A fairly ordinary weekend for auctions although the dailies reported some extraordinary prices for properties in the inner suburbs,namely Camberwell and Richmond where expectations were exceeded.                                      
 
Of course this time of year is not the best gauge of the market or auction results.I’ts cold,the snow season is on,school holidays are near their end and most Vendors will be holding back for better weather. However the paucity of stock can be beneficial to Vendors.                                          
 
General sentiment re interest rates,share prices and market conditions is not good and it is being reflected in the property market.
 
Demand will build and put pressure on so we expect an improvement in results at auction and other means of sale.
 
An interesting and usually overlooked stat. is that auctions only make up aproximately 30% of all sales. However most commentators use auction results as their barometer of market conditions.
 
In a forthcoming article we will talk about sales reporting.

APARTMENTS
 

The developer of the old CUB site at the top of Swanston Street recently announced that he would build a high-rise tower that would offer, amongst other things, “affordable housing”.

The building would have accommodation ranging from one bedroom to two and three bedroom apartments.

Hardly “affordable”.  Consider some prices for the basic one bedroom apartment being offered elsewhere in the city.  Prices range from $265,000 to $400,000.  Hardly affordable housing for families.  However very affordable for wealthy overseas students and property investors.

High-rise residential towers however do provide quality living usually in a city or near city location and offer “lifestyle”.  However beware of management fees, which are very high and are an additional cost to rates, taxes and utility charges.

LAND
 

Recently Tony De Dominco from the Urban Development Institute stated the Federal Budget would be helpful to first homebuyers, but would not solve housing problems.

He said the way to solve housing problems was to release more land???

Sounds great but to whom is it released – land developers, who land bank and then release it to suit their schedule, which relates to demand for their particular product and their ability to develop the infrastructure to service the land?

Usually new releases are out in the “boondocks”, far from public transport, schools and other services.  Not exactly where families will buy.

Land developers control land, not the government.