Residential rents flat in Australian capital cities over last 12 months

admin | Bez kategorii | 3 marca 2016

Residential rents flat in Australian capital cities over last 12 months

Image Residential rents in Australian capital cities were flat in 2015 and growth is now at its lowest level on record according to the latest rental index.Rents increased by 0.2% in January 2016. The only capital cities to see a rise in rents over the month were Sydney, Melbourne, Adelaide, Hobart and Canberra, elsewhere rents dropped, the CoreLogic rental index shows.

Currently the median rent rate is recorded at $443 across the capital cities with a combination of factors affecting the market. ‘Among these is a higher level or rental stock resulting in greater options for renters, a slowdown in population growth, higher than normal investment activity and stagnant wage growth,’ said the firm’s research analyst Cameron Kusher.

‘More rental stock at a time when demand is easing due to slowing population growth, and little wage growth for renters, has resulted in flat rental growth conditions over the past year,’ he explained.

‘For renters there is a lot more accommodation options in the market while simultaneously, landlords are now required to respond to a more competitive environment which, in many cases means keeping rents steady or in some areas reducing rents in order to keep a tenant,’ he added.

He also pointed out that CoreLogic has tracked annual rental changes since 1996 and over that time, rental growth conditions have never been weaker. At the same time last year rental rates had increased by 1.7% highlighting that the slowdown in rental conditions has been sharp over the year.

A breakdown of the figures shows that rents increased in the last year by 1.4% in Sydney, by 2.1% in Melbourne, by 0.1% in Hobart and by 1.8% in Canberra. They fell by 0.7% in Brisbane, by 0.4% in Adelaide, by 8.6% in Perth and by 13.4% in Darwin.

Across every capital city except Canberra the rate of annual rental growth or decline is currently lower than it was a year ago indicating that the weaker rental market conditions are prevalent across most capital cities.

Weekly rents across the combined capital city measure increased 0.2% over the month of January however they were unchanged over the past 12 months and currently, combined capital city rental rates are $487per week for houses and $465 per week for units.

‘It is possible that over the coming months, rental rates could begin to fall on an annual basis due to additional new rental supply entering the market,’ added Kusher.

Prices in Australian cities up 0.5% in February, but growth is moderating

admin | Bez kategorii | 3 marca 2016

Prices in Australian cities up 0.5% in February, but growth is moderating

Image Property prices in Australia’s capital cities increased by 0.5% in February and by 1.4% over the last three months, according to the latest index figures.However the trend in annual growth has slowed over the last seven months from 11.1% to 7.6%, the CoreLogic RP Data home value index also shows.

Prices increased in all capital cities apart from Perth and Canberra were prices fell by 1.1% and 0.2% respectively and over the past three months they increased across all capitals except Sydney where they fell by 0.2%.

An examination of the data shows that the largest monthly increases in home values were recorded in the cities that have been underperforming over the growth cycle to date. In Hobart values were 2.9% higher, Adelaide up 1.9% and Brisbane up 1.8%.

The cities to record the greatest value rises over the past three months have been Hobart with growth of 8.5%, Melbourne up 3.8% and Brisbane up 2%.

According to CoreLogic RP Data head of research Tim Lawless, even though home values have trended lower over the year in Perth and Darwin, they have recorded value rises of 0.2% and 0.3% respectively over the past three months.

He also pointed out that while values are still increasing across most capital cities however, the results remain diverse. Sydney and Melbourne remain the strongest markets in trend terms, however, the gap is widening between the performances of Melbourne relative to Sydney.

Over the past 12 months, combined capital city home values have increased by 7.6%, with the annual rate of growth down from a recent peak of 11.1% recorded in July last year. Melbourne has maintained its number one growth position, with annual capital gains of 11.1%.

‘Melbourne values appear to be holding reasonably firm since December last year with the annual rate of capital gain virtually level over the past three months,’ Lawless explained.

Sydney’s annual rate of growth has continued to moderate, having almost halved from its cyclical peak of 18.4% recorded in July last year to reach 9.5% growth over the past 12 months.

Lawless said that despite the slowing trend, Sydney remains the second best performing capital city over the past year but he pointed out that a few of the smaller cities where growth rates have recently accelerated may start to rival Sydney’s position over the coming months.

‘The trend in home value growth is showing signs of increasing in those markets that have previously underperformed. These include Brisbane, Adelaide, Hobart and Canberra. Affordability constraints aren’t as apparent in these cities and rental yields haven’t been compressed to the same extent as what they have in Melbourne or Sydney,’ Lawless said.

‘Home values increased in Brisbane by 5.5% over the past year, which is the fastest annual rate of value growth in a year. In Hobart, home values are 6.2% higher over the year, which is its fastest annual rate of home value growth since July 2010,’ he added.

