MyNews 2014 Melbourne January property news REIV: Property Outlook for 2014. Melbourne leads nation in catering for population growth. Avalon airport rail link reaches planning milestone. Thousands of jobs for Melbourne s north. Port of Melbourne attracts US$60m ICT investment. First Home owners stamp duty savings reach over $150 million. Work starts on $47.2 million Werribee sports and fitness centre. Adelaide Brisbane Melbourne Perth Sydney Shanghai
REIV : Property Outlook for 2014 Report source: Real Estate Institute of Victoria media release: January 2014 www.reiv.com.au With Victoria s housing market performing strongly in the last few months of 2013, the question on everyone s lips is: will this continue in 2014? REIV CEO Enzo Raimondo warns that while we all want to be optimistic and bring New Year cheer, it is also important to be realistic and not create false hopes for sellers nor depress buyers with unfounded predictions of a bumper year ahead. Certainly I am expecting further growth in the state s housing market in 2014. After all, population growth is picking up again and dwelling completion figures have plateaued, meaning more people competing for existing properties. The big question is, just how much price growth will there be? To sum up my expectations in a word: moderate. This year has been about recovery in Melbourne s housing market the median house price rose by almost 9% in the September quarter (seasonally adjusted) to $595,500, a new record for the city. There was another record in November it recorded the highest number of auctions in a single month, with more than 4600 in Victoria, up from the May 2010 record of 4455. I expect this recovery to continue and with the Reserve Bank s next meeting not until February, the record low interest rates helping drive it will remain into the new year. But there are warning signs to heed, both in the market and the overall economic conditions. Unemployment conditions have not improved and Victoria s economy is still growing very slowly, suggesting only moderate market growth in 2014, potentially slowing in the middle of the year. I am concerned about this economic situation, especially unemployment, and of course hope it will improve, rather than slow or retreat into negative figures. And I hope we don t see further appreciation in the Australian dollar, placing more pressure on Victoria s industries and jobs. While the overall clearance rate for the year is expected to be 72%, a substantial improvement on last year s 61%, with the high volume of auctions has come a clearance rate decline in recent months. It was down from 73% in October to 69% in November. This is in line in the downward trend in consumer sentiment since its peak in March. Historically, clearance rates start to decrease six to nine months after consumer sentiment does. Then, another 6 to 9 months on, historical trends show house price growth starts to slow. If this pattern continues, we could expect the growth in Melbourne prices to start to moderate around mid- to late-2014. Much depends on consumer sentiment. In the past few months it has improved but the Reserve Bank is cautious about how long this improvement may last. The REIV s median house and apartment price figures showed increases in the last few months of 2013, with not only the large volumes of auctions and the super Saturdays attracting attention, but numerous multimillion dollar sales. Investor activity also increased tight rental vacancy rates were good news for them but there were fewer first-time buyers in the market. In September the share of loans given to first-time buyers dropped to a record low just 12.2%, notably lower than the 10 year average of 20%. This is worrying, but is hopefully temporary because some firsttime buyers brought forward their purchase to qualify for the first-time buyer grant before it was abolished for existing properties from July 1. But if first-time buyers continued to be priced out of the market and competing with investors for the same properties, the State Government would do well to consider further stamp duty cuts for them. Those buying early in the year may also consider fixing part of their loan to beat future interest rate rises, he concluded.
