What’s News in property this week?
In our wrap of current property headlines this week: Mind-boggling Sydney prices; insane Queensland claim; what’s in a name. Read on for more…
- The top end of town – cashed up downsizers are reportedly fuelling a resurgence in the luxury apartment market in Sydney’s ever-entertaining property news. Sydney’s top pads range from $10m up to a cool $30m.
I’ll take three!
- High stakes name game – apparently, it’s a no-no to call Gold Coast apartments with names ending in “court”, “garden” or “sun”. Savvy property developers put lots of thought into naming new off-the-plan projects.
The aim of the game is to try to build a personality and set a tone – the best building names have synergy with the area and synergy with the buyers.
And Michael means angel-like, go figure.
- World Bank warning – the World Bank has warned of tightening conditions in world financial markets following moves by the US Federal Reserve to unwind its quantitative easing programme. WB anticipates a slowdown in growth for developing countries, plus weaker capital inflows to developing nations if interest rates continue to rise.
Best be forewarned property pundits.
- Insane Queensland proposal – that’s how high profile agent John McGrath describes proposed legislation in Qld to ban agents from suggesting price guides on residential auction properties – a move he says could destroy the state’s auction market.
McGrath’s research shows that 91% of buyers bypass properties with no price guide on the internet. No other jurisdiction in the world, he says, bans price guides on properties.
- Let the games begin – lenders are offering double-digit discounts & decades-low fixed home loan rates in a new round of fierce competition to build market share in booming property markets.
Anecdotal evidence suggests that rising property prices are encouraging existing borrowers to shop around different lenders. Rate City says it’s fierce and going to get fiercer.
And so the seeds of the next downturn are already sown. Sadly it happens too fast.
- Brisbane apartment rush – Brisbane new apartment sales have posted their best annual result in 11 years – 1011 apartments in the Dec 2013 quarter; valued at $556m – a 50% increase on the previous three months.
Remember these are reported sold. Let’s see how they settle.
- Hotel central – More than 1000 new hotel rooms are on the way for Brisbane in time for the G20 summit in November and the anticipated 7,000 delegates & media. Five new luxury hotels will open their doors – Four Points in the CBD, Alpha Mosaic & TRYP in the Valley; Gambaro Hotel on Petrie Terrace & the rebranded Next Hotel (formerly Chifley @ Lennons) in the Queen Street Mall.
I will be leaving town.
- Life sentence – As prices become out of reach for many, demand for 40 year mortgages may be set to rise – offering borrowers lower mortgage repayments by about $2k a year and increased borrowing capacity by up to $50k. In California, 40 year mortgages account for 25% of new home loans; demand for the 40 year product is rising in Canada, the UK & Japan. Wow 40 years – it’s like committing a double murder.
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