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The western Sydney suburb undergoing a period of renewal

Investment

Where once Granville was the overlooked neighbour of the busier and more flamboyant Parramatta, this western Sydney suburb is fast becoming a bustling oasis for residents and visitors to work, rest and play.

Located just 22 kilometres from Sydney’s CBD and only minutes from Parramatta, Granville has seen relatively affordable house prices and proximity to cultural opportunities bring new life to the suburb.

Tony Eltakchi works for LJ Hooker Granville and has lived in Granville all his life. He says it’s a great place to live and raise a family, not least because of its property values.  

“While prices in the area are down this year, they’ve increased dramatically over the past five,” he says.

Eltakchi says he’s seeing more first-home buyers coming into the area and more young families.

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Granville is minutes from Parramatta. Image: iStock

“There are some benefits coming through from the massive development taking place in Parramatta, although we need more infrastructure to help cope with it,” he says. “But Granville is very central – it’s half an hour to the CBD and the same to Penrith or Hornsby.”

As with most Sydney suburbs, Granville has experienced dramatic property price growth over the past five years, with houses up 47.4 per cent and units 35.6 per cent higher over the same time frame.

Growth has reversed of late with the median house price of $770,000, representing a year-on-year decrease of 3.8 per cent, while the median unit price of $470,000 reflects a 11.3 per cent yearly decline.

Nicola Powell, senior research analyst with Domain, says Granville is a diverse suburb with a mix of nationalities.

“Many families are attracted to the area due to the price-point”, Dr Powell says, “with an even split between renters and purchasers.”

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The suburb is conveniently placed for University of Western Sydney students. Image: iStock

She says the current fall in price will be welcome news for first-home buyers, offering an opportunity to enter the market after what has been a robust period of price growth.

“It’s an affordable area and ideal location relatively close to the CBD and a stone’s throw away from Parramatta, and other work-hubs,” she says. “These factors will continue to drive growth in the area, but for first-home buyers it’s a suburb that offers a reasonable price point.”

Dr Powell expects the lower end of the market to remain quite resilient to any downturn, especially with the number of first-home buyer incentives available.

“Being close to Parramatta adds to its attractiveness,” she says. “The amount of infrastructure developments will contribute to employment options and having a home close by is an attractive option.”

With Parramatta so close, Granville residents can enjoy a night at the theatre or choose to dine at any one of a number of restaurants and bars. Granville is also close to a range of facilities and services, including Sydney’s Olympic Park and the University of Western Sydney.

People looking to buy into Granville’s growth can seek out residential apartment buildings, such as Shoakai Ausbao and Develotek’s forthcoming Granville Place.

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Granville’s reputation is growing. Render: Ausbao

“Granville Place is appealing to all types of buyers but offers a great opportunity for first-home buyers and investors who want to break into the Sydney property market,” says Develotek director Robert Sargis.  

Comprising 617 apartments across three residential towers, the $400 million project has named Parkview Construction as its builder and will be located on corner of East, Rowell and Cowper streets – just 50 metres from the train station.

Also attractive are the full-sized kitchens, Fisher & Paykel appliances, timber floor and the amenity of three bedrooms for the price of a two-bedroom apartment.

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Everything you need in one place. Render: Ausbao

Sargis says Granville Place’s amenities will be part of the suburb’s renewal. The development will feature a new 1400-square-metre public park, 3600-square-metre garden and close to 7000-square-metre retail and commercial precinct that will include a supermarket, medical centre, childcare, cafes and restaurant.

He says these combined amenities offer convenience while giving residents “their time back”.

“The childcare centre on level one means parents don’t have to travel all over town to drop off and pick the kids up. This convenience factor gives residents their time back so they can spend it doing what they love.”

This article was first published in www.domain.com.au. Here is the link to the original article: https://www.domain.com.au/news/the-western-sydney-suburb-undergoing-a-period-of-renewal-804050/

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Melbourne’s median house price forecast to drop to $740,000: BIS Oxford Economics

Melbourne’s median house price is set to drop to about $740,000 by June next year as the property market continues to weaken, one leading researcher says.

The Victorian capital peaked at a median house price of just under $870,000 about two years ago, on figures from BIS Oxford Economics.

“We think the market will bottom out in early 2020,” the group’s managing director Robert Mellor told a Melbourne conference on Thursday. “Our expectation is that there is still a fair bit of price decline to come through.”

Melbourne house prices are set to fall 13 per cent this financial year and 3 per cent next, he said

Unit prices are expected to fall 4 per cent this year and hold steady in the next.

