MARKET REPORT - September 2010
The MARKET with Tom Offermann
We are excited to announce 25 of Noosa’s hottest buys valued at around $50 million are set to go under the auctioneers’ hammer on October 1st. This Gala Event is being hosted to provide our clients with the ultimate selling forum. The Noosa Sheraton Grand Ballroom will provide the perfect buying environment catering for an expected crowd of up to 500 people. Already hundreds of buyer enquiries and $3m in first week pre-sales are pointing to an outstanding success.
The peak holiday season timing means thousands of visiting holiday makers will also have a chance to bid on this exclusive selection. The type and number of properties on offer will generate a lot of buyer interest, and create a ’cross marketing spin off’ effect benefiting our sellers.
The combined marketing campaign is huge, unlike anything ever seen on the coast. While our auction advertising campaigns are known for high success rates, this event will take property marketing to the next level. Prime time television advertising will be added to the mix, as well as a radio campaign, plus high profile event partners each with extensive client networks.
Every property has a professional video that can be viewed on 9 websites, and will also be screened during the auctions. Our team went to extreme lengths to film every property at its best, hiring a helicopter and including luxury Mercedes cars supplied by Garry Crick Prestige.
Managing the event will involve 25 of our staff, 3 of Queensland’s best auctioneers, an audio visual team, plus our event partners. Bank of Queensland Noosa is offering a special Platinum Event Package, and on hand to assist will be Laguna Building Inspections and Sykes Pearson and Miller Lawyers.
Some of the latest temptations from Mercedes Benz will be rolled into the ballroom, and a lucky door prize of a free Mercedes for a whole weekend will be drawn. On behalf of all our team and event partners, we wish our sellers and bidders a successful evening.
Breaking News The big news around town is that First Light will commence construction of Noosa’s first 6 star resort on the Hastings Street beachfront after the summer holidays. This will have a profoundly positive effect on the whole beachfront precinct. Contact us now for details.
The Next Event The next Gala Auction Event is on January 14th. If selling is on the horizon for you, please speak to one of our team about including your property.
Weekly Property Pulse Professional Edition
Released 3 September 2010 By RP Data
Market Activity Index
RP Data’s weekly measure of property professional activity, the Market Activity Index, continues to show minimal change in agent pre-listing activity. For seven weeks now there has been minimal fluctuation in the Index indicating that the number of properties being prepared for sale is remaining relatively unchanged. In the lead up to last year’s spring selling season, pre-listing activity mounted in the period between June and the end of August, this year there has been no such build up of activity which suggests that spring may be much quieter this year than last.
Industry Market Wrap
The RP Data-Rismark July Home Value Index results were released this week, showing that capital city housing markets were relatively flat during July (+0.1% for the month). Capital city home values were down -0.8% over the three months to July 2010. The standout performer of the last three months was Sydney, with home values increasing by 0.3%. Brisbane and Perth continue to record the weakest returns both cities’ recording value falls of -2.5% over the last quarter. Another interesting outcome of the Indices results has been the poor performance of the top end market. Home values in the most expensive 20% of suburbs fell by -2.0% over the three months to July compared to falls of -0.4% in the cheapest 20% of suburbs and a -0.7% fall across the middle 60% of suburbs.
The Australian Bureau of Statistics (ABS) released building approvals data for July this week. On a seasonally adjusted basis total dwelling approvals increased by 2.3% for the month and were up 11.0% annually. The increase over the month was largely due to a significant increase in approvals for private sector units which increased 7.7% and are up 38.0% annually, keeping in mind they are coming from a very low base. Over the last month, the total number of private sector house approvals fell by -0.1% and are now down -0.8% for the year.
The ABS also released Gross Domestic Product (GDP) data this week which showed that on a seasonally adjusted basis the Australian economy grew by 1.3% during the June quarter and has grown by 3.3% annually. The results highlight that whilst many overseas economies continue to struggle, the Australian economy is in very good health.
Advertised Stock on the Market
The number of newly advertised residential property listings has fallen by -1.1% last week and are currently -2.6% below the 12 month average level. In further encouraging news, the total number of advertised listings have fallen by -1.5% over the last week however, total stock on market remains at 3.7% above the 12 month average.
Latest National Auction Clearance Rates
After low auction volumes the previous week due to the federal election, last week there was more than 1,650 capital city auctions nationally, the greatest volume in 9 weeks. Despite the ramp up in the number of auctions the weighted average clearance rate eased from 59.3% to 58.8% last week. Australia’s two largest auction markets, Melbourne and Sydney, both saw their auction clearance rates fall last week. In Melbourne, clearance rates fell to 65.1% from 69.8% the previous week and in Sydney clearance rates fell to 60.4% from 64.6% the previous week.
Number of Properties Advertised for Rent
The number of newly advertised rental properties increased by 1.1% last week after falling to its lowest level in seven weeks the week previous. The total number of advertised rental listings has remained flat over the last week and is -1.1% lower than it was at the same time last month.
Article: House rental growth minimal nationally but some areas stand out
The rental market has been sluggish in terms of growth over the last year, however not all regions around Australia have seen weekly rents remain flat. In this week’s Property Pulse we focus on house rents, looking at the best and worst suburbs for rental rate gains over the year to June 2010.
RP Data recently reported in our Quarterly Rental Review for June 2010 that across the country’s capital cities, rents for the combined house and units markets increased by 2.9% over the year. In comparison, house rents have increased by a total of 40.0% over the last five years and unit rents increased by 45.8%. Across the capital cities, house rents have increased by as much as 6.7% (Adelaide) over the last year and have been flat in Sydney, Melbourne and Perth.
Read the full article here
Commercial: Many tenants create much interest
Agents of Teska Carson and Gross Waddell have sold a multi-tenanted retail building in Prahran, Victoria, at auction.
The Conways Building at 245-253 Chapel Street, Prahran, was offered for sale for the first time in 40 years, attracting more than 150 people to the auction.
Gross Waddell agents, Michael Gross and Jonathon McCormack, and Teska Carson agent, Michael Ludski, marketed the property, which achieved a final selling price at auction of $12.805 million, bidding having commenced at $12 million.
The 2372 sqm property on a 1000 sqm site with 28 metres of street frontage comprises four retail shops on the ground floor and ten offices on the upper two floors, ranging from 105 sqm to 300 sqm.
The 195 sqm tenancy at number 245 has a five-year lease in place to Freedom Machine at a rate of $95,000 per annum, while the 285 sqm tenancy at number 247 has a ten-year lease to Secret Recipe in place with a ten-year option to extend at a rate of $178,500 per annum.
The 138 sqm tenancy at number 251 is currently vacant, with a potential income of $120,000, while the 127 sqm tenancy at number 253 has a five-year lease to Williamsons Pies & Pastries in place at a rate of $86,822 per annum.
The total net income of approximately $700,000 per annum gave the sale a yield of approximately 5.4%.
According to Cityscope, the Business 1-zoned art deco building was originally constructed in 1914.
Blog: Strong GDP figures don’t necessarily translate to strong property value growth
The strength of the Australian economy surprised most of the economic community when GDP figures were released earlier this week. The seasonally adjusted figures showed the Australian economy grew by 1.2% over the June quarter and 3.3% over the year. The broad expectation was for a 0.9% increase in the rate of economic expansion.
It’s logical to think that a strong economy is likely to propel the real estate market into another growth phase. Around 95% of the participating workforce is employed, official interest rates have stabilized, consumer confidence remains positive and the mining sector is continuing to see solid demand which underpins the economy.
Read the full article at blog.rpdata.com