Melbourne leads nation in catering for population growth Report source: Premier of Victoria media release : 121January 2014 www.premier.vic.gov.au Melbourne leads the way in Australia in catering for future population and employment growth according to statewide land supply reports released by Minister for Planning Matthew Guy. The Urban Development Program (UDP) reports cover Victoria s 19 regional centres including Melbourne s outer suburbs and assesses how much land is available for potential residential and industrial development. Mr Guy said the state s regional centres also have more than enough land for any future population growth. We now have a complete picture for Victoria. It s clear that there is plenty of land for future development and plans to maintain supply. It is critical that we continue to identify land to drive industry, jobs and housing growth in regional centres, Mr Guy Melbourne is certainly in an enviable position because we have large tracts of land marked for urban renewal and new suburbs. We also have the largest amount of industrial land of all capital cities in the country. We are already showing that we are directing housing growth sensibly and sustainably. In the past year, five new precinct structure plans were approved, adding around 19,000 potential house blocks in Melbourne s newest suburbs, while we had a record 179,400 potential dwellings coming from major apartment developments. Currently in Melbourne: five of Melbourne s six growth areas have 25 years or more of residential land supply the sixth, Whittlesea, has around 22 years supply; there are 412,600 potential house lots in these growth areas with more than a third already zoned for residential development or approved in a precinct structure plan; the number of potential apartments within activity centres has more than doubled since 2008-09; and most of Melbourne s state significant industrial precincts have 20 years or more supply of industrial land. Mr Guy said assessments of Melbourne s outer suburban and regional centres also show there are no critical shortages of residential or industrial land anywhere in Victoria. Right across the state, there are plans in place to ensure we can gradually open up residential and industrial land for at least the next 20 years, while protecting agricultural employment land, Mr Guy Unlocking the growth potential of our regional cities is a key initiative of Plan Melbourne, the Victorian Government s new planning blueprint to 2050. Each region is also partnering with government to create a Regional Growth Plan. As these regional centres grow they will attract more investment and better services, giving Victorians a greater choice about where to live, work and start a business. Avalon Airport Rail link reaches planning milestone Report source: Premier of Victoria media release : 04 January 2014 www.premier.vic.gov.au The Avalon Airport Rail Link has now reached the formal environmental planning stage, Minister for Public Transport Terry Mulder said today. Mr Mulder said he had referred the project to the Minister for Planning to determine whether and Environmental Effects Statement was required as part of the planning process. The environmental planning requirements of major public transport projects, like the Avalon Rail Link, are an important part of getting the project right and getting it ready to go, Mr Mulder is both to improve options for people travelling from Geelong and Melbourne, and to secure the airport s future as our second international airport. Mr Mulder said the project being referred included: The creation of a reservation up to 6.5 kilometres long for a passenger rail link (and its associated works) between the existing Geelong railway line and the Avalon Airport passenger terminal; one kilometre section (approx.) of the link on Commonwealth owned airport land; and (Western, Central and Eastern alignments) as possible locations for the reservations Once the Planning Minister makes his determination and the state s planning and environmental approval requirements are known, consultation with the Commonwealth Government can begin on its environmental requirements. The Victorian Coalition Government has already acted speedily to secure the future of Avalon Airport, Mr Mulder The aim of the Victorian Coalition Government s Avalon Airport Rail Link three potential route alignments identified within the study area
Thousands of Jobs for Melbourne s North Report source: Premier of Victoria media release :16 January 2014 www.premier.vic.gov.au The move of Melbourne s Wholesale Fruit, Vegetable and Flower Market to Epping is one step closer with the completion of the $313 million core market facility, Premier Denis Napthine and Minister for Major Projects David Hodgett announced today. The new state-of-the-art Melbourne Wholesale Market will provide a modern, safe and innovative trading and distribution precinct for market tenants and buyers, Dr Napthine The wholesale market is an important part of the state s economic infrastructure, with an annual turnover in excess of $1.6 billion. Thousands of jobs are involved directly at the market on a daily basis and many thousands of others in providing services to market businesses. This is a great boon for Melbourne s north. Transition from the current Footscray Road site to Epping could occur as early as late this year which is on track with what the Coalition Government said when it fully reviewed and refocused the botched Labor Government project in 2011. Construction is expected to start soon on 100,000 square metres of market warehousing which will be the final piece in the puzzle of the market site. This new warehousing, three times as much as what is available at the current Footscray Road site, will enable tenants to grow and innovate their businesses as well as gain significant efficiencies for their businesses. Mr Hodgett said just some of huge advantages the new market offers over the existing market included: increased space for loading and unloading to cater for large vehicles including B-Double trucks; the provision of rear loading docks to maintain temperature control of fresh produce; direct vehicle access to the perimeter of the entire market building for traders and buyers; a central refrigeration system to all stores replacing individual tenant provided cooling units; and a dedicated area for waste management. These benefits mean even better quality and fresher fruit, vegetable and flowers coming out of the Melbourne Wholesale market, Mr Hodgett The Victorian Coalition Government will continue to work closely with all market stakeholders throughout the transition from Footscray to Epping. There is of course still much more work to do over coming months to make the relocation as smooth as is possible, but the completion of the core market facility and impending construction of warehousing demonstrates we are a long way down the track. With almost every lease now signed for the stores area of the market, there is great anticipation in moving away from the out-dated facility at Footscray Road to a market site which offers enormous growth opportunities. Following the relocation it is expected market related businesses will inject hundreds of millions of dollars into the local economy and provide thousands of new job opportunities. Port Melbourne attracts US$60m ICT investment Report source: Premier of Victoria media release : 22 January 2014 www.premier.vic.gov.au Minister for Technology Gordon Rich-Phillips today announced a significant economic boost for Victoria, with a new US$60 million data centre to be established in Port Melbourne. Equinix, a global interconnection and data centre company, will establish its first-ever data centre in Victoria This is a significant announcement for Victoria and, as data consumption and cloud service increases across the world, the new state-of-the-art facility will address the high demand from customers for premium data centre services in Melbourne, Mr Rich-Phillips Construction at the Port Melbourne site will commence this year, with the first phase of 375 cabinets scheduled for completion towards the end of 2014. This significant investment is expected to create around 20 new jobs by the first quarter of 2015. Founded in 1998 in the US, Equinix has more than more than 4,400 customers, including 950+ public and private network service providers worldwide and operates more than 95 centres across 31 major metropolitan areas in 15 countries throughout North America, Europe, Asia Pacific and South America. Tony Simonsen, Managing Director Equinix Australia, said there has been strong demand from customers for a presence in Melbourne for some time. The demand for data centre and interconnection services in the Asia Pacific has continued to surge, Mr Simonsen Proximity is increasingly important for network performance, so for a business hub like Melbourne, it was an essential next step that Equinix continue to support the data centre market and expand its Australian footprint. The arrival of Equinix in Melbourne is a result of the Victorian Coalition Government s commitment to attracting international investors. Victoria continues to lead the way in the ICT sector and Equinix had made the right choice with Melbourne as the location for the new data centre, Mr Rich-Phillips The Victorian Coalition Government has a number of initiatives in place as part of Victoria s Technology Plan for the Future Information and Communication Technology, ensuring that we continue to realise the potential in this area and support the sector more broadly.
