Here’s another light, tight, 3 minute of property investment reading – all with a positive feel to start to your weekend.
1. Price growth
I do think that Perth, Brisbane and Sydney’s projections are high and maybe by as much as 40% too much. We estimate more like 12% to 15% for Brisbane is a more realistic outcome – or 4% to 5% per annum.
Good news just in – home values across Sydney, Melbourne, Brisbane, Perth, Hobart and Canberra all rose by 1% or more in June. While that may not sound a lot, the lift is encouraging as it is the biggest increase in property prices in 27 months.
As Commsec reiterates, this is a welcome turn from a period of sustained weakness.
RPData calls this a healthy capital gain for the month and reports broad-based capital gains across most of the capital cities.
The Aussie economy is strong enough that companies are having recruitment difficulties.
And it’s not just in the mining field. The Australian reports that 56% (up from 39% and 37% over the last two years) of companies are finding it tough to find suitably qualified people in professional and technical trades, engineering, marketing and sales; and 511 companies surveyed across the country said they employ foreign workers.
We’ve got the jobs, folks – just need the right people to fill them.
3. Matusik Pulse Poll
Last week’s Matusik Pulse poll asked about the extent to which properties that are for sale in your area are overpriced.
41% think that properties are not overpriced; 32% believe they are overpriced 5%-10%; 12% think properties are overpriced just 5%; and another 12% believe they are overpriced 10%-15%. Just 3% believe properties are overpriced 15%-20%.
We are a little surprised at the majority result.
But we do have a high proportion of readers in the industry – specifically involved in real estate sales – which could account for some professional bias.
This week’s poll asks what it would take to get you to seriously consider a new dwelling investment. Don’t be shy – it only takes a few seconds to click through and give us your thoughts. Responses in next Saturday’s Weekend 3.
Enjoy your weekend, and remember…. pass this Missive on to 3 others.
And just before you go, if you missed the ABC 7.30pm report last Friday with yours truly (New home starts remain alarmingly low), you might like to take a peek – only 5 minutes and a transcript is available.
Time for a tart? Or just looking for some weekend therapy? Check out the Moggill Markets@Brookfield today and see what’s been cooking at Julia’s Pantry. Hurry – it’s all over at 11am – or put it on your calendar for two week’s time. And if you do nothing else, find out how to make some kick-arse toasted muesli.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 550 new residential developments come to fruition and writes the weekly Matusik Missive. The Matusik Missive is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.
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