Australia Property Market Update
31-03-2008

Reading through the various printed media and online forums, all you can hear has been about is : 

Negative!  - The Reserve bank is blamed by the lending institutions for the ever increasing number of house mortgagee auctions, forced upon home owners by lenders as a consequence of the increases in interest rates.

Negative!  – Young Australian couples have no hope of buying their own home, due to the increases in petrol price in 2007 and Gas, Electricity and Water price in 2008 as well as higher housing prices.

Negative!  – Recently, one of the For-Let properties received more than 60 tenant applications in less than one week! More and more people are forced to either sell their home or delay purchase of their own home, and then enter the rental market.

But, on the other hand, property owners and investors have some good news, so please read on…

Residential property prices will grow by 10 to 15 per cent in most capital cities this year while share market investment returns will grow by only 3 per cent, according to Craig James, chief equities economist at CommSec.  

James said poor share market returns and rising property values and yields would encourage investors to return to the residential property market this year. 

Australia’s residential market is well positioned for stronger activity as well as above-average growth in prices over 2008, he said.  

“The rental market is the tightest it’s been in around 20 years and Australia’s rapidly expanding population is expected to put extra pressure on housing. 

“Over the 12 months to September, total population grew by 1.5 per cent to 21.097 million people according to the Australian Bureau of Statistics – the fastest growth rate in 18 years.” 

At the same time, James said the strength in rental yields and a more uncertain outlook for the share market could see more investment in housing over the coming months. 

Increased investor interest in property together with solid fundamentals for the owner-occupier market point to stronger construction activity over the next 12 to 18 months, he said. 

The housing sector is responding by slowly starting to build more homes, although the supply of housing remains far short of demand, he added. 

The NSW housing market is fundamentally best positioned for recovery, but the outlook also remains favourable for Victoria in 2008 and 2009, and Queensland in 2009.

Source:
http://www.moneymanagement.com.au/

Recent Property Sales Results

                                             Weatherboard Californian Bungalow SOLD for $1,269,000 AUD

Detailed information:
City:  Melbourne
State: Victoria

Country: Australia

Property Description:
Location: 31 Adeney Avenue, Kew

Sales Description:
What a rare chance to acquire!
In one of Kew's most prestigious streets, this 1920s weatherboard Californian Bungalow is very comfortable for living or offers multiple options to buyer.

SALE PRICE $1,269,000
Source: Hocking Stuart

Sales History and Auction Results

MARCH 2008
City: Sydney
State: NSW
Country: Austrlia
Suburb: Bondi
Currency: AUD 

Address: 17/36 Bennett St 
Date: Mar-08
Type: unit
Bed:  2  Bath: 1
Auction - Sold  $565,000  

Address: 8/71 Penkivil St 
Date: Mar-08
Type: unit
Bed: 2 Bath: 1
Auction - Sold  $535,000 

Address: 69 Watson St
Date: Mar-08
Type: house
Bed: 3 Bath: 1
Auction - Sold  $1,110,000 

Address: 5/302 Birrell St
Date: Mar-08
Type: unit
Bed: 3 Bath: 2
Auction - Sold Prior  $820,000   

Address: 15/11 Flood St
Date: Mar-08
Type: unit
Bed: 2 Bath: 2
Auction - Sold  $685,000 

Address: 62 Edward St 
Date: Mar-08 
Type: house 
Bed: 4  Bath: 2  
Auction - Sold  $2,000,000 

Address: 2/5 Hastings Pde  
Date: Mar-08 
Type: unit 
Bed: 2  Bath: 1  
Auction - Sold  $415,000 

Address: 20/36 Penkivil St 
Date: Mar-08 
Type: unit 
Bed: 3  Bath: 2 
Auction - Sold  $787,000 

Address: 5/4 Castlefield St 
Date: Feb-08 
Type: unit 
Bed: 1  Bath: 1  
Private Treaty - Sold  $344,000 

Address: 5/18-20 Penkivil St 
Date: Feb-08  
Type: unit 
Bed: 2  Bath: 2  
Auction - Sold Prior  $630,000

Address: 16/273-279 Old South Head Rd 
Date: Feb-08 
Type: unit  Bed: 2  Bath: 1  
Auction - Sold  $500,000 

Address: 8/40 Flood St 
Date: Feb-08 
Type: unit Bed: 2  Bath: 1  
Auction - Sold  $581,000 

Address: 77 Watson St 
Date: Feb-08 
Type: house  Bed: 3  Bath: 2  
Auction - Sold  $1,425,000 

Address: 12/211 Old South Head Rd 
Date: Feb-08 
Type: unit 
Bed: 2  Bath: 1  
Auction - Sold Prior  $510,000