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Low interest rates, government incentives and falling prices in some suburbs have created the perfect opportunity for hopeful buyers to get a foot on the property ladder.

New data shows buyers could get into some Greater Hobart suburbs with a salary of less than $30,000 a year, while renters could save hundreds of dollars a month if they bought a property instead of paying off someone else’s mortgage.

But finding a property to buy in some suburbs could prove tricky, with some commanding top dollar due to a lack of listings and middle-of-the-road properties being snapped up at lightning speed.

The Finder Suburb Price Change Study (regional data) shows residents in Battery Point, one of Hobart’s most exclusive suburbs, require the biggest annual salary to pay off their mortgage, a whopping $195,868 a year at the lowest interest rate of 1.95 per cent.

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THE SUBURBS WITH THE HIGHEST REQUIRED SALARY

Battery Point – $195,868

Tolmans Hill – $99,917

Sandy Bay – $97,273

Acton Park – $87,229

Mount Stuart – $84,585

Rose Bay – $77,924

West Hobart – $77,713

Bellerive – $76,761

Mount Nelson – $75,704

Taroona – $75,334

(Source: Finder Suburb Price Change Income Study)

8 Ellerslie Road, Battery Point is on the market for offers over $1.9 million (EIS Property)

That’s almost twice the amount needed to fund a mortgage at Tolmans Hill, where $99,917 is required.

Sandy Bay locals also need a hefty pay cheque – $97,273 a year, according to Finder.

17 Sonning Crescent, Sandy Bay, is listed for offers in the $2.5 million price range (Charlotte Peterswald Property)

10 Coolamon Road, Taroona, is on the market for offers over $2.95 million (Ray White Glenorchy)

On the flip side, lower and middle income earners are now in a better position to get onto the property ladder thanks to lower interest rates.

In the Greater Hobart region, the most affordable area is Gagebrook where buyers need a salary of just $25,111 a year to pay off a mortgage.

Herdsmans Cove, Bridgewater, Clarendon Vale and New Norfolk also offer a chance to grab your own home, with the required salary under $30,000 a year, according to Finder.

6 Sadri Court at New Norfolk sold in three days, achieving slightly more than its listing price of $330,000 (LJ Hooker Glenorchy)

Closer to Hobart, the Glenorchy council region offers the most affordable properties, with Chigwell requiring a salary of $35,156 to finance an average mortgage.

Snug offers the most affordable option in the Kingborough region, requiring a salary of $49,747.

In Hobart, residents in Lenah Valley require the lowest salary – $65,395, according to Finder.

The Hobart suburbs requiring the lowest salaries are Fern Tree ($70,840), North Hobart ($71,105), South Hobart ($71,501), New Town ($71,898) and Mount Nelson ($75,704).

Finder.com.au insights manager Graham Cooke said many suburbs once out of reach for lower-income and middle-income homebuyers had become affordable again.

He said rates that would have been unthinkable only a few years ago were now on the table for buyers.

“The door is open for lower- and middle-income buyers – with the combination of lower rates and cheaper prices, now is the time to be looking,” Mr Cooke said.

“We are seeing the first sub-2 per cent rates appear in the market, with one 1.95 per cent product available nationally, and many others in the same ballpark.

“The average variable rate across the big four banks is around 4 per cent, this shows how much value there is in the market.”

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THE SUBURBS WITH THE LOWEST REQUIRED SALARY

Gagebrook – $25,111

Herdsmans Cove – $26,433

Bridgewater – $29,076

Clarendon Vale – $30,134

New Norfolk – $30,874

Risdon Vale – $31,720

Primrose Sands – $31,720

Rokeby – $34,363

Chigwell – $35,156

Goodwood – $38,063

(Source: Finder Suburb Price Change Income Study)

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Home seekers – particularly first homebuyers – were in the best position to capitalise on the low rate environment and government support, for example the stamp duty incentives and new home build grants, Mr Cooke said.

“With the cash rate at an all-time low and not likely to budge in the foreseeable future, there has never been a better time for borrowers to reduce their repayments or for first-time buyers to get on the housing ladder,” he said.

6 Bradman Court at Clarendon Vale is listed for offers over $290,000 (First National Elite)

Realestate.com.au chief economist Nerida Conisbee said buyer inquiry levels suggested more home seekers saw it as a good time to be purchasing property.

