Melbourne industrial market to trough in 2009

Industrial property values have come under significant pressure in Melbourne, with prime yields having softened by almost 250 basis points in just 12 months.

However, prices and yields are forecast to stabilise this year before a period of gradual recovery, according to new forecasts from CB Richard Ellis. Further, Kevin Stanley said pricing had moved more aggressively in the industrial sector than any other area of the market. Read the rest »

Australia’s Low interest rates increase interest!

The adjustment of 3.75% in the last five months is significant but not as high. However, in percentage change terms it is close to 50% of the peak rate of 7.25% in March 2008.

The auction clearance rates for the week ended 14th were significantly improved with some markets reporting a clearance rate of something in the order of 70%.

Australia’s growth rate in the year from Jan 07 to Jan 08 was 11.86% and this has reduced to -1.8% in the year ended Jan 09. This decrease looks significant and is, but looking at the monthly trend it would seem that we may have reached the low point as the rate of adjustment is slowing. The correction in December 2008 was -1.1% and is similar in January being -1.15%.

There was more activity and interest in the lower half of the market where 54% of all sales occurred.

In the last 12 months, Australia has experienced rental increases of 9% and 13.3% for houses and units respectively. This increasing rental yield will continue to occur and compensate investors for the lower capital growth which is occuring. In cash flow terms, investment is and will continue to become easier.

Source: Residex Newsletter - February 2009

Australia’s Stimulus funds ’should flow into economy quickly’

Economists say the early impact of the Federal Government’s $42 billion stimulus package will be noticed when the payments flow from next month.

The stimulus plan made it through the Senate yesterday after a week of wrangling in Federal Parliament.

 

The cash handouts will start to roll from next month, beginning with the single income and back to school bonuses from March 11. Read the rest »