Property Investment April 2011

Weekly Property Pulse Professional Edition

This week’s edition covers:
Building Act set for Change in WALatest RP Data-Rismark Indices released
Industry Market Wrap
Have you tried RP Professional yet?
What happens when Australian property values correct?
New residents flock to Melbourne’s urban fringe
Post auction competition in South Melbourne 

WA’s building and construction industry is bracing for two of its biggest changes in decades, with the imminent introduction of new procedures that will fast-track the development approval process and the issue of building licenses.

The new Building Act due later this year and Development Assessment Panels, which are likely to be in place by July, will allow builders and developers to bypass local government authorities for some approvals that have previously involved lengthy delays.

When it comes into effect, a key change in the Building Act will allow builders and developers to have plans certified by a private building surveyor and then lodged with a local government authority which can issue a building license in 14 days. Development Assessment Panels will remove a council’s authority over larger development applications and are expected to dramatically cut waiting times for planning decisions. 

While the Building Act is still before Parliament, the property council expects the Building Commission to have the private certification framework in place and ready to start in October.

Scott Roberts, a technical director at construction consultants Davis Langdon, said the Building Act means a qualified, registered building surveyor would be able to certify a set of building plans met the building code requirements and would provide the same level of safety and amenity to the community as the public sector approval process.

“Once lodged, the council would have 14 days to issue the building license and that’s where we see the value to the industry in terms of a cost saving and a more efficient process because the council is not having to do its own assessment and possible negotiation,” Mr Roberts said.