Inquiry levels were up about 70 per cent nationally since March, she said.

“First homebuyers have been particularly active,” Ms Conisbee said. “If you have a job and are confident in your employment now is a good time to be buying because rates are incredibly low and there is little chance they will be rising for years given we are in a recession.”

REA chief economist Nerida Conisbee

In New Norfolk, a two bedroom house on a 778sq m block at 6 Sadri Court was under contract just three days after being listed.

Listed for $330,000, the house has sold to first time buyers who had been renting in nearby Glenorchy.

LJ Hooker Glenorchy agent Nick Emery said houses in that price range were moving quickly, typically within a week.

“For them (the buyers), it was cheaper to buy than to rent and they could get more bang for their buck in New Norfolk,” he said.

And in Risdon Vale, Fall Real Estate Lindisfarne agent Graeme Lawler has a four-bedroom house on a 444sq m block listed for offers over $400,000.

Built less than 12 months ago, the modern house is located at 40 Waratah Road.

This house at Risdon Vale is only 12 months old.

“In general, Risdon Vale has been a pretty hot suburb in terms of sales,” Mr Lawler said.

“There are a lot of first home buyers and investors … this house is getting $480 a week (rent) and on $400,000 a year that’s a good return (on investment).”

Mr Lawler said savvy buyers stuck in lockdown on the mainland were also showing interest in the affordable suburbs around Hobart.

“With technology as it is, we are still selling houses, technically sight unseen, with buyers doing virtual tours,” he said.

“So yes, we are seeing a fair bit of interest in affordable properties with good returns (rental yields).”

The post How much you need to earn to buy in Hobart appeared first on realestate.com.au.

Home values across Australia continue to remain remarkably resilient to the economic effects of COVID-19 with prices nationally dipping just 0.4 per cent in August.

According to CoreLogic’s Home Value Index, it was the fourth successive month of price declines. However the rate of decline is easing.

The slip in prices was led by a fall of 1.2 per cent in Melbourne and 0.5 per cent in Sydney, followed by -0.1 per cent in Brisbane.

Melbourne’s housing market has been hit hardest by COVID-19.

In Adelaide and Perth prices remained steady while Hobart’s values were pushed up by 0.1 per cent, Canberra’s by 0.5 per cent and Darwin’s by 1 per cent.

The combined capitals fell 0.5 per cent, while regional areas remained steady.

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CoreLogic’s head of research, Tim Lawless said Melbourne, which is still under stage 4 restrictions, is the real estate market hit hardest by the coronavirus pandemic.

“Following a similar decline in July, Melbourne home values fell by 1.2 per cent in August, the largest fall recorded amongst the capital cities, demonstrating the impact of a worse viral outbreak relative to other cities, along with a larger demand side impact from stalled overseas migration,” he said.

CoreLogic home values index August 2020.

“Through the COVID period to date, Melbourne home values have fallen by 4.6 per cent.”

Over the last quarter Melbourne home prices have fallen by 3.5 per cent but they are up 5.9 per cent annually.

In Sydney prices have fallen 2.1 per cent over the quarter but are up 9.8 per cent over the past year.

“The performance of housing markets are intrinsically linked with the extent of social distancing policies and border closures which also have a direct effect on labour market conditions and sentiment,” Mr Lawless said.

Weak economic performance is hitting Melbourne hard says Tim Lawless.

“It’s not surprising to see Melbourne as the weakest housing market considering the extent of the virus outbreak, and subsequent restrictions, which have weakened the economic performance of Victoria.

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The slowing rate of decline outside of Melbourne is a positive for the market. But as we move through the coronavirus period, real estate markets across Australia are set to splinter further.

Hobart home prices continue to perform well. Picture: Sam Rosewarne.

“Looking forward we are likely to see a diverse outcome for housing markets around Australia, depending on how well the virus is contained and the regions exposure to other factors such as its reliance on overseas migration as a source of housing demand,” Mr Lawless said.

Much has been made of the spike in interest of regional areas due to COVID-19. Prices are holding in such areas because they are less reliant on economic and population growth.

“Unlike their capital city counterparts, which usually receive 85 per cent of net overseas migration, most regional markets have avoided the drop in demand caused by the pause in migration,” Mr Lawless said.

