Property Market Update Ray White Lower North Shore
MCMAHONS POINT 136 Blues Point Road Contact Shane Slater 0414 312 013
Property Market Update Ray White Lower North Shore
July 2012
National News The property market for the first 6 months of 2012 was battling some pretty strong head winds. The trends for everything from stock markets, exchange rates and consumer confidence right through to petrol prices have been both volatile and nebulous. Of course, this sort of uncertainty is always going to play havoc with housing demand. Sure enough, until recently, property markets have been lack-lustre. Across the country and over the year, prices are down. Some might find consolation in that Sydney has been the most resilient of the capitals. After all, Sydney wide prices are off by only 2% over the year, compared with Melbourne which is 6.6% softer. Nevertheless, property professionals are beginning to feel the winds of change. Recently, indices for Sydney houses such as those compiled by RP Data-Rismark (1% uplift in June) and APM (1.4% uplift in March
quarter) indicate a gradual firming up of property prices across the city. Even though we are yet to see this reflected too obviously in the weekend clearance rates where Sydney remains at its longer term average of 56% - still higher though than 50% recorded at the same time last year. Clearly, two successive interest rate cuts in May and June have put downward pressure on borrowing costs contributing to a more active market-place. Retail lending rates have now fallen on average by 55bps since May and 100bps since October 2011. Inevitably, the increase in borrowing power for buyers will start to translate into potentially firmer house prices. Given that some banks, notably Westpac, are sticking to a forecast of 3 more cuts by the end of the year, we can comfortably expect that buyer confidence will continue on this rising trajectory.
Builders are also on the move. Interestingly, the trend estimate for the total number of dwelling units approved in New South Wales rose 1.2% in May and has now risen for 4 months in a row. Aside from cheaper finance, the demand for rental accommodation is clearly driving this market. According to the Census numbers, 29.6% of all Australian homes are now rented and younger folk are tending to remain in rental homes for longer thus earning the dubious title of "Generation Rent". When we throw into the mix of lower prices and reduced mortgage repayments, an increasing disposable income (rising by 20% on average over the last 5 years) the resulting improvement in housing affordability measures creates a dividend that buyers will spend sooner or later.
Director's Desk We are confident that our continuing enthusiasm about the opportunity that investment property represents in our markets is well justified. Not only by the recently published market trends, but also through obvious and favourable demographical change.
landlord´s market over the last 5 years, there passionate advocates for our clients in such has been a significant increase to the matters. number and proportion of Australians who are renters. With good news for Landlords across the broader market, the vacancy rate has gradually lifted on the Lower North Shore. Landlords should be pragmatic when it comes to rent reviews as maintaining a good tenant may improve your yield in the long term.
We invite you to contact our experienced The latest census results, published by the portfolio managers who are always ABS, show us that apart from a strong
Peter Matthews - Managing Director
Ray White Lower North Shore 3 Young Street Neutral Bay NSW 9953 7333 RWLNS.com
Lower North Shore
Property Management News
Leasing Summary
Sydney Rental Market
June 2012
As we settle into winter we have seen a drop in the market which has not been evident for a number of years. Historically, winter & school holidays were a driving factor for a slower market, however it often recovered quickly. Since May, vacancy rates have grown & the achievable prices have softened. We have found that wellpresented & maintained properties, at reasonable market prices are still taking up to 3 weeks to secure tenants. We suggest to all Investors with properties currently vacant or coming on the market to ensure that it is presented well, professionally photographed & priced right to ensure the expense of vacancy is avoided. Rent increases for the past 3 months are down. The start of the year saw rents being increased in the vicinity of 5-8%, now however, we are suggesting to secure an existing tenant to avoid vacancy. How long this market will continue is unknown. We hope the uncertainty will lift come spring and we see the continued strength for our investors that the beginning of 2012 showed.
The last month has been steady for leasing at Ray White Lower North Shore; • 54 properties leased • rental range $270 - $2800pw • rents reviewed for this period - 71 • increases in rent for this period - 24 • average vacancy rate 1.58% Ray White Lower North Shore's Portfolio Managers and Leasing Consultants work hard to maximise landlord's returns on investments. For more information, please contact Nic Yates on (02) 9953 7333.