Need for affordable housing not likely to be met by Starter Homes scheme

admin | Bez kategorii | 3 marca 2016

Need for affordable housing not likely to be met by Starter Homes scheme

Image The vast majority of councils in England do not think that Starter Homes should be classified as affordable housing and only 7% of councils think they will address the need for affordable housing in their local authority areas.
Indeed, new research shows that local councils, of all political parties, believe that the Government’s Starter Homes policy will hinder rather than help to tackle the growing need for genuinely affordable housing in England.

They have also raised concerns about the impacts of the Government’s plans to reduce social rents by 1% a year for the next four years and the extension of the Right to Buy to housing association tenants, according to a survey commissioned by the Town and Country Planning Association (TCPA) and the Association for Public Sector Excellence (APSE).

It found that over two thirds of councils, 69%, anticipate that they will be building less social and affordable housing as a result of the Government’s plans to reduce social rents by 1% a year for the next four years. Only 3% say they plan to build more social and affordable homes as a result.

‘Low cost home ownership, such as starter homes, may help some people get a first step on the housing ladder, but as the survey of council’s highlights this will not address the need for genuinely affordable homes,’ said Kate Henderson, chief executive of the TCPA.

‘We need a housing strategy for the nation that provides decent homes for everyone in society, including those most in need in the current housing crisis. Our survey has revealed that four out of five councils do not think starter homes should be classified as affordable housing because they are simply not affordable for essential low paid workers or for many people on average incomes,’ she added.

Almost three fifths of councils described their need for more affordable housing as severe and 37% as moderate, and 89% of respondents think that the extension of Right to Buy will lead to less housing available for social rent, with only one council thinking that it would be beneficial.

‘What is clear from these survey results is that the headlong rush to extend Right to Buy to housing associations is an ill-thought out measure which enjoys little support, and this is reflected across the different political parties at a local level,’ said Paul O’Brien, chief executive of APSE.

‘With Nine out of 10 councils genuinely concerned that the extension of the Right to Buy to housing association tenants will further diminish the already short supply of socially rented homes, available in their local communities, we say to Government now is the right time to listen on Right to Buy,’ he added.

Best Regards
Karolina Woźniak
Next Group

Account Manager
Our Websites Network

Average apartment prices up in Dubai but down in Abu Dhabi

admin | Bez kategorii | 3 marca 2016

Average apartment prices up in Dubai but down in Abu Dhabi

Image Average apartment rents in Dubai increased by 3% in January compared to the previous month but amounts varied across property types, the latest data shows.
Average rents reached an annual rate of AED138,000 overall with the market seeing some adjustments, according to the latest report from property portal Bayut.

The firm also reports an improvement in yields for apartment property investors, reaching an average of just over 6% but these do vary according to property type, location and quality with some reaching up to 10%.

One bedroom apartments recorded an average of AED97,000 in January, down 0.8% month on month while two and three bedroom rents were up 0.1% and 2.2% respectively AED151,000 and AED211,000.

Rental values for four bed apartments also fell, down 2.2% in January compared to December 2015 to AED330,000.

Yields improved across all apartment types. Studios offered average yields of 7.235, one bedroom apartment 6.4%, two bedroom apartments 5.7%, three bedroom apartments 5.3% and four bedroom apartments 3.55%.

Dubai Marina remained the most popular locality for renting apartments in Dubai, followed by Jumeirah Lakes Towers. Bur Dubai, Downtown Dubai and Business Bay.

In neighbouring Abu Dhabi rents are falling with values across all property types apart from three bedroom flats falling in January. The firm said that this could be the market adjusting to growth in 2015.

Average apartment rents fell 5% from AED 141,000 in December 2015 to AED 135,000 in January. Studio apartment rents were down 3.6% to AED64,000, one bedrooms were down 1.3% to AED99,000, and two bedroom flats down 4% to AED136,000.

Four bedroom apartment rents well the most by 4.6% to an average of AED252,000 while three bedroom apartments saw rents rise, up 2.3% to AED192,000.

The firm also pointed out that although apartment rents fell last month in Abu Dhabi, average yields still offered a lot of value for investors, averaging 7% across all types. Yields for studios were 9.4%, one bedroom apartments 8%, two bedroom apartments 7.3%, three bedroom apartments 7.4% and four bedroom apartments 4.6%.

In terms of popularity Al Reem Island, Al Raha Beach, Al Reef, Al Ghadeer and Saadiyat Island remained the top five locations for renting apartments in Abu Dhabi.

Best Regards
Tomasz Borowiecki
NextCars - World Group

Account Manager
Our Websites Network:

Dalej »

hosting © Best Totall News, all rights reserved.
Best Totall News is proudly powered by WordPress.
Theme Redesigned by Kaushal Sheth originally developed by Michael Martine
Tłumaczenie Polski Blogger dla Polski support Wordpress.