“Regional markets may also be appealing for their relatively low density and lower price points. The normalisation of remote work through the pandemic could make proximity to major cities less of a factor.”

Lack of stock holding prices

A lack of stock is a significant contributing factor in prices remaining stable.

“Through the COVID pandemic to-date, active listing numbers have remained extremely low, demonstrating both a lower than average amount of fresh stock being added to the market, and a strong rate of absorption,” Mr Lawless said.

“So far there has been no evidence of urgent or distressed listings starting to pile up.”

Sales activity fell by 1.9 per cent in August and CoreLogic expect Spring will not witness a normal selling season.

Regional property is highly sought-after.

“The spring selling season is likely to be less active than normal this year. Spring is a period where the housing market typically becomes more active, from both a sales and listings perspective. Heading into spring, the trend in advertised listing numbers and home sales is trending in the opposite direction,” the CoreLogic report said.

Rents holding up better than prices

Since COVID-19 hit rent values have been holding up better than home prices.

Capital city rents have fallen 1.4 per cent since March compared to the 2.3 per cent fall in home values.

However unit rents have fallen 3.5 per cent over the same period in the cities.

“Supply levels for rental grade units have surged over recent years, especially in Sydney and Melbourne, where high-rise unit supply across key inner city markets has remained substantially above average.,” Mr Lawless said.

“At the end of March there remained around 51,000 units under construction across NSW (+19 per cent on the 10 year average), and about 45,000 units were under construction across Victoria (+24 per cent above the decade average).”

Rents have fallen the most in inner city suburbs. Picture: Jason Edwards

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“On the demand side, rental demand for inner city apartments has been significantly impacted by stalled overseas migration, including foreign students, as well as less demand from domestic students who are generally studying from home,” Mr Lawless said.

“Rental demand has also been impacted by weak labour market conditions across industry sectors common with renters, including the food, accommodation, arts and recreational services sectors.”

According to CoreLogic’s August report: “rental listings data shows advertised rental supply in select inner city areas has more than doubled between mid-March and early August. With high supply and weak rental conditions likely to persist, at least until international borders re-open, inner city investment unit values are likely to remain under significant downside risk.”

The post National home values resilient despite COVID-19 appeared first on realestate.com.au.

As we approach the end of a six-month moratorium on evictions this month, virus-hit tenants across the country fear they could be forced out of their homes, if they can’t find money to pay rent. 

The Prime Minister Scott Morrison put in place a six-month moratorium on evictions earlier in the year, in a bid to protect tenants, unable to pay rent due to loss of income as a result of coronavirus lockdowns. He also encouraged financially-struck tenants and landlords to work together to negotiate fair rent agreements during the pandemic.

This has resulted in a wave of rent reductions and rent deferrals across the country – in Victoria alone, Consumer Affairs Victoria recorded almost 26,000 agreements over the past four months.

Sydneysider George, who didn’t want to reveal his surname, works in the music industry and has been stood down from his job since April.

Currently paying rent with the help of his $1,500 monthly Jobkeeper payment, he’s negotiated a rent reduction with his landlord but says he worries what will happen once the moratorium comes to a close.

“There’s no way the music industry will be alive and kicking for a while,” he said.

“My rent reduction is meant to end in October, which means I’ll be paying the full amount again – Jobkeeper is also meant to be reduced. At this stage, I think I’m going to have to move out and into a cheaper place in the outer ‘burbs and get a job in hospo, which is fine for now.”

Tenants may be evicted from their homes once the moratorium comes to a close in September. Picture: realestate.com.au/rent

Once the eviction moratorium expires, there will no doubt be other tenants like George in difficult situations, as many will not have jobs to return to due to industry shutdowns during the health crisis.

Chief executive of Tenants’ Union of NSW, Leo Patterson Ross, expressed grave concern for those renters who could experience extended unemployment post-pandemic.

“[Australian Bureau of Statistics] unemployment figures show that there are roughly 100,000 people unemployed in New South Wales and this number was still growing in July,” Mr Patterson Ross said.

“We know many of these people are renting and have continued to struggle to pay rent during the last few months. We continue to hear from people who have been paying far more than they can afford.”

