Australians are still upbeat about housing market conditions over the next six to twelve months. RP Data - Nine Rewards reports 68 per cent of those surveyed think now is a good time to buy property. While the percentage dropped from a peak of 80 per cent last year the report maintains Australians remain positive about the direction of dwelling values. More than 1,000 respondents were asked about their expectations for the property market and those surveyed expect values to rise by less than 5 per cent over the coming year.
RP Data’s national research director Tim Lawless has noted there is an underlying concern among consumers about the sustainability of dwelling value growth. The number of respondents who believe the housing market is vulnerable to a significant correction has now grown to 66 per cent.
HIA-RP Data’s Residential Land Report has warned Australia’s residential land market continued to tighten at the end of last year. The data providers Residential Land Report has shown residential land sales fell 1.8 per cent to 15,447 lots in the December quarter, representing the second straight quarter of declining activity.
Commsec’s State of the States report on economic performance has shown Western Australia held its position as the top performer in front of the Northern Territory. The big surprise was the New South Wales economy with the state jumping from fifth spot to third. The ACT fell three positions to rank below Queensland and Victoria while South Australia and Tasmania remained at under-performing levels.
Commentary
Commsec’s State of the States report predicts Australia’s mining boom is being replaced by the home construction boom. FNN asked CommSec Chief Economist, Craig James which states are poised to benefit by the transition:
“Well it is quite interesting that Western Australia is still out in front in terms of the state and territory rankings. It’s seen some slippage in the mining sector but it potentially will be one of the major beneficiaries of growth in the housing sector because you have got strong population growth in Western Australia. Again, very much similar to NSW, they haven’t been building enough units and apartments and freestanding homes and I think we are going to see a next stage of the Western Australian recovery, that we are going to see that boosted by housing. But really every state and territory has the potential to benefit from the higher degree of activity in the housing sector, unlike mining sector, which basically Western Australia, Queensland and the Northern Territory which are the key beneficiaries.”
Activity stayed strong but off its peak due to the impact of the ANZAC day public holiday long weekend:
Sydney recorded a 78 per cent clearance rate from 288 properties for auction
Melbourne posted a 68 per cent clearance rate from 284 properties for auction
Brisbane booked a 33 per cent clearance rate from 46 properties for auction
Adelaide saw a 67 per cent clearance rate from 35 properties for auction
Commercial property sector
Commercial office property manager 360 Capital Office Fund (ASX:TOF) listed on the ASX with an issue price of $2.00, opened at $2.01 and a closed 3 per cent lower on its first day of trade at $1.94.
Internet-based real estate property portal iProperty Group Limited (ASX:IPP) says it has achieved continued growth in the first quarter of this year with underlying revenues jumping 35 per cent.
Self-storage centres operator National Storage REIT (ASX:NSR) has arranged to buy a self-storage complex in Townsville in Queensland for $17 million.
Property investor Australand Property Group (ASX:ALZ) has rejected a takeover bid from its major shareholder and property developer Stockland Limited (ASX:STG).
Leighton Holdings Limited (ASX:LEI) and property developer Devine Limited (ASX:DVN) have tied up the $62 million sale of the Hamilton Harbour retail complex in Brisbane.