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 First National Real Estate was represented at the Financial Review Commercial Conference in Sydney, last month, where industry experts spoke about the generally positive outlook for the commercial sector.
2012 is the third year of recovery since the GFC and, although sentiment is still a little fragile, there is definite growth in demand, especially in Sydney and Melbourne.
However, it’s also said that foreign investment dollars would flood into the Australian commercial property market if the Australian dollar fell significantly.
Despite the current exchange rate, investors from Germany, other parts of Europe, Canada, Singapore and elsewhere in Asia are particularly active and most residential tower sites sold in Melbourne over the past year were bought by Asian developers.
International investors are more confident in the Australian economy than domestic investors; they’re still finding it difficult to source finance and lack confidence in the government.
Our local banks are vulnerable to shocks from Europe because of their dependence on wholesale capital markets. This presents a real risk to the Australian commercial real estate market. Fortunately, China-led commodities demand should continue in the short to medium term and this will shape Australia’s real estate markets.
Headwinds may be coming for the Victorian office market, which is more likely to suffer the effects of weakened traditional office occupying businesses. On the other hand, strengthening demand in resource markets is positively affecting Perth.
       
 First National Real Estate was represented at the Financial Review Commercial Conference in Sydney, last month, where industry experts spoke about the generally positive outlook for the commercial sector.
2012 is the third year of recovery since the GFC and, although sentiment is still a little fragile, there is definite growth in demand, especially in Sydney and Melbourne.
However, it’s also said that foreign investment dollars would flood into the Australian commercial property market if the Australian dollar fell significantly.
Despite the current exchange rate, investors from Germany, other parts of Europe, Canada, Singapore and elsewhere in Asia are particularly active and most residential tower sites sold in Melbourne over the past year were bought by Asian developers.
International investors are more confident in the Australian economy than domestic investors; they’re still finding it difficult to source finance and lack confidence in the government.
Our local banks are vulnerable to shocks from Europe because of their dependence on wholesale capital markets. This presents a real risk to the Australian commercial real estate market. Fortunately, China-led commodities demand should continue in the short to medium term and this will shape Australia’s real estate markets.
Headwinds may be coming for the Victorian office market, which is more likely to suffer the effects of weakened traditional office occupying businesses. On the other hand, strengthening demand in resource markets is positively affecting Perth.
 SOURCE: Melbourne Weekly, 25 Apr 2012
Can’t live in em, can’t sell em. Rarely would anyone say this of near-new flats a stone’s throw from shops and transport.
But such are the woes of the student rental market that some investors are now taking a loss of more than 30 per cent to get out of it.
Worst hit are those near Swinburne University in Hawthorn, which saw a spate of private developments between 2004 and 2010, mostly catering for international students.
But declining enrolments, no capital growth and lender wariness have seen student flats languishing on agents’ books sometimes for three years.
Market analyst SQM Research tells a sorry tale: three of the four stalest listings in Hawthorn are for student flats awaiting a buyer since 2009.
“It’s extremely difficult to sell these student only properties,” says one agent, who prefers not to be named. “In terms of investment, the original owners have, for the most part, resold for less than the purchase price. From the agent’s point of view it’s a total waste of time.
“I don’t know what will happen to these properties long-term. We had a few in Queens Avenue (Hawthorn). People paid $160,000 off the plan and sold for $110,000. They’d held them four to five years in some instances.” Most student flats are 25-30 square metres and some are only 15 far below the 50 preferred by banks. A letting agent may charge eight per cent to manage them and students often leave after 12 months.
First National O’Donoghue agent Nick Pane, who is selling a $149,000 flat in Hawthorn, says although such flats are hard to resell they get good rental yields between six and 10 per cent, when most Melbourne rentals are lucky to yield three per cent.
“A buyer who has other properties that are negatively geared may buy something like this, positively gear it and use it to offset the other ones that will appreciate in value,” he says.
And to sell at a profit, says Catherine Cashmore: “You have to time your selling to when there’s a large student migration coming in. And that just hasn’t been happening in Melbourne.”