However, Cameron Kusher, Executive Manager, Economic Research at realestate.com.au said he doesn’t expect there to be “mass evictions”, but inner-city landlords will struggle.

“I think at this point most landlords realise that renters have been heavily impacted by job losses, but they also should be pragmatic enough to realise that the overall number of renters has dropped due to job losses, closed borders and HomeBuilder grants, which are encouraging more first home buyers [who were renters] to purchase a home,” Mr Kusher said.

“Landlords are going to be extremely challenged, particularly inner-city landlords, while borders are shut. Demand is going to be low and price reductions are likely as landlords battle to secure the smaller pool of tenants.”

If tenants are struggling to pay rent or continue to find themselves without work, they are encouraged to seek out financial aid packages they could be eligible for.

Here is a breakdown of what moratoriums are in place per state:

Victoria

Due to the strict stage four lockdown in Melbourne and stage three lockdown across the rest of Victoria, the state’s moratorium on evictions has been extended for both residential and commercial tenants until 31 December.

The moratorium has been extended in Victoria until 31 December. Picture: Getty

Rent relief grant payments for residential landlords and tenants will be increased from $2,000 to $3,000 and those already receiving the payments can apply for an extra $1,000.

Commercial and residential landlords who provide tenants impacted by coronavirus with rent relief, or who are unable to secure a tenant because of coronavirus, can also tap into land tax relief. 

Despite this, landlords across Victoria are still reeling about the eviction ban extension as many of them face losing their properties as loan repayments pile up.

“The moratorium was supposed to support those in financial hardship as a result of COVID, not create greater hardship and financial bankruptcy for property owners,” said president of the Real Estate Institute of Victoria, Leah Calnan.

Rent negotiations between virus-hit landlords and tenants are expected to continue as unemployment rates rise and tenants seek help to stay in their homes.

The Victorian Treasury estimated in their July update that in the September quarter, Victoria’s unemployment rate could rise to 9% with job losses peaking at around 200,000. In July it was reported to be at 6.8%.

New South Wales

The moratorium on evictions in New South Wales, which was rolled out in two phases, is due to come to an end on 14 October.

From 15 April 2020, there was an interim 60-day stop on landlords seeking evictions for rental arrears where the renting household had been financially impacted by COVID-19.

The second phase was a longer six-month restriction on rental arrears evictions for households experiencing financial disadvantage as a result of COVID-19.

However, any unpaid rent on the newly agreed amount accrues in arrears.

There were two phases of the moratorium in New South Wales, which is now due to end on 14 October. Picture: Getty

“We were glad that the initial eviction moratorium was in place because it did prevent some people being evicted,” said Mr Patterson Ross.

“We know that there was also a large increase in people leaving homes in April and May because they could not afford the rent. In the inner suburbs of Sydney, the number of people who moved out and lost their whole bond doubled in the April-June period.”

With the moratorium set to end next month, it’s unlikely many tenants will be able to afford to stay put with unemployment rates at a steady incline, meaning they will be forced to leave or face eviction.

New South Wales Treasury figures showed a 7.2% unemployment rate as of 20 July, marking a steady increase from 20 January when it was 4.5%.

Queensland

Queensland’s moratorium on evictions is due to end on 29 September.

Tenants who have negotiated reduced rental payments since the moratorium was established will not have to repay the difference once the moratorium comes to an end but may face eviction.

Queensland Treasury reported the highest unemployment of all states in July 2020 at 8.8%, which is still relatively high considering many businesses were able to re-open thanks for low COVID-19 case numbers.

Vacancy rates in Queensland are low, which could suggest tenants are staying put thanks to to the moratorium. Picture: Getty

Cafes, pubs and restaurants are all open with one patron allowed per two square metres.

Rental vacancy rates are extremely low in the state, particularly within Mount Isa, Rockhampton, Toowoomba, Mackay and Bundaberg, with each region only showing a less than 1% vacancy rate in June.

This suggests the eviction ban has helped many tenants stay in their homes during the health crisis.

Western Australia

The moratorium on evictions is set to finish in Western Australia on 29 September.

The State Government encouraged landlords and tenants to come together to discuss rent deferrals, rent reductions, or vacating a fixed lease without penalty.

