29 October 2024, 2:10pm
‘Just makes sense’: Everything you need to know about Victoria’s major housing shake up
A major shake-up of the housing sector is underway in Victoria, with premier Jacinta Allan and the Labor government setting in motion multiple policies that impact housing in the state.
From temporarily scrapping stamp duty and overhauling Victoria’s building watchdog to rewarding good design, there’s been a lot to take in as Jacinta Allan sets her sights on Victoria building more homes than any other in the nation.
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15 September 2024, 3:30pm
Melbourne Lord Mayor Nick Reece calls for ‘special economic zone’ with stamp duty tax cut and foreign investor special rules
Lord Mayor Nick Reece has called on the government to turn the City of Melbourne into a special economic zone in a bid to spur apartment development and renew its prosperity.
Mr Reece, who is seeking to retain the title in the upcoming lord mayoral election, will seek to have Covid-era stamp duty concessions reinstated as well as pause land tax and stamp duty payments for foreign investors to boost sales for new apartments in the CBD, Docklands, Southbank and surrounds.
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13 August 2024, 2:30pm
Melbourne first-home buyers fleeing the city’s rental crisis splashing out on $1m-plus homes
Melbourne first-home buyers with $1m-plus budgets and thought to be fleeing the city’s rental market helped drive seven-figure sales across the suburbs yesterday.
It comes a day after Real Estate Institute of Victoria president Jacob Caine and PropTrack economist Anne Flaherty revealed those making their first step onto the property ladder had saved Victoria’s winter auction market.
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26 July 2024, 3:00pm
Why Melbourne could beat other cities in the next housing upturn
Melbourne’s housing market could dominate the other capitals when interest rates fall, as improving affordability and rising rental yields attract investors and home buyers back, experts say.
AMP chief economist Shane Oliver said that although all markets would benefit from lower interest rates, Melbourne’s lengthy period of underperformance had primed the city for a stronger rebound.
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15 June 2024, 2:00pm
Where to invest in property for maximum profits?
The prospect of making double-digit capital gains while enjoying a healthy cash flow is proving irresistible for many investors, who are now piling back into the property market in greater numbers each month, new data shows.
In April, investors took out a total of $10.9 billion worth of mortgages to buy rental properties, a sharp rise of 5.6 per cent compared with the previous month. In the past 12 months, new lending to investors surged 36.1 per cent, faster than a year ago, according to the Australian Bureau of Statistics.
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31 May 2024, 4:00pm
Why would anyone want to invest in Melbourne’s housing market?
By many measures, Melbourne’s housing market is the weakest of the bunch. Home values are stuck in the doldrums as other capitals bolt ahead, while investors have fled the market as property taxes expand.
So, why are some experts such as Peter Munckton, chief economist at the Bank of Queensland, upbeat about Melbourne’s prospects over the medium to long term?
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30 Apr 2024, 11:10pm
Should you wait for interest rate cuts to buy a house?
Home buyers who delay purchasing in the hopes of getting more money to spend thanks to interest rate cuts could face higher prices and more competition.
Many potential buyers are wondering if they should buy now, or wait until interest rates fall, when they could likely get cheaper mortgage repayments but would face higher property prices. First home hopefuls may also face paying high rents in the interim.
Depending on buyers’ personal circumstances, waiting could mean being able to get more money to spend at auction when compared to projected property price rises, but analysis from comparison platform Canstar showed not everyone would be ahead. They may also need to save more money to afford the deposit on a larger loan.
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21 Mar 2024, 2:26pm
The suburbs where apartment prices are accelerating
Melbourne’s apartment market could be starting to emerge from years of sluggish capital growth after values rebounded sharply in a number of inner suburbs over the past three months, data from CoreLogic shows.
Apartment prices in Parkville, Carlton, North Melbourne, Southbank, Docklands, East Melbourne and central Melbourne all accelerated and have reversed their declines.
Melbourne’s apartment market shows early signs of recovery as price growth gains momentum according to CoreLogic.
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20 Feb 2024, 4:49pm
Why Albanese can’t cave to the Greens on negative gearing
Any Labor politicians out there interested in lowering home prices, raising rents, and possibly, maybe, enriching a child born today by 1.45 per cent over their lifetime?
Then, go for it. Abolish negative gearing – which gives 1.1 million landlords a tax break on interest payments – and watch every Coalition candidate use it against you until election day.
Anthony Albanese presumably knows this. Because, on Monday, the prime minister indicated he won’t accept a Greens’ demand to end the policy.
Parliamentary representation and policy analysis show why. The 2019 Labor election loss was caused, in part, by a plan to slowly phase out negative gearing. The last election, when the policy was dropped, flipped the political map: more rich electorates went Labor than Liberal.