       
 SOURCE: Melbourne Weekly, 25 Apr 2012
Can’t live in em, can’t sell em. Rarely would anyone say this of near-new flats a stone’s throw from shops and transport.
But such are the woes of the student rental market that some investors are now taking a loss of more than 30 per cent to get out of it.
Worst hit are those near Swinburne University in Hawthorn, which saw a spate of private developments between 2004 and 2010, mostly catering for international students.
But declining enrolments, no capital growth and lender wariness have seen student flats languishing on agents’ books sometimes for three years.
Market analyst SQM Research tells a sorry tale: three of the four stalest listings in Hawthorn are for student flats awaiting a buyer since 2009.
“It’s extremely difficult to sell these student only properties,” says one agent, who prefers not to be named. “In terms of investment, the original owners have, for the most part, resold for less than the purchase price. From the agent’s point of view it’s a total waste of time.
“I don’t know what will happen to these properties long-term. We had a few in Queens Avenue (Hawthorn). People paid $160,000 off the plan and sold for $110,000. They’d held them four to five years in some instances.” Most student flats are 25-30 square metres and some are only 15 far below the 50 preferred by banks. A letting agent may charge eight per cent to manage them and students often leave after 12 months.
First National O’Donoghue agent Nick Pane, who is selling a $149,000 flat in Hawthorn, says although such flats are hard to resell they get good rental yields between six and 10 per cent, when most Melbourne rentals are lucky to yield three per cent.
“A buyer who has other properties that are negatively geared may buy something like this, positively gear it and use it to offset the other ones that will appreciate in value,” he says.
And to sell at a profit, says Catherine Cashmore: “You have to time your selling to when there’s a large student migration coming in. And that just hasn’t been happening in Melbourne.”
 Media Release – 24 April 2012
Home renovating is proving an increasingly popular alternative to buying a second home and First National Real Estate has some helpful advice for home owners about to embark on a renovation – incorporate energy smart ideas where possible.
“The impending introduction of the carbon tax and popular reality home renovating TV shows have spurred further interest in this growing trend, so now is the time for would-be renovators to look at how they can make their homes more energy efficient,” Ray Ellis, chief executive of First National Real Estate said.
“An energy efficient renovation will improve the comfort and economy of the home, and may even push up the sale price to meet the growing demand by home buyers for energy efficient features.
“It can be as simple as ensuring windows and skylights are positioned to capitalise on the sun’s warmth and other simple design features are incorporated, especially those that add up to less reliance on electricity and gas to power the home and so reduce energy bills.”
According to Mr Ellis building and design features should consider north-facing living area where possible, to take advantage of the sun which will provide warmth in winter and an abundance of natural light year round.
General design features could include:
- Grouping rooms with similar uses together to create ‘zones’ in the house, which can be separated by doors so that only occupied areas, can be heated or cooled.
- ‘Wet’ areas should be placed close together to reduce the need for long water pipes resulting in a more efficient hot water system and lower plumbing costs.
- Ceiling heights kept as low as practicable to reduce heating and cooling costs and increase comfort levels.
- Choose ‘Fit-for-purpose’ building materials for optimal results
- Window are fitted properly and placed to minimise heat loss in winter and heat gains in summer.
- Curtains or blinds are also a great way to reduce heat loss in winter and heat gains in summer.
- Ceilings, walls and in some cases, floors, should be insulated to their appropriate level with no gaps left.
- Draughtproofing strips and weatherseals fitted to doors and windows leading to the outside to reduce unwanted air leaks and draughts (which can account for up to 25 per cent of heat loss in winter).
- Select energy efficient and cost effective heating and hot water systems.
“By getting some expert advice, a renovation can incorporate energy efficient design principles and improve both the liveability and value of your home,” Mr Ellis said.
       
Media Release – 24 April 2012
Home renovating is proving an increasingly popular alternative to buying a second home and First National Real Estate has some helpful advice for home owners about to embark on a renovation – incorporate energy smart ideas where possible.
