarily long period that pushes up costs and reduces supply.

 

"At the end of the day, the lack of adequate, affordable land supply is at the heart of the problem," Dr Dale said.

 

"The number of processes a development must go through is higher now than was the case 10 years ago.

 

Developer Stockland says government inconsistency at all levels is adding thousands of dollars to the cost of new homes.

 

"We have 565 local government areas across our country, and as property developers we have almost 565 different planning standards, charges and processes to adhere to," Stockland residential chief executive Mark Hunter said.

 

Australand's Bob Johnston says the underlying demand for homes is quite strong and the company views that as an opportunity.

 

"We will see a lot of pressure come back on to affordability and we think we are well positioned to try and address those affordability issues for purchasers, whether it be through built form or the land subdivisions we do."

 

Mirvac says its development division expects strong demand to continue throughout 2010, signalling that investors and upgraders have returned to the market.

 

Investors had begun to edge out owner-occupiers, particularly first home buyers, figures released by Australian Property Monitors on Thursday show.

 

However, Dr Dale says Australians won't give up their dream of a detached home any time soon.

 

"In the here and now, consumer preference is still for a detached house. Although home and land sizes have fallen over the past 10 years."

 

Source:  AAP – 1 August 2010

AUSTRALIA is in a two-speed property market with strong demand in Melbourne and Sydney and uncertainty everywhere else, real estate group Ray White says.

 

Ray White joint chairman Brian White said the group's results for July reflected the uneven forces at work in real estate markets as the nation heads to a federal election.

Ray White said sales for July were down three per cent on the corresponding period in 2009.

"The continuing attraction for property in Melbourne and Sydney now defines what 2010 has been all about," Mr White said.

"Demand in those cities just doesn't seem to falter even though the top end properties are quieter and there is evidence of tighter bank lending requirements."

Victoria was the strongest performing state for Ray White, with sales more than 30 per cent up in July compared with the same month last year, while New South Wales reported a four per cent increase.

 

 Mr White said the major mining states of Western Australia and Queensland experienced a big drop off in sales.

 source:  AAP 13 August 2010

HOUSE prices in major capital cities have jumped by almost 20 per cent in the past year, according to the latest Australian Bureau of Statistics figures.

Houses in major capital cities have increased by 18.4% in the last year, says the ABS / File Source: Bloomberg

• City house prices up 18.4 per cent - ABS
• Figures more than double private data
• Price momentum 'slowing', says economist 

The House Price Index of eight capital cities released by the national statistician today, shows quarterly growth to June of 3.1%, and an annual increase of 18.4%.

The data shows growth of almost double that of the private sector RP Data/Rismark index released last week which showed national city dwelling values up 10.5% in the same period. 

In its data today, the ABS said Melbourne house prices had jumped more than 24 per cent over the year to June, while Sydney house prices had risen 21%.

The index covers detached residential dwellings on their own block of land regardless of age, the ABS said. The RP Data index is calculated measuring all dwelling types.

The RBA decided yesterday to leave interest rates on hold for a third straight month at 4.5%.

In its statement yesterday, the central bank noted “the upward pressure on dwelling prices appears to have abated”.

Mr Hassan said the ABS data did show a "clear slowing" in price momentum.

In a note released today ANZ economists said while growth was expected to slow further this year, prices would be supported by the underlying housing shortage and a buoyant outlook for the Australian economy.

Last week's RP Data index showed average house prices had fallen slightly after 17 months of consecutive gains, as economists agreed the market was at a turning point.

 

Source:  news.com.au  4 August 2010

PROPERTY investors are targeting off-the-plan apartments hoping for short-term capital gain, with thousands of prospective pre-sale buyers eyeing Sydney projects.

 

Ray White is reporting a 6 per cent lift in investor buying as shares weaken and with the end last year of the boosted first-home buyer's grant, The Australian reported.

 

An Australian Housing and Urban Research Institute report this month said 80 per cent of investors buy for long-term gain, but at least half sell within five years because of cashflow problems or disappointing capital growth. One in four investors sells within 12 months.

 

Developers in Sydney are reporting strong demand for new residential projects following stamp duty concession by the NSW government this year.

 

Tim Casey of St Hilliers Group says his company has had 650 people interested in apartments at the Caritas site in inner Sydney's Forbes Street, for which marketing begins this week.

 

And Harry Triguboff's Meriton Apartments reports strong interest for proposed apartments at the former Seven Network site at Epping, with more than 300 applications.

