Twestival Auction Receives A First National Boost

March 29, 2011 Leave a comment

Auctioneer Michael McCaffery pictured at right

Mike McCaffery, leading auctioneer with First National Real Estate and self-proclaimed Twitter enthusiast,  added his voice and auctioneering talents to this year’s Sydney Twestival, held on Thursday 24 March 2011 at the Beresford Hotel in Surry Hills, NSW.

Mr McCaffery was invited by the event organisers to conduct the live auction of an Aquabumps at Bondi Beach print after they found him on Twitter and commented on his 30,000 strong following.

Twestival is a fundraising event for local charities hosted in 180 cities from around the world.  Sydney’s Twestival brings together the Who’s Who of social media for an evening of drinks, networking and live and on-line auction bidding for items including photographs, yet-to-be-released and top-shelf wines and much more.

Mr McCaffery says he feels especially honoured to be asked to be part of the unique fundraising event, which aims to raise around $4,000 for Australian-based charity, Redkite.

“Redkite provides practical support to children, young people and their families who have a loved-one who is ill with cancer,” Mr McCaffery said.

“So, I feel honoured if I can contribute in any way to helping this worthy cause.

“Auctioneering allows me to use my skills to help people realise their home ownership dreams, and being able to extend their use to assist the 8,000 Australian families affected by childhood and adolescent cancer is just an absolute privilege for me.”

The organisers say they have already sold 250 of the targeted 300 tickets, which is more than Twestival events held in New York, London and San Francisco.  All monies raised through ticket sales, auction proceeds and donations go directly to support the nominated charities.

Since Twestival began in 2009, it has raised close to $1.2 million for 137 causes around the world.  Today, it is a global movement, rallying volunteers in more than 45 countries to bring their Twitter communities together in support of a good cause in a single day.

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Tasmanian, Victorian and Queensland Award Winners Announced

March 28, 2011 Leave a comment

First National Real Estate’s Victorian, Tasmanian and Queensland members were rewarded for their shining achievements over the past year on Saturday night at the network’s Gala Awards dinner held at the Grand Hyatt in Melbourne (for Tasmania and Victoria) and The Strand in Rugby Quay (QLD).

Victorian Awards:

On the night the Top 10 Offices in the state were named and included:
•    First National Real Estate Westwood, Werribee (Sales Office of the Year)
•    First National Real Estate Tweed Sutherland, Bendigo
•    First National Real Estate Finning, Cranbourne
•    First National Real Estate Collie & Tierney, Mildura
•    Garry Nash First National Real Estate, Wangaratta
•    First National Real Estate Dawes & Milne, Frankston
•    King & Heath First National Real Estate, Bairnsdale
•    First National Real Estate Frank Facey, Berwick
•    First National Real Estate Bill Schlink, Templestowe
•    First National Real Estate Frank Facey, Narre Warren

Individuals were also recognised with the Top 10 Salespeople being:
•    Bob Westwood, First National Real Estate Westwood, Werribee
(Salesperson of the Year)
•    Rob Westwood, First National Real Estate Westwood, Werribee
•    Shane Howard, First National Real Estate Finning, Cranbourne
•    Darryn O’Keefe, First National Real Estate Tweed Sutherland, Bendigo
•    Frank Barrett, First National Real Estate Finning, Cranbourne
•    Matt Leonard, First National Real Estate Tweed Sutherland, Bendigo
•    Andrew Pearce, First National Real Estate Tweed Sutherland, Bendigo
•    Debbie Ravida, Garry Nash First National Real Estate, Wangaratta
•    Cameron Tweed, First National Real Estate Tweed Sutherland, Bendigo
•    Tony Vercher, First National Real Estate Westwood, Werribee

Nathan Ludeman from First National Real Estate Tweed Sutherland, Bendigo and Louise Zhang from First National Real Estate Bill Schlink, Templestowe were named Property Manager Rookie of the Year and Sales Rookie of the Year, respectively.  Janine Blake from First National Real Estate Tweed Sutherland, Bendigo and Janine Thorpe from Charles L King & Co First National Real Estate, Echuca were named Receptionist of the Year and Administrator of the Year respectively.

