More Brits buying homes in Australia

residential-propertyThe Australian property market is being swamped with enquiries from overseas buyers including many purchasers from the UK, according to the Real Estate Buyers Association of Australia.

According to data compiled by the Real Estate Buyers Association of Australia, foreigners purchased £14.5 billion worth of properties in Australia during the peak of the global financial crisis in 2009.

In total last year, overseas nationals bought 3,639 new and existing homes in Australia, along with 988 parcels of land.

Byron Rose, president of the Real Estate Buyers Association of Australia, commented: “We see a lot of interest from Singapore, Hong Kong, Tokyo and the UK. They know the market is depressed and as they are making huge capital gains many are reinvesting into the market.”

Because interest rates have risen in recent month, the cost of taking out a mortgage to buy property in Australia has increased considerably for many local buyers, and as a consequence many Australian property firms are now targeting more overseas buyers.

Consultancy firm CB Richard Ellis recently held a major Australia property exhibition in Hong Kong in an attempt to woo more foreign buyers.

Story source:

Tags: housing, investment, marketing, property, real estate

Australian investors buying cheap US houses

394291-rising-dollar-crystal-ballMUM-AND-DAD investors are buying bargain-priced houses in the United States for the cost of a new car.

They are cashing in on a combination of a rising Australian dollar and a depressed US property market which has seen recently built five-bedroom houses in cities such as Atlanta, Georgia, selling for as little as $35,000 – or the price of a new Holden Commodore.

They are also avoiding excessive stamp duty costs on buying property in Australia.

More than 200 people attended a seminar about buying US houses at Adelaide’s Hilton Hotel last Monday.

The cheap US prices have seen a surge of Australian agents setting up businesses promising to match buyers in Australia with potential US rental properties.

Read More

Tags: economy, housing, interest rates, investment, news, research, US

Posted in News, Research

Auction results healthy but experts warn top-end property remains patchy

AuctionThe auction market is still performing strongly but vendors of higher-end properties are opting for private sales instead of risking their home at auction, experts warn.

Real Estate Institute of Australia president David Airey warns that although the Melbourne market recorded a 68% clearance rate, the top-end is still struggling with discounts a common occurrence.

"The average price was only about $800,000. People at the top end have decided the best way for them to sell is through private sales, rather than risking through auctions. That’s the same across Australia, where the lower end is moving, but the higher end is more average."

Airey points to the sheer number of pass-ins occurring in Melbourne. The REIV figures suggest 325 properties were passed in, and Airey says more of these would have been likely in the top-end areas.

Christopher also believes the market in the top-end properties is moving slowly.

"It’s a very difficult market to read. I’d say the top end is quite patch. You could get some very good sales, but there are still records of properties that aren’t performing particularly well at all. It’s definitely a patchy market."

However, other markets have remained strong, these experts say. Melbourne managed record a 68% clearance rate out of 1,031 auctions, according to the REIV, with chief executive Enzo Raimondo pointing out that rate hasn’t changed during the past eight weeks.

"In light of the very high number of auctions this weekend the clearance rate of 68 that was achieved is a very healthy result and demonstrates that underlying demand is good," he said.

Some analysts predicted prices might drop due to the sheer number of listings. Auctions have backed up over the past few weeks due to the AFL Grand Final and the subsequent replay, while the upcoming Cup Weekend has brought forward some sales.

"Including this weekend’s activity, the REIV has seen average weekly auction listings increase by around 30% compared to winter; interestingly, the clearance rate for spring has not changed substantially, with around 68% of homes selling during the first eight weeks of spring."

Airey agrees, saying the result was "a particularly solid one".

But the rest of the country hasn’t performed so well. Christopher says Sydney’s result in the mid-50s reveals neither buyers nor vendors have negotiating control.

"That result represents a market equilibrium, where neither buyers nor sellers have control. However, that result does indicate that there could still be price rises occurring there."

"Outside Sydney and Melbourne, and putting Canberra aside, it’s a pretty weak market out there. I would argue prices are falling in southeast Queensland, and Adelaide is looking very slow as well."

Christopher also points out activity in the Northern Territory, which he says is becoming scarily bubble-like. "Darwin is a market that is looking very scary at the moment and very bubbly. When it turns, it’s going to be a steep ride down."

According to Australian Property Monitors, Sydney recorded a 56% clearance rate out of 501 auctions. Total sales came to $149 million.

Adelaide recorded a 63% clearance rate out of the 48 auctions on the market, with total sales coming to $9.9 million, while Brisbane recorded a rate of 30.4%, with 57 total auctions coming to a sales total of $4.8 million.

Story by Patrick Stafford

Auction super Saturday

auctionsSpring has hit Melbourne’s property market with a vengeance, with more than 1100 auctions listed this weekend in what has been dubbed ”super Saturday”.

The frenzy of listings was the result of a limited number of weekend selling days free from other public events like the grand final and the spring racing carnival.

”Houses sold by auction traditionally have a four-week marketing campaign that preferably avoids intervening holiday weekends,” buyer advocate Mal James said.

According to the Real Estate Institute of Victoria, 1110 properties were listed for auction this weekend with about 90 per cent on Saturday, the largest number since one weekend in March 2008 when 1351 homes went under the hammer. About 600 private sale results are expected.

Nearly 200 of those auctions are expected to take place in the million-dollar-plus inner east and bayside suburbs.

But recent REIV property price data shows the top end of the real estate market has been hit by declining house prices, with the top quarter experiencing price falls of 0.6 per cent for houses and 0.8 per cent for units in the three months to September.

RP Data property analyst Tim Lawless said Melbourne’s real estate market was in a period of transition with price growth moving to the lower, more affordable end of the market.

So far this year, the REIV has recorded 40,981 auctions and private sales worth more than $23 billion, representing about 70 per cent of all sales.

Auction clearance rates have fallen from a high of 85 per cent before Anzac Day to between 60 and 70 per cent over the past few weeks.

Lower auction clearance rates suggest vendor expectations were still out of alignment with buyers, Mr Lawless said.

There were likely to be one or two more super Saturdays later this year, but none would match this particular weekend, Mr James said.

Story by Simon Johanson

Australian real estate overvalued: IMF

IMF The International Monetary Fund has warned that Australian real estate prices might be overvalued.

In its latest World Economic Outlook, cautions that a reversal in prices could hit consumers who have speculated on rising values.

"Given assessed mild overvaluation, a potential correction in house" prices "could hit household wealth and consumer confidence," the IMF has warned.

The cautionary language follows recent comments from the Reserve Bank that Australia’s property market shows "welcome signs" of cooling after earlier interest rate rises and the withdrawal of government stimulus.

Early fears of a property bubble have emerged after housing prices rose in the year to June.

The Reserve Bank’s head of financial stability, Luci Ellis, said yesterday that the Australian property market did not appear to be overheated.

However she said: "Buying an asset because you expect the price to rise in the future, well, that is actually the academic definition of a bubble. So that would be undesirable and seen as a problem."

In an earlier development, the Fitch ratings agency said it planned to "stress test" the impact of any downturn on banks and insurers.

Story by Peter Ryan Yahoo 7 Finance

Page 1 of 212»

Chisholm & Gamon Rebrand Video

Elwood – Suburb profile

Black Rock – Suburb Profile

Port Melbourne – Suburb Profile

Follow ChisholmGamonRE on Twitter

Web site set up and SEO optimisation by Mike Andrew Consulting