July 2024 Newsletter
HEY NEIGHBOUR!
Welcome to our July newsletter! The mornings are cold and crisp, for the Snowies out there - hope you get some snowfall, but if you aren't staying local during the holidays I hope you manage to get away to a nice warm place!
We have noticed a definite change in the rental market, although we are still experiencing low vacancy rates, pricing is having to be adjusted a little and the turnaround has stretched out in some cases to 2- 3 weeks, if the property is below the $500.00 - $550.00 - $600.00pw (of which there are very few left) there are crowds but above that the queues are starting to abate.
As you may remember, I mentioned in our last newsletter we had started to notice some properties were experiencing low demand at inspections with limited numbers attending and this trend is continuing. Notwithstanding, we are managing to lease our properties after this time frame or before. Our attention is 100% focused on all enquiries coming in.
EOFY has come and gone for 2024!
I would like to share an incident one of my son’s friends experienced with Victoria Police last weekend – his car was stolen, but his lap top, hard drives were in the car. Luckily for him or so he thought the lap top had a tracker, he called Victoria Police and reported what had happened, to his dismay he was told “sorry mate its after 8.30pm we are too busy so can't do anything tonight”. Taking things into his own hands, he tracked the car to a location in Collingwood, filmed the gang of youths standing around it and called the police again to let them know he knew where the car was, had tracked it and could they please come as he needed his laptop especially with the hard drives.. again he was told “sorry mate can't come, best you go home!!” In disgust and with a bit of despair he posted the story on Instagram showing the gang and address in Collingwood and of course thanking Victoria Police for nothing!
Politics is a messy business but sometimes we need to look at our situation and be grateful. I think we can all agree we haven't been blessed with the best and most stable leadership in politics over the past decade, but let's be happy we don't have either of the 2 clowns running for the US Presidency!
On a lighter note, I am absolutely loving watching our Blue Boys - they aren't leaving me feeling like a heart attack is on its way nowadays! Who knew we would be sitting second at this point and winning games with ease - go the Blues! Hopefully we stay clear with no injuries.
If you would like to have a chat about current market conditions, please give me a call.
I hope you enjoy our takeaways from the articles below. Have a great weekend and month ahead from The Neighbourhood team!
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.
- Housing price guides often outdated by time of publish, experts say (abc.net.au)
Key takeaways from the article- Inconsistent and Outdated Data: Property price guides often contain outdated information by the time they're published due to the volatile housing market and the delay from finance and settlement periods. This makes them unreliable for prospective homebuyers.
- Discrepancies in Reports: Different sources provide varying median house prices and growth rates, exemplified by conflicting data from PropTrack, the Real Estate Institute of WA, and CoreLogic for Perth’s housing market.
- Expert Advice: Industry experts like Professor Paul Flatau and Corey Adamson suggest that while property price guides can offer some insights, they are best used as general guides. Direct engagement with real estate agents and mortgage brokers, and tracking real-time sales data, are recommended for more accurate information.
- ATO reveals more than $557 million claimed by fraudsters exploiting security loophole (abc.net.au)
Key takeaways from the article- Security Vulnerability and Fraud: Fraudsters exploited a security gap in the Australian Tax Office's (ATO) identity verification system through myGov, resulting in over $557 million being fraudulently claimed in the past two years by creating false myGov accounts and linking them to legitimate taxpayer accounts.
- Detection and Response Issues: The ATO's detection mechanisms failed to catch many fraudulent activities, with significant delays in identifying and responding to these breaches. The agency's security measures for linking myGov accounts were weaker compared to other government services.
- Calls for Greater Transparency and Action: Experts and victims have criticized the ATO for not being proactive and transparent enough about the fraud, urging for improved cybersecurity protocols and better communication to alert taxpayers about potential fraud signs.
- Footscray commercial property: Locals blame ‘land banking’ for long-standing derelict site (theage.com.au)
Key takeaways from the article- Persistent Vacant Sites: Footscray locals are frustrated with long-standing vacant commercial sites, attributing it to "land banking," where property is bought and held without development.
- Community and Council Actions: Local MP Katie Hall and the Maribyrnong City Council are taking steps to address the issue, including increasing rates on vacant properties and demanding development or demolition.
- Challenges in Development: Developers like Banco Group and others face hurdles such as collaborating with service providers for infrastructure, but some critics argue that more proactive measures are needed to prevent land banking and encourage development.
- Kennedy Nolan’s award-winning makeover of one-time luxurious Fairlie apartment in Anderson Street, South Yarra (there.com.au)
Key takeaways from the article- Historical and Architectural Significance: The Fairlie apartments, completed in 1961 and located on Anderson Street in South Yarra, are renowned for their style and prestige. They were recently refurbished by Kennedy Nolan, who won an award for their interior architecture work.
- Design and Inspiration: The refurbishment aimed to imbue the apartment with a sense of glamour reminiscent of its original completion. Design cues were taken from The Peacock Room in London and Australian interior designer Marion Hall Best, incorporating rich colors, textures, and travertine finishes.
- Living Space and Modern Touches: The redesigned apartment features an elongated living and dining area, a generous terrace, and a flexible space that can serve as an office or second bedroom. It showcases an impressive collection of furniture and art, emphasizing unique and luxurious interiors.
- 'Build more houses' sure sounds great as a solution to the housing crisis, but a few key factors scream 'buyer beware' (abc.net.au)
Key takeaways from the article- Political Promises vs. Reality: The Albanese government’s ambitious goal to build 1.2 million homes in five years faces significant obstacles, making it unlikely to be achieved despite the urgency of the housing crisis.
- Conflicting Interests: Existing homeowners prefer rising property prices, while prospective buyers hope for lower prices, leading to contradictory policies that fail to address the core issue of affordability.
- Economic and Structural Challenges: Rising interest rates, bankrupt construction companies, increased material costs, and a significant labor shortage hinder new housing developments.
- Policy and Planning Gaps: The shortage of skilled labor and town planners, along with political and union resistance to importing labor, exacerbates the difficulty of building well-located, medium-density housing.
- Property investment: Rental increases are slowing, new Domain figures show (afr.com)
Key takeaways from the article- Stabilizing Rents: Rental prices in major Australian cities, including Sydney and Melbourne, are starting to plateau or even decrease after years of rapid growth, indicating a cooling rental market.
- Tenant Affordability: The slowdown in rent increases is largely due to tenants' inability to afford higher costs, suggesting that further significant rent hikes are unlikely in the near future.
- Inflation Impact: Lower asking rents could help mitigate inflationary pressures, as rental prices are a significant component of the consumer price index.
- Market Shift Evidence: Reports from Domain and SQM Research show the first material decline in advertised rents in capital cities, highlighting a shift towards a more balanced rental market.
COMMUNITY BULLETIN BOARD
What's new in your neighbourhood? These are a few recent updates that are happening in some of our local communities.
- Firelight Labyrinth - What's On Melbourne (Until 14 July)
- Lightscape - What's On Melbourne (Until 4 August)
- The Art of Banksy: Without Limits - What's On Melbourne (Until 4 August)
- Disney's Beauty and the Beast the Musical - What's On Melbourne (Until 24 November)
CAUGHT OUR ATTENTION
Here are a few things that members of our team have stumbled across over the month. Whether thought-provoking, interesting or entertaining, we want to share them with you.