Tasmanian Awards:

Top 3 Offices in the state were named and included:
•    First National Real Estate McGregor, Moonah (Sales Office of the Year)
•    First National Real Estate Bloomfield, Ulverstone
•    First National Real Estate Burnie

Individuals were also recognised with the Top 3 Salespeople being:
•    Jackie De Haan, First National Real Estate Bloomfield, Ulverstone
(Salesperson of the Year)
•    Tony Ellerton, First National Real Estate McGregor, Moonah
•    Mandy Welling, First National Real Estate McGregor, Moonah

Cheryl Reddick from First National Real Estate McGregor, Moonah and Michael Green from First National Real Estate Burnie were named Property Manager Rookie of the Year and Sales Rookie of the Year, respectively.  Rachel Bartholomew from First National Real Estate McGregor, Moonah was named Administrator of the Year.

Queensland awards:

Top 10 Offices:
•    First National Real Estate Centrepoint, Mermaid Waters
(Sales Office of the Year)
•    First National Real Estate Nerang
•    Surfers Paradise First National Real Estate
•    First National Real Estate Toowoomba
•    First National Real Estate Metro, South Brisbane
•    First National Real Estate Maroochydore
•    First National Real Estate Paradise Point
•    First National Real Estate Action Realty, Ipswich
•    First National Real Estate Rochedale, Rochedale South
•    First National Real Estate Biloela

First National Real Estate Oxley received the Specialist Individual Office Award for Foundation Office of the Year.

Individuals were also recognised with the Top 10 Salespeople being:
•    Bob Rollington, First National Real Estate Surfers Paradise
(Salesperson of the Year)
•    Ben Charlton, First National Real Estate Potsville Beach
•    Adrian Chen, First National Real Estate Centrepoint, Mermaid Waters
•    Danny Yeh, First National Real Estate Centrepoint, Mermaid Waters
•    Nicholas Davy, Dickies First National Real Estate, Sandgate
•    Christine Gabriel, First National Real Estate Biloela
•    Shane Purssell, First National Real Estate Maroochydore
•    Sam Hansen, First National Real Estate Nicholson, Kirwan Townsville
•    Ben White, First National Real Estate Metro, South Brisbane
•    Richard Falwasser, First National Real Estate Rochedale, Rochedale South

Avril McMillan from First National Real Estate Carolans, Nambour and Joel Ruge from First National Real Estate Springwood were named Property Manager Rookie of the Year and Sales Rookie of the Year, respectively.  Holly Sprott from First National Real Estate Ferny Hills and Tamara Wrigley from First National Real Estate Carolans, Nambour were named Receptionist of the Year and Administrator of the Year respectively.

Ben White from First National Real Estate Metro, South Brisbane won the specialist individual Marketing Excellence Award.

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Are the days of auction numbered?

March 23, 2011 Leave a comment

With auction clearance rates lower than ideal in some areas of Australia, some customers have asked, are the days of auction numbered?

First National‘s communications manager Stewart Bunn says…

Auction clearance rates are cyclical by nature.

As has always been the case, the fundamental criteria for auction is the belief that more than one buyer for a property will be attracted during the marketing period.

Regardless of auction clearance rates, well positioned, unique, or highly desirable properties will always attract more than one buyer during their marketing campaign. However, in times of lower buyer demand, a higher proportion of properties will be better suited to the private treaty sale process.

This will naturally trend up and down through time, in accord with levels of demand and confidence, but auction will always remain a viable choice given the right circumstances.

What is crucial to decision-making is consultation with a professional, experienced real estate agent. They will explain your local market’s dynamics and help make an assessment of your property’s potential.

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Historic Singleton Mansion Sells

March 21, 2011 Leave a comment

Media Release – 21 March 2011

First National Max Bailey today announced it has concluded the sale of one of Singleton’s most stately homes, the High Victorian Italianate Baroona.

