HOUSE sale numbers are clawing their way back as Brisbane prices stabilise against the onslaught of higher interest rates.
But even though Brisbane looks set to escape some of the dramatic price fluctuations of southern states, the property market still faces challenges.

Figures released today by the Real Estate Institute of Queensland reveal a flat market, with the Brisbane median stagnant at $535,000 in the March quarter.

There was a modest increase in the number of sales.

But property experts say this week’s interest rate reprieve will not be enough to keep the market climbing.

They say the full effects of the most recent rises have yet to be felt. And, as the State Government launches an incentive scheme for new homebuyers in regional areas, the lion’s share of sales in the state remained for houses priced at less than $500,000.

More than two-thirds of house sales in the three months to March, were for sub-$500,000 properties. Brisbane’s median house price remained flat at $535,000 during the March quarter, as did the Gold Coast at $510,000. The Sunshine Coast posted a 1.1 per cent rise to $480,000.

While preliminary sales activity increased slightly over the March quarter, the Real Estate Institute of Queensland said its agents are now reporting less demand from buyers.

REIQ managing director Dan Molloy said six interest rate increases in seven months had put the brakes on the market, with agents reporting significantly less activity since Easter.

Brisbane recorded a 6 per cent increase in property sales based on preliminary data. Over the same time, activity in the Moreton Bay region was up 9 per cent.

The Gladstone region posted the strongest result with a median house price increase of 7.9 per cent to $383,000.

Mr Molloy said that after the drop-off in grant-fuelled first-home buyer numbers, the market was returning to more usual patterns.

Sales numbers to second and third buyers had increased as demand for entry-level homes fell. Mr Molloy said it was the second consecutive quarter of more traditional demand.

Over the year, Fig Tree Pocket notched a 38 per cent rise in the median of $835,000.

The Grange had a 24.9 per cent increase ($743,000), Karalee 20.7 per cent ($540,000), Wilston 18.5 per cent ($847,500) and Thorneside 16.3 per cent ($449,750).

*Article Sourced from: http://www.couriermail.com.au/property/brisbane-house-sales-stabilise-after-rates-buffeting/story-e6frequ6-1225875689282?from=public_rss

BRISBANE has the nation’s least affordable homes after Perth, with nine out of 10 city dwellers paying over-the-top house prices.
One in five Queenslanders on moderate incomes buy homes within their means but when it gets to Brisbane just 9.8 per cent of houses are affordable.

This cost of living squeeze is detailed in a series of new reports out today and backs up what many Queenslanders are feeling.

Brisbane is second only to Perth, which has just 5.5 per cent home affordability.

The Council of Australian Government’s (COAG) Reform Council’s first baseline performance report compiles data for all state and territory governments and the Federal Government.

It measures them on their performance in key areas such as housing affordability.

The report says that in Brisbane “the typical home price was the same as Sydney” but there was less diversity in the market and “income levels were much lower than in Sydney”.

It says the typical house price in Brisbane of $340,000 was much higher than the affordable home price of $270,000, according to 2007-08 previously unpublished Australian Bureau of Statistics data.

A moderate weekly income is defined as $1545 a household before tax is paid.

The Reform Council argues that benchmarking how well the states do on health, housing, indigenous and disability results is hard because much of the data is out of date or lacking in quality.

“At present there are significant limitations in the availability of data across all four areas . . . We’ve urged COAG to address these gaps so that we can accurately compare and assess year-on-year changes,” COAG Reform Council chairman Paul McClintock said.

The report, which independently assesses the states against COAG national agreements, also found Queensland had the shortest waiting times for elective surgery in 2007-08 with a wait of 27 days compared to the national average of 34 days.

In the same reporting period, two million Australians went to hospital emergency departments with illnesses that could have been treated by GPs. This was 40 per cent of all those in emergency departments.

And the report found that in 2007-08 about one-quarter of Australian adults were obese, and Queensland rates for lung, bowel and cervical cancer, and melanomas were significantly higher than elsewhere in the nation.

*Article sourced from: http://www.couriermail.com.au/property/brisbanes-has-least-affordable-homes-after-perth/story-e6frequ6-1225875210766?from=public_rss

THE gap between Brisbane house prices and those in southern states is widening as Sydney and Melbourne prices surge.
Australian Property Monitors Matthew Bell said Brisbane’s lower median price made the market more susceptible to interest rate rises.

Latest data shows residential sales in Brisbane are down 10 per cent, compared with increases of around 15 per cent in southern states.