For Sale - Feature Sale Properties
MOSMAN 35/170 Spit Road Offers over $430,000
1 bed 1 bath 1 car
Contact Alon Beran 0433 233 910
NEUTRAL BAY 5/153 Kurraba Road Auction 26 July
2 bed 1 bath
Contact David Gillan 0411 255 914
WOLLSTONECRAFT 6/2A Hume Street Offers over $700,000
3 bed 2 bath 2 car
Contact Sean St Clair 0410 506 661
MOSMAN 129B Awaba Street Auction 1 September
3 bed 2 bath 1 car
Contact Sally-Anne Lawlor 0439 998 553
Ray White Lower North Shore 3 Young Street Neutral Bay NSW 9953 7333 RWLNS.com
Lower North Shore
Property Market Update Ray White Lower North Shore
July 2012
National News The property market for the first 6 months of 2012 was battling some pretty strong head winds. The trends for everything from stock markets, exchange rates and consumer confidence right through to petrol prices have been both volatile and nebulous. Of course, this sort of uncertainty is always going to play havoc with housing demand. Sure enough, until recently, property markets have been lack-lustre. Across the country and over the year, prices are down. Some might find consolation in that Sydney has been the most resilient of the capitals. After all, Sydney wide prices are off by only 2% over the year, compared with Melbourne which is 6.6% softer. Nevertheless, property professionals are beginning to feel the winds of change. Recently, indices for Sydney houses such as those compiled by RP Data-Rismark (1% uplift in June) and APM (1.4% uplift in March
quarter) indicate a gradual firming up of property prices across the city. Even though we are yet to see this reflected too obviously in the weekend clearance rates where Sydney remains at its longer term average of 56% - still higher though than 50% recorded at the same time last year. Clearly, two successive interest rate cuts in May and June have put downward pressure on borrowing costs contributing to a more active market-place. Retail lending rates have now fallen on average by 55bps since May and 100bps since October 2011. Inevitably, the increase in borrowing power for buyers will start to translate into potentially firmer house prices. Given that some banks, notably Westpac, are sticking to a forecast of 3 more cuts by the end of the year, we can comfortably expect that buyer confidence will continue on this rising trajectory.
Builders are also on the move. Interestingly, the trend estimate for the total number of dwelling units approved in New South Wales rose 1.2% in May and has now risen for 4 months in a row. Aside from cheaper finance, the demand for rental accommodation is clearly driving this market. According to the Census numbers, 29.6% of all Australian homes are now rented and younger folk are tending to remain in rental homes for longer thus earning the dubious title of "Generation Rent". When we throw into the mix of lower prices and reduced mortgage repayments, an increasing disposable income (rising by 20% on average over the last 5 years) the resulting improvement in housing affordability measures creates a dividend that buyers will spend sooner or later.
Director's Desk We are confident that our continuing enthusiasm about the opportunity that investment property represents in our markets is well justified. Not only by the recently published market trends, but also through obvious and favourable demographical change.
landlord´s market over the last 5 years, there passionate advocates for our clients in such has been a significant increase to the matters. number and proportion of Australians who are renters. With good news for Landlords across the broader market, the vacancy rate has gradually lifted on the Lower North Shore. Landlords should be pragmatic when it comes to rent reviews as maintaining a good tenant may improve your yield in the long term.
We invite you to contact our experienced The latest census results, published by the portfolio managers who are always ABS, show us that apart from a strong
Peter Matthews - Managing Director
Ray White Lower North Shore 3 Young Street Neutral Bay NSW 9953 7333 RWLNS.com
Lower North Shore
Property Management News
Leasing Summary
Sydney Rental Market
June 2012
As we settle into winter we have seen a drop in the market which has not been evident for a number of years. Historically, winter & school holidays were a driving factor for a slower market, however it often recovered quickly. Since May, vacancy rates have grown & the achievable prices have softened. We have found that wellpresented & maintained properties, at reasonable market prices are still taking up to 3 weeks to secure tenants. We suggest to all Investors with properties currently vacant or coming on the market to ensure that it is presented well, professionally photographed & priced right to ensure the expense of vacancy is avoided. Rent increases for the past 3 months are down. The start of the year saw rents being increased in the vicinity of 5-8%, now however, we are suggesting to secure an existing tenant to avoid vacancy. How long this market will continue is unknown. We hope the uncertainty will lift come spring and we see the continued strength for our investors that the beginning of 2012 showed.
The last month has been steady for leasing at Ray White Lower North Shore; • 54 properties leased • rental range $270 - $2800pw • rents reviewed for this period - 71 • increases in rent for this period - 24 • average vacancy rate 1.58% Ray White Lower North Shore's Portfolio Managers and Leasing Consultants work hard to maximise landlord's returns on investments. For more information, please contact Nic Yates on (02) 9953 7333.
For Sale - Feature Sale Properties
MOSMAN 35/170 Spit Road Offers over $430,000
1 bed 1 bath 1 car
Contact Alon Beran 0433 233 910
NEUTRAL BAY 5/153 Kurraba Road Auction 26 July
2 bed 1 bath
Contact David Gillan 0411 255 914
WOLLSTONECRAFT 6/2A Hume Street Offers over $700,000
3 bed 2 bath 2 car
Contact Sean St Clair 0410 506 661
MOSMAN 129B Awaba Street Auction 1 September
3 bed 2 bath 1 car
Contact Sally-Anne Lawlor 0439 998 553
Ray White Lower North Shore 3 Young Street Neutral Bay NSW 9953 7333 RWLNS.com
Lower North Shore
