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Property Market continues its Upward Momentum

Monday, August 12, 2013

Australian house prices have continued to rally, with official data showing improvements in all capital cities. Prices for established houses in the eight capital cities rose 5.1% in the year to June, according to Australian Bureau of Statistics data. Prices rose 2.4% in the June Quarter itself.

The ABS price index for established houses shows that capital city indexes rose in Sydney (+2.7%), Melbourne (+2.4%), Perth (+3.4%), Brisbane (+1.9%), Canberra (+1.0%), Adelaide (+0.3%) and Darwin (+2.9%). Hobart showed a fall (-1.0%).The biggest annual increases were in Perth (+11.0%), Darwin (+7.7%) and Sydney (+6.1%).

Queensland Lures Property Investors like no other State

Friday, August 09, 2013

Terry Ryder, 30 July 2013
 

Queensland’s status among the economic growth leaders of Australia has slipped in recent years, but its standing in the eyes of property investors remains undiminished.

Western Australia and the Northern Territory lead the country on economic growth, with Queensland a distant third.

The ACT has the nation's lowest unemployment followed by WA, while Queensland, with the exception for the struggle state Tasmania, now has the worst. WA is way out in front on population growth, with ACT second alongside Queensland, with the Northern Territory and Victoria challenging.

But property investors are oblivious or simply don’t care. Queensland has long held a reputation as the place to buy and nothing so far has shaken that conviction.

Overall, Western Australia is the national leader these days based on economic indicators – and Perth is the leader for price and rental growth - but more investors are buying in Queensland than in WA, according to the loan figures from the Australian Bureau of Statistics.

In the 2013 financial year, Queensland was the star of my hotspotting business.

The Top 10 Queensland Hotspots report outsold all our other state/territory reports by a considerable margin. The next most popular state, WA, attracted only half as many customers as Queensland did.

Our Queensland report sold more than NSW, Victoria and South Australia combined.  

When it comes to individual location reports, Queensland again topped the poll. The top five locations for Hotspotting buyers throughout the 2013 financial year were all in Queensland: Gladstone, Surat Basin, Mackay, Townsville and Emerald.  

Nine of our 12 most popular locations were Queensland regional centres.  

And, no, it’s not because we are based in Queensland. Only 20% of our report buyers were Queensland-based in the financial year 2013. We get most of our buyers from NSW and Victoria.  

So why is Queensland so popular?  

I think, in part, it’s because Queensland has an enduring reputation as a centre of growth. It has a track record for rising population and economic prosperity going back decades and investors are taking the long-term view that this will remain so.  

It’s also because Queensland is the most decentralized state or territory in Australia. All other states/territories have the bulk of their populations in their capital cities.  

Queensland is different. The state has stronger, prosperous regional areas than anywhere else in the nation and many of those places have well-established records for growth.

While Brisbane and tourism icons like the Gold Coast, the Whitsundays and Cairns have struggled in recent years, regional centres like Toowoomba, Emerald, Mackay, Gladstone, Roma and the towns of the Western Downs region have all delivered good price growth.  

Queensland offers unique or near-unique features to investors.

Nowhere else in Australia has a Gold Coast (probably not a bad thing, because the Gold Coast is a poor performer on capital growth, with houses and units on average still worth less than five years ago).

Nowhere else in Australia has a Gladstone, the nation’s leading industrial city.

Few other states have a Toowoomba, an inland city with 140,000 residents, a diverse economy and a boom resources province (the Surat Basin) on its doorstep.

Few other states have a Mount Isa, a remote mining town which is also a regional centre of 20,000-plus residents.

Few other states have a Townsville, a regional city with the population, economic diversity and strength of a capital city.  

And, with the exception of WA, no other state has the resources sector oomph of Queensland – a factor that will continue long-term, despite current weakness in the coal sector.  


For these and other reasons, Queensland lures property investors like no other part of Australia. 
Terry Ryder is the founder of hotspotting.com.au 

Exports Hit 3 Year High at Hay Point Coal Terminal

Friday, July 26, 2013

By Dominic Geiger

 

HAY Point Coal Terminal has recorded its highest export figure in more than three years as companies go into overdrive in an attempt to offset falling commodity prices.

More than 4.1 million tonnes of coal was pushed through the BHP Mitsubishi Alliance-owned terminal in June, a figure Queensland Resources Council chief executive Michael Roche said was testing the facility's capabilities.

"In the June quarter in Gladstone, Abbot Point, Hay Point and Dalrymple Bay ... all exports were up strongly on this time last year," Mr Roche said.

