Sydney housing boom has peaked after crackdown on investor loans, QBE says
Sydney's housing boom is coming to an end as restrictions on loans to property investors and a raft of new property developments combine to depress prices, insurance giant QBE says.
After surging 56 per cent in the past four years, the median house price in Sydney will remain broadly flat in the next three years, QBE said in its annual housing outlook released on Thursday. Sydney apartment prices are seen falling 6.8 per cent by June 2019, as slowing growth in rents and unit prices damps investor appetite.
The unprecedented housing boom has been fuelled by the RBA's record-low interest rates, a growing population and a shortage of supply, locking young people seeking to buy homes out of the market. The big banks have tightened lending standards for property investors after pressure from regulators to avert a bubble, and some state governments have imposed stamp duty surcharges on overseas buyers.
In light of these developments, "prices are forecast to soften through the three years to 2019, which is likely to be positive for housing affordability," said Phil White, chief executive officer of QBE Lenders' Mortgage Insurance.
"It's expected owner-occupiers, including first home buyers, will be stepping in to pick up some of this opportunity in the market."
The boom is also coming to an end in Melbourne, where the median home price has risen by a third over the past four years, the report said. House prices will fall 0.6 per cent by June 2019, and apartment prices by 9 per cent, QBE said.
In Perth, which has been hardest hit hard by the decline in mining investment, the median house price by 2019 is forecast toBrisbane home prices are seen bucking the trend, with QBE saying a lack of new supply will push prices up 6.5 per cent.
Despite the lacklustre outlook, there's no evidence that the good times for home owners are ending just yet. House prices in Sydney have gained 14 per cent this year through September, compared with 9 per cent across the nation's major cities, according to CoreLogic amid a lack of houses for sale in and around the city.
Fewer investors are entering the market after banks tightened lending to landlords, the QBE report said. Property investors - as opposed to owner occupiers - accounted for 44 per cent of residential loans in the 12 months ended June 2016, down from 51 per cent the previous year, QBE said.
However, separate data released on Wednesday suggested investor interest isn't waning yet. Investor lending has rebounded 10 per cent since April, having slumped 18.5 percent over the previous 12 months, CoreLogic said. be 10 per cent below its 2014 peak.
Original source, The Sydney Morning Herald
Michael Clarke drops asking price to $5 million for Round Hill
The former Australian cricket captain Michael Clarke and wife Kyly have reduced their asking price on their redundant Southern Highlands retreat. They've slashed the price of Round Hill to $5 million after having initial $6.5 million hopes back in March last year.
They have also changed agents with Drew Lindsay now at the sales crease. He's been the selling agent for the Berrima property three times before.
Their $6.5 million price tag seemed a little too ambitious as they bought the sprawling 93 hectare estate for $3.1 million in 2012.
Interior designer Kyly has since added her professional touch and renovations inside the four bedroom house. A swimming pool and pool house have also been added.
The listing comes with the famous cricket oval, which was the driving force behind the purchase.
Clarke was ready to set up his long-awaited cricket academy, but later opted to do so in the city close to their Vaucluse home.
The Berrima homestead was design by Richard Rowe featuring a conservatory style kitchen. There's a full sized tennis court and separate self-contained guest studio.
The property also lends itself to equine interests. There's post and rail fencing, shelter sheds, horse stables, cattle yards, a large barn and an open sand arena.
Sourced from the Property Observer
Property developers and real estate disrupters feature on rich list
The real estate boom has driven the total wealth of the BRW 100 Young Rich to a record high of $12.3 billion.
Property developers and real-estate tech entrepreneurs feature heavily on the 2016 BRW Young Rich List, which is published in The Australian Financial Review today.
The BRW Young Rich List looks at the wealth of Australians below the age of 40, and excludes inherited wealth.
Number five on the list is Perth-based property developer Paul Blackburne, with total wealth of $483m. Blackburne was third in the list last year, but has dropped back a place amid the weaker WA property market.
Simon Clausen is number six. Clausen made his fortune by investing in technology businesses, including Chinese real estate portal Juwai.com.
Melbourne property developer Tim Gurner is seventh on the list with a $414 million fortune. Gurner, who only launched his business in 2013, will soon have more than $3 billion worth of apartments in the pipeline.
Ori Allon sits at number nine. Allon, who is said to be worth $316 million, disrupted the US property market with his apartment-search software, Compass. Based in New York, Allon has recently opened offices in Los Angeles, Boston and the Hamptons.
The total wealth of the 100 members on the list was up $1.7 billion for the year to a record high of $12.3 billion, helped in large part by stronger property prices.
Original article sourced from The Real Estate Conversation
October Feature Properties
Sales Feature Property – 35 Blenheim Street, Queens Park
Built in 1882 and quietly positioned in a leafy one-way enclave on the fringe of Queens Park, this picturesque double fronted weatherboard cottage has been undergone a flawless designer transformation. Recreated with a focus on seamless indoor/outdoor living and entertaining, bright and airy open interiors embrace a private travertine courtyard with a custom designed kitchen anchoring the living space. Set on a coveted one-way street just 200m to the park grounds, this beautifully appointed family home is walking distance to Westfield, the station and top schools.
For more information on this property, please contact Patrick O’Brien 0439 025 188 or Clint Ballard 0411 426 600.
