28 Jul Video – Investors look at ‘bridesmaid suburbs’
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Melbourne’s bridesmaid suburbs are an attractive prospect according to the State’s Real Estate Institute. The Real Estate Institute of Victoria is calling on investors to consider suburbs just outside blue-chip addresses. This is good advice for any investor looking at cap city markets.
The Victorian Institute says bridesmaid suburbs have access to premium amenities without the heart-stopping price tag. The institute highlights areas such as Cremorne which has a median price $700,000 less than neighbouring South Yarra.
There’s also Pascoe Vale South which has a median of just under $800,000 – a far cry short of it’s neighbour Essendon with a median of $1.3 million dollars.
The REIV says the price ripple effect means these areas are looking good for buyers wishing to stay ahead of the capital growth wave. According to SQM Research, residential vacancies increased nationally during June to record a rate of 2.5 per cent.
This is one per cent higher than the same time last year. But I have to say, not everyone’s doing it tough.
While Perth recorded the largest rise in vacancies at 1.4 per cent higher than last year, Canberra’s percentage fell by 1% during the past 12 months. Another strong performer was quiet achiever Hobart, which had a 0.6% fall in vacancies since June 2015. SQM’s Louis Christopher says median rents in Perth have fallen 23 per cent in the last three years.
Apart from Darwin, this is the worst drop in rents for any Australian capital city since the Second World War. A shocking story of Government waste to end this report.
From Queensland we hear that the state government there has lost $16 million on the sale of a single property sold as part of the unwinding of the failed Traveston Crossing Dam project. The Beattie-Bligh Government paid $25.3 million for the 864ha Bollier Park Homestead in 2007. In total the State Government purchased 484 properties for a total of $445M. 263 have been since sold and another 4 are in the process of sale.
It is projected that the end sale process, when they are all sold, will net the state government $220M. A loss of of a cool $224M. I am lost for words.