Wednesday, 22 December 2010
Housing Industry Association
Housing supply, demand gap grows
Australia continues to run large annual deficits between the underlying demand for dwellings and the completion of dwellings, according to HIA.
HIA's updated projections of the underlying demand for housing suggest that Australia built 22,000 too few dwellings in 2009/10, with a projected deficit of 16,800 dwellings in 2010/11 and 21,000 dwellings in 2011/12.
"In the longer term Australia's housing market is underpinned by the immutable forces of insufficient supply and robust underlying demand," HIA chief Andrew Harvey said.
Looking forward, Mr Harvey said supply-side factors such as the increasing scarcity of land in the main urban centres in Australia will continue to play a major role in driving Australia's housing prices.
"We need to be clear that supply side obstacles which prevent housing construction from keeping pace with the rate of household formation will see Australian burdened with a growing under-supply of housing and a resultant worsening affordability problem," said Mr Harvey.
"Governments at all levels need to increase their efforts to address these supply side issues as a matter of urgency," he said.
Wednesday, 22 December 2010
The Reserve Bank of Australia
RBA satisfied with monetary policy
The RBA is content with its "mildly restrictive" cash rate policy.
According to the minutes of the December Monetary Policy meeting, released yesterday, the positive outlook for business investment means the current policy setting is appropriate.
The Board kept its overnight cash rate target at 4.75 per cent in December after a surprise increase of 0.25 of a percentage point in November that it called a pre-emptive move to ensure that positive terms of trade shock and any surge in capital expenditure did not fuel inflationary pressures.
Inflation remains in the bottom half of the RBA's target range of 2 to 3 per cent
Thursday, 23 December 2010
St George Bank
Rent considered genuine savings
St George will now accept rental payments as evidence of genuine savings.
In a move that will help first home buyers all over the nation, St George has announced it will accept rent as a form of savings for a home deposit if there is evidence of a minimum of 12 months continuous satisfactory rental history and the property is leased through a property manager.
"This is a significant breakthrough for first homebuyers and a move which could be a major boost to the home finance industry," Loan Market chief operating officer Dean Rushton said.
"Higher interest rates, tougher lending conditions and the end of the boosted federal government grant at the end of last year have driven first time buyers out of the market.
"Another major restriction for them has been the difficulty in saving a deposit for a home loan, particularly in this economic climate with people having to cope with massive cost of living increases including rental payments."
Up till now, all Australian lenders have required a percentage of the purchase price - normally five per cent minimum - to be saved for all loans.
"But if rental payments were taken into consideration as a factor in assessing genuine savings that would enable many people to pursue the dream of home ownership," Mr Rushton said.
"St George has now moved to accept rental history as a form of genuine savings and they should be applauded for this decision as it will enable a lot more people to realise the great Australian dream of home ownership."
Thursday, 23 December 2010
PRDnationwide
Qld “hotspots” revealed
PRDnationwide has revealed its Queensland-based affordable property hotspots for 2011.
According to recent research by the estate agency, Stafford Heights, Lota, Northgate, Virginia and Mount Gravatt East in Brisbane are all expected to thrive in 2011.
Property researcher Josh Brown said the suburbs were all ideally located near amenities and employment.
"Brisbane's sub $500,000 property market reflects a fantastic opportunity for potential purchasers to exploit their position in the marketplace and invest within this grade of real estate," Mr Brown said.
"With 2011 likely to become the year of the buyer, investors and home owners should begin to gear up now if they want to capitalise on the attractive economic environment.
"It's the season to be buying."
The research shows sales activity of Brisbane property priced under $500,000 has dropped an extraordinary 40 per cent over the first half of 2010.
"The stagnating sales activity in Brisbane's affordable market, poses an opportunity for investors to capitilise on buyer favourable conditions," Mr brown said.
"When looking for a property with strong long term gains ensure the property is within close proximity to employment nodes; in an undervalued suburb - determined by price gaps between surrounding suburbs; general affordability; and within close proximity to lifestyle amenity and transport corridors," he said.
Mr Brown said Stafford Heights was identified due to its affordability and location among key amenity hubs on Brisbane's north, which will continue to drive growth.
Virginia and Northgate, located 10km to Brisbane's north, will provide solid long term growth for investors and purchasers, while Lota is set for growth due to its waterfront location within an easy commute of the CBD.