“The impending introduction of the carbon tax and popular reality home renovating TV shows have spurred further interest in this growing trend, so now is the time for would-be renovators to look at how they can make their homes more energy efficient,” Ray Ellis, chief executive of First National Real Estate said.
“An energy efficient renovation will improve the comfort and economy of the home, and may even push up the sale price to meet the growing demand by home buyers for energy efficient features.
“It can be as simple as ensuring windows and skylights are positioned to capitalise on the sun’s warmth and other simple design features are incorporated, especially those that add up to less reliance on electricity and gas to power the home and so reduce energy bills.”
According to Mr Ellis building and design features should consider north-facing living area where possible, to take advantage of the sun which will provide warmth in winter and an abundance of natural light year round.
General design features could include:
- Grouping rooms with similar uses together to create ‘zones’ in the house, which can be separated by doors so that only occupied areas, can be heated or cooled.
- ‘Wet’ areas should be placed close together to reduce the need for long water pipes resulting in a more efficient hot water system and lower plumbing costs.
- Ceiling heights kept as low as practicable to reduce heating and cooling costs and increase comfort levels.
- Choose ‘Fit-for-purpose’ building materials for optimal results
- Window are fitted properly and placed to minimise heat loss in winter and heat gains in summer.
- Curtains or blinds are also a great way to reduce heat loss in winter and heat gains in summer.
- Ceilings, walls and in some cases, floors, should be insulated to their appropriate level with no gaps left.
- Draughtproofing strips and weatherseals fitted to doors and windows leading to the outside to reduce unwanted air leaks and draughts (which can account for up to 25 per cent of heat loss in winter).
- Select energy efficient and cost effective heating and hot water systems.
“By getting some expert advice, a renovation can incorporate energy efficient design principles and improve both the liveability and value of your home,” Mr Ellis said.
 Media Release – 23 April 2012
A 25-year-old mother edged out some of the state’s most impressive youths to win the ‘First National Real Estate Leadership and Innovation’ category leading to the ‘Premier’s Young Achiever of The Year’ award in the Southern Cross Young Achiever Awards on Saturday night.
Held at Tasmania’s Wrest Point Casino before an audience of 600, The Southern Cross Young Achiever Awards were hosted by television presenter, Jo Palmer and are designed to acknowledge, encourage and promote the positive achievements of Young Tasmanians aged between 14 and 28 years of age.
Cait Clarke won the award as a result of her contribution to youth and community projects around the state as well as her efforts as a councilor in her hometown of Kentish, north of Hobart, which have been widely reported in local media.
‘Cait is the youngest person elected to a local government role, is chairman of the Kentish Youth Council, works with the social inclusion action group and is a Road Educator Volunteer (REV) mentor’ said Ray Ellis, chief executive of the 450-office strong Australasian real estate group.
First National sponsored the category of the Young Achiever Awards as part of its national programme of corporate giving, which includes support of Red Cross Emergency Services’ work preparing Australian communities for natural disasters, coordination of response, and recovery.
‘Leadership and innovation is what First National Real Estate is all about, as evidenced by our leading Tasmanian offices in Burnie and Hobart who have won industry awards at national level, showing many a larger mainland based estate agency what Tasmanians are capable of.
‘As a network, we support the young people of Australia who look at how to change things for the better.
‘It’s what the great state of Tasmania is crying out for; commitment to strong leadership and the ability to imagine more creative solutions to today’s challenges. People like Cait define not just where Tasmania is heading but who Australia is in the 21st century’ said Mr Ellis.
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Issued by: First National Real Estate
For further information contact:
Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317
Related articles
       
Media Release – 23 April 2012
A 25-year-old mother edged out some of the state’s most impressive youths to win the ‘First National Real Estate Leadership and Innovation’ category leading to the ‘Premier’s Young Achiever of The Year’ award in the Southern Cross Young Achiever Awards on Saturday night.
Held at Tasmania’s Wrest Point Casino before an audience of 600, The Southern Cross Young Achiever Awards were hosted by television presenter, Jo Palmer and are designed to acknowledge, encourage and promote the positive achievements of Young Tasmanians aged between 14 and 28 years of age.
