Good area in St. Leonards

There has been no shortage of reporting about the relatively strong performance of regional Australian dwelling markets over 2020. December home value data showed the combined regional dwelling market increased 6.9% in value over the year; a growth rate more than three times the rate of the combined capital cities. This can be seen when looking at 10 year annualised growth rates, which is what growth in an asset value would be if it had the same growth rate every year for 10 years. By this metric, some ‘secondary cities’ have performed just as well as, if not better than, their capital city counterparts. This is a particularly prominent trend across the eastern seaboard. In NSW, 10 year annualised growth rates were 5.0% across Illawarra, and 4.5% across both the Newcastle Lake Macquarie region, and the Southern Highlands and Shoalhaven region. This compares to an average of 5.1% across the Sydney sub-markets, and an average of just 2.1% across the rest of regional NSW. In Victoria, Geelong has a long run annualised growth rate of 4.1%, which is also closer to the average of the capital cities (3.7%) than the rest of regional Victoria (2.7%). Across Queensland, the Gold Coast and Sunshine Coast have seen long term growth rates align more closely with average increases across the capital city sub markets (1.5%). Continue reading at: x Regional property markets are booming - MacroBusin... CoreLogic’s head of research, Eliza Owen, has published a new report looking at Australia’s regional property markets, which are currently experiencing booming conditions: www.macrobusiness.com.au

According to the latest CoreLogic Property Pulse, the combined regional dwelling market increased 6.9 per cent over 2020, a growth rate more than three times the rate of the combined capital cities. Further, considering 10-year annualised growth rates – what growth in an asset value would be if it had the same growth rate every year for 10 years – the report found that “secondary cities” performed just as well as, if not better than, their capital city counterparts, particularly across the eastern seaboard. In NSW, for instance, 10-year annualised growth rates were 5.0 per cent across Illawarra, and 4.5 per cent across both the Newcastle Lake Macquarie region, and the Southern Highlands and Shoalhaven region. This compares to an average of 5.1 per cent across the Sydney sub-markets, and an average of just 2.1 per cent across the rest of regional NSW. “The rise of cities within a ‘commutable distance’ to the capital cities have enabled a regional lifestyle with the benefit of maintaining access to the employment opportunity and amenity of the capitals. This combination has attracted a greater price premium over time.” As capital cities become less affordable, more and more buyers are expected to jump into nearby coastal markets, thus putting a positive pressure on value. Continue reading at: x Regional Australia outstrips capital cities in ret... Regional markets have shown impressive long-term returns over 2020, in what has been a rather tumultuous year for the rest of the real estate sector. www.smartpropertyinvestment.com.au

An internal RBA document, made public on Friday, has predicted a 30 per cent growth in property prices over a period of three years if interest rates remain persistently low. According to the RBA’s data mapping, a permanent 1 percentage point (100 basis point reduction) cut in the official rate could increase real housing prices by 30 per cent after about three years. According to leading indicators, Australia’s property boom has already kicked off, with double-digit growth already logged across the country. “First home buyer activity has increased strongly in recent months, a positive indication of access to housing for younger households, according to loan commitments data,” the RBA added. It, however, cautioned that increasing asset prices can induce borrowers to take on too much credit if accompanied by looser lending standards and/or optimistic assessments of risks. Get more details at: x House prices could jump 30% on the back of low int... According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. www.smartpropertyinvestment.com.au

The report showed buyers were encouraged to flock to the market by the HomeBuilder stimulus, as many households rushed to finalise contracts before the 31 December 2020 deadline to access the $25,000 grant. “This is the second strongest month of new home sales in the 20-year history of the survey, only exceeded by March 2001,” HIA’s economist, Angela Lillicrap, said. While new home sales are set to fall compared with December 2020, record-low interest rates and the improved regulatory environment is expected to support demand for new houses in 2021. Across the country, new home sales in the December quarter were higher in all regions when compared with the same period in 2019: South Australia (188.3 per cent), Victoria (103.1 per cent), Queensland (99.9 per cent), Western Australia (99.2 per cent) and NSW (61.7 per cent) Source: x New home sales reach two-decade high Home sales have soared for the month of December, doubling compared with the number of sales recorded in November, new research has revealed. www.smartpropertyinvestment.com.au .

In not-so-unexpected news for property investors across Australia, unit rental costs in most capital cities experienced the steepest annual fall on record, hitting the lowest asking price since early 2014. Many investors continued to struggle with the impact of Covid-19 on the housing market, such as fewer overseas travellers and greater levels of unemployment pushing down demand. Conversely, house rent prices grew in most capital cities across Australia (excluding Melbourne). Darwin saw a sharp increase of 12.2 per cent over the December quarter, rising from a median weekly asking price of $490 to $550 – now on par with Sydney’s median weekly house price. “House rents are now at a record high following the steepest annual gain in just over a decade,” advised Domain Senior Research Analyst, Dr Nicola Powell. Sydney’s median price for houses grew 1.9 per cent to $550 a week, but Canberra recorded the highest median weekly house price at $600. Melbourne was the only capital city that saw no growth – no doubt influenced by the impact of its Covid-19 outbreak and tough lockdown restrictions. It was a different story for our nation’s biggest capital cities in terms of median unit prices, as Sydney experienced a 5.1 per cent drop quarter-on-quarter. Melbourne followed suit, with unit rental prices falling 3.0 per cent in the same time frame from $400 to $388 a week. Source: x House rental prices rise, unit rental prices fall ... The gap between house and unit rental prices has grown over the December quarter, according to the latest data from Domain’s December Rental Report. www.ratecity.com.au

The demand for warehouses is increasing on the back of a significant shift in consumer habits, with the Australia Bureau of Statistics revealing that nearly 1 million residences shopped online for the first time last year. And while shoppers have since been allowed to return to physical stores, the online craze is not going away with the ABS recently noting that more items were purchased online in the first week of December than ever recorded before. “There is no denying that online shopping grew strongly through 2020, and this reached a new level in December as millions of people chose to buy their Christmas gifts online,” Mr Boys said. “Ongoing COVID-19 restrictions, social distancing and reduced domestic flights coupled with significantly higher parcel volumes, meant that delivering Christmas 2020 for all Australians was always going to be incredibly challenging.” The online-only business, which specialises in selling outdoor furniture, home and garden products, first came to Australia in 2014, with its latest national distribution hub set for completion in April 2020. The news follows Amazon’s plans to build an even larger 200,000 sq m warehouse in Sydney, and DHL’s announced distribution capacity expansion with the launch of four new state-of-the-art storage facilities around Australia. Continue reading at: x Online shopping surge breathes new life into munda... The online shopping surge born out of the COVID-19 pandemic has breathed new life into a considerably mundane type of commercial property, as customers shift their habits from major malls to digital s... www.smartpropertyinvestment.com.au