During the same period last year, Hay Point Coal Terminal exported just over 2.6 million tonnes of coal.

At full capacity it can churn through 6000 tonnes an hour.

Mr Roche said increased export volume showed companies were moving in the right direction to maintain profitability.

"Companies know the way to make money at the moment is through volume because they're not going to make money through fat prices," he said.

"So that's got to be good for confidence of the industry and good for the workforce."

According to the Reserve Bank of Australia, the commodity price index fell 10.5% during the past year, due mainly to declines in the prices of coking coal, iron ore, thermal coal and gold.

Mr Roche said the high export volume was evidence BMA had "got on top of its cost structure".

But he said not all companies were in the same situation.

"We have ... some mines that have got on top of their cost structures and ... established a profit margin," he said.

"There are other mines that are yet to establish that margin of profit ... and there are mines and parts of mines that may well not get into profitability in this current environment."

Hay Point Coal Terminal is owned by BHP Billiton Mitsubishi Alliance, while Dalrymple Bay Coal Terminal, also at Hay Point, is leased from the State Government by DBCT Management Pty Ltd.

http://www.dailymercury.com.au/news/exports-hit-3-year-high/1944416/

Real Estate Market at Start of a New Growth Cycle

Friday, July 05, 2013

Estate agent John McGrath says Sydney’s recovery is well underway, with increasing buyer demand and strong prices being achieved across all property types under $2 million.

He has noted weekend clearance rates have been consistently above 70% for several months and that home loan applications are rising.

"Official interest rates are at a record low, with fantastic deals such as a three-year fixed home loans now on offer at 4.83%," he told his Switzer blog readers.

"We’re on track to achieve 5-10% growth in prices this year, with more buyers coming off the sidelines as they see more and more evidence of stronger sales in their neighbourhoods," he said.

McGrath reckons investors are very prominent in the market.

"Many are choosing to purchase through their self-managed super funds, which continues to be one of the most significant changes in the Australian residential marketplace today."

"We are at the start of a new growth cycle which will play out over the next three to five years."

 

By Jonathan Chancellor
Thursday, 04 July 2013

Record Population Growth Forecasts

Friday, June 28, 2013

At the same time that building starts were dropping Australia’s population was growing at the fastest rate in 200 yrs*. In fact, our population is predicted to grow by 350,000 people per annum*.

(* Australian Bureau of Statistics)        

Australia is predicted to grow at a rate of 65% well above the global average, a survey by the Washington based private research body, the Population Reference Bureau. 

This puts Australia’s growth rate at second only to India.  

Why is this?

1. Migration:

I am no economic expert but many I have talked to have commented that the GFC has rapidly escalated the number of people wanting to migrate to Australia.  The old adage of Australia being the ‘lucky country’ has become a ‘world wide’ slogan.  Australia was one of the only countries to escape a recessions.  Actually, oops I think Prime Minister Rudd announced a recession for only a few days.  During the GFC that crippled many countries, Australia continued to grow at a rapid rate.  In addition, a factor that strikes at the heart of many Australians is that Australia is coined to become ‘the resource hub’ of the new world.  Australia’s natural resources are in ample supply and whether we like it or not, we are a target for a continued resource boom. 

The final verse of Australia’s Anthem makes it clear that migration is a fundamental part of Australia’s mindset.

For those who’ve come across the seas
We’ve boundless plains to share;
With courage let us all combine
To Advance Australia Fair.

(Advance Australia Fair)

2. Increasing birth rate:

Australia’s birth rate is on the increase for the first time since the post-war migration baby boom saw it explode in the 50’ and 60’s. 

According to (Reuters – Aug 6, 2010 (Canberra)) - Australia's birth rate has hit a 25-year high, and government has urged "have one for mum, one for dad, and one for the country".

And further increases in the birth rate could worsen the problems of an ageing population, driving new mothers out of the workforce and reducing the tax base, the nation's productivity watchdog said.

"Much of the recent increase in the fertility rate is likely to reflect the fact that over the last few decades, younger women postponed childbearing and many are now having those postponed babies," Productivity Commission author Ralph Lattimore said.

Australia's 21 million population was boosted by 285,000 births in 2007, the highest level in 25 years, and up from 261,400 births in 2005.

The population is expected to hit 31.6 million by 2050, driven to a small extent by the higher birthrate and almost 10 million new immigrants.

3. Increasing health and longevity:

Australia is well known for it’s healthy and active lifestyle, clean living and fresh, open air spaces.  Coupled with our reasonably good health system and we have Australian’s living longer. 

According to www.aag.asn.au/filelib/Economic_implications_of_increasing_longevity


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