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Vacancies hit SA rental market
Adelaide Now Real Estate Institute of South Australia president Greg Moulton said evidence from members indicated the market was patchy. "Some regional areas are finding it particularly tough, which is often found when the state hits harder economic times," he said … |
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Urban Australian Real Estate Prices Dropping
NuWire Investor Perth house prices declined by 1.3%, Adelaide fell by 0.9%, Canberra fell by 2%, Hobart fell by 1% and Darwin fell by 0.4%. Year on year, preliminary estimates show that the price index for established houses for the weighted average of the eight … |
 Brisbane Times |
Adelaide's housing market still one of Australia's most affordable
Adelaide Now Figures for the September quarter, released by Australian Property Monitors, shows Adelaide's median house price was $432299. Brisbane was the most affordable city with a median price of $429339. However, Real Estate Institute of SA president Greg Nybo … Brisbane wins housing race to the bottom |
The Valuer-General’s 6 per cent upward revaluation of properties, announced yesterday, defies Adelaide’s slowing real estate market.
According to RP Data’s latest report, the median house price fell 0.5 per cent in the 12 months to March this year.
The Valuer-General says more than 870,000 properties in the state are now worth $350 billion, up from about $330 billion in the previous financial year.
The latest valuations come into effect from July 1 and will be used in part to determine land tax, sewerage and council rates, the Emergency Services and Natural Resource Management levies, and water rates for non-residential properties.
The impact on property charges will vary, depending on council area, but on average would add about $90 a year. Land tax – not paid on every property – would increase by $115 on the median-priced house.
Deputy Valuer-General Steve O’Loughlin yesterday defended the valuations, which were taken at January 1 this year and take into account property-price growth during 2010, which was in line with increases in valuations. “We have a common date of valuation and that date is January 1 each year,” he said.
“Any market movements after January 1 this year will be reflected in next year’s valuations.”
SA Federation of Residents and Ratepayers Associations president Kevin Kaeding deemed the valuations and looming tax and rate hikes a further worry for people facing cost-of-living pressures.
“It’s going to be a massive burden on the whole community, on top of all the other rises,” he said.
Council areas to witness the biggest jump in values included Adelaide, Burnside and Walkerville, where the increases totalled around 10 per cent.
The Valuer-General’s rise in property prices comes as no consolation to Eugene Lepore, who has slashed $135,000 off the asking price for his Athelstone property.
“It’s pretty rough,” he said.
“They are saying your value is higher, so they can charge more dollars; but then when you go to sell, it’s not worth that amount.”
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PRICE HIKES*
Land tax: up $115
Council rates: up between $50-$70
Sewerage rates: up $30
*based on the median metropolitan house price of $408,000
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Defence Force housing hopes letdown
Adelaide Now Source: The Advertiser THE Defence Force has failed to deliver the real estate boost it promised with the 7RAR's move from Darwin. Defence Housing Australia chief operating officer Peter Howman said the housing program in preparation for the 7RAR … |
Data released by the Valuer General shows Tea Tree Gully’s median house price jumped 34.7 per cent to $444,450 for the year to the end of September, compared with $330,000 for the same period in 2010.
Hawthorndene’s median house price is now $485,000, up 20.5 per cent from $402,500.
News is not as good for homeowners in Fulham Gardens, where the median price dropped 23.6 per cent from $720,000 to $550,000 in just one year.
Also experiencing falls were Salisbury Heights, dropping 18.5 per cent to $317,750 and Somerton Park, down 18.3 per cent to $635,000.
The figures show South Australia has not been protected from a nationwide fall in house prices caused by the economic slowdown, with a 2.7 per cent fall in median house prices across the state and a 10.4 per cent fall within inner-metropolitan Adelaide.
Real Estate Institute of South Australia president Greg Nybo said the fall was slight and reflected “absolute resilience” in the SA market.
“Even though our volumes … are probably down 20 per cent, to nearly come back (to a) 2.6 per cent (fall) just shows the real strength of the market,” Mr Nybo said.
“While days on the market might have extended out significantly, the median sales price is really holding the line.”
He said the 10.4 per cent drop in the inner-metropolitan areas – which takes in Medindie, Walkerville and North Adelaide – could reflect caution after 10 years of “spectacular growth”.
Ray White Blackwood principal Brenton Craggs – himself a former Hawthorndene resident – was not surprised by growth in his old suburb.
“You get the far-reaching views, the tree tops and the birdlife,” he said.
Kylie Howard and her family moved to Hawthorndene from Woodville North at Easter because of the family-friendly appeal.
“We wanted to find a nicer place to bring up our children,” she said.
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Winning suburbs in a slow market
Adelaide Now ADELAIDE councils are leading the way in stormwater harvesting with various projects expected to take the city's harvesting capacity to 20 gigalitres per year by 2013. Real Estate Institute of South Australia president Greg Nybo said the fall was … |
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Many homeowners over-committed
NEWS.com.au Adelaide has the cheapest rents in Australia, with a recent Real Estate Institute of Australia report saying the median rent for a three-bedroom house is $320 a week, and $270 a week for a two-bedroom unit. Even Hobart's house rents are higher at $330 … |
Like any form of investment, real estate has its risks. Buy on the market upturn and you can capitalise quickly, buy in a boom and you’ve got yourself a long term asset.
Then there’s the chance of a dodgy tenant, loss of rent, maintenance costs, interest rate rises plus an odd natural disaster, and it all starts sounding a lot harder than simply picking up the newest float on the stock exchange.
The upside is that while public companies may fold, and your invested shares with them, property remains a tangible asset which will always appreciate over time and can deliver some strong yields while you wait.
2010 is being hailed as the year of the investor which is no surprise when you look back at the two years we’ve had. During the global financial crisis many property investors took a huge hit on the stock exchange, forcing them to sell property in order to gain cash flow and remain buoyant.
With less properties available, the rental market momentarily tightened, until record low interest rates in hand with increased government grants saw huge numbers of tenants break lease to buy their first home.
At this time vacancy rates increased and investors began realigning rents.
Now the tables are turning. The First Home Buyer boost finished in December and grants have returned to normal levels. Interest rates are continuing to climb and those who failed to factor this in are now feeling the pinch – you have to wonder who provided their financial advice.
While some will be able to retain their asset, others will be forced to sell and go back to renting.
This is when investors will pick back up the properties they lost and as tenant demand increases, so will weekly rents, balancing out any rate rises for landlords.
Overseas and interstate investors are already circulating throughout our local market, focusing on student accommodation in preparation for when Uni heads back in late February.
As for Adelaide’s next real estate hot spot: While the crystal ball on my mantel piece isn’t telling all, I’d suggest keeping an eye on the inner north suburb of Collinswood. Bordered by Walkerville and Medindie Gardens, this boutique area of around 13 streets often flies under the investor radar.
Anthony Toop is managing director of Toop & Toop.
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property buying as safe as houses
NEWS.com.au Real Estate Institute of SA president Greg Nybo said the local results were an endorsement of our market. "We have had (sales) volumes come back over the past year but pricing has only really marginally corrected over that period," he said. … |