"In the next decade, we might see very little growth, and if investors keep buying and thinking 'I'm going to make a killing and then move on', they're going to find themselves a little disappointed," he said.

 

This would be mostly the case in Melbourne, where the market had been strong, he said. In Perth, Brisbane and Adelaide, the trend had already started to occur.

 

Source:  The Australian 24-8-10

RISING interest rates and weaker first home buyer activity will lead to slower house price growth in 2010, an economic forecaster says. House prices will not fall though, and rents are tipped to continue to rise because of a lack of supply, BIS Shrapnel says in its Residential Property Prospects, 2010 to 2013 report.

 

BIS senior project manager Angie Zigomanis said first home buyer activity has dropped after the expiry of the first home owner's grant boost at the end of 2009.

 

Affordability has also suffered as interest rates rise off their low levels, he says.

"With interest rates quickly lifting from these emergency levels, and the current variable rate of 7.4 per cent now being close to long term trends, the recent levels of price growth cannot be maintained," Mr Zigomanis said.

 

Investors will replace some of the demand lost as a result of those factors, meaning house prices will continue to grow, BIS says.

 

More moderate interest rate movements than recent months will also aid purchaser confidence, it says.

 

BIS forecasts the cash rate to rise by 50 basis points in the 2010/11 financial year and by another 50 basis points in 2011/12.

 

"The more stable interest rate environment is expected to underpin purchaser confidence as economic conditions continue to strengthen, and should continue to push through moderate house prices rises," Mr Zigomanis said.

 

House price growth is likely to remain at an average in the mid-single digit percentage range over the next three years, he says.

 

On a capital city basis, Sydney and Perth are expected to post the strongest growth in house prices in the coming years.

 

Weaker demand and local economic conditions are expected to lead to more moderate price growth in Brisbane, Hobart and Canberra.

 

Melbourne and Darwin have already experienced very strong price rises and low affordability will limit further rises, BIS says.

 

For renters, the shortage of dwellings will keep pressure on rents.

 

"Even though overseas migration inflows are steadily easing, a deficiency of stock is still in place with dwelling construction below underlying demand," Mr Zigomanis said.

 

Source:  AAP  Drew Cratchley  15 June 2010

The Reserve Bank has left Interest Rates unchanged during its June 2010 meeting today.

The cash rate remains stable at 4.5%

The Reserve Bank sees rates remaining stable for a few months until it assesses the global economy and where it will be headed.

The Reserve bank has a dilema with a very strong Australian economy, yet great uncertainty with Europe's economy and where it may head to in the coming months.

World growth is expected to slow, the reserve bank remains positive on Asia.

THE housing and construction industries are to receive a significant boost from the budget.

One of the measures taken by the government to increase housing supply is cutting to zero stamp duty for those buying dwellings off the plan.

Those aged over 65 years will pay no stamp duty on a new dwelling, as long as they live in it for more than 12 months. In both cases, the new dwelling must cost less than $600,000.

These will give the housing construction industry a substantial lift.

To qualify for zero stamp duty, new dwellings most be at the "pre-construction stage" – that is, before the laying of foundations has begun, although site preparation such as demolishing existing buildings is permitted.

For off-the-plan dwellings where building is under way, stamp duty will fall by 25 per cent.

The purpose is to get a lot more housing stock into the market.

Since the global financial crisis, property developers have found it difficult to obtain the financing for new developments. A higher level of pre-sale is expected to ease financing pressures, helping developers to get projects off the ground.

Treasury expects the additional measures to boost housing stock by 8000 properties, twice the estimate arrived at by BIS Shrapnel based on concessional cuts to stamp duty introduced earlier in Victoria.

These cuts are initially for 2 years and will then be reviewed

 

Source: ninemsn 9 June 2010

There are plenty of positives in the current market

by Terry Ryder. 

Introduction:
There are plenty of positives in the current market 

When property prices rise, most Australian families  benefit. This needs to be remembered, because media tends to forget.

Because of media's obsession with finding the  negatives in any set of circumstances, the rise in house prices is being  presented is a pessimistic way. Headlines such as The Great Australian Dream is Dead are now common. There are  frequent articles about a price bubble. Misinformation rules.

Here's how I see it. Seven out of ten households own  their homes. A rise in values is a good thing for them. Of the remaining 30%,  many are renters by choice, for various reasons. Those who rent but aspire to  home ownership are relatively few. For them, rising prices is bad news.

But the notion that home ownership is out of reach is  far from true. Affordability currently sits as "normal" levels. It's where it  has been for most of the past five years. House prices as a multiple of incomes  currently sit in line with long-term averages.

