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RBA cut leads to frantic run on houses

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RBA cut leads to frantic run on houses

Home buyers buoyed by the Reserve­ Bank’s decision to slash official interest rates to historic lows have driven the national ­auction market close to an annual record as they cast off fears that prices are overblown and jump in to secure attractive loans.

More than three-quarters of the 1500 homes up for auction around the nation last week sold under the hammer, with Melbourne leading the auction market activity and Sydney recording unseasonably high clearance rates.

In Melbourne, more than 76 per cent of the 722 homes put up for auction changed hands, while Sydney recorded a clearance rate of 80.4 per cent of the 526 homes up for sale.

Buyers in Canberra, Brisbane and Adelaide also seized upon homes up for auction in the week after the RBA shaved 25 basis points off the cash rate, with Brisbane and Adelaide recording sales at about two-thirds of auctions on the weekend.

Prospective buyers throughout Melbourne and Sydney told agents they were done sitting on the sidelines gauging where the market was headed, and that it was “now or never” if they wanted to upgrade or buy their first home.

“People are realising that it’s the most affordable time to try and upgrade and they’re pushing themselves further than they usual­ly would have,” McGrath agent Peter Chauncy told The Australian.

“For people who backed away at the end of last year, there’s now a sense they’ve got to get back in.”

Economists were uncertain last week whether the RBA’s decision to drop the cash rate to 1.5 per cent would stoke activity on the housing market, particularly after a number of big banks refused to pass on the full cut to borrowers.

But agents including Mr Chauncy say newly invigorated buyers are turning up. The agent set a new record for Naremburn on Sydney’s north shore last week, selling a four-bedroom Federation cottage to a young family for more than $3.4 million, and has expect­ations that an unprecedented dearth of homes on the market means prices will continue to rise.

“It’s not uncommon to get 40 or 50 people through an open home on the weekend,” Mr Chauncy said. “I haven’t seen conditions like this for 15 years.”

Other homes around the country to sell at packed auctions ­include a modern five-bedroom home with a resort-style swimming pool and outdoor entertaining area in Castle Hill, in Sydney’s northwest, which went for $2.19m. The family home on 1045sq m was last listed as a vacant parcel in ­September 2013, for $805,000.

In Indooroopilly, in Brisbane’s west, a newly built four-bedroom home with sleek interiors, a resort-style swimming pool and backyard sold for $1.352m at auction, after selling in 2009 for $960,000.

At Palm Beach, on the Gold Coast, a rundown bungalow on a 736sq m block near the beach at 77 Twenty Fifth Avenue sold for $760,000.

In Melbourne, a two-bedroom apartment in an architectural complex at 2/312 Dandenong Road, St Kilda, changed hands for $631,500.

Demand for weekenders and holiday homes is also on the rise in the wake of the latest interest rate drop, agents said.

Savills agent Adam Ross spent the weekend in the NSW Southern Highlands showing groups through a sprawling Cape Cod-­inspired weekender at Bundanoon known as Eight Oaks, which is surrounded by formal, manicured gardens.

“There were a lot of ­people who got to the end of last year and decided to take a step back for 12 months and see what happens, because things were going so crazy,” Mr Ross said. “But they’ve got six months on and realised that prices aren’t softening and the activity is still there and there’s no point waiting any longer.”

Original article published at www.theaustralian.com.au by SAMANTHA HUTCHINSON 08/8/16

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Home in blue-chip street sells for $4.1 million

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Home in blue-chip street sells for $4.1 million

Home in blue-chip street sells for $4.1 million
Home in blue-chip street sells for $4.1 million
Home in blue-chip street sells for $4.1 million
Home in blue-chip street sells for $4.1 million

Home in blue-chip street sells for $4.1 million

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The canal-front home at 59 Witta Circle, Noosa Heads, sold on April 30 for $4.1 million through Tom Offerman Real Estate.

Source: www.sunshinecoastdaily.com.au

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Queensland’s population hits 5 million people today

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Queensland's population hits 5 million people today
PHOTO: Is this Queensland’s 5 millionth person? Cordy Kerr-Kennedy was born yesterday in Townsville. (ABC News: Mark Jeffery)

Queensland’s population has tipped the 5 million mark today, Premier Annastacia Palaszczuk has told State Parliament.

Ms Palaszczuk said several expectant families were on standby to welcome the state’s five-millionth resident.

“Somewhere today a brand new mum and dad will be eager to meet their new arrival,” she told the house.

“The whole family will want to know: is it a boy or is it a girl? And the doctor will say, ‘congratulations, it’s a Queenslander’.”

Ms Palaszczuk said the two main drivers of the increase were migration growth, particularly from New South Wales, and from 60,000 babies being born in the past year.

