The housing market value in Queensland has surpassed the trillion dollar threshold for the first time ever, thanks to the recovering economy and a rise in buyer interest.
The Sunday-Mail reported that according to CoreLogic figures, the value of the state’s residential sector hit $1.004 trillion in September, marking a 10 percent increase from $910 billion in 2016.
“Overall, due to the improved economy, increase in employment and population, $15 billion construction boom and the Advance Queensland Business Development Fund, Queensland is projected to deliver good long-term capital growth,” said Doron Peleg, chief executive at RiskWise Property Research.
This rise in value also coincides with real estate revivals in some parts of regional Queensland as towns recover from mining busts.
Valuer Herron Todd White said prices of real estate Cairns, Emerald, Gladstone, Townsville and Mackay have grown by 40 percent in the last 12 months due to surging capital works projects and coal value.
In particular, median house price in Mackay grew 2.5 percent to $335,000 over a year to June. “This market is benefiting from a jobs boom in the region and currently has the lowest unemployment rate in the state,” said Antonia Mercorella, chief executive at Real Estate Institute of Queensland.
CoreLogic’s head of research Tim Lawless said mining towns could expect an increase in home values following rebound from the sector’s downturn. “Coming into 2019, markets like Mackay should start to see some growth, we expect Toowoomba to move back into positive growth and Cairns to see a bounce higher,” said Lawless.
However, Peleg said buyers should “proceed with caution” in these areas.
Public concern about housing affordability in Australia is well documented. It would be reasonable to assume our local governments are giving the supply of affordable housing the attention it deserves. However, our national survey reveals that while it’s a growing concern for many local governments across the country, especially in metropolitan areas, most councils do not view the provision of affordable housing as a priority for them.
The survey results strongly suggest that local governments do not feel they have the capacity to intervene in a meaningful way.
The survey included a range of questions about local governments’ engagement with housing-related activities in their area. We asked about the priority given to housing issues, how important housing is relative to other council issues, and what kinds of policies and initiatives they plan to implement to help resolve the problem.
All 546 local governments in Australia were invited to participate in the survey. We received 213 responses. The majority, 72%, came from non-metropolitan areas (there are a lot more non-metropolitan local governments).
Do councils think it’s a problem in their area?
Almost all the metropolitan councils saw housing affordability as an issue (Figure 1). Half saw it as a very substantial or substantial issue. Only 13.5% said it was not an issue.
In contrast, only 26.6% of non-metropolitan councils responded that housing affordability is a substantial or very substantial issue.
The responses to the question about what proportion of housing stock in the council area is affordable were remarkable (Figure 2).
Half of the metropolitan councils said only 5% of the housing in their local government area (LGA) was affordable. Three-quarters said 10% or less. Even in the non-metropolitan areas, 43% of councils said only 15% of housing was affordable.
What are councils doing about it?
Despite recognising the problem, very few councils appear to be making the provision of affordable housing a priority. Just 13.5% of respondents from metropolitan areas and 15.5% from non-metropolitan LGAs said their councillors gave housing affordability a substantial or very substantial amount of attention (Figure 3).
Linked to this lack of attention, few councils viewed “finding ways to provide adequate affordable housing” in their LGA as a priority (Figure 4). Not one metropolitan council answered to a “very substantial extent”. Only a quarter said to “a substantial extent”.
About four in ten metropolitan councils and over half of the non-metropolitan councils viewed finding ways to provide adequate affordable housing locally as a non-priority. These councils had put this on the far backburner.
Local governments were also asked what priority had been given to housing relative to other council issues (Figure 5). Just 1.8% of respondents in metropolitan areas and 5.2% in non-metropolitan areas said housing had been given “very high” priority.
More encouraging was that about four in ten councils in metropolitan areas did say they had given it high priority relative to other issues. Very few non-metropolitan councils, about one in five, said housing was a high priority or very high priority relative to other issues.
Do councils have policies, targets or strategies in place?
Fewer than half of those surveyed said they had a “housing policy, housing plan or housing strategy” in place (Figure 6).
Those that reported having a formal policy said it focused on such issues as housing affordability, residential land development, population change, urban design, social and public housing, and energy efficiency.
However, our survey reveals that those policies are not perceived as being particularly extensive. Figure 7 shows just one in four local governments in metropolitan areas and 10% from non-metropolitan areas believe their council’s housing policies are “comprehensive” to a very substantial or substantial extent.
The data suggest that having an explicit housing affordability target was viewed as unrealistic. Only 17.3% of metropolitan councils and 10.1% of non-metropolitan councils said they had an explicit target (Figure 8).