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12 Jan 2024, 09:37am
Some relief for renters as vacancy rates edge higher
Renters have gained a slight reprieve after the national rental vacancy rate drifted higher in December, but tenants will continue to face challenging conditions in 2024.
New PropTrack data shows the proportion of rental properties that are vacant and available rose 0.05 percentage points (ppt) nationally to 1.12% in December. Over the year however, the vacancy rate fell 0.13 ppt.
For context, ‘normal’ rental market conditions consider a vacancy rate of around 2% to 3%.
Tight market conditions mean many renters are likely spending an increasing portion of their income on rent, PropTrack senior economist Eleanor Creagh said, placing pressure on household budgets.
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10 Dec 2023, 07:24pm
‘Populist’ property tax changes won’t boost rental stock: experts
Higher fees for overseas investors who buy homes and leave them vacant, and tax cuts for institutional investors, are unlikely to boost rental housing stock, property market experts say.
Measures the Labor federal government announced to triple the foreign investment fee for purchases of established homes and to double the vacancy fee for homes owned by overseas investors would have little impact, said Daniel Ho, the managing director of listings portal Juwai IQI.
“The number of foreigners who have been approved to purchase established homes is vanishingly small compared to foreign investment in new dwellings,” Mr Ho said.
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2 Nov 2023, 05:00am
What’s the outlook for property prices in 2024?
Property prices are tipped to rise in 2024 despite a likely fresh interest rate increase next week, as demand for housing outstrips supply.
Major bank economists predict the Reserve Bank will lift the cash rate by a quarter of a percentage point on Melbourne Cup Day to tame higher than expected inflation.
It follows news that dwelling values have continued to rise – up nationally by 7.6 per cent so far in 2023, on CoreLogic figures, and the research group predicts that values could reach a record high by mid-November.
While a new national record could be reached in the next two weeks, it may be broken again in 2024, as economists predict house prices to rise between 3 and 5 per cent over the year.
Economists had earlier predicted price falls of about 15 to 20 per cent, but last year’s downturn proved shorter than expected – and since the market turned around early this year, values have been going up again.
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1 Oct 2023, 12:01am
Home prices hit record high despite selling surge
Australian homes have never been more expensive, with new data showing the national median price hit a record high in September.
The latest PropTrack Home Price Index shows the price falls of last year — triggered by rising interest rates — have been completely erased across much of the country, bringing the cost of a typical Australian home to its highest ever level.
Australia’s median home price rose 0.35% in September and the capital city median increased 0.41%, even though buyers had more properties to choose from last month.
PropTrack senior economist Eleanor Creagh said growth has been driven by record levels of net overseas migration, tight rental markets and a housing shortage.
“Despite the uplift in the number of properties coming to market, national home prices have moved higher again, regaining 2022’s rapid price falls in entirety to reach a record high in September,” Ms Creagh said.
Prices grew fastest in Perth (0.71%), Sydney (0.48%), Adelaide (0.48%) and Brisbane (0.39%) in September, building on strong gains last month.
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August 24, 2023 – 9:39am
How first home buyers could slash their repayments by $1800 a month
First home buyers struggling to afford a property could soon take advantage of two types of federal government help, but one will offer lower mortgage repayments and the other promises better capital growth over time.
The new Help to Buy scheme will start next year and allow a home purchase with a low 2 per cent deposit. Under a shared equity model, the government co-purchases a 30 per cent to 40 per cent stake in the home, and the buyer takes out a loan for the rest.
It’s different to the existing First Home Guarantee program, which allows a purchase with a 5 per cent deposit and no lenders’ mortgage insurance, and a loan for the balance.
Buyers who co-purchase with the government and get a smaller loan would save as much as $1829 on their monthly repayments, Canstar modelling shows.
But the government’s stake in the home means that these buyers would have less capital growth once it came time to sell and repay the government with the proceeds.
This means buyers could find it harder to take their second step on the property ladder.
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June 28, 2023 – 11:43am
One in 10 Sydney and Melbourne property sellers cop losses as rate hikes bite
More than one in 10 home sellers in some of Australia’s biggest cities made a loss on their property sale in the March quarter, and a growing number are reselling within only two years of purchasing.
Loss-making sales in Melbourne are at their highest level in almost 25 years, CoreLogic’s latest Pain and Gain report shows, as 10.2 per cent of vendors resold for a loss last quarter. Sydney siders made a loss on 10.7 per cent of property deals, the highest rate since 2009.
