October 2022 Newsletter
HEY NEIGHBOUR!
I hope you're all well and enjoying the extended daylight in the evening, a sign we're getting closer to summer. Whilst the year is not quite over yet, it feels like it has flown (I am sure I say that every year though). However, this year does feel slightly different. It appears like we're finally putting the pandemic behind us. I suspect the news will now start to talk about the downstream effects of the lockdowns (particularly in Victoria and NSW) and the health crisis, e.g. staff shortages and the negative impact that has had on particular areas of our society like our health workers or our hospitality industry. There is no doubt that these sectors (amongst others) have had to biold a significant amount of resilience over the past 2 years.
Closer to my area of expertise - property values are now clearly declining. We have seen declines up to 20% in some areas. Conversely, rental values continue to rise (this is normal when property values decrease). For our renters out there, we want to issue a friendly warning that it is probable that there will be rent increases. My personal prediction is that even city apartment rentals will rise again as confidence returns, people start heading back to the CBD for work and play, and our international students start returning.
With everything that's happening around us, especially internationally, it's great to take stock and realise how much we have learned. Despite the gloom we read about online and in the news, I am quite optimistic. At the end of the day, we are lucky to live in a great place.
Thank you and enjoy your day, week, and month!
Speak Soon.
Carmela
MARKET INSIGHTS
We strive to stay up to date on the latest market trends. Here are a few articles we think are worth reading.
- We think it's important to be cognisant of what's happening around us, especially in the USA.
US inflation figures came in "hot" as stated by Damien Klassen, and he's expecting this to continue for a little while yet. This is a great (and simple) explanation about what driving US inflation currently, which is a somewhat similar story to Australia, although with some differences as you would expect.
- Further to Carmela's note earlier, one of the downstream effects of the lockdowns has been the lack of immigration
The lack of immigration is important for many sectors that rely on overseas workers. Last week the Government outlined that they have made significant progress. It's interesting to hear about some of their processes and the impacts in this article.
- We loved the insights published by Darragh Murray from JLL about the interstate migration movement in Australia.
Queensland was the 'migration winner' over the past two years (probably not a surprise) but it will be interesting to see whether any of this reverts to 'pre-pandemic' trends.
- Sydney house prices have now fallen 10%, national prices on track for >15% loss.
According to Christopher Joye (who we really like here at The Neighbourhood), "there is certainly zero evidence that the bottom is in sight for what will be the Aussie housing market's biggest-ever decline." (Note, it's free to join and we recommend following Livewire).
- ATO says to take action on valuations now to avoid delays.
Advice from our friends at ProAcct - The ATO is urging SMSFs to get their asset valuations done before their annual audit to help avoid delays and late lodgments.
COMMUNITY BULLETIN BOARD
What's new in your neighbourhood? These are a few recent updates that are happening in some of our local communities.
- Solve a murder mystery with friends.
Whitehorse Rotaract is hosting another Murder Mystery Night. Enjoy dinner and a night of entertainment for $15. Get dressed up and try to solve the mystery first on October 22nd.
- Make your cup of coffee count.
Melbournians love their coffee and Zoos Victoria has started a campaign called Coffee for Wildlife. They have a range of coffee for sale that has been ethically sourced, supports farmers and protects wildlife. Choose from Sumatra, Papua New Guinea, and Ethiopia coffee beans, or don't choose and try their survival blend.
- Happy Halloween! Time to get your costumes ready.
When you start looking for a costume for Halloween, consider going to your local op shop or Salvos Store to create the perfect look. You could get a bargain and support Australians in need at the same time.
- Dockland Community Market runs every second and forth Sunday.
Head to the Harbour Esplanade on the 23rd of October to see the Melbourne Boat Show and doing some shopping at the market.
- Come together to see Come From Away.
A sense of community is so important and Come From Away is a perfect example! This musical is set in the 5 days after the 9/11 attacks and tells true stories of the passengers flying that day and the Newfoundland communities who opened their doors to the stranded passengers. Our marketing manager, Casey, says, "it is a fun and beautiful show about human kindness. It is so different from other musicals I have seen!". Before it leaves Melbourne on the 30th of October, plan a night out with your friends and feel the heartwarming tales yourself.