Rental Feature Property – 7 Captain Pipers Road, Vaucluse
Located in the heart of one of Sydney’s most prestigious suburbs, this architecturally designed four bedrooms, three bathroom home enjoys grand proportions of designer opulence, offering an exclusive lifestyle of position and prestige. Split over three levels the floor plan boats the perfect family home while also offering impeccable taste and style for the entertainer at heart. The top floor offers two bedrooms, master with ensuite and private balcony with water glimpses, as well as a bathroom for the floor.
Rent per week: $2750
Please contact property manager Matthew Wilson on 0432 228 221 for an inspection or more information.
What type of property does $5 million buy around the world?
A global benchmark for luxury property is $5 million; we take a look at what it can buy in the world's top property markets.
Monaco, Hong Kong, London, New York and Paris are the most expensive markets for luxury real estate worldwide, according to Christie’s International Real Estate.
Million dollar plus homes in most luxury housing markets range from US$200 per square foot to just under US$1,100 per sqf, based on Christie’s data for the year of 2015. However, Monaco stands on its own, costing US$4,500 per sqf for its luxury homes.
Meanwhile, property firm Knight Frank recently calculated what US$1m buys in global luxury markets and found that property in Sydney is about twice as affordable as Monaco, Hong Kong and London.
Knight Frank’s index focuses on value per square metre and shows that $1m in Monaco only gets 17sqm of ‘prime residential property’, followed by Hong Kong at 20sqm and London at 22sqm. Sydney offers double this size for the same price at 40sqm and Melbourne even more at close to 116sqm, says Knight Frank.
Another measure of luxury pricing used by Globalpropertyguide.com is the price to rental cost ratio, which, for example, shows that the average price of a London property is 31 times the cost of a year’s rent. Hong Kong prices are 36 times a year’s rent and New York 26 times a year’s rent. However, by this measure, Vienna leads all other markets as the most expensive, costing 46 times its average yearly rent.
To keep things simple, here’s a snapshot of five of the world’s most expensive property cities (plus Sydney), and what $5m will buy you in those locales, based on a 2016 report from Christie’s and other sources.
Monaco
A quick scan of property for sale in Monaco shows an otherworldly market. For example, a three bedroom - three bathroom waterfront apartment is currently for sale at US$17.6m, says Christie’s. It offers a panoramic sea view with a vantage of the city’s formula one track. If you’re looking for something a little cheaper, Sothesby’s is advertising a renovated two bedroom duplex with a large terrace for US$10.9m.
Average price per sqf: US$4,500
Hong Kong
The Arch building in West Kowloon, Hong Kong, boasts harbourfront views and all the mod cons. Its two bedroom apartments are therefore typically priced at HK$450m, as per Landscope-Christie’s. Meanwhile, four bedroom townhouses at the inaptly named Repulse Bay, fetch for about HK$680m, according to Landscope-Christie’s. This price can secure you four bedrooms, four bathrooms, a view of both greenery and the sea, and just in case, two maid’s rooms.
Average price per sqf: US$3,000
London
London has a broad range of luxury properties but perhaps none more enticing than its spacious family houses in suburbs like Kensington. For instance, 28 Hyde Park Gate was formerly the home of Sir Winston Churchill and is currently selling for £22.9m, says Christie’s. It has seven bedrooms and 55-foot long west facing garden. For the more modest price tag of £11.7m you could nab a generous four bedroom duplex nearby, in a building with 24 hour concierge and a swimming pool.
Average price per sqf: US$1,930
New York
New York boasts its fair share of luxury homes, but often comparatively smaller than in other major cities at similar price points. For example, the grand penthouse at 80 Columbus Circle is going for US$50m, which is perhaps a bargain for such an amazing view of Central Park, as per Sotheby’s. That price secures the buyer four bedrooms, five bathrooms and almost 5,000 square feet of space.
Average price per sqf: US$1,860
Paris
Parisian luxury property is also expensive but a cursory glance of for sale homes shows there are some slightly more affordable options. For instance, a five bedroom townhouse on 465 square metres and not far from the Eiffel Tower, is currently selling for £5m, as per Luxuryestate.com. The buyer can enjoy elegant early 1900s architecture, complimented by a neat garden.
Average price per sqf: US$960
Sydney
Surrounded by its harbor and beautiful bushland, Sydney is home to some highly sought after luxury property. Such is the layout of the city, you could easily find a waterfront mansion and penthouse suite on the same street. For example, Kirribilli, on the northern side of the harbour, offers large apartments alongside breathtaking waterfront mansions. One such house is a three bedroom - five bathroom house that comes with its own jetty, advertised by Christie’s. Another is an estate home in Middle Harbour that’s going for US$19m, as per LuxuryHomes.com.
Average price per sqf: US$680
Original source, The Real Estate Conversation
Local Events
Cherry Blossom Bar
A Cherry Blossom Bar is opening in Sydney. It’s all happening at the Museum of Contemporary Art on the outdoor terrace and will coincide with the Tatsuo Miyajima: Connect With Everything Art Series. Opening from Friday 28th October through until Sunday 5th March. For more information, visit https://www.mca.com.au/series/cherry-blossom-bar/
A Huge Wholefoods Market Is Coming To The Grounds
Goodness Me Wholefood Markets will be taking over The Grounds on Tuesday 8th November – Wednesday 9th November. From Over 30 market stalls, cooking demonstrations, a health inspired juice bar to wandering the markets with organic wine, be sure not to miss out on this event! To purchase tickets, visit https://goodnessmebox.com/event_stuff/1
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