Queensland's population hits 5 million people today
PHOTO:
 The state’s five-millionth resident was born today.(ABC North Queensland: Nathalie Fernbach)

“Overseas and interstate migration is up by 50,000 people in the past year, 19,000 came from interstate … more than 12,000, or 230 a week, move from New South Wales to Queensland,” she said.

ABS data also revealed the fastest and largest-growing area in Queensland in 2016-17 was Pimpama on the Gold Coast, which grew by 3,000 people.

Large growth also occurred in Jimboomba on Brisbane’s south side and in North Lakes — a suburb north of the city — which both increased by 2,100 people.

Coomera on the Gold Coast and Springfield Lakes in Ipswich also experienced large growth up 1,400 people.

The State Government’s population counter gives a “synthetic estimate” of the number of current Queenslanders, assuming a total population increase of one person every 6 minutes and 22 seconds.

Earlier this year the Australian Bureau of Statistics (ABS) said Queensland’s population was growing at 1.7 per cent and was projected to tick over to 5 million in May.

ABS data released in March also revealed Brisbane was one of the country’s fastest-growing cities and had increased by 48,000 in 2017, hitting 2.4 million people.

 Queensland's population hits 5 million people today
PHOTO: The ABS estimated Queensland’s population was growing 1.7 per cent a year. (AAP: Dan Peled)

ABS demography director Anthony Grubb said the state’s population had “come a long way” in the last century.

“In 1901 the population was half a million; a tenth of what it is today… it took 37 years to hit the 1 million milestone in 1938 and another 36 years to reach 2 million in 1974,” he said.

But Mr Grubb said population growth “picked up the pace” after that, taking just 18 years to reach 3 million then only another 14 years to hit 4 million in 2006.

Queensland could be leading growth state in future

Population demographer Dr Elin Charles-Edwards said although Queensland is not currently the fastest growing state, it is possible it could top the leader board later down the track.

‘Not in the short-term, but Queensland is coming up off a relatively subdued growth so perhaps we might be entering an era of more rapid growth,” she said.

Dr Charles-Edwards said the challenges that generally come with increased population could be managed in Queensland.

“As long as we keep up and don’t take our eye off the ball we can continue to absorb quite high levels of growth… but really it’s keeping up with the infrastructure that’s the key challenge,” she said.

Dr Charles-Edwards said it was important to note some parts of the state, particularly in western Queensland, were experiencing population decline.

“While the south-east corner is growing and also many Indigenous communities are growing, other parts of the state are shrinking,” she said.

“Perhaps we could do more to encourage people to move outside the south-east corner.

“If we were able to work out some way to decentralise our population, growth a little bit further up into the northern regional centres, I think that would benefit the growth of south-east Queensland.”

Source: brisbaneinvestor.com.au

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APRA to end cap on property investor loan growth

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APRA to end cap on property investor loan growth

APRA is removing the 10 per cent ‘speed limit’ on investor loan growth.
Photo: Louise Kennerley


The banking regulator is axing a 10 per cent speed limit on bank lending to property investors, saying the cap has served its purpose and improved credit standards.

With Sydney house prices falling and credit growth slowing, the Australian Prudential Regulation Authority on Thursday said it would remove the cap for bank boards that could prove they had been following its guidelines on prudent lending.

In late 2014, amid a surge in borrowing by property investors and rapid house price growth, APRA took the rare step of setting a 10 per cent limit on the annual growth in banks’ housing investor loan portfolios.

The measure has rocked the mortgage market in recent years, prompting banks to jack up interest rates for housing investors, and demand borrowers stump up bigger deposits.

But on Thursday, APRA chairman Wayne Byres said it was prepared to remove the measure because there had been an improvement in lending standards and a slowdown in credit growth.

“The temporary benchmark on investor loan growth has served its purpose. Lending growth has moderated, standards have been lifted and oversight has improved,” Mr Byres

Even so, the regulator will retain a separate 2017 policy that requires banks to limit their new interest-only lending to less than 30 per cent of all new home loan approvals.

APRA also said there was “more to do” in improving other aspects of banks’ lending, including how they assessed borrowers’ expenses, their existing debts, and the approval of loans that fell outside of banks’ formal lending policies.

APRA said it expected banks to introduce limits on the proportion of new lending that could be done at “very high” debt-to-income levels.

“In the current environment, APRA supervisors will continue to closely monitor any changes in lending standards,” Mr Byres said.

“The benchmark on interest-only lending will also continue to apply. APRA will consider the need for further changes to its approach as conditions evolve, in consultation with the other members of the Council of Financial Regulators.”

Source: brisbaneinvestor.com.au

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