Sydney’s housing affordability crisis is set to deepen according to a new analysis by the McKell Institute. In the first quarter of 2012, Sydney had built only half of the dwellings required with just over 3000 new homes completed, falling short of the 5825 target set by the former NSW Labor government. McKell has also reported Sydney housing approvals over the last five years were 98,822 way below Melbourne, which came in at 192,648.
Housing affordability has improved for first home buyers according to the latest report by RateCity. The financial comparison website’s First Home Buyer Index fell by nine points to 114 points in the 12 months to July this year, the biggest fall in three years, indicating conditions are improving for first home purchasers.
If you are in the market to buy your first home, time is running out to receive the First home buyers grant. Queenslanders have a few weeks left with the $7000 boost ending on the October 11, to be replaced with a $15,000 First Home Owner Construction Grant for new homes and homes bought off the plan. NSW first-home buyers, will have until October 1 to claim the First Home Owner Grant that will also be replaced by a $15,000 grant for new home purchases valued up to $650,000.
Industry figures
According to the latest figures released from research house SQM Research, national residential vacancies dipped for the third straight month, with the national level in August now at 1.8 per cent. Melbourne’s rate still edged back but was once again held the highest vacancy rate at 2.8 per cent. Canberra and Darwin were the only two to record monthly increases.
Residential property market
Australian Property Monitors has posted the results of auction clearance rates across Australia’s capital cities at the weekend. Sydney recorded a soft 57 per cent clearance rate from 268 properties for auction, Melbourne had a 55 per cent clearance rate from 215 properties, Brisbane 39 per cent from 28 properties and Adelaide cleared 51 per cent from 32 reported auctions.
Commercial property sector
The latest research from BIS Shrapnel suggests demand for industrial properties will lag in Victoria amid a softening economy. The forecaster says the high Aussie dollar could further depress the state’s distressed manufacturing industry which would weaken demand for factory space. BIS Shrapnel analysts say an upswing could emerge from 2013 to 2014. A more positive outlook is expected for Brisbane’s industrial market held up by Queensland’s resources sector, with pre-commitments and land sales still strong.
The Supreme Court of Victoria has issued a costs order against Sunland Group Limited
(ASX:SDG). The Melbourne court found the listed developer filed a lawsuit against two Australian developers in an effort to protect itself from a corruption enquiry in Dubai. The legal bill could reach up to $10 million overshadowing its $14.5 million full year net profit reported earlier this month.
Commercial property news
FKP Property Group
(ASX:FKP) has announced Managing Director and CEO Peter Brown has retired from his position after leading the Group for almost 10 years. He will continue to serve as non-executive director on the boards of Forest Place Group
(ASX:FPG) and Retirement Villages Group. A replacement search is underway with FKP’s Executive Chairman leading the group during the transition. FKP Property Group booked a full year net loss $359.9 million.
Canadian firm Brookfield Asset Management has edged closer to outright ownership of Thakral Holdings Group
(ASX:THG) as it advised the market last week it had reached 90 per cent acceptances to its off-market takeover bid. Brookfield sweetened its offer last week lifting its bid to $0.81 per share for the listed trust. Brookfield’s entity Bidco has advised it requires 93 per cent support from shareholders to secure its ownership.
Ardent Leisure Group
(ASX:AAD) entered a trading halt last week as it announced the expansion of its gym business. Ardent, the owner of several leisure properties including Dreamworld on the Gold Coast, agreed to acquire Fenix Fitness Clubs for $60.9 million, in an effort to boost its Goodlife fitness centre business. Fenix owns and operates several fitness clubs throughout Victoria and Queensland. Ardent says the acquisition will be partly funded through a fully underwritten institutional placement aimed at raising about $50 million. A share purchase plan will also be issued to retail investors and capped at $20 million.
Charter Hall Group
(ASX:CHC) has acquired a 9.69 hectare site in Queensland from property developer Watpac Limited
(ASX:WTP) for $20.85 million. The integrated property group has issued $15 million at settlement with the balance to be finalised in the 2013 financial year. Charter Hall says the acquisition reflects an initial yield of 7.9 per cent.
*The McKell Quarterly Homes Monitor (McKell Quarterly) benchmarks Sydney housing completions against two Sydney housing targets. NSW Government Metropolitan Development Plan Completions data is used to ascertain delivery across Sydney metropolitan regions on a quarterly and annual basis.
*The RateCity First Home Buyer Index measures how difficult it is for first homebuyers to enter the property market and maintain a mortgage based on five indicators; the average household income, average first homebuyer loan size, benchmark basic variable rate, monthly mortgage repayments and percentage of income towards repayments.
