Welcome Guest [Log In] [Register]


Reply
REIV review of 2013; Melbourne market summary for 2013
Topic Started: 22 Dec 2013, 09:15 PM (716 Views)
mel
Member Avatar


Quote:
 
REIV review of 2013

With interest rates low and property prices below 2010's record levels, Victoria's housing market gathered steam as 2013 progressed. And by the final months of the year, property was back in the headlines and those 2010 records began to tumble.

REIV CEO Enzo Raimondo said that by year end Victoria is expected to have recorded close to 110,000 sales, 80,000 of those in Melbourne, with the state’s 2013 housing clearance rate likely to be 71 per cent. Although that's not at 2010's high – 118,300 sales and 74 per cent clearance rate – the 2013 clearance rate was substantially up on 2012's 61 per cent and 59 per cent in 2011.

"But the year did beat 2010's record run of auctions – seven weekends with more than 1000 auctions in 2010, but nine such "Super Saturday" weekends in 2013. In November alone there were 4,600 auctions in Victoria – another record, beating May 2010's tally of 4,455 auctions.

"Topping the auction tables at the end of that record-breaking November were two very different suburbs: inner-city Richmond, with 365 sales, where sellers took advantage of high prices and buyers grabbed homes in an area with great shopping and transport links, and Reservoir, with 321 sales. Reservoir's size contributed to that tally, but also its attraction for buyers priced out of nearby northern suburbs such as Northcote, Thornbury and Preston and attracted by its big blocks and solid housing stock.

"Auctions grabbed a bigger slice of the market: in Melbourne they were close to 28 per cent of the year’s total sales– up 5 per cent on 2012 – and yet another record.

"Price growth was strong in 2013 with Melbourne's September quarter median house price of $595,500 a new record and the city's House Price Index reaching a peak of 150.6 in November – its highest level since the REIV began the index in June 2007.

"Melbourne median house prices rose 14.9 per cent in the year, the biggest increase since September 2010 when annual, seasonally adjusted growth was 16.1 per cent.

"Growth was stronger for houses than units – the HPI rose by 7.6 per cent over the year, while the UPI's increase was 5.9 per cent. But for investors apartments were the big news, with
REIV data over the 12 months to September showing the highest rental yields were usually for one bedroom or two bedroom apartments. In fact, it found the top three investments in Melbourne over the 12 months – the inner city university suburb of Carlton, affordable outer suburban Noble Park, and Melbourne city – were all one bedroom apartments.

"Over the year the median weekly rent for Melbourne increased by 3.1 per cent, but for units it was up by 5.9 per cent – almost entirely driven by inner suburban rental growth, while the middle and outer suburbs remained stable.

"Falling vacancy rates were also good news for investors buying to rent. For Melbourne as a whole the rental vacancy rate fell to the lowest it had been all year in October and November– down to 2.7 per cent , from 2.9 per cent in September.

"In regional Victoria fortunes were mixed across the state, with differing rates of house and unit price growth, varying rental vacancy levels and median rental growth.

"REIV's September median house price data showed the median house price in regional Victoria was stable, with a 0.8 per cent increase in seasonally adjusted terms to $308,000. However, the three main centres of Geelong, Ballarat and Bendigo continued to outperform that broader market. November's House Price Index showed all three at their peak.

"All three recorded increases for the month, although growth in Bendigo slowed – an increase of 0.2 per cent, compared with 0.3 per cent for regional Victoria – but is tipped to pick up when the New Bendigo Hospital project is fully underway.

"The number of days homes were on the market in regional Victoria fell to its lowest level in almost two years in October – just 92 days. In November that rose to 104 days, still below the September figure of 113 and well below January's 127 days. Most house sales in regional Victoria are private sales. Generally, less time on the market reflects a stronger market.

"In November the rental vacancy rate in regional Victoria fell to 2.4 per cent, down from2.9 per cent in October and good news for investors –this was significantly down on the 4 per cent rate at the beginning of the year.

"The strong market in the second half of 2013 excited commentators and led to predictions the New Year fireworks would herald a red hot market next year. But despite the good news there were signs of declining clearance rates towards year-end and we expect more moderate growth next year, potentially slowing mid year. Much will depend on factors such as the unemployment rate and consumer sentiment," he said.
Edited by mel, 22 Dec 2013, 09:16 PM.
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy