March 11, 2024
Nationwide, waterfront properties are generally worth over 60% more than inland properties, according to some estimates. And as you might expect, this premium tends to be the highest within our capital cities.
For instance, waterfront properties in Sydney are, on average, worth almost double the value of inland properties – the highest waterfront premium in the world. But it isn’t just the inner cities that continue to produce a major waterfrontage premium. Tourist hubs like Byron Bay, the Mornington Peninsula, the Sunshine Coast, the Gold Coast or the Central Coast are all coastal hotspots for attractive lifestyle properties. In areas like these, even inland properties can feel the knock-on effects of high waterfront demand.
February 26, 2024
In our previous article, we explained how Hedonic Value Indices (HVIs) such as those published by CoreLogic, can measure changes in property market values, despite only a small number of houses having recent sale prices.
From that article, you’ll remember that the accuracy of a HVI relies upon details about property quality – bedroom counts, bathroom counts, land size, construction date, are all things that HVIs use to better provide context for sales that have taken place.
In other words, a house selling for double the local median, probably has much better features than other houses nearby. Knowing this, we don’t conclude that the value of the entire area has doubled. Since we’ve accounted for the higher quality of that property, we know it was an outlier, and we can produce a more accurate estimate of market change.
February 22, 2024
If you’ve ever read a news article about Australian real estate, there’s a decent chance you’ve come across CoreLogic’s hedonic indices. These indices, published monthly, have become something of a benchmark in the industry for understanding the comparative performance of Australian property markets over time.
Besides our own monthly market smart reports, even the biggest Australian publications have come to rely on these figures published by CoreLogic.
February 19, 2024
The Australian housing market has carried on its upswing into 2024. National dwelling values rose 0.4% increase in January marking a consistent, year-long rise in value. As we saw towards the end of 2023, Perth, Adelaide, and Brisbane have seen significant growth and continue to drive the aggregate figures as some other cities have experienced declines. Regional markets are also gaining momentum, outpacing the capital cities in value growth. Read on as we examine these trends more closely and discuss the important factors for investors to consider moving forward.
February 15, 2024
Yes, it is a silly word, but “Yes-In-My-Backyard-ism”, represents some very serious housing ideas that are rapidly gaining support in Australia and around the world.
If you’re unfamiliar with the term, this article serves as a brief introduction to the movement and its beliefs. We’ll also look at what its popularity could mean for Australia, and what informed investors need to consider.
February 15, 2024
Recently, the Labor government has announced new changes to the tax reform plan, originally legislated back in 2019 by the then Liberal government. In short, the Labor’s new changes have reduced the cut applied to high-income earners, and marginally increased the tax cut for mid and low-income earners.
January 31, 2024
In our previous article, we discussed some of the challenges unique to real estate forecasting, defined what a lead indicator is, and explained two broad types of lead indicators. In this article, we’re looking at a few examples of the two types.
January 31, 2024
For real estate markets, one distinctive characteristic sets it apart from other, more fluid markets – a slower cadence. Unlike the constant volatility of stock markets, real estate is a slow burn. By the time sensational headlines proclaim an 'explosion' of house prices in a particular area, the conditions responsible for that headline had likely begun to coalesce months, or even years, beforehand. The headline you eventually see in the news, merely captures the crescendo of that slow collision of factors. It's almost like tectonic plates inching towards each other unseen, eventually creating a sudden outcome that gets our attention.
January 26, 2024
In our previous article, we conducted a bit of a deep dive into what CBDCs are, why governments are so interested in them, and where the RBA is in its ‘eAUD’ research.
In this article, we’re looking more closely at CBDCs from a real estate perspective. What do property investors need to know about the potential functionality and uses of CBDCs?
Here are just a few emerging trends to consider.
January 25, 2024
When was the last time you paid for something with cash?
Chances are, it may have been a while!
The share of all transactions conducted in cash has been in a steady decline for decades. This trend is only set to continue, with younger generations being far less likely to rely upon cash for the bulk of their purchases.