ABS statistics released on Monday showed Brisbane had the lowest price increase of any capital city, with 2 per cent. The national average was 4.8 per cent, with 5.3 per cent in Sydney and 6.7 per cent in Melbourne.

Global funds manager Rismark chief executive officer, Christopher Joye, said most states had seen good capital growth despite lacklustre housing finance flows.

“This implies that underlying demand and supply-side fundamentals are driving Australia’s housing rebound, as opposed to simply credit,” Mr Joye said.

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Property commentator Michael Matusik said there were several reasons Brisbane’s growth was lagging.

He said low employment growth had hit confidence in the Brisbane market.

“The continuation of the (first-home buyers) boost by the State Government in Victoria in particular is lifting prices there,” Mr Matusik said.

He said in Sydney and Melbourne a high proportion of deals at the upper end of the property market was also impacting on median prices.

Back in Brisbane, a high rental vacancy rate of around 3 per cent was a concern for local investors.

But Australian Property Monitors economist, Matthew Bell, still thinks Brisbane and Perth will see price growth this year.

*Article Sourced from: http://www.couriermail.com.au/property/brisbane-market-trails-the-nation-as-sydney-and-melbourne-prices-surge/story-e6frequ6-1225862259961?from=public_rss

THE handbrake has been pulled on the surging property market, with auction clearance rates slumping in some capital cities by up to 14 per cent at the weekend.

The housing boom, which saw strong auction clearance rates throughout March and last month, has cooled significantly after six interest rate rises since October and a worsening European financial crisis.

According to Australian Property Monitors, auction clearance rates over the weekend in Melbourne and Brisbane were down considerably compared with the previous weekend, while Sydney and Adelaide showed modest gains.

Real Estate Institute of Australia president David Airey cited consecutive interest rate rises, tighter lending criteria and the continuing financial crisis in Europe as contributing to the softer clearance rate.

“In March, based on the figures, I predicted this was going to be a very strong year for real estate; now I have to review my thinking,” Mr Airey said.

“The simple fact is that the handbrake has been pulled up very suddenly.

“I would not call it a crisis of confidence, but the speculative end of the market has completely ceased and the enthusiasm has been dampened.”

In Brisbane, only $6.5 million of property sold at auction over the weekend, about half of the $12.8m auctioned the previous weekend. The city’s 21.7 per cent clearance rate was 14 percentage points lower this week.

In Melbourne, APM figures showed just $93.3m in property sold over the weekend, down substantially from $239.3m the previous weekend. The state’s most expensive property was a three-bedroom townhouse in Toorak that sold for $2.38m.

Figures from the Real Estate Institute of Victoria painted a healthier picture of the state’s property market, recording a clearance rate of 75 per cent. But REIV chief executive Enzo Raimondo said, “interest rates and a large number of homes on the market continue to keep the clearance rate below the pre-Anzac Day norm of over 80 per cent.”

In Sydney, the auction clearance rate was up 2.5 points to 63.2 per cent. The result was still down markedly on the 70 per cent clearance rate the city was recording in the first quarter of the year.

The number of Sydney auctions was also down from 409 the previous week to 331, with the most expensive property sold under the hammer being a four-bedroom home in Strathfield, which went for $2.35m.

Adelaide’s property market fared better, with the clearance rate up six points to 51.4 per cent over the weekend.

*Article Sourced from: http://www.news.com.au/money/property/interest-rises-kick-the-stuffing-out-of-auction-clearance-rates/story-e6frfmd0-1225870309574

THE Queensland Government threatened to seize a Brisbane woman’s home to recoup a debt of $6151 under laws targeting fine dodgers.
Letters warning of property seizure have been sent to 11 individuals and four businesses in a bid to recoup $257,000 in outstanding fines since a trial of the strategy began on January 1.

It is part of several measures the Queensland Government introduced to recover unpaid fines, with more than $160 million outstanding, the Courier-Mail reported.

Attorney-General Cameron Dick said a warrant had been issued to sell the woman’s home at public auction after she continually refused to pay the five-year-old debt. The woman paid the fine in full and avoided the auction.

Mr Dick said fine-dodgers needed to accept responsibility for their actions.

“This is money that can be better spent on more teachers, doctors and nurses, or more schools, police stations and hospitals,” he said.

Under the measures, asset checks are undertaken on fine-defaulters, allowing the Government to seize property including homes and cars to pay back debts.

Driver’s licences can be suspended for non-motor vehicle offences and people who owe more than $5000 can have their cars clamped.In the first four months, 64 vehicle clamping notices were issued to defaulters.

