Virtual auctions is the new norm

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

It comes as the housing market finished 2020 on a high, with Sydney prices climbing nearly 1.3 per cent over the past three months of the year – despite the COVID-19 threat. Property researchers and some banks have tipped home prices to rise by at least 5 per cent this year, with some forecasters, including SQM Research, revealing a double digit rise cannot be ruled out. “A lack of competition can suggest it is not a quality property. And if you buy a bargain, you’ll sell a bargain.” Ms Bakos said the key to buying in a hot market was to target homes and locations well within budget. “Buyers who are repeatedly outbid are usually going for properties that are out of their budget to start with,” she said. Advantage Property Consulting director Frank Valentic said buying a “lemon” would be more costly in the long run than overpaying for a quality home. “You don’t want to end up making a lemon purchase by buying in a cheaper suburb that doesn’t suit your lifestyle, or buying a cheaper house you have to turn around and sell two years later,” he said. Source: x Tips for first-home buyers in a hot Sydney propert... With Sydney becoming a seller’s market first-home buyers competing for properties are in a tricky position, and need to be mindful of some common traps. www.realestate.com.au

Australia's housing markets ended 2020 with solid gains across capital cities and regional markets, setting a positive outlook for the year ahead, according to the latest report from CoreLogic. Over the year to December, national house prices grew by 3%, driven by the 2% growth in capital cities and 6.9% gain in regional markets. In fact, the number of property sales plummeted by 40% through March and April but finished the year with almost 8% more sales relative to a year ago as buyer numbers surged through the second half of the year. "Despite the volatility, housing values showed remarkable resilience, falling by only 2.1% before rebounding with strength throughout the final quarter of 2020," he said. The table below shows the changes in house prices across capital cities: Source: x Strong year-end for house prices Regional markets continued to outperform capital cities in terms of price growth www.yourinvestmentpropertymag.com.au