Sydney house prices to recover from next year: ANZ

Steady as she goes for the Sydney property market.

A combination of steady population growth and weak home completions will ensure the national housing market continues to “simmer”, with Sydney market best placed to benefit from these market dynamics, according to ANZ’s latest Australian Housing Snapshot. 

The report says the Australian housing market will avoid a “boilover” (predicted by the likes of Harry Dent and Steve Keen) provided “domestic economic conditions remain stable enough to support household finances”. 

The report, compiled by the bank’s property and economics team, led by its head of property research, Paul Braddick, says that despite weaker sentiment Sydney prices are expected to start rising slowly through the second half of the 2012 due to increasing rents and deteriorating rental affordability, which will encourage first-home buyers to enter the market and attract investors due to higher rental yields. 

“Sydney house prices have been the most resilient across the capital cities, with prices edging 0.3% higher over the year to August, compared to a 3.2% decline in the capital city average. This reflects a number of factors, including a degree of ‘catch up’ following many years of house price underperformance,” the report says.

 

Source: ANZ

ANZ notes that NSW annual population growth is expanding at a relatively healthy 1.1%, which combined with a sustained period of under-building will mean the current NSW housing shortage “will worsen with just 58,000 dwellings forecast to be completed over the next two years [to June 2013], falling well short of underlying demand over the same period, which we estimate at 103,000”. 

It also notes tightening Sydney vacancy rates (1.3%) with rental growth starting to accelerate increasing by 5.9% over the year to June 2011, while advertised rents are already running at 8%. 

The recent pick-up in net arrivals in New South Wales should boost population growth and drive rental vacancies lower from mid-2012, according to the report. 

“With ongoing pressure from yield-seeking investors to increase rents and moderate house price falls making housing purchase affordability easier, housing finance to the first home buyer segment should begin to gain momentum. This will be fuelled by the added stimulus of first-home buyer stamp duty concessions that have been rolled out from 1 July 2011,” the report says.

propertyobserver.com.au

Realestate.com.au hit by phishing scam

ONLINE property listing website, realestate.com.au has been hit by a phishing scam, with scammers posing as landlords offering rental properties to try to obtain personal details.

The scammers have infiltrated the accounts of real estate agents on the site and advertise properties for rent.

Once potential tenants contact the "landlord'', they are sent an email detailing the properties' attributes and giving advice on a quick way they can complete the deal.

Three different properties in Brisbane came with the exact same description stating the owner had lived there with their pet until last month but had to move to London for work and now wanted to rent it out.

One of the apartments is in a building which has not even been constructed yet.

A realestate.com.au statement revealed several estate agents were targeted with their account login details being revealed to an unauthorised third party.

The agents were contacted to verify their account details by the scammers posing as realestate.com.au.
This enabled the scammers to send emails to consumers and modify listing details on the realestate.com.au website.

It has warned anyone who came in contact with the scammers to take "appropriate measures'' to protect any personal information they may have supplied to the scammers.

A realestate.com.au spokesman said the group had done a thorough review of its systems.

News Ltd

Revealed: Australia's hottest ugly duckling suburbs

IF you're a home buyer whose budget has forced you into the cheaper suburbs, you may be in for some unexpected bonuses.

Cheaper property often comes with higher rental returns and many experts believe it’s the budget suburbs that will also show the best capital growth.

But buyers still need to be careful - not all “ugly-duckling” suburbs will evolve into real-estate swans. To be worth a look, an area needs to have clear reasons for it to evolve.  

See list of top ugly ducklings below

Public transport, especially train connections to cities, is now arguably the biggest driver of price growth in Australia.Other underlying factors are major projects and government initiatives which generate economic activity, jobs, improved lifestyle and community appeal.
The transformation happens when the demographic mix of a suburb changes as first home buyers (FHB) move in because they can’t afford more desirable locations, says Philip Thomas, development director at Montek Property P/L.

"You’re looking for suburbs in transition,” Mr Thomas says. “In Sydney, suburbs such as Redfern, Alexandria, Dee Why and Botany are on their way.

“I’d be looking at going in at the bottom end of these suburbs, rather than the top end of another. Make sure you keep off the busy roads.”

It may not just be about the suburb as a whole but looking at pockets of “ugly duckling” streets within attractive areas or even a property where improvements will make a big difference over time.

Mr Thomas suggests that first home buyers generally have two choices with properties – “brown fields” areas (established, older houses and apartments), or “green fields” sites (outer suburbs, often offering house and land packages).

But in green fields areas - and in some inner city apartment zones - there is often little variation in properties. The problem becomes apparent when it’s time to sell.

If there are several houses in your suburb, or three or four apartments in your complex, all for sale at the same time, it’s difficult to maximize price. Why would a buyer pick yours, and pay more for it, over another?

But if FHBs are willing to rent while they buy elsewhere, or live at home with family, their options for ugly ducklings open up.

Regional centres, with at least two or three different industries, can prove winners for FHB investors looking for income as a priority.

Ugly ducklings, golden eggs

NSW

Redfern, Alexandria, Dee Why, Botany Newcastle, Cessnock, Port Macquarie and Coffs Harbour

QLD

Everton Park, Manly and Cleveland

VICTORIA

Carlton and North Melbourne and Box Hill

WESTERN AUSTRALIA

Hamilton Hill, Maylands, Glendalough, Herdsman Lake, Lake Monger and Osborne Park

NEWS Ltd