If an agreement couldn’t be made, the case could be presented to the Commissioner for Consumer Protection.

Western Australia has recorded low cases of coronavirus for several months now, which means it’s business as usual for many tenants. Picture: Getty

Tenants can still have their leases terminated and be evicted if they cause damage to the property; pose a threat to the landlord or neighbours; don’t pay rent when they are not financially affected by COVID-19; refuse to make a rent payment agreement with their landlord or; if they abandon the property.

The unemployment rate in Western Australia was recorded at 8.3% in July 2020.

The state continues to record very low coronavirus cases, which means many Western Australians have been able to return to work as usual, while tenants who were stood down from work have been able to draw a regular income again.

South Australia

In South Australia, the eviction moratorium ends on 29 September.

Tenants and landlords were asked to sit down and come to an agreement if a tenant had been financially impacted by COVID-19. However, the tenant is required to pay back their rent once the moratorium has expired.

Tenants in South Australia are required to pay back any rental arrears accrued during the moratorium. Picture: realestate.com.au/rent

A tenant who can prove financial hardship due to COVID-19 cannot be evicted but can be evicted for other reasons.

The unemployment rate in South Australia was at 7.9% in July.

Similarly to Western Australia, South Australia continues to record low coronavirus cases, which means it’s business as usual for most industries.

This has resulted in many tenants returning to the workforce, which is reflected in the monthly decrease in unemployment in the state from June when it was at 8.8%.

Tasmania

The moratorium on evictions ends in Tasmania on the 30 September.

Protections initially put in place by the state government were due to end in June 2020, but they were extended to be in line with the rules in place in other states and territories.

A notice to vacate issued by an owner to a tenant will be ineffective until 30 September.

Landlords and tenants were asked to reach an agreement for a rent reduction if experiencing hardship due to COVID-19.

The moratorium on evictions ends in Tasmania on the 30 September. Picture: realestate.com.au/rent

Parties can apply to the Residential Tenancy Commissioner (the Commissioner) to have an order to terminate the agreement in the case of severe COVID-19-related hardship.

Tasmania is another state, which has kept coronavirus cases down meaning many tenants have been able to return to work and stay in their rentals.

The state’s unemployment rate in July 2020 was at 6%.

Australian Capital Territory

The moratorium on evictions ends in the ACT on 22 October.

Originally due to expire in July 2020, the Australian capital announced an extension until October because of the health crisis.

This continues to allow tenants and landlords to negotiate rent and terminate a fixed term tenancy by giving at least three weeks notice if impacted by COVID-19.

However, unlike Victoria, Tasmania, South Australia, and Western Australia, the ACT has not introduced a blanket freeze on rent increases.

The ACT Government has extended the eviction moratorium until October. Picture: Getty

With eased restrictions thanks to low coronavirus cases in the territory, it’s generally business as usual for most, which means many tenants who were previously stood down from work are most likely back in employment.

Unemployment in the ACT was at 4.6% in July 2020, which is the lowest in Australia.

Northern Territory

The Northern Territory Government walked away from the moratorium on evictions back in April.

Instead, the negotiation period between virus-hit tenants and landlords on rent has been extended from 14 days to 60 days and the notice period for eviction has also been increased from 14 days to 60 days, which gives tenants protection for up to 120 days.

The NT walked away from the six-month eviction moratorium in April. Picture: Getty

The Northern Territory was hardly impacted by coronavirus compared to the rest of the country, with little to no case numbers over the past six months.

This has meant many tenants have been able to go to work as usual and continue paying their rent. However, the territory’s unemployment rate was at 7.5% in July 2020.

The post How the end of the COVID-19 eviction moratorium will impact tenants and landlords appeared first on realestate.com.au.

Sydney home prices have fallen for the fourth consecutive month but at a slower rate than earlier in the pandemic.

The median home price inched down 0.5 per cent over August, nearly half the rate of decline recorded over July, according to CoreLogic’s latest hedonic home value index published Tuesday.

The median price of a Sydney dwelling is now about $860,000 – 2.6 per cent lower than it was four months ago but 9.8 per cent higher than a year ago.

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Eased lockdown restrictions were a factor in the buoyant Sydney market, with Melbourne recording much larger price drops.