But Queensland deputy Opposition Leader Lawrence Springborg said the Government had failed to properly manage fine dodgers.

“As of February this year $214 million was owed, and 886,742 outstanding penalties and we are talking here about them issuing 15 warning letters up to the end of April,” Mr Springborg said.

*Article sourced from: http://www.couriermail.com.au/money/queensland-government-threatens-to-seize-womans-home-over-6000-debt/story-e6freqoo-1225868495254

THE gap between new and existing house prices is narrowing as the cost of building a new home plateaus.
Soft building industry conditions have kept the cost of labour relatively flat in the March quarter, according to Master Builders Queensland.

Its director of housing policy, Paul Bidwell, said wage pressures and skill shortages had lessened demand.

“However, Mackay, Toowoomba and Townsville – with exposure to the mining industry – generally recorded higher cost increases than elsewhere in the state, suggesting that labour markets are tightening as mining industry activity rebounds,” Mr Bidwell said.

While the cost of building a new home in the Brisbane area has remained relatively flat, the median price for an existing house has increased 8.1 per cent in the December quarter 2009, to $535,000.

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The rise was influenced by the exit of first-home buyers, with sales in the sub-$500,000 market dropping markedly. According to figures compiled by Master Builders, the median house price in Brisbane is almost $100,000 higher than that in Bundaberg, Toowoomba and Rockhampton.

Demand for home loans has been falling, with latest data from the Australian Bureau of Statistics showing 48,260 home loans were granted during March, down 3.4 per cent from February. This was the lowest monthly level in nine years.

First-home buyers have been much less active since the winding back of the Federal Government grant.

The proportion of first-home buyers taking up a loan dropped to 16.1 per cent in March, the least since April 2008. It was down from 18.1 per cent in February and 28.5 per cent in May last year.

New housing starts are also down in Queensland.

Property researcher Michael Matusik said an examination of seasonally adjusted figures, on an annualised basis, showed that new housing starts across the state were down 32 per cent.

*Article Sourced from: http://www.couriermail.com.au/property/housing-demand-falls-sharply/story-e6frequ6-1225866976253?from=public_rss

Neighbourhood feuds over fencelines and overhanging trees will be targeted in new laws to be introduced by the Bligh Government.

The laws come in the wake of a government survey revealing almost 80 percent of respondents had a dispute with their neighbour.

Almost 60 percent of respondents reported disputes with their neighbours over a dividing fence and 56percent had disputes over trees.

A draft copy of the laws The Neighbourhood Disputes Resolution Bill 2010, will be released this week for public consultation.
Attorney-General Cameron Dick said government research found the backyard fence was one of the most common causes of warring between neighbours.

“Disputes about trees and fences are two of the biggest causes of neighbourhood discontent in Queensland,’’ Mr Dick said.

“Who owns a fence? Who pays for its repair or replacement? Whose responsibility is it to prune the branches of a tree hanging over your back fence?
“The proposed new laws will modernise and simplify the way neighbours handle disputes over trees and fences. They will make it easier for neighbours to resolve disputes over trees and fences before they escalate and end up in court.’’

Key changes proposed in the draft Bill include:
Clearer definitions of sufficient dividing fence and the types of trees covered by the proposed new laws.
A framework for resolving disputes.

Clarification of the responsibilities of a tree keeper (usually the tree’s owner) to ensure their tree does not cause injury or damage to persons or a neighbour’s property.
Clarification that the ownership of a dividing fence on a common boundary is shared equally between neighbours.
The distinction between a retaining wall and a fence.
Clearer rules for pastoral and agricultural fences.

The draft Bill is available to the public at at http://www.justice.qld.gov.au. Feedback can be provided until July 9.

*Article Sourced From: http://quest-news.whereilive.com.au/news/story/new-laws-to-rule-out-backyard-squabbles/

The Tribunal ruled that the landlord had discriminated against the prospective tenants in 2008, when she told them that her rental property in Balga was off the market.

The Tribunal was told that the mother had asked to inspect the property but was told it was not available for rent, after asking what nationality the inquirer was.

When a friend of the Aboriginal mother called to inquire about the property, the Tribunal was told the landlord said: “I’ve been telling people the property is taken if I don’t like the tenants.” She then told the friend that an Aboriginal lady had enquired about the property adding: “These people are not reliable and do nasty things to each other.”

The Tribunal also heard that the landlord said she was not taking Indians as tenants either!

The Tribunal awarded a total of $3000 for the “hurt and humiliation suffered” by the mother and son.

