the third interest rate cut since June with the Reserve Bank cutting official
rates to a new record low of 0.75%. Interest rates in Australia have halved
The Federal Government also announced eligibility
details for its First Home Loan Deposit Scheme. Under the Scheme, up to 10,000
eligible first home buyers each year will be able to access a
government-guaranteed loan from 1 January 2020. The loan amount will be the
difference between their own deposit and the 20% deposit required by lenders to
avoid lenders’ mortgage insurance. The cost of this insurance varies depending
on the deposit and the size of the loan, but it can cost borrowers $10,000 or
more on a property worth $500,000 with only a $50,000 (10%) deposit.
To be eligible for the Scheme, first home buyers
will have to raise at least 5% deposit themselves and be buying a property in an
Australian capital city that is underneath the following threshold values: Sydney
$700,000, Melbourne $600,000, Canberra $500,000, Brisbane $475,000, Perth
$400,000, Adelaide $400,000, Hobart $400,000 and Darwin $375,000.
- According to the latest figures from Domain, prices for
Sydney houses and units both increased during the September quarter. Houses
increased by 4.8% and units by 2.6%, the first quarterly increases that have
been experienced in the Sydney market since mid-2017 when it was its peak.
- Median rent rates for Sydney houses have dropped by up
to 25% the past year according to Domain. The hardest hit suburbs for property
investors have been in Greenwich, Taren Point, Millers Point, Bungarribee and
- Core Logic statistics reveal that sellers in the Hills,
Mosman, Willoughby and Ku-ring-gai districts have made the most profits on
their recent house sales. The average length of time these sellers had held
onto their properties was 9 years.
- Domain’s latest figures reveal that Melbourne house
prices increased by 4.8% in the September quarter. This is the second
consecutive quarterly increase. Unit prices also increased by 3.7% to lift the
year-on-year increase to 6.3%.
- According to the Victoria in Future 2019 Report, 29
Victorian suburbs are predicted to more than double their population by 2036
including Tarneit, Werribee, Point Cook, Hillside, Greenvale, Bulla,
Craigieburn, Mickleham, Yuroke, Wollert and Cranbourne. Newer western suburbs
such as Rockbank and Mount Cottrell are forecast to have a twentyfold increase.
- Port Melbourne’s traditional industrial zone is also
expected to have a population of 23,000 residents thanks to the Fishermans Bend
urban renewal project that’s currently underway.
- According to the
latest figures from Domain, Brisbane unit prices have dropped by 5.6% over the
last year, their steepest drop in 18 years. Unit prices are currently at a
six-year low due to an abundance of supply of new unit developments in
- Recently released
Real Estate Institute of Queensland (REIQ) data shows that suburbs in the
Redlands currently dominate the top 20 destinations for new resident arrivals
- Domain data
reveals that areas where property owners hold their properties for the lowest
length of time before selling in Brisbane are West End and the Brisbane CBD.
- According to the
latest Core Logic data, 33% of Perth houses and 46% of Perth units are
currently selling at a loss.
- The latest figures from Domain show that Perth house
prices have fallen by 2.4% over the past year, but some suburbs have bucked the
downward trend and recorded increases. Subiaco was the standout, recording an
annual increase of 8.5%.
- The Western Australian government has announced a
two-year stamp duty rebate program of up to $50,000 on pre-construction
contracts for residential units in new multi-level developments. There is no
cap on the purchase price and applicants can apply for multiple rebates if they
purchase multiple units.
- The ACT government
has announced a $14 billion infrastructure development plan to cater for forecast
population growth in Canberra over the next decade.
- According to the latest
Core Logic figures, Canberra is the only Australian capital city where overall property
prices (for houses and apartments combined) are higher than they were a year
- Core Logic data also
reveals that Canberra is currently the third most popular city in Australian
for investment property buyers, behind only Sydney and Victoria.
- The Northern
Connector road project is well underway and expected to be completed by late.
This major infrastructure project will help to reduce travel times from outer
suburbs in the north of Adelaide to the CBD, potentially making properties in
these areas more appealing.
- Auction clearance
rates recorded in Adelaide in October were their highest for 19 months
according to Real Estate Institute of South Australia (REISA) figures.
- The latest Domain
figures reveal that Adelaide unit prices recorded the largest decrease (5.2%)
of any Australian capital city in the September quarter.
- Newly advertised property listings in Darwin are 36% down year-on-year according to Core Logic, reflecting the current depressed state of its property market.
- The most recent Domain figures reveal that Darwin unit and house prices have fallen by more than any other Australian capital city over the past year, decreasing by 7.1% and 4.4% respectively.
- The latest Affordability Report from the Housing Industry Association shows that Darwin is the second most affordable city in which to buy property in Australia, only slightly behind Perth.
For a link to the full report click here.