Whose responsibility is it to provide affordable housing?
It’s noteworthy that, out of 213 councils, only one felt local government should be primarily responsible for “addressing the problems associated with housing in Australia” (Figure 9). The overwhelming sentiment was that state government or a combination of all levels of government should be responsible.
The results suggest that improving housing affordability in a meaningful way is beyond the remit of local government. State and federal governments need to take the lead.
Although many councils are well aware that housing affordability is an issue in their area, they feel unable to respond in a meaningful way. An explanation for this is a unanimous view that Australia’s housing affordability problem is beyond the capacity of local governments to resolve. Almost all councils believe the provision of affordable housing is the responsibility of state and/or federal governments.
Australia’s housing prices continue sliding, with Melbourne and Sydney driving the decline.
According to data from CoreLogic, national dwelling values have fallen for the eleventh consecutive month, leading to a 2 percent decline over the past year. Sydney prices fell 5.6 percent year-on-year, while Melbourne dipped 1.7 percent.
CoreLogic research head Tim Lawless said markets in “higher value cities” such as Sydney and Melbourne suffered from tighter credit conditions due to the higher gaps between house prices and median household incomes.
The only segment to improve over the past 12 months was the most inexpensive quarter, the firm found. Lawless said “more robust housing market conditions” could be found where affordable properties are, such as Hobart and parts of Adelaide and Brisbane real estate. Prices in Hobart, Brisbane and Adelaide have grown 0.9 percent, 1 percent and 10.7 percent respectively since last year.
“Stronger market conditions across Australia’s more affordable areas are likely attributable to a rise of first home buyers in the market as well as changing credit policies focused on reducing exposure to high debt-to-income ratios,” said Lawless.
CoreLogic’s head of Australian research Cameron Kusher said sellers should “be very realistic about the market” and set prices accordingly.
“For potential buyers, you don’t really need to be in a hurry in this market, there’s lots to choose from, there’s not as much competition out there in the market,” said Kusher.
“Be aware that the cost of housing is falling, so if you hold off you might be able to get that property or a similar property at a lower price point a little bit further down the track.”
More than 350 pedestrians and cyclists were fined for jaywalking and breaking basic road rules on Monday in Sydney’s CBD.
The crackdown, which was part of NSW Police’s Operation Pedro, saw 94 pedestrians who were found “jaywalking” or walking across the road illegally slapped with a $75 fine. The fines for cyclists who committed traffic offenses ranged from $112 (for riding on footpaths or not having a working bell) to $448 (for riding “recklessly” or “negligently”). Should they choose to contest the fine in court and fail, they could be charged up to $2,200.
Commander of the Traffic and Highway Patrol Command, Assistant Commissioner Michael Corboy said the crackdown was needed to promote traffic rules and prevent accidents. As of July, six cyclists and 44 pedestrians have died on NSW roads.
“We have been conducting Operation Pedro since 2014 as a way of educating the community about the importance of all road users doing the right thing,” said Corboy.
“I urge all cyclists and pedestrians to do the right thing by not putting themselves and other road users at risk… City traffic is full of many challenges and distractions for drivers, cyclists and pedestrians, so we want to do everything possible to ensure that we reduce road trauma.”
The Monday crackdown was executed by officers from the Traffic and Highway Patrol as well as Surry Hills, Sydney City, Redfern, Leichhardt, Inner West and North Shore Police Area Commands.
The Victorian government has directed train stations to stop broadcasting Sky News on television screens after the news channel aired an interview with far-right extremist Blair Cottrell.
Public Transport Minister Jacinta Allan announced the decision on Thursday morning on Twitter. “I’ve directed Metro Trains to remove Sky News Australia from all CBD station screens,” wrote Allan. “Hatred and racism have no place on our screens or in our community.”
The channel’s news director Greg Byrnes has admitted that “it was wrong to have Blair Cottrell” on the Adam Giles Show, and that “his views do not reflect ours”.
In an interview with 3AW, Allan defended her decision to ban the channel over the interview with the “self-confessed Hitler fan”.
“As the public transport minister, where it’s a public asset being used to televise particular content, I think I’ve got a responsibility to make sure that content is appropriate,” said Allan. “That interview was unacceptable, indeed Sky News themselves have admitted they got it wrong.”
The channel received backlash after the interview, with former Labor MP Craig Emerson accusing it of “normalising racism and bigotry”.
The entire state of New South Wales has been declared in drought due to “unusually dry and warm” conditions throughout June, July and August.
The Department of Primary Industries said 61 per cent of NSW is in drought or intense drought, while the rest is drought affected.
