Real estate markets spring into action according to Raine & Horne
Media release - 23rd September, 2014
Spring has only recently sprung, however leading real estate group Raine & Horne is predicting that Australian real estate markets will enjoy a robust final quarter for 2014.
“Australian real estate enjoyed a very solid 2013 Spring market and many pundits were tipping that a repeat performance in 2014 would be difficult,” said Angus Raine, Chairman/CEO of Raine & Horne.
“But not only has the bricks and mortar market, led by heavyweights Sydney and Melbourne, maintained the 2013 rage, but it’s fair to expect that the run to Christmas 2014 will be even better with listings already up by 7% compared with the same time last year and the number of settled sales 6% stronger.
“Likewise, national settled sales are 7% stronger than August 2013, a result which bodes well for this year’s Spring market.”
Markets to watch
The St George region in Sydney, as well as the city’s western suburbs, are set to enjoy strong market conditions this Spring, according to Mr Raine, due to their combination of affordability and lower interest rates.
“The St George region is within 20 kilometres of the CBD and continues to be a very affordable option when compared with the city’s east and Inner West.”
Entry level two-bedroom apartments in the St George region start from the low $500,000s with older houses available from $1.1 to 1.2 million.
“Buyers include investors, self-managed super funds and first timers, who were previously paying rents for properties closer to Sydney.”
Mr Fadel believes that gross yields of 6% will drive investor interest in St George real estate.
“Five months ago, plenty were tipping the market would slow but if anything it’s getting stronger,” said Mr Diamantidis.
“In our region, investors are going crazy for properties with granny flats. These are on the market for $460,000 and they can return $630 a week, which represents a gross yield of more than 7%.
Also, apartments with yields of between 6.5% and 7% are catching the eye of shrewd, yield-hungry investors, according to Mr Diamantidis.
“We’ve got studio apartments worth $190,000, which are renting for $250 a week.”
Bumper Sping for Melbourne
Raine & Horne Victoria’s business support and development manager, Michael Baliviera, said that with 73% auction clearance rates, the Melbourne property market was set for a bumper Spring.
“There is a lot of activity with buyers latching onto quality properties, however a downturn in the economy or a hike in interest rates could take some of the steam out of the market,” said Mr Baliviera.
“With the dollar falling below $US0.90, there’s less pressure on the RBA to keep interest rates low, and an increase in the cash rate could put a dampener on the real estate market.”
“But for now buyers are continuing to fall over each other for quality apartments or houses within 20 kilometres of the Melbourne CBD, which are priced between $600,000 and $800,000.”
“The inner west of Melbourne has traditionally played second fiddle, but with buyers priced out of the eastern suburbs, suburbs such as Footscray, in particular, are enjoying a mini boom.”
Southern state money returning to Brisbane
In Brisbane, Steve Worrad, General Manager, Raine & Horne Queensland, said that suburbs to the south of Brisbane such as Beenleigh, northern suburbs such as Wynnum and Manly, as well as northern commuter belt suburb Morayfield, will attract plenty of attention in the lead up to Summer.
“It will be a strong Spring market with the return of southern investors driving up competition for property, with Brisbane’s inner city suburbs also set to enjoy plenty of attention,” said Mr Worrad.
“In Queensland, Raine & Horne has recorded a surge in listings of 47% compared to this time last year, and this can be attributed to plenty of Queensland owners recognising there is more life in the property market than 9 months ago, and they’re now testing the waters by putting their properties up for sale.”
Gina Wells, Principal of Raine & Horne Morayfield, is expecting it to be a bumper selling season for suburbs located to the north of Brisbane.
“Morayfield’s affordability will prove a big plus with first home buyers and investors this Spring,” said Ms Wells.
“House and land packages in Morayfield and surrounding suburbs start from a very affordable $320,000, which is attracting first home buyer attention,” she said.
For further media information please contact:
Angus Raine, Chairman and CEO of Raine & Horne, on 0409 920 697
Andrew Harrington, National Marketing & Communications Coordinator on 02 9258 5400