There is nothing unusual or concerning about the  recent rise in house prices. The overall rise in the past year, somewhere  around 11% or 12% according to most measures, is a solid year but not an  extraordinary one. Many years in the past decade have shown larger rises.

For many of our key cities, the recent rise in prices  is overdue. Sydney is now showing growth for the first time since 2004. Perth  is showing signs of recovery after three years of price decline. Both Brisbane  and Adelaide were under-performers in 2009. Melbourne had big growth in 2009,  but it was the first major spike in Melbourne values in six years, and long  overdue.  

PENTA Properties is proud to be Major Sponsors of the  Little Champions of India Concert - Live on Sunday 30 May 2010

 

Venue: Hawker College, Murranji Street, HAWKER

Date: Saturday 10 July 2010
Time: 6pm for 6:30pm to 9:30pm

For Further enquiries Please contact Subdoh Kode   0433 597 669

 

http://htcc.org.au/main/

 

·         Falls on the global equities markets may provide a boost to the local residential property market, analysts say.

 

·         Melbourne-based buyers advocate Christopher Koren said investors typically turn to real estate in the aftermath of a stock market correction, as they did following the 1987 stock crash.

 

·         In Australia, a chronic shortage of new homes, as well as optimistic forecasts for the economy have helped push capital city house prices up by 20 per cent in the year to March, according to the Australian Bureau of Statistics.

 

·         Auction clearance rates have been falling over the past few weeks, from the highs of last year, but are still relatively strong

 

·         Sydney-based Adviser Edge head of property Louis Christopher said over the past 20 years, there is evidence of investors switching into property in times of heightened global risk, such as the aftermath of the 1987 stock crash.

·         Reserve Bank raises rates today by 0.25%

 

·         Cash rate is now 4.5%

 

·         Due to an increase in price inflation and house prices

 

·         Australia was on of the first countries to start raising rates as the global economy steadied last year – showing our strong resilient economy.

 

·         Many economists believe the Reserve bank will now pause for a couple of months and leave rates where they are for the time being.

 

·         A strengthening domestic economy with lower unemployment, rising prices are evident now in Australia.

 

·         Asia has also continued to show strong signs of growth

  Reserve bank mentions there is considerable buoyancy in the property market with prices continuing to increase over recent months

·         THE average Sydney house renter is paying about $110 more a week than they were five years ago.

Houses

·         In 2005 median rental rate across the Sydney $340 a week

·         Now about 2/3 is $450 a week.

Apartments

·         Apartment rents across Sydney have increased 52% in the last 5 years.

·         Average Sydney apartment rent is now $410 per week.

·         5 Years ago it was only $270 per week

 

·         Large Increases due to low number of investors and high number of owner occupiers in the past few years

·         Other factors – low supply of residential property in general – high demand from locals and overseas migrants – pushes Rents up

·         Rents will continue to increase throughout 2010.

·         Rents have increased 3.5% over the past 3 months alone !!

 

Source: RP Data – Tim Lawless – Research Director 18 April 2010

·         Australia has been voted the world's best country to bring up children by expatriate parents working here   (source: HSBC bank survey)

 

·         Australia provided the best environment for healthy and active children 

 

·         Expat children in Australia found it easier to make friends easier.While schools in the United States and Britain were the least child-friendly for foreigners, the study found.

 

·         delayedAds.push(function(){ FD.addExternalReferralsAd($merge(FD.baseAd, { id: "adspot-300x250-pos-3", iframeId: "adspot-300x250-pos-3-iframe", params: $merge($merge(FD.baseAd.params, { pos: 3, aamsz : "300x250" }),getAdParams("300x250")) ,addSmall: true ,smallText: "Advertisement: Story continues below" }) ); } ); The survey looked at more than 3100 expatriates from 50 countries, including

Hong Kong, Singapore, the United Kingdom, the United States, United Arab Emirates and Australia.

 

·         Australia had the largest proportion of expat parents who reported an improvement in the quality of family life compared with their original homes, while almost half (45 percent) said moving to the UK could have a negative effect.

 

·         Other Rankings       2^nd Singapore,       3^rd Hong Kong     4^th UAE,      5^th United States,  6th Britain.

 

·         Parents saw Britain and the US as generally less healthy places to live, with children in both countries more likely to spend more time watching TV and playing computer games.

·          

·         Overall, expat parents believed their children benefited by moving to a foreign country, with an average 48 percent of expat kids adapting well to a new culture, half making new friends easily and 49 percent adapting well to new schooling.