While the specifics of the sale are subject to a confidentiality agreement, the property had been expected to achieve a sale price in excess of $3 million.

‘The strength of this sale reflects a resurgence of interest in upper tier properties in the Hunter Valley where demand had been weak in the latter stages of 2010’ said First National principal Scott Bailey.

Built in 1823 for the Scottish born free settler James Mudie, the ‘castle’ as it is often called comprises 26 rooms and occupies 100 acres of grazing country near the Pokolbin wine region.

The property’s picturesque Jacaranda lined driveway remains intact, as does its signature cedar joinery, ornate plaster ceilings, and marble and wild rose fireplaces.

As with many early colonial homes, Baroona has been expanded several times and demonstrates several architectural styles.

‘The original home was constructed from sandstone in the Georgian style however in 1886, additional rooms and the Victorian Italianate tower was added’ said Mr Bailey.

‘Australia’s famous architect, Horbury Hunt, designed a new service wing for the east end of the house in 1885. This introduced the powerful roof and large archway you see today that was originally intended to allow horse carriages to gain access the front door from the rear stables area’.

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What makes us so special?

March 21, 2011 1 Comment

The chorus of concern about ‘inflated’ Australian housing values has increased with the anonymous analysts of The Economist branding Australia ‘the most overvalued housing market in the world’. This accords with statements by the IMF and OECD as well as other foreign entities.

Undoubtedly, investors poised to enter the 2011 property market are worried; in fact, just about all of us in a country where the vast majority of wealth resides in the family home could justify our concern.

Should we believe such hallowed international institutions?

The Economist says our homes are 56.4 per cent overvalued, comfortably above Hong Kong’s 53.7 per cent and the property values of Shanghai, Sweden or Switzerland. Consequently, much of Australia’s media has adopted the view that if Sydney and Melbourne homes cost more than those in Hong Kong, we must be in a bubble.

Forgetting of course that the Reserve Bank of Australia and several major banks unequivocally stated last year that there was no bubble in Australian property, what exactly did the Economist measure? Fortunately, James Kirby of The Sunday Age recently asked that question. The answer is the ratio of home prices to rents in 20 economies.

What about earnings? What about supply? What about unemployment? What about immigration? What about the health of individual economies?

Kirby points out how ‘leaky’ The Economist’s single measure truly is, observing that it could equally be said that ‘Australia tops The Economist list because our average rents are too low’. In fact, although yields have remained unchanged at four per cent for many years, they are beginning to rise, as predicted in First National’s 2011 Property Market Outlook.

Australia’s default perception concerning our own economic success and house price stability appears strongly tied to our historic national obsession with cutting tall poppies. Surely if house prices in the UK, USA and parts of Continental Europe have suffered falls of 40 per cent or more; what makes us so special? Why couldn’t it happen here? Surely we must be in a bubble!

This economy is rated as one of the strongest in the world.

It’s no fiscal anomaly that our banks and other financial institutions didn’t collapse like those in so many other countries. The housing market is almost unique and that’s also no coincidence. Nominate, for instance, any single country with such vast areas of land but a population concentrated in just four cities.

Perhaps our values are entirely justified.

The family home is a tax shelter. Unemployment is low by international standards. Immigration remains at record levels post World War Two. Undersupply characterises most major property markets. What’s more, the factors that could start to move prices higher or lower are dormant. Levels of investor activity in the marketplace have scarcely changed since the GFC and there is no prospect of housing oversupply depressing values at any stage in the future.

Although housing loan approvals have fallen recently, this is largely associated with the summer floods of Queensland, New South Wales and Victoria. The ANZ bank says solid underlying fundamentals should support stable growth in housing finance from the second quarter.

While the destruction of property and damage to businesses throughout these regions will affect economic outcomes for the next few months, reconstruction and replacement of household goods is expected to boost the economy.

