Westpac August 2004 Residential Report

[Sunstone]

Dear guys,

Latest reports out by Westpac.

Brisbane shows a 3.7-4.6 month shortage of building activity compared with underlying demand (Also highest median gross yield.)

http://www.westpac.com.au/internet/publish.nsf/Content/BBPR+Property+Market+Information


http://www.westpac.com.au/internet/publish.nsf/C382D30FC5D5C089CA256CD100208387/$File/ResidentialAugust2004.pdf
http://www.westpac.com.au/internet/publish.nsf/C382D30FC5D5C089CA256CD100208387/$FILE/AugustResidentialMonthly.pdf
http://www.westpac.com.au/internet/publish.nsf/C382D30FC5D5C089CA256CD100208387/$File/ExectiveSummaryAugust2004.pdf

Cheers,

Sunstone.

[Glebe]

My interpretation: Melbourne looks oversupplied, and Sydney has the lowest yields, so is perhaps overpriced. If the 87 - 89 boom is a guide, expect price stability for 5 years before another rise.

[BV]

My interpretation: Melbourne looks oversupplied, and Sydney has the lowest yields, so is perhaps overpriced. If the 87 - 89 boom is a guide, expect price stability for 5 years before another rise.

If Sydney is overpriced and prices are falling (as the media keep telling us)
and considering that Sydney is the engine that drives property in our country
what do you think its going to happen to prices in other states?
Look at what happened during the last boom...
cheers

[Garry K]

Thanks Sunstone

Interesting news re Brisbane and undersupply/delay to build.

We settled a block in Victoria Point on 10 June, new subdivision.
Contract is for a home to be built within 28 weeks (low set, 4 bdrm etc, 220 sq m).....11 weeks already gone and they haven't started yet...not even plans through council yet :(

I don't like my chances of having it built before christmas.

What do you think?

GarryK

[Sunstone]

not even plans through council yet

Dear Garry,

I know the feeling. :eek:

Quite simply councils have not been able to keep up with the number of development applications. However this I believe is starting to improve in some areas. (In time for the Christmas break. ;) ) Separately private certifiers have made an impact on BA approval times.

Late completion penalties could become a reality............ Let us know how you go. ;)

Cheers,

Sunstone.

[Garry K]

Late completion penalties could become a reality............ Let us know how you go. ;)

Cheers,

Sunstone.

Update: I spoke to building manager yesterday. Apparently they had to apply for a permit to build over a sewerage easement, to re-position the house on the block. It's a corner block so wanting to maximise the benefits of house position.
Anyway, council said those permits take 8 weeks. :(

Fortunately we have a rental guarantee which kicks in on Dec 16 :)

GarryK