Property Newsletter July 2011
June 27, 2011 | 
Author Weekly Property Pulse Professional Edition
This week’s edition covers:
Industry Market Wrap
Regional markets feeling the pinch
Population growth back at 2005 levels
Wayville office building sold
Industry Market Wrap
The Reserve Bank (RBA) released the minutes of their monthly board meeting for June at which they decided to keep official interest rates unchanged at 4.75%. The most relative insights for the property sector were: ‘Households had continued to be cautious in their spending and borrowing behaviour. With household income growth strong in the March quarter and consumption increasing more moderately, the household saving ratio was estimated to have risen. Members observed that the saving ratio was now back to levels seen in the mid 1980s and that the increase from earlier unsustainably low levels was a positive development. Consistent with ongoing consumer caution, the housing market had remained soft. Average dwelling prices had fallen modestly so far in 2011, with the weakness mostly in more expensive suburbs and in cities (notably Perth and Brisbane) that had seen a faster run-up in housing prices in earlier years. Housing credit growth had slowed and housing loan approvals had fallen in the first three months of the year, although preliminary numbers for April showed an increase.’
Regional markets feeling the pinch
Following on from last week’s Pulse where we analysed where capital city housing markets had recorded price declines from their peak, this week we take a look at regional markets.
Regional property markets have, for the most part, been recording much lower levels of capital gains than capital city markets since late 2007 as the GFC began to impact the global economy. According to the RP Data-Rismark Home Value Index results for April 2011, the housing markets outside of the capital cities have recorded a 1.8% fall in house values during the year to April 2011.
Population growth back at 2005 levels
The Australian Bureau of Statistics (ABS) released the quarterly Demographic Statistics update for December 2010 this week which tracks changes in population. Over the 12 months to December 2010, Australia’s population increased by 1.5 percent, its slowest rate of population growth since the 12 months to December 2005. Despite the lower rate of growth, Australia’s population still increased by more than 325,000 persons over the 12 months. Although the number is well below the 467,000 new residents over the 12 months to December 2008, it is still strong number nonetheless (running 2.3% above the decade average).
Read the full article at blog.rpdata.com…
Wayville office building sold
An office building in Wayville, South Australia has been sold with vacant possession by agents of Colliers International.
The property at 45 Greenhill Road, Wayville, was purchased by a private group.
Colliers International agents, Ian Thomas and Alistair Mackie, marketed the property, which achieved a final selling price of $4.61 million.
Located on the southern side of Greenhill Road, the two-storey commercial office building of approximately 1275 sqm is situated on a site of approximately 1486 sqm with lower ground and undercroft parking for 52 cars.
“45 Greenhill Road is one of the more prominent buildings in Adelaide’s Fringe precinct and provided an opportunity for investors and owner occupiers to capitalise on the low vacancy rate and one of Australia’s best performing office precincts,” said Mr Thomas.
“Historically very few Fringe investment opportunities come to the market; it is tightly held and as a precinct consistently performs above its weight with good rental and capital growth.
“The enquiry level received during the campaign was strong and we spoke with a number of buyers who have been waiting for an opportunity such as this to be released.”
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Posted in Property Investment