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August 2024 Newsletter

HEY NEIGHBOUR!

Welcome back to our latest newsletter! 

The Olympics have been held and finished! What an amazing result for our Australian team .. 4th in the world with such a small population. Just goes to show how much we love our sports and how much sport is ingrained in the Australian way of life.

We are now nearly at AFL finals, Melbourne truly becomes footy mad including me – the blues are hanging on by a thread then its onto the Melbourne Cup!

Recently, I had the unique opportunity to attend Question Time at Parliament House, and I must admit, the experience left me disheartened. The session was marked by a disappointing display of behaviour that seemed a poor use of taxpayer money.

When Opposition Leader John Pesutto posed significant questions to Premier Jacinta Allan, particularly regarding the overspending on tunnel projects, instead of addressing the question, the Premier diverted the conversation, choosing instead to criticize the opposition’s previous inaction on road improvements. This pattern of avoidance was accompanied by jeering and interruptions, ultimately leading the Speaker to order several ministers out of the chamber for varying durations due to inappropriate conduct.

The hour-long session was marred by this disorderly conduct, with no questions receiving a direct answer. When I asked those around me if this was typical, they confirmed that this was a mild example of the usual proceedings. If this is the standard of parliamentary debate, then it seems we have strayed far from the intended purpose of such forums. The entire exercise felt pointless and unproductive, and certainly for me raised concerns about the current state of our parliamentary process.

Back to Real Estate:  As we had alluded to in our previous newsletter, the Melbourne residential rental market is showing signs of cooling, with rental growth slowing down for the first time in years. While this is a welcome relief for renters, the market remains tight, and ongoing challenges like housing supply shortages continue to exert pressure. We will continue monitor how these trends evolve, particularly with regard to affordability and the impact on different demographics across the city. Some suburbs are still in high demand but the city is slowing down considerably. Infrastructure and school zones being top priorities.

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.

• House prices: Where home owners are selling their properties now (theage.com.au)
  Key takeaways from the article
  1. Melbourne is attracting investors as property prices are only slightly higher than in Perth, with some areas offering more affordable options.
  2. Rental yields in Melbourne are lower than in Perth, but there is potential for improvement as the market stabilizes.
  3. New property listings in Melbourne hit a record high in July, with properties staying on the market longer than in Perth, indicating increased supply.
  4. Areas like the City of Melton in Melbourne offer attractive investment opportunities due to affordable real estate and significant infrastructure projects.
• How did Singapore achieve a home ownership rate of 90 per cent? Can Australia learn anything from it? (abc.net.au)
  Key takeaways from the article
  1. High Density Housing: Due to land scarcity, most housing in Singapore consists of high-density flats built by the Housing Development Board (HDB), with 94% sold on a 99-year lease.
  2. Government Support: The Singaporean government finances HDB's deficits and provides loans at a 2.6% interest rate, making home ownership accessible.
  3. Affordable Pricing: HDB properties are priced at four to five times the household income, with first-time buyers enjoying significant discounts.
  4. Compulsory Savings System: A large portion of compulsory savings is allocated for housing, allowing most households to pay mortgages without any cash outlay. This system has kept housing prices aligned with household income growth.
• Share houses and less overseas migration: Why Australia's rental market could be on a downward slope (abc.net.au)
  Key takeaways from the article
  1. Rental Market Cooling: Australia's rental market is showing signs of cooling, with national rent growth slowing to 0.1% in the 12 months to July, a stark contrast to previous years of rapid increases.
  2. Supply Increase: The slowdown is largely attributed to an increase in rental property supply as builders and developers recover from COVID-19 restrictions, and lending to investors has risen above the 10-year average.
  3. Rental Affordability Pressure: The pressure on renters remains high, but the slowing growth is a positive sign for renters, particularly in major cities. However, regional areas are still struggling with rising rental prices.
  4. Unsustainable Growth: Analysts believe the extreme pace of rental growth seen in recent years is unsustainable, with the market possibly reaching a point where further increases are no longer feasible due to renters' limited ability to pay more.

COMMUNITY BULLETIN BOARD
What's new in your neighbourhood? These are a few recent updates that are happening in some of our local communities.

• Pharaoh - What's On Melbourne (14 June - 6 October)
• Winter Night Market - What's On Melbourne (Until 28 August)
• Disney's Beauty and the Beast the Musical - What's On Melbourne (Until 24 November)