Meanwhile 13.8 per cent of Perth sellers made a loss – though this was below the decade average. Brisbane bucked the trend and had only 4.3 per cent of sales at a loss.
Nationally, 7.7 per cent of homes sold at a loss, up from 5.8 per cent the previous quarter, and there was also an increase in the number resold after less than two years – at 8.4 per cent. This time a year ago only 6.6 per cent of homes resold within two years.
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April 19, 2023 – 10:00am
Windfall Gains Tax
Landholders can accrue significant windfall gains when the value of their land increases due to the actions of government. These landholders may pay a tax on their windfall gains.
What is the windfall gains tax?
From 1 July 2023, a windfall gains tax applies to land that is subject to a government rezoning resulting in a value uplift to the land of more than $100,000. In determining the value uplift, all land owned by the person or group and subject to that rezoning is taken into account.
Rate of windfall gains tax
For a rezoning of land that results in a taxable value uplift:
- more than $100,000 but less than $500,000: the tax will apply at a marginal rate of 62.5% on the uplift above $100,000
- $500,000 or more: a tax rate of 50% will apply to the total uplift
In determining the value uplift of land, all land owned by the person or group and subject to that rezoning is taken into account.
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February 23, 2023 – 5:00am
Melbourne real estate listings dry up as home owners sit tight in falling market
Melbourne home owners are holding back from listing properties in the declining market, resulting in almost a 30 per cent drop in the number of homes for sale in some regions year on year.
House hunters have fewer properties to choose from as falling property prices prompt vendors to rethink plans and some to delay selling until the market improves.
Buyers in Melbourne’s north-east have seen the biggest drop in homes on offer, as new listings in January – properties marketed for 30 days or less – were down 28.2 per cent year on year. This fall was closely followed by the inner south, where new listings dropped by 28.1 per cent.
The inner region was down 21.9 per cent, outer east 19.7 per cent and west 15.4 per cent.
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February 10,2023 – 5:00am
The Melbourne suburbs where buyers pay a premium for space
Home buyers are spending more than $10,000 per square metre of land for property in Melbourne’s most sought-after, inner-city suburbs.
Those buying further away can get better bang for their buck, and pay less than $300 per square metre in far-flung neighborhoods, Domain research shows.
Albert Park topped the list as Melbourne’s most expensive suburb per square metre, where buyers are paying a hefty $13,915 per square metre of land. Middle Park was close with a price tag of $12,730.
They were more expensive on this measure than traditional ultra-prestige neighbourhoods, such as South Yarra where the price per square metre is $10,082 and Toorak’s $7944.
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January 18, 2023 – 3:58pm
Rental crisis: How to find a home in a tight market
Tenants are struggling to find a home in Australia’s competitive rental market, and experts say the only way to succeed is to be fast and efficient during the application process.
Vacancy rates across the country are at near-record lows and mostly were stagnant or barely improved in the December quarter, which has led to long lines at open inspections and some tenants submitting dozens of applications.
In most cases, rentals in tight markets are being leased immediately after the first open, Ray White property management business development executive Nancy Navarrete said.
“You want to be the first one at the first inspection,” she said. “[Property managers] want to approve one immediately because they don’t want to do another inspection.”
It could be possible to organise an early, private inspection with the leasing agent if a prospective tenant called soon after a property was listed, Navarrete said. However, popular properties could have the private inspection converted into an open.
She said it was important to be organised while looking for a home – which can include preparing applications before an inspection, talking to references (including for pets) to make sure they’re ready to write one or take a phone call, and writing a cover letter to introduce yourself to the landlord.
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January 4, 2023 — 10.30am
Melbourne to overtake Sydney as Australia’s largest city by 2031
After a sharp pandemic-induced exodus, Melbourne’s population is set to swell by an average of almost 2000 people a week to overtake Sydney as Australia’s largest city in nine years.
The official prediction, from the federal government’s Centre for Population, suggests that Melbourne is back on track to claim the title, with the population expected to balloon from about 5 million in June last year to 6 million by mid-2031 – rising to 6.1 million the following year.
Sydney’s population is also expected to continue to grow, just more slowly.
The centre’s 2022 population statement, to be released on Friday, also showed that Melbourne was hit harder than any other major Australian city during the pandemic.
After soaring growth for a decade, its population slumped 1.6 per cent over the year to June 2021, with the loss of 78,700 people as a series of crippling lockdowns, a deep economic malaise, and border closures triggered an overseas and interstate exodus.
But the report suggests that was a historic aberration. It predicts population growth of 1.8 per cent over the year to June 30, 2023, followed by 2.1 per cent the year after that, slowing to an annual pace of 1.6 per cent by June 2032.
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