The median home price in Melbourne fell 1.2 per cent for the month, with prices down 5.6 per cent over the past four months.

Prices were largely unchanged for the month across Brisbane, Adelaide and Perth.

A lower supply of listings have kept prices from falling. Picture: Sam Ruttyn

Housing experts said Sydney price falls were lower than last month due to relatively strong upsizer activity and fewer homeowners putting their properties up for sale.

This meant home buyers were competing for a small supply of properties and home sellers did not have to offer large discounts to push through sales.

Bank support for homeowners such as mortgage deferral periods and lower interest rates also meant there was yet to be a widespread rise in distressed sales that would otherwise drag down prices.

CoreLogic head of research Tim Lawless said the housing market remained insulated from the weaker economic conditions but there was still a high risk of further drops in prices.

CoreLogic analyst Tim Lawless said it could be a quieter spring than normal.

“So far there has been no evidence of urgent or distressed listings starting to pile up,” he said.

“This could potentially change as fiscal support starts to taper at the end of September and distressed borrowers taking a repayment holiday reach their six month check-in period around the same time.

“The timing of these two events could be the catalyst for a gradual rise in distressed listings … it could signal that vendors will need to offer up greater discounts in order to sell their home.”

Mr Lawless said there were likely to be fewer spring home sales this year if the uptick in distressed sales did not eventuate.

Inner city units remain one of the weaker market. The price for this unit on Kent St was cut $50k below the pre-Covid price.

Spring is normally one of the busiest periods for the market for both listings and sales.

“Advertised listing numbers and home sales (are) trending in the opposite direction: new and total listing numbers are reducing,” Mr Lawless said.

“Through the COVID pandemic to-date, active listing numbers have remained extremely low, demonstrating both a lower than average amount of fresh stock being added to the market, and a strong rate of absorption.”

The post Falls in home prices slow across Sydney as market adjusts to pandemic threat appeared first on realestate.com.au.

The Strand. Picture: Evan Morgan

Townsville has weathered droughts and floods, the closure of major employers like the Yabulu nickel refinery, and, like the rest of the country, is now facing down a new enemy, the coronavirus pandemic.

But three property experts predict that Townsville will come out on top again

– Propertyology’s Head of Research Simon Pressley, REIQ CEO Antonia Mercorella and REA chief economist Nerida Conisbee.

The forecast is looking sunny for the Townsville property market. Picture: Evan Morgan

SIMON PRESSLEY

“Townsville is Australia’s largest city north of Brisbane, 14th largest overall, and the nation’s military capital.

“From the recently developed Cowboys NRL stadium, to new hotels, expansions of university and port infrastructure, a few major renewable energy projects and an expanding manufacturing sector, there’s a lot happening in Townsville.

“The local property market started to gain momentum in mid-2019 and this has continued throughout 2020.

“The first homebuyer market is taking advantage of good quality houses for under $400,000 while general activity among owner-occupiers is solid.”

Head of research at Propertyology, Simon Pressley.

NERIDA CONISBEE

“House prices have been pretty stable in Townsville in the past 12 months. Rental growth has been particularly positive, increasing by 4.5 per cent.

“Like the rest of Queensland, first homebuyer inquiry on realestate.com.au picked up significantly in the past 12 months, while investor activity has remained relatively flat. “Premium property is in high demand with Castle Hill and North Ward seeing the highest views per listing in Townsville on realestate.com.au”

REA chief economist Nerida Conisbee.

ANTONIA MERCORELLA

Real Estate Institute of Queensland CEO Antonia Mercorella Picture: Richard Walker

“The Townsville housing market was continuing its steady recovery at the commencement of this year – and it appears that state of play has continued over the first quarter.

“The median house price posted a small price reduction of 0.8 per cent with prices slightly lower, down 1.6 per cent over the year.

“The Townsville median house price for the year ending March was $315,000 – one of the most affordable in the state.

“The Townsville unit market also posted a small median price drop in the March quarter – down two per cent to just $235,000.

“Over the year ending March, its median unit price reduced by 1.8 per cent to $240,000.

“The region’s unit market remains challenging with prices yet to start firming in a significant way.

“Furthermore, in the nearby Whitsunday region, its heavy reliance on tourism is likely to impact both the house and unit markets over the medium term.”