 

 

Source:  Sydney Morning Herald 12 March 2010

*  Australia's economic recovery will continue as China reported a near 12% growth rate in the first 3 months of 2010.

 

*  "There's a massive rebound in these Asian economies, so it very good news for Australia," Nomura Australia chief economist Stephen Roberts told AAP.

  

*  Adding to the positive result was a low inflation outcome, dampening fears that China's central bank would be forced to curb growth through an imminent interest rate rise to keep prices in check.

 

*  "A solid pace of growth clearly benefits a raft of Australian companies, particular in mining, construction, transport and engineering sectors," he said.

Australia’s actual rate of annual inflation, was just 2.1% in the December quarter – well between the Reserve Bank’s target range of 2-3%

 

*  The central bank's most recent forecast for CPI inflation in February was for a peak of 3.0 per cent by the June quarter this year, before moderating to 2.5 per cent by the end of the year and through to mid-2011.

The March quarter CPI is released by the Australian Bureau of Statistics on April 28.

 

 

Source:  ninemsn  15-4-10

*           Australia has strong population growth

 

*           This will continue to outstrip housing supply

 

*           Shortfall could reach 500,000 by 2029

 

*           Gap between demand and supply will continue to increase

 

*           The housing shortage is most critical in NSW, which accounts for almost one third of the nation's total population.

 

*           Population growth is at an all-time high

 

*           Australia is building fewer houses per head of population growth than at any time on record, according to new research from economist Saul Eslake.

 

*           Last year there were just 333 dwellings completed for every 1000 increase in population,  

 

*           Bureau of Statistics confirmed that Australia's population grew 2.1 per cent last year, almost double the world average of 1.1 per cent.

 

*           Population set to hit 34 million by 2050

 

 source: The Australian - 29 March 2010

 

*  Australia faces a housing affordability ''time bomb'' - primed by a dysfunctional planning system, a chronic undersupply of homes, and unrealistic expectations from buyers, accoring to the chief of one of the nation's largest homebuilders.

 

*  Australia has a current housing shortage of 200,000 homes (Stockland Managing Director – Matthew Quinn)

 

*  Australia is Short 60,000 new dwellings per year (Stockland Managing Director – Matthew Quinn)

 

*  This shortfall will only continue to increase unless more housing is constructed.

 

*  House prices increased by 13.6% in Australia in 2009

 

*  In the last decade they increased by 170% (Australian Bureau of Statistics)

 

*  Residential real estate prices have soared as Australia's economy nears notching up two decades of growth without a pause.

 

*  During the same period, Australia has had more immigrants, adding to housing demand.

 

 

(source:  Sydney Morning Herald – 16 March 2010)

 

*           Australia is facing an under-supply of housing that isn't meeting the demands of a growing population     and will push property prices even higher,                                  source: Reserve Bank of Australia.

 

*           If this does not occur – house prices and rents will continue to rise

 

*           Property prices increased by more than 10% in 2009 and this will continue in the future despite rising       interest rates

 

*           Unlike other countries rocked by the global financial crisis – Australia did not have an oversupply of         housing

 

*           The rate of increase in dwellings has been below the average of the past 50 years, while population has   increased at its fastest pace over the same period.

 

*           Business investment in Australia was around 16% of gross national product, close to a 40 year peak,       and was expected to rise over the next two years.  (Source:   Dr Lowe – Reserve Bank Australia)

 

 

 

Source nine news 10 March 2010

Sydney's median house price is almost $600,000 - almost double what it was 10- years ago.

 

But wherever you look, the story seems to be the same: stock is low and prices are going up. ''It's … definitely up at the moment,'' Jeff Torr, an agent at Century 21 Engadine, said. ''There's just no supply of properties.''

 

Sydney's median house price is $595,745, according to the Australian Property Monitors.

 

The days of buying a house in the east for $600,000 are gone, same for the northern beaches.

 

You will only be able to buy apartments in these areas for $600,000.

 

 

 

 

Source: Sydney Morning Herald -  4 March 2010

The federal government has kept the Australian economy growing strongly while the rest of the world has been devastated by the global downturn, Prime Minister Kevin Rudd says.

 

The national accounts released on Wednesday - a snapshot of the economy in the three months to the end of December - showed economic growth of 0.9% and the fastest pace in nearly two years.

 

 "This morning's national accounts confirmed once again that we have kept the Australian economy growing strongly, while other economies around the world remain devastated by the global recession," Mr Rudd said at the National Press Club where he was launching his new hospitals plan.

