Sign in to follow this  
Followers 0
cobran20

NEWS: Revealed: The places where houses won't sell

6 posts in this topic

link

HOMES in many parts of Australia are taking twice as long to sell as they did a year ago, with many remaining on the market for months on end.

Vendors are waiting up to a year to sell in the nation's worst-affected areas, which include high-end suburbs like Double Bay - where homes fetch an average of $3 million - and Church Point in Sydney, Newstead in Brisbane and Perth’s trendy Cottesloe.

But regional outposts Denham and Mt Barker in Western Australia have been hardest hit, with asking prices slashed by up to 30 per cent, earning each a spot on a list of the most discounted properties in Australia, according to RP Data figures.

Other black spots include Coochiemudlo and Rockhampton in Queensland and Bright in Victoria.

RP Data National Research Director Tim Lawless said many property blackspots were “lifestyle markets” in regional coastal areas where demand had evaporated.

“Essentially, areas where the average selling time is relatively high, it generally indicates that demand for available homes is low, available housing supply may be high, or vendors may be expecting prices that are out of line with buyer price expectations," Mr Lawless said.

“In some instances the statistics may be affected by small housing markets where a few homes that are taking a very long time to sell are driving the statistics higher.”

The time properties spend on the market is more likely to blow out in small towns hit by an economic downturn, Kevin Young CEO of property investment consultants The Investors Club said.

"In tough times with low discretionary spending these pockets suffer," Mr Young said. "It comes back to demand. Coochiemudlo, is a small island that you need to catch a ferry to. It’s a place where people might retire too or have a holiday home.

"Similarly, River Heads is a small coastal town and Rockhampton is suffering higher than national average levels of unemployment which means there is simply lower demand."

But even in capital cities with strong population growth and low unemployment the bracket over $1 million can also be slow because of unrealistic expectations from vendors pricing.

Chris Gray CEO of Empire Property Portfolios said buyers were more savvy these days: "They worry that if no one else has snapped up a property that has been on the market for months, then there must be something wrong with it that they can’t see."

Market glut

Almost 311,286 properties are for sale across Australia, the highest in more than five years and almost 30 per cent more than the same time last year.

In Melbourne, there are 50 per cent more properties for sale, 30 per cent in Sydney, 14 per cent in Brisbane and almost 40 per cent in Adelaide.

House prices have dropped amid the selling binge, slipping 4 per cent nationally in the year to October to a median of $536,011.

Meanwhile, auction clearance rates have remained below 50 per cent for 20 consecutive weeks in Australia’s largest housing markets, and with Christmas looming an improvement is not expected until next year.

RP Data’s Tim Lawless said market confidence had been battered by global economic turmoil and rate jitters.

Buyer numbers are down by 13 per cent and home sales 33 per cent compared to the peak number of transactions in the last growth cycle (September 2009), Mr Lawless said.

“Before we start to see any material improvement in home values and time on the market we will need to see confidence levels rise,” he said.

Slump

In other sluggish signs, Australia's capital city home prices have been led down by a heavy slump in Brisbane, according to a private report.

Home prices in the regions fell 3.4 per cent on a seasonally-adjusted basis, according to data released by RP Data-Rismark.

Brisbane led the drop in values for the year to October, with an 8 per cent slump, after a 1.6 per cent decline in the month of October.

Melbourne, Adelaide and Perth home values have all declined 5 per cent or more in the year to October.

Sydney was relatively steady, with a 1.1 per cent loss of value.

All capital home prices fell in October, except Sydney, which was unchanged, and Canberra and Hobart, which added 1.6 per cent and 3.1 per cent, respectively, although Hobart's data was based on the final September results.

Top ten black spots

Denham WA 269 days

Mt Barker WA 248

Robertson 233

Bright Vic 233

Morunya NSW 233

Bowraville NSW 227

Coochiemudlo Island Qld 225

Rockhampton Qld 225

Donald Vic 225

River Heads Qld 222

Share this post


Link to post
Share on other sites

Rockhampton seems the strange one in that list.

It sits on the edge of the Bowen Basin, with a large coal port and aluminium smelter at Gladstone just 100kms away and Mackay with 2 large coal ports on its other border, with mines scattered all through the region from Blackwater to Clermont.

I don't understand why it would have difficulty.

Admittedly, its major industry is cattle, but surely there must be some flow-on into Rockie from the mining industry.

Still I guess the statistics tell a different story.

Share this post


Link to post
Share on other sites

Rockhampton seems the strange one in that list.

It sits on the edge of the Bowen Basin, with a large coal port and aluminium smelter at Gladstone just 100kms away and Mackay with 2 large coal ports on its other border, with mines scattered all through the region from Blackwater to Clermont.

I don't understand why it would have difficulty.

Admittedly, its major industry is cattle, but surely there must be some flow-on into Rockie from the mining industry.

Still I guess the statistics tell a different story.

Probably because all those things have been priced in already, and probably priced in too much!

Share this post


Link to post
Share on other sites

Probably because all those things have been priced in already, and probably priced in too much!

Thanks gb,

That's a moot point.

What price the mining boom on values of homes in that region.

Share this post


Link to post
Share on other sites

Fake news.  Real Estate is a silver bullet gold seal lock to appreciate more betterer than anything youse guys could ever suggest.   Im waiting for fairfax to run a segment highlighting the opportunities waiting for The Savvy in places like Gladstone.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0