The potential for Australia’s economy to be affected by the impact of the earthquake, tsunami and nuclear crisis on Japan, our second biggest trading partner, may now generate new concerns for investors and property owners.

Australian uranium miners and exploration companies may be affected, longer-term, if public support for nuclear power generation wanes as a result of Fukushima. However, coal markets and Liquid Natural Gas (LNG) exporters stand to gain from any move away from nuclear energy. While iron ore spot prices will come under pressure as Japanese steel manufacturers suffer production anomalies associated with electricity shortages, the demand for energy and raw materials in Japan can only increase.

Coming back to international observations of the Australian property market, as The Sunday Age’s Paul Kirby observed, statistics are always riddled with localised exceptions. For example, Australia’s median house price is $412,000 but try finding a house in many of Sydney’s suburbs with that budget! So, when you start comparing house prices internationally, the problems are enormous.

It’s clear that the factors driving the property market have been stalled by successive interest rate rises. However, there are few signs that prices are going to plunge. What’s more plausible is the moderation of a marketplace that has performed exceptionally well in recent years, and a return to gentle, albeit slower growth throughout the latter half of 2011 and beyond.

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Property Drives Economy, But Who Drives Property?

March 18, 2011 Leave a comment

Media Release – 9 March 2011

First National Real Estate CEO Ray Ellis, believes property representatives should have a greater say in the future of the property market, and ultimately Australia.

“Property is a key driver of Australia’s economy, being the 12th largest in the world today. It seems crazy to me that, given its significance, representatives from the industry are being left out of determining what is best for the industry, and by association, this country,” Mr Ellis said.

“Real estate and property business owners are in it for the long haul, whereas governments and bureaucrats are only it for as long as they are voted in.

“We are not swayed by whether or not it will be popular with voters, but what is best for the industry long term, to make it sustainable and continue to prop up Australia’s economy so we can weather some of the storms we have seen over recent times.”

According to the latest statistics available through the Australian Bureau of Statistics and IBIS World, real property, including land and buildings, account for 63.9 per cent of Australia’s $10 trillion asset base.

“Industrial and commercial property alone is responsible for 16.2 per cent of this country’s national resources, dwellings for 17.3 per cent, housing and other land for 30.4 per cent,” Mr Ellis said.

“Surely this is a big enough piece of the pie to give property market representatives a bigger voice in saying how to carve it up and maximise its value.”

According to Mr Ellis, it is the people inside the industry who have the greatest interest in its long term, sustainable growth and value, citing the debacle of the planning process as evidence of how governments can get it so wrong.

“The length of time it takes to go through the planning process actually devalues a property and acts as a disincentive for developers,” Mr Ellis said.

“In the end, planning strips value out of a property because of how long it takes and is holding this country back – and that doesn’t even take into account the complexities associated with the actual planning rules and regulations.”

Mr Ellis said even when you consider how much real property dominates Australian households’ assets and debts, it is still evident that property is a key determinant in Australia’s economic future.

“Real property accounts for 62.5 per cent of total Australian household debt and is expected to do so for some time to come,” Mr Ellis said.

“So it makes sense that property experts, and not government bureaucrats, set the direction for property into the future – who knows, perhaps we should even run the country – I mean, Victoria already has a real estate person as Premier.”

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First Home Owners Grant A Spectacular Failure

March 17, 2011 Leave a comment

It’s hard to think of any government policy that has been pursued for so long, in the face of such incontrovertible evidence that it doesn’t work, than the policy of giving cash to first-home buyers in the belief that doing so will promote home ownership.

Governments have been providing cash handouts to first-time home-buyers since 1964 – almost half a century. Yet, strikingly, the home ownership rate has never been higher than the 72 per cent recorded at the time of the 1961 census, three years before the first of these schemes began. At every census since then, it has fluctuated between a low of 68 per cent (in 1976) and 72 per cent (in 1971). At the past two censuses (in 2001 and 2006) it stood at 70 per cent.