 

The quarterly increase was in line with economists' expectations, although the annual rate beat forecasts of 2.4% growth due to revisions to previous quarters.

"These national accounts represent a very solid outcome for the economy, for an economy which is the envy of the developed world," Treasurer Wayne Swan told reporters in Canberra.

 

"To have grown the economy in what has been one of the toughest years since the 1930s is a truly remarkable feat and the stimulus is providing a firm foundation for the economy."

 

"The economy has proven remarkably resilient, with the strong outcomes to date providing a solid base for a broadening recovery over the coming year."

JP Morgan chief economist Stephen Walters said the economy's impressive performance was despite the Reserve Bank of Australia (RBA) lifting interest rates three times during the December quarter.

 

"The economy's robust rate of expansion last quarter, which far exceeded official expectations when the emergency interest rate settings were put in place, explains why the RBA was the first G20 central bank to tighten monetary policy," Mr Walters said.

 

The RBA raised the cash rate on Tuesday to 4.0%

.

The Australian economy is operating very well, but unexpected growth in gross domestic product (GDP) should signal a winding back of government spending, shadow treasurer Joe Hockey says.

 

"The Australian economy is performing very well, but we can't look in the rearview mirror, we need to look forward," he said.

 

"And if the Rudd government continues to spend like drunken sailors at the pub, Australia will pay a very heavy price."

 

Source: nine news 3/03/2010

The Australian economy is facing a dramatic improvement in its growth prospects, back on par with that seen in 2007 at the height of the resources boom, according to a leading index.

 

The Westpac-Melbourne Institute leading index of economic activity, which indicates the likely pace of activity three to nine months into the future, posted an annualised growth rate of 6.2% in December.

 

The result, released on Wednesday, was well above the long term trend growth rate of 2.7%.

 

The annualised growth rate of the coincident index, which shows the current pace of economic activity, was 1.3%, but below its long-term trend of 3%.

 

Westpac senior economist Matthew Hassan said the annualised growth rate as measured by the leading index continues to rebound after dropping to minus 6.9% in May 2009 to the plus 6.2% in December.

 

Australia's economy grew by 0.5% in the year to September 2009, official data showed.

 

"This large swing is not only the fastest reversal since the economy bounced out of recession in the mid 1970s but also puts the growth outlook back on a par with that seen in 2007 at the height of Australia's resources boom," Mr Hassan said in a statement.

 

The turnaround had been broadly based with all but one component of the index improving, Mr Hassan said.

 

"Three of the four monthly components of the index rose in December the share price Index (up by 3.6 per cent); dwelling approvals (up by 2.2%) and US industrial production (up by 0.6%)," Mr Hassan said.

 

"One monthly component - the real money supply - fell by 0.9%."

Mr Hassan said a run of strong data released since the Reserve Bank of Australia's (RBA) board meeting on February 2 could edge the central bank to lift the overnight cash rate at its next board meeting on March 2.

 

The RBA surprised financial markets earlier this month by leaving the cash rate unchanged at 3.75%.

Most market economists had expected a 25 basis point rise to 4.0%.

 

"Data releases since the February meeting, including another surprisingly strong jobs report last week and today's Leading Index result, continue to show a faster than expected upturn in growth domestically," Mr Hassan said.

 

"The (Reserve) Bank has shifted to a slower pace of tightening and is now keeping its options more open.

 

"Decisions are likely to remain finely balanced but our central case is still for another 25 basis point rise in March," Mr Hassan said.

 

Source:  nine news:  17/02/2010

The brief respite for renters appears to be ending, Chris Vedelago reports.  With the economy on the mend and the property market back on the boil, life is about to get harder for Melbourne renters.

Why? Because, as strange as it sounds, the global financial crisis actually tempered some of the worst effects of what had been considered a deepening rental crisis in 2007-08.

Far too few houses and apartments were being built to meet the needs of Melbourne's rapidly swelling population.

In turn, strong property price growth and rising interest rates meant a growing number of renters could not afford to become home owners.

The result? Demand for rental housing soared, Melbourne's rental vacancy rate hit rock bottom and, ultimately, rents skyrocketed.

Back then, the market was awash in grim stories of families priced further and further out of the city; of every property, regardless of quality, attracting scores of applications; of inspection lines that ran out the door; and "rental auctions" where would-be tenants competed to pay rents well above market value.

Australian Property Monitors, which is owned by Fairfax, reports that Melbour