The research comes as a chorus of economists have predicted further falls in an environment where banks have clamped down on lending under regulatory pressure and the scrutiny of the financial services royal commission.

AMP Capital’s Shane Oliver forecasts a peak-to-trough decline in Melbourne dwelling prices of 25 per cent and NAB tips about 15 per cent. Domain’s Trent Wiltshire expects Melbourne house prices to reach a trough around the middle of the year before edging higher.

Earlier, the Domain House Price Report found Melbourne house prices fell 8.4 per cent over calendar 2018 to a median $833,321.

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Melbourne house prices are expected to fall further. Photo: Eliana Schoulal

Mr Mellor warned potential buyers were cautious about purchasing in a falling market, while a low rate of turnover for established properties meant owner occupiers were hesitant to sell.

Other headwinds include the drop-off in investor demand and tighter lending standards. Well-publicised problems with flammable cladding and cracking in unit towers were not helping sentiment around apartments.

“Don’t expect a quick recovery here in Melbourne, given the magnitude of the last boom,” he said.

The right time to trade down would have been at the market peak, he said, but the right time for a first-home buyer to buy “is some time probably in the next 12 months”.

Although the federal election was creating policy uncertainty, Mr Mellor tipped Labor to struggle passing changes to negative gearing tax arrangements through the Senate even if it won government next month.

The policy might be implemented more gradually, or there might be changes to how much in interest payments an investor can deduct from their tax bill, or how many properties were eligible for the tax concessions.

Amid the weak market, Mr Mellor expects the amount of new residential building to fall, following the apartment boom of recent years.

A 23 per cent drop in total building commencements across Victoria is predicted for this financial year.

Dwelling commencements in Victoria are set to drop 24 per cent this year and another 18 per cent in 2019-20.

The steepest falls are expected for attached dwellings, where commencements are set to fall 42 per cent this year and 20 per cent next year, he said.

House commencements are expected to drop a more modest 6 per cent this year and 17 per cent next year.

Building approvals have already dropped 17 per cent over the first half of this financial year, he said.

The downturn is more heavily concentrated in Melbourne than regional Victoria. House approvals in Melbourne are set to fall 10 per cent this year and another 19 per cent next, while the rest of the state will see house approvals rise 2 per cent this year and fall 13 per cent next year.

Population growth would be a bright spot and support the housing market, alongside low interest rates and strong employment, he said.

This article was first published in www.domain.com.au. Here’s the link to the original article: https://www.domain.com.au/news/melbournes-median-house-price-set-to-drop-to-740000-economist-811497/

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A new survey shows how South Australians feel about their neighbourhoods

Australia Property investing

What makes a neighbourhood feel like home?

A new Life in Australia report, powered by global market research firm Ipsos and released today by realestate.com.au, attempts to answer this question, looking at the key factors that impact on quality of life in local communities.

Factors we feel make somewhere a good place to live in 2019

The report shows safety is at the top of most South Australians’ list when choosing a good place to live.

After that, we value high quality health services, affordable and decent housing, reliable and efficient public transport and access to the natural environment.

These were the top five attributes that study participants chose from a list of 16, ranging across transport, culture, education, health and environment.

How do we rate our local areas in terms of attributes including the economy, house prices, cultural amenities and congestion?

The report also ranks how people feel about certain attributes in their own localities, comparing their answers to those in similar surveys, dating back to 2015.

It shows South Australians are feeling more positive about the economy and their job prospects than they were four years ago.

But conversely, our confidence in affordable housing has dropped over the same time period.

We are also ranking our local areas lower on lack of road congestion (suggesting roads are getting busier).

And, while we are happier with our access to cultural facilities, such as museums, galleries and festivals than we were in 2015, the research suggests we feel less able to participate in sports and recreation this time around.

Realestate.com.au chief economist Nerida Conisbee says South Australia’s economy is growing, and house prices are on the up.

A growing economy vs housing affordability

Realestate.com.au Chief Economist Nerida Conisbee says the report finding are largely positive for South Australians

“Across Australia, people are feeling more confident (in the economy) and Adelaide is no exception,” she says.

Ms Conisbee says confidence in SA’s economy is increasing due to employment growth and government spending announcements in recent months, including on submarine building and the Australian Space Agency, which is to be hosted in Adelaide.

The finding that housing feels less affordable is disappointing but not surprising, Ms Conisbee says.

“We’ve hit the highest median recorded for Adelaide and we haven’t seen prices coming back,” she says

“It’s not great that housing is getting more expensive but people feel that job prospects are getting a lot better.”