Cait Clarke won the award as a result of her contribution to youth and community projects around the state as well as her efforts as a councilor in her hometown of Kentish, north of Hobart, which have been widely reported in local media.
‘Cait is the youngest person elected to a local government role, is chairman of the Kentish Youth Council, works with the social inclusion action group and is a Road Educator Volunteer (REV) mentor’ said Ray Ellis, chief executive of the 450-office strong Australasian real estate group.
First National sponsored the category of the Young Achiever Awards as part of its national programme of corporate giving, which includes support of Red Cross Emergency Services’ work preparing Australian communities for natural disasters, coordination of response, and recovery.
‘Leadership and innovation is what First National Real Estate is all about, as evidenced by our leading Tasmanian offices in Burnie and Hobart who have won industry awards at national level, showing many a larger mainland based estate agency what Tasmanians are capable of.
‘As a network, we support the young people of Australia who look at how to change things for the better.
‘It’s what the great state of Tasmania is crying out for; commitment to strong leadership and the ability to imagine more creative solutions to today’s challenges. People like Cait define not just where Tasmania is heading but who Australia is in the 21st century’ said Mr Ellis.
- copy ends -
Issued by: First National Real Estate
For further information contact:
Stewart Bunn, National Communications Manager, First National Real Estate, on 0413 624 317
Related articles
 Generally speaking, regional areas do not offer startling growth rates, however, they often have their own micro economy which may have benefited from a major business relocating from a metro area, or, as a result of tourism. Some areas also benefit from being on the path of major air, road or rail links.
Also, regional property prices don’t generally fall as fast when market conditions turn. Prices are far less elastic. The latest housing data shows that over the past 12 months, Melbourne home values fell by 5.4 per cent whereas regional areas fell by just 2.5 per cent. Having said that, it’s important to point out to our city cousins that Melbourne’s home values are still up by 45.5 per cent since the start of 2007. Victoria’s performance, by Australian property market standards, has been outstanding in recent years so it’s not surprising we’ve seen some moderation of prices over the past 12 months.
       
 As First National is official partner of the Regional Victoria Living Expo, we’ll be taking a look at some of the reasons people move to regional areas of Australia and the types of benefits they find when they’ve completed their move. With state Governments offering incentives, what’s the buzz about and what sorts of benefits can you expect if you move from a metro area to a regional centre?
We tend to find that people relocating from metro areas are firstly surprised at how much more convenient country living really is and what it offers, not just for families, but also for retirees and working couples or individuals.
People quickly discover that day-to-day activities like trips to the supermarket or doctor are remarkably less frustrating. Even if they do have to travel a few more kilometres than they did in the city, the absence of traffic congestion and snarls often makes the journey so much faster and enjoyable. Plus, parking is usually much easier and waiting times shorter. And… people are, almost always, more welcoming.
The next most common discovery is that, contrary to popular metropolitan opinion, a social life in the country can be every bit as sophisticated as that of life in the big smoke. The reality is that when you get to the country, you’ll soon discover that you’re no pioneer. Plenty of urbanites have already found their way to the regional location of your choice and have already been enjoying the lifestyle benefits for years.
Naturally, property prices are usually much more affordable in regional locations so, whereas you may feel somewhat squeezed by your metro digs, a regionally located home is likely to gain you features you could only have dreamed of in the city.
Obviously, it’s not all a bed of roses but this post is about some of the benefits. We’ll get to some of the pitfalls and things to watch out for in future posts.
 So, if you’ve been dreaming about making your big move, don’t just keep watching re-runs of ‘Escape to the Country‘. If you’re in metro Melbourne, get yourself along to the Regional Victoria Living Expo (April 27-29) and, if you’re anywhere else in Australia, post your comments or questions below and First National will do its best to provide the answers.
You can also Tweet your questions to @RealEstateCast
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First National Real Estate was represented at the Financial Review Commercial Conference in Sydney, last month, where industry experts spoke about the generally positive outlook for the commercial sector.