By MARISSA LAGUE, The West Australian April 6, 2011, 5:30 am

Latest RP Data-Rismark Indices released 
February’s RP Data-Rismark Hedonic Home Value Index result (0.0 per cent s.a.) suggests that Aussie home values continue to tread water despite robust household income growth. There was little revision to RP Data-Rismark’s January estimates.After a natural disaster-affected January (-1.5 per cent seasonally-adjusted or -0.7 per cent raw), RP Data-Rismark’s Hedonic Index reports that Australian home values held ground during the month of February.
Read the full RP Data-Rismark Hedonic Home Value Index
Industry Market Wrap 
The RP Data-Rismark Home Value Index was released this week and it showed that during February capital city home value growth was flat however, over the three months to February 2011 values fell by -1.3%. Capital city home values are now well and truly growing at a rate below inflation, increasing by just 0.8% over the year. The slowdown in the residential property market is being hardest felt within the premium sector. Across the major capital cities, dwelling values across the most expensive 20% of suburbs has fallen by -2.2% over the last year meanwhile, the broad ‘middle market’ represented by the middle 60% of suburbs has recorded value growth of 1.2% during the year and the most affordable 20% of suburbs have recorded value growth of 2.9%.
Read More…
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 What happens when Australian property values correct?
Australian residential housing prices and their direction is a hotly debated topic both locally and overseas. In this week’s Property Pulse we take a look at some key examples where distinct phases of capital gain have been followed by a correction.Debate has always been heated surrounding whether or not property prices will grow, fall, flat-line or do anything else. The interest in real estate markets should come as no surprise considering the value of Australian housing (more than $4 trillion) is more than double the value of the Australian share market. Our strong belief is that a collapse in Australian home values is unlikely but the rate of capital appreciation recorded during recent years is unlikely to be repeated for some time.
Read the full article…
New residents flock to Melbourne’s urban fringe
Yesterday the Australian Bureau of Statistics released their annual ‘Regional Population Growth’ figures – a set of data that provides estimates of population growth for a range of smaller geographic areas than what is available in the regular quarterly updates. The data is released for the most common Australian Standard Geographic (ASGC) regions including statistical divisions, statistical subdivisions, statistical local areas and local government areas. The estimates provide an interesting and much more granular insight into where Australia’s population flow is being housed and hence where is the greatest demand for housing and infrastructure development being felt.
Read the full article at blog.rpdata.com…
Post auction competition in South Melbourne
An office and warehouse building in South Melbourne, Victoria, has been sold post-auction by agents of ICR Property Group and Little Commercial with vacant possession.The property at 71-73 Thistlethwaite Street, South Melbourne, is understood to have attracted attention from three buyers even after passing in at auction.ICR Property Group agent, Raff De Luise, and Little Commercial agent, Stephen Speck, marketed the property, which achieved a final selling price of $2.301 million after passing in at auction for $2 million.The post-auction negotiation for the 1000 sqm office and warehouse on a 766 sqm site, zoned Industrial 1, was described by the agents as an ‘auction after the auction’.“This is typical of today’s buyer at auction; on the one hand reluctant to make the first bid, and on the other, fighting to secure the property afterwards,” said Mr De Luise.@font-face { font-family: Helvetica; } @font-face { font-family: Cambria Math; } @font-face { font-family: Calibri; } @page Section1 {size: 612.0pt 792.0pt; margin: 72.0pt 72.0pt 72.0pt 72.0pt; mso-header-margin: 36.0pt; mso-footer-margin: 36.0pt; mso-paper-source: 0; } P.MsoNormal { LINE-HEIGHT: 115%; MARGIN: 0cm 0cm 10pt; FONT-FAMILY: “Calibri”,”sans-serif”; FONT-SIZE: 11pt; mso-style-unhide: no; mso-style-qformat: yes; mso-style-parent: “”; mso-pagination: widow-orphan; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-font-family: Calibri; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: “Times New Roman”; mso-bidi-theme-font: minor-bidi } LI.MsoNormal { LINE-HEIGHT: 115%; MARGIN: 0cm 0cm 10pt; FONT-FAMILY: “Calibri”,”sans-serif”; FONT-SIZE: 11pt; mso-style-unhide: no; mso-style-qformat: yes; mso-style-parent: “”; mso-pagination: widow-orphan; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-font-family: Calibri; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: “Times New Roman”; mso-bidi-theme-font: minor-bidi } DIV.MsoNormal { LINE-HEIGHT: 115%; MARGIN: 0cm 0cm 10pt; FONT-FAMILY: “Calibri”,”sans-serif”; FONT-SIZE: 11pt; mso-style-unhide: no; mso-style-qformat: yes; mso-style-parent: “”; mso-pagination: widow-orphan; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-font-family: Calibri; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: “Times New Roman”; mso-bidi-theme-font: minor-bidi } A:link { COLOR: blue; TEXT-DECORATION: underline; mso-style-priority: 99; text-underline: single } SPAN.MsoHyperlink { COLOR: blue; TEXT-DECORATION: underline; mso-style-priority: 99; text-underline: single } A:visited { COLOR: purple; TEXT-DECORATION: underline; mso-style-priority: 99; text-underline: single; mso-style-noshow: yes; mso-themecolor: followedhyperlink } SPAN.MsoHyperlinkFollowed { COLOR: purple; TEXT-DECORATION: underline; mso-style-priority: 99; text-underline: single; mso-style-noshow: yes; mso-themecolor: followedhyperlink } .MsoChpDefault { FONT-SIZE: 10pt; mso-style-type: export-only; mso-default-props: yes; mso-ansi-font-size: 10.0pt; mso-bidi-font-size: 10.0pt } DIV.Section1 { page: Section1 } TABLE.MsoNormalTable { FONT-FAMILY: “Calibri”,”sans-serif”; FONT-SIZE: 11pt; mso-style-qformat: yes; mso-style-parent: “”; mso-pagination: widow-orphan; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: “Times New Roman”; mso-fareast-theme-font: minor-fareast; mso-hansi-font-family: Calibri; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: “Times New Roman”; mso-bidi-theme-font: minor-bidi; mso-style-priority: 99; mso-style-noshow: yes; mso-style-name: “Table Normal”; mso-tstyle-rowband-size: 0; mso-tstyle-colband-size: 0; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-para-margin: 0cm; mso-para-margin-bottom: .0001pt } Stay up-to-date with the latest commercial property news all in one place. Subscribe to the Australian Property Review, powered by RP Data for only $1.90 a week and receive a weekly newsletter that includes Auction Results, Deals of the Week, Retail News, Leasing Deals and an Industry Market Update. Click here to find out more information.

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