First Home Owner Stamp Duty savings reach over $150m Report source: Premier of Victoria media release : 07 January 2014 www.premier.vic.gov.au The Victorian Coalition Govt has saved eligible Victorian first home buyers over $150m since the introduction of the first home buyers stamp duty concession on 1 July 2011, Treasurer Michael O Brien said today. Stamp duty concessions were introduced by the Coalition Government and the reform has resulted in Victorian first home buyers saving thousands of dollars off the cost of their first home. Over 43,000 eligible first home buyers have realised the dream of owning their own home in Victoria since stamp duty concessions were introduced, saving of more than $150 million, Mr O Brien This financial year alone over 10,000 first home buyers have saved almost $58 million from the concession. This amounts to more than $6,000 in stamp duty savings on the purchase of a $400,000 home, Mr O Brien Introduced on 1 July 2011, the first home stamp duty concession has since increased from 20% to 40%. The 40% concession for homes valued up to $600,000 was brought forward to take effect on 1 July 2013. This year alone we have seen more first home buyers in Victoria than in NSW and Queensland combined. What this shows is that the government s 40% stamp duty cuts to eligible first home owners and the increase in the first home owners grant from $7,000 to $10,000 for newly constructed homes are having a very positive impact. The first homebuyers concession will increase to 50% from 1 September 2014, which will see eligible first home buyers save up to $15,000 in duty on first home purchases, Mr O Brien Only the Coalition Government has the right policies that will support Victorians looking to purchase their first home and stimulate the building and construction industry. Work starts on $47.2m Werribee Sports & Fitness Centre Report source: Premier of Victoria media release : 23 January 2014 www.premier.vic.gov.au Sports in Victoria s fastest growing municipality, Wyndham, are one step closer to accessing a bigger and better Werribee Sports and Fitness Centre with Minister for Sport and Recreation Hugh Delahunty today officially launching works to expand the complex. Joining Wyndham City Mayor Cr Bob Fairclough for a ceremonial turn of the first sod, Mr Delahunty said the $47.2 million expansion of the centre marks the start of a new era for local sport in the community. Sports like basketball, netball, table tennis and badminton are more popular than ever, Mr Delahunty With more and more people making the move to outer suburbs like Werribee, these new works will ensure this vital local infrastructure keeps up to speed with the increasing sport and recreation needs of this expanding community. The $47.2 million project will expand the 6 indoor courts to 12, including a show court with up to 1,500 seat capacity; four outdoor courts, cafe, dedicated table tennis space, health and fitness area with programmable space, gym, spin room and members lounge, amenities, storage and function rooms, crèche and administration areas, foyer and entrance with self help control and bus drop-off area and car parking spaces. Local sports clubs, right up to elite state squads will soon have the perfect venue to train, build on sport development programs and stage the big events, Mr Delahunty Importantly, the bigger venue will open up a whole range of new sport and recreation opportunities for locals to get together, build on their fitness, join a club and get more active, more often. These are just some of the reasons why the Coalition Government is proud to have contributed $650,000 towards this project from the Community Facility Funding Program. Our investment in this project is part of our plan to build more sustainable local facilities that make a difference to local people. Mr Delahunty commended the Wyndham City Council for its considerable contribution of over $37 million as well as the Federal Government for its contribution of $9 million. This is another great example of state, federal and local governments working together to secure the future of sport and recreation for local communities.
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