Real estate data firm RP Data says there will be a doubling in property values in over 250 Australian suburbs in the next decade. At the same time, renters in almost 800 suburbs are likely to see weekly rent prices double. RP Data believes Australia’s top property investment prospects include 263 suburbs or towns with the potential to see 100 per cent growth in the next decade, while 792 suburbs will see the same trend in rental growth will follow a similar trend. In its Autumn investment guide, RP Data speculates these factors will make the boom suburbs an obvious smash hit with investors, while simultaneously proving a horror story for those renting and trying to wedge their way into the property market.
Real Estate figures
NAB’s monthly business survey has indicated an increase in sentiment in January. The survey indicated a seven point rise in business confidence to kick off the year, coming in at a reading of plus two. The reading comes in part on the back of better results in construction activity.
Manufacturing activity saw a boost in the March quarter according to NAB’s Manufacturing activity index, which edged up to neutral, from -0.3 points in the December quarter. Although an improvement, the index level indicated no tangible growth in manufacturing activity in the first three months of 2013.
Commentary
RP Data analyst Cameron Kusher this week shed more light on the predicted property value bonanza tipped by the analytics company, saying many of the suburbs set to prosper are in regional centres of Queensland, New South Wales and Victoria. Mr Kusher said mining growth was a big factor in the areas recent performance and is set to be a big driver of their future potential. Despite this, Mr Kusher stated there was no guarantee upward trends will continue in these areas, however some good opportunities exist from over the last five years.
Australian auction results
This week’s auction results across Australian capital cities - Sydney recorded a 76 per cent clearance rate from 191 properties for auction, Melbourne cleared 65 per cent from 196 properties, Brisbane had a 33 per cent clearance rate from 40 properties listed and Adelaide cleared 87 per cent from 15 reported auctions.
Commercial property sector
Australand Property Group
(ASX:ALZ) says it is still in talks over a possible takeover of the company but has warned shareholders the outcome remains uncertain. The property group became a potential takeover target in December when GPT Group offered $3 billion for its commercial and industrial divisions.
According to various media reports, new Stockland
(ASX:SGP) chief Mark Steinert, is considering a partnership with the listed FKP Property Group
(ASX:FKP). The property developer is seeking the alliance to find ways to cut overheads for the low-yielding retirement operations division.
DEXUS Property Group
(ASX:DXS) is one among some of Australia’s largest property groups reportedly set to tap the market for cash on the back of nearly $6.25 billion being added to the value of real estate stocks in April.
The Australian real estate investment trust sector (AREITS) has more than doubled in value since its low of $41bn in February 2009 during the global financial crisis, sitting now with an overall value to $87.5bn.