Less than 10 millimetres of rain have been recorded over the past month in Western, North West and Central NSW. “This is tough, there isn’t a person in the state that isn’t hoping to see some rain for our farmers and regional communities,” said Primary Industries Minister Niall Blair.
These unfriendly conditions are expected to continue. “The forecast suggests an increase of drier than normal conditions for the next three months across the majority of NSW.”
A number of towns have been placed under water restrictions, limiting residents’ ability to wash clothes and shower.
BOM meteorologist Jane Golding said all parts of NSW usually receive some rain throughout the winter months, but this year is different. “It is unusually dry and also unusually warm which exacerbates the problems, so the warm temperatures dry out the soils even more.”
The state government has announced over $1 billion in drought relief measures, including waivers on farming costs, animal welfare support and transport subsidies. Earlier this week, Prime Minister Malcolm Turnbull also announced $12,000 grants for families affected by drought.
Brisbane’s Panther Print is entering liquidation after 29 years of business.
The Stafford-based offset printer was founded in 1989 by Walter Kuhn, owner of Kuhn Corp and the president of the Printing Industries Association of Australia. In 1992, Kuhn sold the company to Les Beech, father of current managing director Greg Beech.
“The company closed on Thursday and they have given a few reasons for ceasing,” Bill Cotter of Robson Cotter Insolvency Group, who is handling the liquidation, told ProPrint. Cotter said he still did not have the creditor figures, and was still “figuring it out” with the business.
Before its closure, Panther offered offset, design, production art and prepress, finishing and post production, delivery, distribution and stock control services.
Ray White has won the top prize at the Real Estate Business Awards for the third year in a row.
The 2018 REB Awards, which was held in Sydney on Wednesday evening, recognised Australia’s leading real estate agents, property managers, auctioneers and professionals.
Ray White took home Major Network of the Year. Noosa real estate agency Laguna was crowned Major Independent of the Year, while Novak Properties received Innovator of the Year. LJ Hooker won Digital Presence of the Year, and WigginsKeenan Real Estate of Pennant Hills earned New Office of the Year.
The Real Estate Business Excellence Award was given to Catherine Baker of Belle Property Killcare and Wamberal, and Stuart Benson of Benson Auctions was named Auctioneer of the Year.
“The interest in this year’s awards has been unprecedented, with the avalanche of submissions setting new records across all of the categories,” said REB editor Tim Neary. “I’d like to congratulate all winners and finalists on their achievements.”
The plan to build thousands of houses in Marrickville’s industrial land may still proceed despite the NSW government’s handover of planning control to local councils.
The Inner-West Council and the City of Canterbury Bankstown are now in charge of the strategic planning along the Bankstown rail line, which is set to be converted to a higher-frequency metro rail service by 2024. This effectively derailed the proposal from property giant Mirvac for a $1.3 billion apartment project in the zone, covering 20 buildings ranging from two- to 28-storey height, over 2,600 residential units and 17,300 square metres of new commercial and retail space.
“The community will develop the plans, where the buildings will go, where the new homes will go, where the new parks will be,” said Planning Minister Anthony Roberts.
Inner West mayor Darcy Byrne welcomed the return of planning powers to the local councils. “We’ve fought long and hard to put an end to developer-driven planning proposals in this corridor, and today we are thrilled to take back control of planning for Sydenham, Marrickville and Dulwich
Hill,” said Byrne.
“Today’s decision puts an end to Mirvac’s ridiculous proposal… Our new plans will be developed by the community, not multinational developers, because this is Marrickville, not Mirvac-ville.”
However, Toby Long, general manager for NSW residential development at Mirvac said the company will not give up on the project. “We are looking at many months of work ahead before the proposal will be ready, but we take a long view and we are prepared to take our time to get it right,” said Long.
Sydney property market is cooling down as lending slows and vendor discounting rises.
The difference in asking price and final sale price in the city has increased to 4.4 per cent. Investment bank Morgan Stanley said the market is “unlikely” to “turn around anytime soon” due to limited credit and record household debt.
Over the past year, Sydney’s median house prices have fallen by 4.5 per cent. Auction clearance rates also had a significant dip in June.
According to the bank’s research, the falling prices reflected the national annual growth rate, which reaches its lowest in more than five years.
However, Deutsche Bank’s economist Phil Odonaghoe said the worst of the market downturn has passed for Sydney.
“Recent auction clearance rates, running at a little under 50 per cent once adjusted for withdrawals, actually point to a very modest improvement in dwelling price growth over the coming six months, or more specifically, ‘less negative’ year-ended growth,” Odonaghoe told the Sydney Morning Herald.