Trending Property News
All of these articles are hand picked summaries of news articles based on the property and strata industry around Australia.
Sydney apartments developers continue to increase incentives for apartment buyers
To clear an oversupply of apartments, currently some developers offer extras like paying 12 months of a buyer's mortgage, "bonuses" as high as $50,000 and furniture vouchers. According to analysts, deals like this are common in an over-supplied market but that can be because the apartments are overvalued. The current oversupply has caused Sydney apartment prices to drop by 6 per cent over the past 12 months.
Because of the Morrison Government's re-election, an interest rate cut as well as an easing in lending restrictions, some people in the real estate industry are predicting Sydney's property downturn will reach a floor this year and begin to rise early next year.
Rates may hit 0.75% within months as RBA signals further cuts
The Commonwealth Bank predicts interest rates will fall below 1 per cent by November, as the Reserve Bank trys to shift the economy away from the current downturn. $393 billion has been wiped from the value of the nation's housing stock in the past 12 months ($15,720 per person).
ANZ's head economist, David Plank, said the prediction of further rate cuts was an "unusually strong signal" from the central bank and raised the possibility it could "be doing something non-conventional very soon, within a matter of months, unless there is a rapid turn".
In Canberra, the head of the bank's financial stability department, Jonathan Kearns, recently said at a property summit that the number of people not up-to-date on their home loan repayments had now reached the level recorded during the global financial crisis.
Strata Offices are Becoming Hit Ticket Items in Real Estate
The average purchase price of strata office prices in Melbourne is now $10,000/sqm. Hamish Mackay (Director – Sales and Leasing for TGC) said “The rise in rents over recent years and a lack of stock has meant commercial strata units have become increasingly attractive to owner-occupiers as they are now a financially viable option compared to renting,”.
Outside of Melbourne, a report form Ray White said Sydney buyers’ preference for core CBD locations has quickly increased city-centre values focusing attention on more affordable midtown and western corridor locations which also saw prices rise.
By: Nathan Leary
15 June 2019