This week we continue our series looking at suburbs with the highest increase in median selling prices in 2010, with a focus on two suburbs in New South Wales. In our interview we speak with First National Real Estate, CEO, Ray Ellis. In our tax tip we look at donating property.
News
The housing market is showing signs of strength as home loans rose for the sixth month in a row. The Australian Bureau of Statistics has reported an increase of 2.1 per cent in the number of new home loans for December 2010. This followed a 2.5 per cent rise in November. The ABS says total housing finance by value rose by 2.5 per cent in December. It was a strong finish for the year, with the number and value of commitments rising for all major categories except for the purchase of new dwellings.
Suburb in Focus
This week we continue our series looking at suburbs with the highest increase in median selling prices in 2010, with a focus on two suburbs in New South Wales.
First let’s look at Wollstonecraft located 6 kilometres north-west of Sydney’s CBD. With a population of 7,580 in the 2006 census, Wollstonecraft is a harbourside suburb on the lower north shore of Sydney. The suburb was once home to former Prime Minister John Howard. It is bordered by the Pacific Highway down to the point of Berry Island Reserve. Wollstonecraft is surrounded by parkland and has both red and blonde brick blocks of units built in the 1960s and 1970s, as well as newer apartments on waterfront estates at Wollstonecraft Bay. There are also a number of larger freestanding houses. The suburb does not have its own school, but neighbouring suburbs such as Greenwich and Crows Nest cater for the area. Wollstonecraft has a train station on the North Shore and Northern Lines of the CityRail network.
Turning to the figures, houses in Wollstonecraft recorded the capital’s highest increase in median selling price in 2010, rising 48.1 per cent in the twelve month period. 15 properties were sold in the year, recording a median price of $2,000,000. Over the past 10 years, the median selling price has risen 8.2 per cent per year.
Our next suburb is Kensington located 5 kilometres south-east of Sydney’s CBD. With a population of 10,849 in the 2006 census, the suburb is bordered to the west by Southern Cross Drive, Moore Park to the north, and Royal Randwick Racecourse to the east. Anzac Parade is the main road through the suburb. It is well serviced by numerous buses linking it with the city and surrounding suburbs. A shopping strip runs the length of the main road. Kensington is home to NIDA – the National Institute of Dramatic Art. The suburb includes the University of New South Wales, which accounts for the large student population living in the area. Kensington is heavily influenced by the University and the racing industry, bordering the suburb. The Australian Golf Club is also within the boundaries, and is arguably Australia’s oldest club. There is a mixture of high and medium density housing as well as freestanding homes.
Turning to the figures, houses in Kensington recorded the capital’s second highest increase in median selling price in 2010, rising 44.2 per cent in the twelve month period. 51 properties were sold in the year, recording a median price of $1,730,000. Over the past 10 years, the median selling price has risen 9 per cent per year.
Interview
We speak with First National Real Estate, CEO, Ray Ellis about the outlook for property in 2011.
Tax Tip
The Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists. This week we look at how one goes about donating property. First up, ensure the fund, authority or institution you want to donate the property to is eligible to receive your donation. The donor is then required to lodge a Request for Valuation form with the Australian Valuation Office. Following the valuation of the donated property you will receive the Valuation Certificate. With this certificate you may then claim the valuation amount as a tax deduction for the financial year in which the donation was made. As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
