We're the biggest!

Travelling around the globe Australia came out on top when it comes to the size of our homes. In 2009 the average size in square metres of new homes in Australia was 214.9sqm. New Zealand 196.2sqm - Greece 1126sqm - Italy 81.5 - UK 76.2sqm.

Source The Weekend Australian, Feb 20 2010

Toorak Gardens - highest median rent in 2009

The median rent in Toorak Gardens in 2009 was $580 per week - almost $100 more than the year before and the highest in the state. Henley Beach South had the next highest median rent of $550 while other eastern suburbs, Wattle Park, Millswood, Dulwich and Rose Park were close behind.

The cheapest weekly rent in both 2008 and 2009 was paid in Elizabeth.

Rental stock levels rose in 2009 due to the first home owners grant causing renters to leave the rental market and buy their first home.

Source The Advertiser, Feb 17 2010

Happy New Year

2009 - National Property Picture


National property values were up 10 percent over the first 10 months of the year. However the number of transactions are down even though demand for property is growing thanks to record population growth and improved confidence in the broader economy.

Outlook for 2010

- fairly upbeat
- expect investor and 'upgrader' numbers to continue to improve
- consumer confidence remains high
- medium to long term growth prospects remain healthy

Jock Gilbert gives a market update as the concern grows over the national economy.

Adelaide continues to display the stability in real estate prices for which it is well known. The first home buyer and unit sector remains strong, while other sectors are selling but with longer days on market.

Vendors selling can be safe in the knowledge that they have made significant capital gains in the last few years. Vendors who have recently purchased and are now selling are doing so on an even playing field.

Statistics are showing that the vacancy rental rate for properties is now approaching 3%. At Jock Gilbert Real Estate the vacancy rate is .5%, showing that well maintained and managed properties are still renting out well.

All the data is telling us there are challenging times ahead. With sound judgment and management of the marketing process properties are still achieving good prices. Auction is still a good market option where the property is likely to attract strong interest, as was the case with a recent auction sale which had 14 registered bidders and sold well.

Until next time….

REAL ESTATE FORECAST - A REALITY CHECK

Jock Gilbert comments on the state of the national and local market and the new legislation:

· In recent years, local and national real estate has experienced major capital growth with regular conversations over coffee focusing on ‘how much the property down the road sold for’. This was not sustainable. Just think where prices would have been in five years time had this continued.

The last year alone saw Adelaide median house prices increase 15.87% to $365,000. During the last quarter they remained stable, but home owners should be happy with the significant capital growth they have achieved.

Nationally, Adelaide continues to demonstrate its housing price stability with strong realistic gains achieved without the fluctuations, of the larger cities like Perth, Melbourne and Sydney. Here median house prices fell in the last quarter.

Look at the current situation in Palm Beach, New South Wales. Recent sales (58) indicated a 5.6% decrease over the last 12 months. However during the past 4 years Palm Beach has enjoyed a 62% gain to a median price of $2.55m. Property investment has to be judged in terms of years not months.

· The biggest challenge will be in the outer mortgage belt where interest rate rises and petrol price increases are likely to have an impact.

Overall analysts feel that with the S&P ASX 200 down by 10.5%+, the property market locally and nationally is holding up very well.

· Looking forward to 2010 & 11, BIS Shrapnel are predicting good growth across the board in national residential property prices, with Adelaide expected to be amongst the best performers.

On another note, July 28 heralded a new era for South Australian Real Estate with the introduction of The Statutes Amendment (Real Estate Industry Reform) Act 2007.

· The legislation aims to raise professional standards and increase consumer protection.

· For the vast majority of agents, it will be business as usual. Buyers and vendors will notice some changes in the quoting of prices and will no doubt take a while to get used it. Like any change there is a period of adjustment.

Buyers are reminded that in order to bid at an auction you are legally required to formally register with the agent on the day by completing a Bidder Registration Form, showing sufficient photo I.D. and obtaining a bidding paddle.

Do you have any questions regarding the new legislation, or do you have any general real estate queries? Our panel of real estate professionals are available to answer any and all of your questions.

Jock Gilbert Real Estate is fully committed to any measure that ensures the industry operates at the highest possible standard.

Closer to home, we have recently launched the gallery space at our office on Kensington Road. If you wish to be on our emerging artists exhibitions mailing list please email narellek@jockgilbert.com.au