Indeed, the apparent stability of the overall home ownership rate conceals a substantial decline in home ownership rates among every age group below 50. Research by Sydney University’s Judy Yates and Hal Kendig of Sydney University, and more recently by Joe Flood and Emma Baker of Flinders University, undertaken for the Australian Housing and Urban Research Institute, has shown that between the 1991 and 2006 censuses, home ownership rates dropped by between 5 and 7 percentage points among households headed by each of the five-year age cohorts between 25-29 and 45-49, by 4 percentage points among households headed by 50-54 year-olds, and by 2 percentage points among households headed by 55-59 year-olds. The only reason the overall home ownership rate has not fallen more dramatically is the substantial increase in the proportion of households headed by people aged 45 and over, among whom home ownership rates have always been significantly higher than among younger age groups.
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In other words, the billions of dollars spent on cash grants to first home buyers (and for the first nine years of the First-Home Owners Grant Scheme’s operations, expenditure on those grants exceeded $10 billion) have spectacularly failed to achieve the objective of increasing home ownership rates.

It is pretty obvious why. Cash grants and other forms of assistance to first-time home buyers have served simply to exacerbate the already substantial imbalance between the underlying demand for housing and the supply of it – an imbalance which, according to the National Housing Supply Council, amounted to a shortfall of more than 200,000 dwellings as at June last year. In those circumstances, cash handouts for first-home buyers have simply added to upward pressure on housing prices, enriching vendors whilst doing precisely nothing to assist young people (or anybody else) into home ownership.

Contrast this with what happened during the 1950s and early 1960s, when the federal government provided low-interest loans to state governments to construct dwellings for sale to eligible first-home buyers. The home ownership rate rose from just under 53 per cent at the time of the 1947 census (a level unchanged from that reported in the first federal census in 1911) to, as noted earlier, 72 per cent at the time of the 1961 census.

In other words, policies which added directly to the supply of housing worked. Policies which have, in effect, added only to the demand for housing (or, more strictly, increased the amount which people can afford to pay for housing), have conspicuously failed.

Why, then, have governments persisted with policies which have so miserably failed to meet their ostensible goals? The answer is, surely, that since about 70 per cent of Australians live in homes which they (or members of their immediate family) already own, policies which make them feel richer (by inflating the value of what for most of them is their most important single investment) are much more popular than policies which might allow the small minority of Australians who don’t at present own their own home, but would like to, to join them.

If governments really wanted to do something about housing affordability, they would abolish cash grants to first home buyers, and ”quarantine” tax deductions for interest paid by landlords to the value of the rent received in any given financial year (with any excess carried forward against the capital gains tax liability when the property is sold), and use the resulting savings to assist local governments to reduce upfront charges imposed on developers, and in various other ways increase the supply of low-cost housing.

But I’d put more money on the chance of Andrew Demetriou becoming an enthusiastic supporter of a Tasmanian team in the AFL. And even more on the chance of Ireland making the next round of the cricket World Cup.

SOURCE: The Age, March 16

Saul Eslake is a program director with the Grattan Institute. The views expressed here are his own.

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Tasmania Property Market Outlook

March 15, 2011 Leave a comment

Deanne Lamprey, Principal, First National Real Estate Burnie and Tasmanian Chair expects the Tasmanian property market to consolidate in 2011, as waning consumer confidence due to job losses, mainly in the North West of Tasmania, and plentiful housing stocks, begin to stabilise house price growth.

“There is strong potential for growth in land prices, but this is dependent on the number of land releases in the state,” Mr Lamprey said in First National’s 2011 Property Market Outlook released this week.

“There is a steady supply at present, but building approvals are down as a result of an undersupply of builders locally.

“There is also negative publicity on “head works” charged by the three water/sewerage authorities in Tasmania, which, if left unresolved, will definitely stifle development projects.”

According to Ms Lamprey, vacancy rates may increase marginally by up to 1 per cent and weekly rentals upwards between 5 and 10 per cent as uncertainty of job prospects in some areas impact on confidence in purchasing, potentially placing an upward pressure on the rental market.