“There’s always two sides to economic success — on one side people have jobs and on the other, it drives population growth which does impact on housing.

Ms Conisbee says increased road congestion also “makes sense” because “Adelaide is growing”.

Real Estate Institute of South Australia CEO Greg Troughton says he was not surprised by the report’s findings.

“The affordability issue seems to be a little bit higher given the other states but I guess South Australians keep demanding quality accommodation at an affordable price,” he says.

“Safety, and health infrastructure have always been a focus. The reliable public transport is disappointing but can be expected to be low as many south Australians look to other modes of transport.”

This article was first published in www.realestate.com.au. Here is the link to the original article: https://www.realestate.com.au/news/a-new-survey-shows-how-south-australians-feel-about-their-neighbourhoods/

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Life in Australia: what we value about where we live

Living in a safe area with access to good health care services and affordable housing is more important to most Australians than having access to parks and cafes, according to new data.

The realestate.com.au Life in Australia Index report, powered by Ipsos, shows that 67% of the 9,515 Australians surveyed value feeling safe as one of the most important factors in making an area a good place to live.

This was followed by having high-quality health care services nearby (60%), affordable decent housing (58%) and good local job prospects (41%).

What’s important to residents in your city? Use our interactive to find out.

The study, undertaken last October, asked Australians to rank 16 attributes – such as local schools – as the main factors they seek in their ideal location, along with how well they feel their city rates for these same factors.

The data also shows a preference for reliable and efficient public transport (33%) compared to a lack of road congestion (19%), while access to the natural environment (32%) was more important than being able to view or participate in sports and recreation (7%).

A strong sense of community (26%) is also something Australians value about where they live.

Why we feel less safe

Australians feel less safe now about where they live than they did four years, according to the realestate.com.au Life in Australia Index report and its 2015 findings.

The sentiment doesn’t surprise realestate.com.au’s Chief Economist Nerida Conisbee who says safety is the number one consideration for renters and home owners.

“These would be factors that would make or break, in terms of looking at a suburb. If it didn’t feel safe, you’d be very unlikely to consider that suburb,” she says.

And when it comes to safety, the high ranking also reflects people’s perception of public safety.

Gold Coast, Australia - October 28, 2014: Police o

Australians feel less safe now about where they live than they did four years, according to the realestate.com.au Life in Australia Index report and its 2015 findings. Picture: Getty

“I think it’s that thing of people thinking there’s more crime going on because of reporting (on crime) versus the statistics that show there is less crime. I think it’s the way information is disseminated that’s probably making a difference,” she says.

“The more you hear about it, the more you worry about it.”

Data shows the housing boom has led to a notable decrease in local affordable housing.

“If you have a look at that study that’s done on global housing affordability, all Australian capital cities are in the top 20 so it is a very big issue here compared to other countries and it’s top of mind according to this report,” she says.

Access to health services ranks highly particularly in rural or regional areas, says Conisbee.

“If you move to regional parts of Australia it becomes a far bigger deal if you don’t have a local hospital, let alone a local doctor service.”

Which is Australia’s most liveable city?

For the Index survey, residents in each capital city were asked to rate their hometown for its ability to delivering on the 16 aforementioned attributes – and Canberra came out on top.

The ACT and Australian capital was ranked most liveable in the country for the third year in a row, with residents feeling more positive about their city than the national average.

Perth has jumped two places to number two on the list of most liveable cities, thanks largely to a prosperous economy ranking higher with locals.

Adelaide has also jumped two places since last year’s survey, to the nation’s third most liveable city due to a growing economy and increased job prospects.

Brisbane residents reported feeling less safe, and a decline in affordable housing saw it rank fourth in the country for liveability.

The ACT and Australian capital was ranked most liveable in the country for the third year in a row. Picture: Getty

Hobart dropped three places this year, with an increased cost of housing having a negative impact on its liveability ranking. It is now ranked fifth for liveability.

While Melbourne might be globally considered one of the world’s most liveable cities, that’s not what locals think, rating their city sixth for liveability.

Melburnians feel less safe in their city, despite statistics showing a steady decline in crime, and there’s been a noticeable drop in social cohesion as well.

Rising house prices and tighter lending conditions aren’t helping Sydneysiders feel better about their city, with locals rating it seventh for liveability due to the lack of local affordable housing.

Darwin sits at the bottom of the list with locals rating it the least liveable capital city in the country. The median house price sits at $442,000.

This article was first published in www.realestate.com.au. Here is the link to the original article: https://www.realestate.com.au/news/life-in-australia-what-we-value-about-where-we-live/