Property Investment February 2011


Weekly Property Pulse Professional Edition   This week's edition covers:   Market Activity Index  Industry Market Wrap Article: Australia's cheapest oceanfront suburbs Commercial: Deal for Crows Nest office Research Blog: Land Sales at their lowest level since the September 2000 quarter Product Blog: Is Social Media on your list of 2011 Goals? Keep up to date with Facebook,

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We feel for all of our subscribers that are going through a difficult period following the recent natural disasters around the nation. We hope that you and your loved ones are staying safe and that you have a smooth recovery.  RP Data has donated funds to the relief effort, put together a relief plan for our affected staff, and encouraged all staff to assist in the clean up.  Let’s work together to get through these challenging times.   

Market Activity Index

RP Data’s measure of pre-listing activity by property professionals, the Market Activity Index, is beginning to climb once again after its typical Christmas/New Year period lull.

Industry Market Wrap 
As we release our first Property Pulse for 2011, it is unfortunate that the biggest news by far is the carnage left behind in the wake of the Queensland Floods and the impact now being felt in regional areas of Victoria. Outside of the devastation of these floods, there has been a lot of key economic data released during the early part of 2011.Building Approvals data released by the Australian Bureau of Statistics (ABS) showed that approvals fell by -9.9% over the month with private sector houses down -14.7% whilst private sector units increased by 23.9%. On an annual basis, total building approvals have fallen by -4.2% for the year, coming off an already quite low base.The ABS has also released Housing Finance data for November 2010. The data showed that total owner occupier finance commitments increased by 2.5% over the month however, they are down -11.5% over the year. During the month, the total value of housing finance commitments increased by 1.2% however, over the year the total value of finance commitments remains -7.9% lower. Finally, the proportion of owner occupier purchasers that were first home buyers increased to 15.6% of the market during the month and these purchasers had an average loan size of $277,900, the lowest average loan size since October 2009.Westpac and the Melbourne Institute this week released their monthly Consumer Sentiment Index. The Index appears to have been heavily impacted by the Qld and Vic floods with a drop of -5.7% to 104.6 points. This result indicates that consumers are still generally optimistic but there has been a large slide in the most recent month with consumers likely concerned about the impact of the floods on the national economy.

Advertised Stock on the Market Advertised stock on the marketThe easing of the Market Activity Index over recent weeks has been reflected in the number of properties advertised for sale also falling. Listings peaked over the four weeks to 12 December 2010, since that time, total listings have fallen by -15.7%. Over the past week, new listings have fallen by -8.4% and total listings are down -2.5%, expect some further weakness in coming weeks due to the floods.

Want to know what is happening on your patch?  Make sure you have subscribed to RP Data's On The Market® service.  Click here or phone 1300 734 318 for a free 2 week trial.

Latest National Auction Clearance Rates Auction clearance ratesThe number of properties being taken to auction across Australia remains at very low levels with just 55 capital city auctions having taken place last week. The weighted average auction clearance rate across the combined capital cities last week was just 16.0%. Over the coming weeks the number of auctions taking place will increase and offer a much better reading on the state of the market.

Our auction results change weekly – want to know the auction results for your local area? Log into and go the Auction Results panel on the top right corner of the home page.

Number of Properties Advertised for Rent Properties for rentThe number of new and total properties advertised for rent has increased by 4.8% and 0.4% respectively over the last week. Rental data doesn’t tend to be impacted as much by the Christmas / New Year slowdown however, new listings are down -20.2% over the month and total listings have fallen by -9.0%.

Article: Australia's chespest oceanfront suburbs
Although the Australian residential property market was robust during much of 2010, the coastal markets have continued to lag and there remains some quite affordable coastal locations.The performance of coastal markets during 2010 has been extremely diverse and in many instances has mirrored the performance of relevant capital city market. In Queensland and Western Australia in particular, capital city markets have struggled and so too have coastal markets within these states. On the other hand, stronger performing capital cities such as Melbourne and Sydney have resulted in a superior coastal market performance within New South Wales and Victoria.  
Read the full article…

Commercial: Deal for Crows Nest office
An office and retail property in Crows Nest, New South Wales, has been sold by agents of LJ Hooker Commercial. Studio 54 at 54-56 Alexander Street, Crows Nest, was sold fully leased to a variety of office and retail tenants.Studio 54 at 54-56 Alexander Street, Crows Nest, was sold fully leased to a variety of office and retail tenants.LJ Hooker Commercial agents Garry Burling and Tim Stephens, marketed the property, which achieved a final selling price of $3.15 million.Comprising 880 sqm on a 413 sqm site, the property was sold with leases in place to Blockbuster DVD, Provade Asia Pacific, BlueInc Group, Phone Australia and Aurora TV. The combined net income of $301,610 per annum generated by these tenants gave the sale of this property a yield of approximately 9.6%. According to the agents, the property represented excellent value in the current market.

Stay up-to-date with the latest commercial property news all in one place. Subscribe to the Australian Property Review, powered by RP Data for only $1.90 a week and receive a weekly newsletter that includes Auction Results, Deals of the Week, Retail News, Leasing Deals and an Industry Market Update. Click here to find out more information.


Research Blog: Land Sales at their lowest level since the September 2000 quarter
Earlier this week the Housing Industry Association (HIA) in conjunction with RP Data released the Quarterly Land Report for September 2010. The Report highlighted that land sales volumes were at their lowest levels in a decade and -57% lower than the same quarter last year.   
Read the full article at…

Product Blog: Is Social Media on your list of 2011 Goals?
It’s the time of year that we make New Years Resolutions – maybe we’ve already broken some of them already. How many of you have said that 2011 will be the year you try new technologies, or “get into social media”?   
Read the full article at…


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