*Article Sourced from: http://www.ebminsurance.com.au/newsletters-rentcoverreport/0510-story1.php

Property prices surged by more than 16 percent in the past year, pushing the average national house price to $542,000, according to new research.

A recovering economy and booming demand fuelled by population growth have offset the impact of five Reserve Bank of Australia interest rate rises pushing annual house price growth to a six-year high , Australian Property Monitors (APM) said.

Sydney has the highest average house price at $609,353 but Melbourne prices surged by 27 percent in the past 12 months. Darwin houses rose by 15.7 percent, while Canberra prices were up 13.9 percent.

Perth and Brisbane were the only two state capitals to register growth below 10 percent.

While house price growth slowed slightly in the first three months of this year, the national average price still rose by 3.1 percent and APM is tipping growth of 8-10 percent in the next 12 months.

APM economist Matthew Bell said the high-end luxury market is experiencing stellar growth.

“As it has been for the last three quarters, price growth for houses in the most expensive half of the market was nearly double that of the more affordable sector,” he said.

“Prices in the more expensive suburbs have proved to be less sensitive to interest rate rises and the removal of first home buyer stimulus.”

However, a widening gap between housing supply and demand is expected to limit the impact of rising interest rates on house prices.

The Reserve Bank has raised the cash rate five times since October last year and is expected to lift rates again in the coming months.

“Countering this interest rate effect on the demand side is continued strong population growth, rising incomes, falling unemployment and very strong consumer and business sentiment,” Mr Bell said.

“On the supply side, new dwelling commencements are still well under levels needed to satisfy current demand, let alone begin to eat into the existing deficit of affordable property.”

The National Housing Supply Council (NHSC) said earlier this week that the current gap between housing demand and supply has grown by 100,000 in the last 12 months and warns that Australian must build 300,000 new properties by 2014 to close the gap.

“There is a very, very substantial increase in population. It’s just simply unmatched on the production side of the housing market,” said Dr Donald Owen, NHSC chairman.

“It defies the laws of economics. It’s not what should be happening in any well-run marketplace, but it’s certainly what’s happening in Australia and we need to understand a whole lot better why.”

*Article Sourced from: http://money.ninemsn.com.au/article.aspx?id=1046072&rf=true

Queensland’s housing shortage has intensified with regional areas in the state experiencing some of the worst shortfalls in the country.

The gap between supply and demand in Australia has almost doubled in 12 months, the second housing supply report by the federal government’s National Housing Supply Council.

The national shortage increased to 178,400 homes in the 12 months to June 2009 – up from 99,500 for the previous year – with Queensland experiencing a shortfall of 56,100 homes.
Queensland’s Housing Industry Association executive director Warwick Temby has blamed rising infrastructure charges and poor release of land for housing for the spike.

“The [global financial crisis] accentuated that because home building levels just plummeted and population growth just kept going,” Mr Temby said.

He said the main problem was the poor co-ordination of the supply of affordable land.

Mr Temby said the situation was not just a “Brisbane problem”, with the Gold and Sunshine coasts, Mackay, Townsville and Cairns also experiencing difficulties.

“The Gold Coast is more expensive than Brisbane, the Sunshine Coast is more expensive than Brisbane,” he said.

“Five of the top most unaffordable non-metropolitan land markets in Australia are in Queensland.

“And to me that just suggests that there is something systemically wrong with the way we go about providing land in this state.”

Mr Temby said there needed to be a review of land infrastructure charges, developers’ access to finance and poor co-ordination between state and local governments.

He said land infrastructure costs had jumped from about $10,000 per block to about $50,000 in the past five years – and this cost was passed on to buyers.

Queensland Property Council executive director Steve Greenwood said the major problems were the supply of land and the added costs to properties while developers waited for approval.

He said to tackle the housing shortfall there needed to be reduced infrastructure charges and faster development approvals.

Mr Greenwood is optimistic the recent State Government’s Growth Management Summit would make recommendations that would make a difference.

By 2029 Australia’s shortfall is expected to be 640,000 homes.

Low-income earners have been hardest hit by the housing shortfall, with more than 160,000 households paying more than half their income on housing repayments and 170,000 paying more than half their income on rent.

On the supply side, the report noted “barriers to infill development”.

“In particular, housing is generally more expensive to build in infill development than in greenfield ones,” it said.

*Article Sourced from: http://www.brisbanetimes.com.au/queensland/housing-shortage-hits-home-in-qld-20100428-tqnu.html