Movements in weekly rentals will be between 5 and 10 per cent in the main.

Any population growth for Tasmania, which has seen virtually none in the last few years, would impact the state’s property market significantly. The benefit of waving stamp duty or introducing concessions for the over 65’s age group could prove significant.

“To this end, the government should encourage tourism and more enterprise in regional areas in a bid to encourage population growth and employment opportunities,” Ms Lamprey said.

“The water/sewerage authorities need to rethink their obscene ‘head work’ charges that developers are absorbing – freeing them up to develop as they would like.”

Ms Lamprey believes banks should be doing more to help keep the property market healthy and robust in 2011 and should consider abolishing mortgage exit fees and being more flexible with their loan products.

“Consumers would be the winners, as the major banks would need to be seen as more competitive with rates and may think twice about lifting rates above the RBA. However, there is the risk banks may try and be more creative with other consumer fees,” Ms Lamprey said.

“They should also look at educating their customers about why they implement higher rate rises than the RBA and mortgage insurers need to be more flexible in lending requirements.”

Ms Lamprey anticipates three additional interest rate increases which will have a negative impact on affordability as buyers’ borrowing capacity is reduced and may eat into what little equity some homeowners have – especially those who purchased in the ‘boom times’.

“Combine this with pressure on employment and we may still see a shift in values and turnover,” Ms Lamprey said.

“Recent interest rate increases have already impacted on the property market, contributing to more of the higher priced properties coming into the market as families are looking to reduce their mortgage debts.”

Ms Lamprey said Tasmania’s ongoing affordability will continue to prove too attractive for investors to ignore, however they may remain cautious due to future interest rate rises.

“They will however be fully aware that Tasmania is currently in the declining state of the real estate cycle,” Ms Lamprey said.

Ms Lamprey believes widely anticipated electricity price hikes are expected to increase the number of buyers looking for energy efficient features as well as change the types of features they look for, especially in relation to heating and lighting.

Ms Lamprey said the government needs to do more to alleviate the lack of supply such as releasing more land, allowing more medium density developments, improving planning and approvals processes and controls, and introducing a national planning authority.

“They should also consider reducing stamp duty and introducing stamp duty incentives for retirees, as well as rework stamp duty scales,” Ms Lamprey said.

“These scales have remained the same for years in spite of the sharp increases in property prices over the last decade.”

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Victoria Property Market Outlook

March 13, 2011 1 Comment

Garry Nash, Principal, Garry Nash First National and Victorian Chair expects the Victorian property market to strengthen in 2011, with house, land and apartment/strata property price increases of up to 5 per cent.

“These price increases are as a result of strong population figures and growth potential coupled with lack of available stock to meet growing demand,” Mr Nash said in First National’s 2011 Property Market Outlook released this week.

Land prices will also trend upwards as the cost of development will naturally keep pressure on them.

Vacancy rates are expected to trend downwards in 2011, although may increase marginally by up to 1 per cent in the first half of the year. Weekly rentals are expected to trend upwards as natural increases in salaries will improve property values and in turn affect rental values.

“As a result, movements in weekly rentals will be by up to 5 per cent in the main,” Mr Nash said.

Mr Nash expects an increase in forced sales due to mortgage defaults as a result of a lack of compassion by banks for those home owners suffering as a result of natural disasters, particularly in regional areas.

Investor activity is expected to increase in regional areas by between 2 and 3 per cent, as the metropolitan investor market begins looking at regional areas as a cheaper and more stable return for their money.

Property hot spots are seen as Shire of Wyndham, Shire of Casey and growth corridors out to the western side of Melbourne: Melton, Sunbury and to the north, Craigieburn, Geelong and Wallan.

Mr Nash believes banks should be doing more to help keep the property market healthy and robust in 2011 and should consider abolishing mortgage exit fees.

“However, this may lessen the number of properties coming onto the market and people may remain in the same property for a longer period,” Mr Nash said.

“Banks should also consider keeping their moves on interest rates in line with the RBA rather than move independently.”

