Market Tid Bits October 2007 RETURN
The residential rental market continues to strangle from an under supply of new properties. With-in 4kms of the CBD the vacancy factor dropped from 1.8% to 0.08% in only 2 months, it is almost impossible to obtain rental accommodation in these circumstances. Rent values will continue to rise as a result of this under supply.;
447,000 residential properties are rented out in Victoria. This equals 24% of the states total.;
We talked about June 30 as watershed date for the superannuation industry in our last newsletter. $42 billion in funds were contributed in the June quarter alone, a staggering $55m per day. This will have dramatic consequences to our property markets in the coming years as fund managers compete for appropriate investment opportunities, particularly in commercial/retail property.;
The apartment and townhouse market is on the move. The dramatic increase in house prices has left too large a gap in current values and are comparatively cheap. Add the rising rental market and you have a sure case for a corrective increase in this sector. Select quality of design and location first and you should invest well.;
Melbourne’s population is growing by 1,000 people per week, confirming the dramatic need for affordable housing, public transport investment and arterial infrastructure projects. Social responsibilities for educational, health and recreational assets will also need appropriate investment;
Victoria is in the midst of a building boom with permits issued in July equalling $2 billion. It is not all going to new housing though. With stamp duty at around 5.5% of the purchase price alone, the costs of moving are prohibitive to most and much of this construction is for renovating existing homes.; and
Over one million first home grants have been processed and 257,500 to Victorians totalling $2.38 billion. Online surveys suggest over 25% of these will be at least 40 years old.
The residential rental market continues to strangle from an under supply of new properties. With-in 4kms of the CBD the vacancy factor dropped from 1.8% to 0.08% in only 2 months, it is almost impossible to obtain rental accommodation in these circumstances. Rent values will continue to rise as a result of this under supply.;
447,000 residential properties are rented out in Victoria. This equals 24% of the states total.;
We talked about June 30 as watershed date for the superannuation industry in our last newsletter. $42 billion in funds were contributed in the June quarter alone, a staggering $55m per day. This will have dramatic consequences to our property markets in the coming years as fund managers compete for appropriate investment opportunities, particularly in commercial/retail property.;
The apartment and townhouse market is on the move. The dramatic increase in house prices has left too large a gap in current values and are comparatively cheap. Add the rising rental market and you have a sure case for a corrective increase in this sector. Select quality of design and location first and you should invest well.;
Melbourne’s population is growing by 1,000 people per week, confirming the dramatic need for affordable housing, public transport investment and arterial infrastructure projects. Social responsibilities for educational, health and recreational assets will also need appropriate investment;
Victoria is in the midst of a building boom with permits issued in July equalling $2 billion. It is not all going to new housing though. With stamp duty at around 5.5% of the purchase price alone, the costs of moving are prohibitive to most and much of this construction is for renovating existing homes.; and
Over one million first home grants have been processed and 257,500 to Victorians totalling $2.38 billion. Online surveys suggest over 25% of these will be at least 40 years old.