First home buyer loans reach six year high
by Paolo Taruc
The first home buyers’ share of owner occupier housing loans has reached its highest point since late 2012, according to the latest figures from the Housing Industry Association (HIA).
The group accounted for nearly a fifth (18.1%) of owner occupier home loans in June. On an annualised basis, this marks an increase of 11.4%.
HIA senior economist Shane Garett said a few reasons were behind the trend, such as several state governments’ enhancements of initiatives for first home buyers.
Posted by: Dominik Weber
Chinese property investors return to the market
Australia saw a dramatic decrease in potential foreign investment during the 2016-17 fiscal year. Government data showed that residential real estate approvals fell to 13,198 in that period from 40,149 in 2015-16, a decline of 67%. The value of these approvals also dropped significantly, down to $25.2bn from $47.2bn.
According to the Foreign Investment Review Board (FIRB), China’s greater scrutiny on outbound investment, and the introduction of state based taxes on foreign investors, contributed to the drop.
However, there have been signs over recent months that foreign investment is picking up. Figures from CommSec – CBA’s online stockbroking firm – show that Chinese property investment rose by an annualised 10.2% in the seven months to July, up from June’s comparable 9.7%.
Posted by: Dominik Weber
Three reasons Brisbane is doing better than Sydney and Melbourne
A WORKING class suburb in Brisbane has beaten the bluechips to pull off the highest growth the state has seen in the past decade.
Underwood in Brisbane’s south has seen a massive 65.6 per cent rise in median house prices between May 2008 and May this year, according to latest figures by property data experts CoreLogic.
It comes as a prominent Sydney property expert declares there is now more optimism for Brisbane than Sydney and Melbourne thanks to the city weathering the unit glut, interstate migration, a fairly valued market and the economy picking up again.
None of the usual bluechips were on the top 10 list which saw Ashgrove come in second (53.4 per cent) followed by Sunnybank (50.7 per cent) which rode a wave of Asian buyer interest in recent years.
SQM Research head Louis Christopher said there was growing evidence that Brisbane had coped better than Sydney and Melbourne with recent housing market woes, prompting fresh optimism.
Brisbane listings figures out yesterday showed the city rose the highest of all the capital cities last month, but unlike Sydney and Melbourne where the effect of a rise in listings was a drop in asking prices, in the River City prices rose almost in defiance.