Mr Nash anticipates two additional interest rate increases that, if delivered, have the potential to have a significant impact on the property market if wages do not increase in accord, and particularly if job security is threatened.

“Recent interest rate increases initially created indecision and concern for first homebuyers, however, with the right advice good turnover was still obtained,” Mr Nash said.

According to Mr Nash, widely anticipated electricity price hikes are expected to impact homebuyers and owners who are already looking at alternative types of energy providers.

“Native, drought tolerant plants are still the most sought after energy efficient feature of a home for Victorian homebuyers,” Mr Nash said.

“However, as increasing costs of services become more apparent, homebuyers will start to seek out more energy efficient features.”

Mr Nash said the government needs to do more to alleviate the lack of supply such as releasing more land, allowing more medium density developments, improving planning and approvals processes and controls, and introducing a national planning authority.

“In particular, more power should be given to local councils to make decisions for their own shire or district, as the policy of one size fits all does not work for a diverse country like Australia,” Mr Nash said.

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South Australia Property Market Outlook

March 11, 2011 2 Comments

Russell Burton, Principal, First National Real Estate Burton Groves and South Australian Chair expects the South Australia property market to strengthen in 2011.

“House, land and apartment/strata property prices are expected to increase by up to 5 per cent as a result of ongoing strong demand and increasing stock levels, underpinned by a reasonably strong economy,” Mr Burton said in the 2011 First National Property Market Outlook released this week.

“Assistance programs by major builders together with First Homebuyers Bonus scheme is also adding stimulus to construction and land sales.”

According to Mr Burton, vacancy rates are expected to trend downwards in 2011, although may increase marginally by up to 1 per cent in the first half of the year. Weekly rentals are expected to trend upwards as a result of increasing demand due to a booming resources sector and an ongoing lack of investor presence in the market.

“Movements in weekly rentals will be by up to 5 per cent in the main as investors slowly realise the long term potential and bargains on offer,” Mr Burton said.

“Investor activity is expected to increase in the region of between 5 and 10 per cent, as confidence in the market continues to grow.

“Increased mining activity will improve economic and market conditions such as increased job opportunities, stronger demand for housing wealth creation and investment in property. This should see further investment in transport infrastructure for export and provide stimulus in mining and Port regions throughout the state.”

Property hot spots are seen as redeveloping areas within a 15 km radius of the city, offering affordable opportunities with good rental returns and growth potential. Greenacres in the north/east of Adelaide is an area to watch as well as Glanville and adjacent suburbs in the West. The approval of re-zoning at Mt Barker will provide for a huge growth of around 7000 dwellings for the area.

Mr Burton believes banks should be doing more to help keep the property market healthy and robust in 2011 and should consider abolishing mortgage exit fees.

“This would serve as a stimulus to the South Australian property market,” Mr Burton said.

“In addition, they should keep their moves on interest rates in line with the RBA rather than move independently and look at reducing loan fees.”

Mr Burton anticipates two additional interest rate increases which, if kept to below 0.5 per cent, should see the market hold up.

“Recent interest rate increases, together with the ending of the federal and state first home owners grant boost, have already impacted negatively on the property market which would be further exacerbated if future interest rate increases are above 0.5 per cent combined,” Mr Burton said.

According to Mr Burton the recent ‘breaking of the drought’, coupled with widely anticipated electricity price hikes are expected to see a change in the types of energy efficient features homebuyers are seeking.

“Water is no longer the issue driving energy efficient features – power is seen as the more important consideration,” Mr Burton said.

“Solar hot water and power, especially solar energy panels and efficient heating, cooling and lighting, will become the features that make a home more saleable.

“Costs of installation and poor aesthetics are seen as the key barriers to making energy efficiency features become more of a ‘selling’ feature for homes.”

Mr Burton said the government needs to do more to alleviate the lack of supply such as releasing more land, allowing more medium density developments, improving planning and approvals processes and controls, and introducing a national planning authority.

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