Saturday Summary – the most interesting property investment articles I’ve read this week (2013/06/08)

There are more property investment articles, commentaries and analyst reports on the Web every week than anyone could read in a month. Each Saturday morning I like to share some of the interesting ones I’ve read during the week.

Enjoy your weekend…and please forward to your friends by clicking a social link button on the right.

Brisbane apartment market heats up as more buyers choose apartments over houses: Terry Ryder

Terry Ryder writes that Brisbane’s inner-city apartment market is having its best time in almost a decade.

Two research reports confirm that sales in the March quarter were the highest since September 2004, boosted by the release of six new projects.

Reports from Place Advisory and Colliers International tell similar stories and not only of a rising tide of buyers for CBD and near-city units.

Among the many messages hidden within these reports are these:-

  • More and more buyers are choosing apartments.
  • Small units are popular.
  • A market recovery is well under way in Brisbane.
  • Sales volumes rise first, and prices follow later.
  • Government grants to first-time buyers don’t work.
  • Brisbane has a much healthier unit market than does Melbourne.

 

Who do you turn to for property advice? | How to get started in property development | Is it time to look at US property?

[sam id=36 codes=’true’] Another great Real Estate Talk show  produced by Kevin Turner. If you don’t already subscribe to this excellent weekly Internet based radio show.

Details of this week’s show:
Cherie Barber gives some advice on getting started in property development
Michael Yardney from Metropole Property Strategists talks about who you should turn to for property advice
Margaret Lomas from Destiny Financial Solutions talks about the US property market
Sam Saggers from Positive Real Estate explains the pros and cons of the NRAS

You should definitely subscribe to this weekly audio program. Click Here It’s free and you can listen on the go on your smartphone, iPad etc.

 

The Economist is wrong to argue that Australia’s property market is overvalued: Michael Matusik

Around this time every year the Economist Magazine likes to rub our noses in the high price of houses in Australia.

This year Australia has moved from fifth to fourth most overvalued global property market but the overall risk of a housing bubble has subsided, according the very debatable The Economist magazine’s 2013 global housing index.

And around this time every year property analyst Michael Matusik explains why the Economist is wrong in how it assesses our property markets.

This year in Property Observer he says:

What a load of rubbish!  Read here what we wrote about this stuff last time around.

I believe The Economist has an issue with the Australian property market because we hadn’t experienced a substantial housing bust (or correction) here like most countries in the developed world.

For mine, due to our different lending practices here (full recourse loans etc) and high level of owner-occupier property, we were extremely unlikely to see the massive housing corrections that they experienced abroad, regardless of what Steve Keen believes!

Also, most economists struggle forecasting things like actual economic growth and interest rates let alone property markets. Generally speaking, economists have a pretty poor understanding of the real dynamics and influences of property markets.

Some economists (among others) have criticised me of late as being “too close to the market” i.e. that is involved in marketing and some very select selling – and therefore not somehow capable of independent thought or the tenacity the share it. The irony is that it is this very coalface contact with the market that is the most important when it comes to better property analysis.

And as for an international economist – using a bunch of bland, internet-based, third party data sources – to speculate on Australia’s property markets, please give me a break! It is real estate after all. You must do a site visit. Walk the turf, kick the tyres, eyeball the vendor and quiz (interrogate) the salesperson.

Australia, also, has a culture built on doing whatever is required to protect the family home – when things get a bit tough overseas they put the keys in an envelope and post them to the bank!

Finally you cannot make comparisons between property and share markets. They are completely different.

 

New breed of Gen Y white collar renters seeking out 18 inner city apartment hotspots

Property Observer reports that town planners Urbis suggest that there are 18 inner city locations in Brisbane, Sydney, Melbourne and Canberra likely to appeal to a growing “white collar renter class” willing to pay a premium to be close to the city…

This group typically has a higher income than average, are aged between 25-39 years, without many kids and who enjoy buildings with architectural features and amenities like rooftop gardens.

Half of these locations are within five kilometres of Sydney comprising Erskineville, Alexandria, Newtown, Camperdown, Darlington, Pyrmont, Ultimo.

There are four within a short walk or drive of the Brisbane CBD (Brisbane City, Fortitude Valley, Kelvin Grove, Herston), four surround the Melbourne CBD (Melbourne, North Melbourne, Docklands and Carlton) and two in Canberra (Braddon and Civic).

The article also says that:

According to ABS census data analysed by Urbis, renters account for 48.7% of residents in medium and high-density areas compared with 30.4% in other areas.

The average household income of this renter class is $94,400 per annum compared with $82,300 in other areas, while the Census data also shows that 60% are aged below 39.

 

Australian property market to turn corner after election, says John Symond

Aussie Home Loans boss John Symond says the property market will recover after the September federal election.

Mr Symond said the combination of bottomed out property prices and historically low interest rates had created the perfect environment for a recovery – the only missing ingredient was confidence.

“If you want to pick a time to get into housing, you can’t get a much better time than now,” Mr Symond told more than 3000 agents at the Australian Real Estate Conference on the Gold Coast.

 

Blogs you may have missed this week:

If you didn’t have a chance to read my daily blog, here’s a list of the blogs you missed this week:

This week’s property market trends | RPData

Property market sentiment remains high, but for how long.

Mindset Crimes

This week’s property news video with Kevin Turner | 5th June

VIDEO: How demographics will change our property investment markets | Bernard Salt

Capital city dwelling values slip following lower consumer confidence in May

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About

Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's been once agin been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


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