Updates

23 AugPerth Suburbs Where Price Growth Is ‘Turbocharged’

Perth’s property market continues its ascent, with sales volumes and property prices sharing in the national attraction to low interest rates, high savings levels and relatively low numbers of COVID cases. Among the top ten suburbs for price growth, median property prices rose by 25 to 45 per cent in a range of prestige and working class suburbs. Salter Point recorded the biggest growth to its median house sale price in the last financial year, increasing 44.7 per cent to $1.352 million. This was followed by Ascot (up 42.1 per cent to $810,000), Bicton (up 30.9 per cent to $1.14 million), Claremont (up 30.8 per cent to $1.7 million) and Medina (up 30 per cent to $260,000).  REIWA President Damian Collins said the top 10 list represented a diverse mix of suburbs, with median house sale prices ranging from as low as $255,000 to as high as $1.7 million.  “It […]

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12 AugCommercial Market Update – Perth Cityscope June 2021

The latest research from Perth Cityscope shows property sale numbers and figures have decreased. The last three months to the beginning of June 2021 recorded 20 sales for a total of over $85.4 million; with $76.8 million for commercial, $3.8 million for commercial strata, $1.2 million for retail, $2.1 million for retail strata and $1.4 million for other. In comparison, the three months to the beginning of March 2021 recorded 30 sales for a total of over $112.6 million; with $84.2 million for commercial, $12.6 million for commercial strata, $5.9 million for retail, $8 million for retail strata and $1.9 million for other. The 12 months leading up to the end of June 2021 recorded 82 sales for a total of over $240.9 million, over $228.2 million lower than the recorded figure for the same time period the year before. The table below shows sales recorded for the past eight […]

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29 Jul‘First home buyer schemes putting buyers in excessive debt’

While the government touts its efforts to boost home ownership, one real estate network warns that current first home buyer schemes could be a catch-22. The government has substantially increased property price caps under several of its schemes aimed to help first home buyers into the market, but the PRD Real Estate Group has now argued that participants may be swapping early and/or easier access to home ownership with a debt level they may not be ready to take on. According to Minister for Housing Michael Sukkar, new price caps for the First Home Loan Deposit Scheme (FHLDS) and the Family Home Guarantee (FHG) acknowledge the challenges of buying a new home or re-entering the housing market. And while the government’s intention might be good, PRD’s chief economist, Dr Diaswati Mardiasmo, warned of possible long-term challenges for current buyers. With the FHLDS foreseeing a slim 5 per cent deposit and […]

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29 JulPros and cons of buying property without a pre-approval

Many lenders are taking a number of weeks (sometimes months) to approve loans at the moment. These delays have been caused mainly by significantly higher mortgage application volumes and the operational disruption from onshoring back-office services due to Covid lockdowns in the Philippines and India. As such, banks are prioritising applications for borrowers that have already purchased property and have a definitive settlement date to meet. Consequently, pre-approval applications are low priority and can take a long time to arrange. This blog discusses the pros and cons associated with buying a property without a loan pre-approval. What is a mortgage pre-approval? A pre-approval is conditional loan approval. Typically, the main condition is that the borrower is able to offer a suitable property as security for the proposed loan. For example, a bank may approve a loan for $800,000 subject to the borrower buying an acceptable property that is valued by the bank […]

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21 JulProfit-making resales soar, but for how long?

The continuous growth of Australian housing market has put upwards pressure on the portion of profit-making resales, new research has found. The portion of profit-making resales in the first quarter of 2021 soared to 90.3 per cent nationally, up from 89.1 per cent in the previous quarter and the COVID-induced low of 86 per cent in the three months to June 2020, CoreLogic’s latest Pain and Gain report, based on approximately 98,000 resales, revealed. The proportion of national loss-making sales, on the other hand, declined from 10.9 per cent to just 9.7 per cent, with owner-occupiers said to have enjoyed a higher incidence of profitability than investors Namely, owner-occupiers recorded 94 per cent profit-making resales, whereas investors only bagged 88 per cent. According to CoreLogic’s head of research, Eliza Owen, the increase in the rate of profit-making sales has come off the back of remarkable growth in Australian dwelling values. Between the […]

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14 JunHouse prices, profits and politics collide in interest rate battlefield

With a Federal election looming and the first signs of pressure on interest rates appearing, the government may soon be locking horns with banks and the Reserve Bank of Australia to keep lending rates at current historic lows. A blowout in inflation forecasts is a major threat to the Federal Government’s budget outlook, especially if it prompts the RBA to raise interest rates much earlier than its current expectation of 2024 at the earliest. A subsequent rise in the Australian dollar would only exacerbate the situation by making the country’s exports pricier. The impact on confidence and household, business and national debt would pose risks for the unfolding economic recovery that could translate as lost votes in an election. Earlier this year it was expected that October or November were shaping as the most likely months for the first post-COVID-19 federal election, but more recent speculation is that Prime Minister […]

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