“As for the rental market, the Townsville vacancy rate was 2.9 per cent at the end of March.

“And all indicators seem to point to tighter conditions in three months’ time.

“The volume of advertised rental properties has been steadily falling each month this year, with the number available now down about one third since the start of 2020.

“The insulated nature of the local economy has meant that the region’s rental market hasn’t suffered the same fate as many other locations it seems.”

Townsville floods. Aerial photos of The Strand from a helicopter. Picture: Zak Simmonds

BUT WHAT ABOUT QUEENSLAND?

Prior to the pandemic, Queensland was already on the relocation wishlists of many interstate buyers.

Now, with many people now working remotely, the experts believe they may soon make that move a reality.

“Prior to the outbreak of the COVID-19 pandemic, Queensland was the number one destination for interstate relocations – particularly from major metropolitan areas such as Sydney and Melbourne,” Ms Mercorella said.

“As this pandemic continues to affect us all, it’s introduced many of us to the possibility of a ‘new normal’ way of working – that is, remotely from home.

“And spending more time at home is seeing more people considering their options.

“As a result, interstate demand continues to strengthen in Queensland with the main drawcards being affordability, liveability and the lifestyle on offer.

“We anticipate this demand to surge in the coming year ahead as we navigate through to the other side of this pandemic.”

But its not just interstate migration that could boost the Queensland property market, Mr Pressley believes economic policies will take centre stage in the lead-up to Queensland election on October 31.

“The 17.7 per cent increase in the state’s population over the decade ending 2019 was the second highest in Australia,” he said.

“Unfortunately, the state’s unemployment rate was above the national average for all of the decade and this directly influenced underwhelming real estate markets right across Queensland.

“We are currently in a state election year and economic policy is certain to play a key role for both the election result and Queensland property markets.”

And first home buyers appear to already reaping the rewards thanks to a boost in grants.

Ms Mercorella said the number of first home buyers jumping onto the property ladder had remained “relatively steady” in the first quarter of the year, despite a sharp drop in new listings and overall real estate transactions.

“With post quarterly data showing moderate market stability, what we’ve witnessed is a strong increase in first homebuyer commitments,” she said.

“In fact, in Queensland they’ve literally doubled over the last three months, rising from 1501 in April to 3079 in May and 3023 June.

“These figures show that first-home buyers are possibly set to dominate the market for the first time in a long while – which is thanks to a combination of government stimulus, low interest rates, a change in investor behaviour and a rise in the rates of vacancy in rental properties.”

Data held by realestate.com.au also shows that Queenslanders are currently the most confident about buying and selling in the nation.

She said this was likely due to the state’s low levels of COVID-19 cases.

“And perhaps the realisation that Queensland is a pretty nice place to be if you’re going to be locked down,” she said.

Ms Conisbee said first home buyers are currently the most active market in Queensland, with first homebuyer inquiries having doubled compared to last year.

For existing housing, the realestate.com.au data showed that high-end, premium markets were also holding up well, and likely being driven by a “flight to quality” and the fact that job losses have been less felt by white collar workers.

Ms Conisbee said that investor activity remained slow and had dropped since last year, according to REA data.

“This will be the toughest market over the next 12 months,” she said.

The post Townsville to come out on top: property experts appeared first on realestate.com.au.

The lure of beaches, national parks and wineries, along with the opportunity to build a dream home, are just some of the reasons young Australians are increasingly keen on the Hunter region of NSW.

It’s common for young, regional Australians to pack up and move into the capital cities for education and work. But there’s an increasing shift the other way — particularly for Sydney millennials.

In the last Census period of 2011-2016, nearly 37,000 millennials (aged 20-35) left Sydney to live in regional areas around Australia. In reverse, approximately 32,500 moved in, leaving a net outflow from Sydney of approximately 4,500 people. 

The data, from Regional Australia Institute’s new report, The Big Movers: Understanding Population Mobility in Regional Australia, also shows nearly 27,400 of those movers chose a town in NSW. A top target was the Hunter region, and in particular the towns of Newcastle, Lake Macquarie and Maitland.

Online search data from realestate.com.au shows that interest from Sydneysiders in regional NSW is heating up.

Since March, month-on-month growth in search activity from Sydney buyers searching for homes in the Hunter region (excluding Newcastle) has been consistently stronger than in regional NSW as a whole — and Sydney itself.

Cameron Kusher, executive manager – economic research at REA Group, isn’t at all surprised at the Hunter’s growing appeal.

“In terms of Newcastle and surrounds, you’ve got a great lifestyle, you’ve got beaches, if you want to move inland, you’ve got the wineries,” says Kusher. “The big advantage is that the cost of housing is much more affordable relative to what you pay in Sydney.”

Kusher suspects the Covid-19 pandemic is having an influence on what people are seeking to buy.

“If businesses are willing to give, particularly younger people, the flexibility to work from home on a more regular basis, then somewhere like the Hunter can certainly be attractive,” he says.

Affordability appeal

With property prices so high in Sydney, Kusher says millennials can take advantage of the fact that homes in the Hunter are around 38 percent less expensive.

“You’re typically going to be paying more than a million dollars for a house in Sydney, and you’re looking at just under $650,000 for a typical house in Newcastle or Lake Macquarie,” he says.

For those keen to build from scratch, Kusher says there’s very little opportunity in Sydney for under $750,000. Meanwhile, in the Hunter, there are a number of more affordable housing developments to consider, with land by Hunter developer McCloy Group starting at $176,000 in Maitland.

The Hunter Valley’s wineries are a strong drawcard to the region. Picture: Unsplashed

Brian Swaine, managing director of Hunter-based developer McCloy Group, says it has at least seven new developments underway in towns like Maitland, Lake Macquarie and Port Stephens.

“People are liking the wider, open spaces, and the access to amenities,” says Swaine. “And with technology they can still have their same jobs and work remotely.”

Swaine says each McCloy Group development makes the most of the natural surroundings and offers plenty of outdoor spaces, unique public art, and high-quality infrastructure, such as high-speed broadband and parks and playground for growing families. He says buyers only need a 5% deposit to secure land in a McCloy community.

Living the good life

Affordability is one thing, but the great lifestyle of the Hunter is also a drawcard for millennials. Swaine says surfing, sailing or fishing are just some of the activities in easy reach.

“There’s the Watagan Mountains and the Barrington Tops National Park, all within a short drive, and most famously we’ve got the Hunter Valley wine region to our west, which is very popular,” he says.

For Newcastle Knights captain Mitchell Pearce, these factors sweetened the deal when he uprooted from Sydney for his football career.

“The beaches up the north coast are in my opinion as good as any beaches in Australia,” says Pearce. “There’s obviously a lot more open land as well, nature, and the Hunter Valley wineries.”

NRL star Mitchell Pearce is one millennial who has never looked back after leaving Sydney for Newcastle and the Hunter. Picture McCloy Group

Pearce says Newcastle is a great central hub for the Hunter region, which is buzzing with cafes, restaurants, culture and key amenities. He of course revels in the local sport action, and also loves the great sense of community.

“Everyone is very supportive of each other, which is certainly something that when you move in from out of town, that you really buy into, and that’s something that I’ve really enjoyed,” he says.

The post Sydney millennials drawn to the Hunter by lifestyle and affordability appeared first on realestate.com.au.

The Belrose estate of former Coca-Cola Amatil chief executive Dean Wills has sold.

The long-held Belrose estate of former Coca-Cola Amatil chief executive Dean Wills has been sold to the daughter of a South African rich-lister.  

The grand three level trophy home fetched $8m when bought by Luciana Ravazzotti and her husband Pierre ­Langenhoven.

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The huge garage.

The mansion has six bedrooms.

Her father Giovanni Ravazzotti, the founder of tiler and bathware retailer Italtile, is ranked as one of South ­Africa’s richest.

The family has expansive investments in Australian cattle farms. The couple have listed their home in Seaforth.

It last traded in 1994 for $2.55m.

The six-bedroom mansion, complete with a pool, tennis court, and 12-car showroom-style garage as befitted Wills’ eclectic car collection, was ­offered through Sydney Country Living agent Brian McMillan.

There was also the art studio of his late wife, Margaret.

Grand living.

The grand residence on 9490sqm last traded in 1994 for $2.55m.

Wills’ 46-year business ­career began in 1933 when he earned 37 shillings and sixpence a week at the SA Gas Company.

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