“The rate that stopped a nation”.
Hi Guys, it’s Jason Mudford from OBrien Real Estate with another edition of the Property News for 2020 where real estate information is on the house.
Corelogic released it’s October Home Price Report with all capital cities across the nation except Melbourne posting increases, with the average increase being .4% with Melbourne posting a decline of .2%. In terms of rental prices in Melbourne, houses experienced a modest decline of 1.1% whereas units experienced a decline of 6.6% in weekly rents with most of the declines through Melbourne CBD. Regional Victoria posted a solid result with a combined increase of 1.5% in weekly rents for houses and units. Rental yields for Melbourne are steady at 3.2% for combined dwellings with Regional Victoria sitting at a 4.5% yield.
Good News for investors with the Reserve Bank easing monetary policy with interest rates cut by .15% to .1%. The big 4 banks have said they will not drop the rates on their standard variable home loans, declaring they will cut fixed home loans and business lending rates. Those investors on variable loans are well worth negotiating new terms with their bank. The positive news for the real estate market continued this week with key data released;
- The Australian Bureau of Statistics reported nationally a 15.4 per cent leap in the number of dwelling approvals with Victoria at 12.4 per cent.
- The value of housing construction loans during September rose by 25.3 per cent rise in which shows the effectiveness of the Government’s stimulus in the HomeBuilder program.
Across the OBrien Network for the month of October, we had a strong letting month with 230 properties let, our vacancy rate for the month now currently sitting at 1.5% an improvement of .3% on last month. The average weekly rent achieved remains steady at $535 a week and the highest weekly rental price achieved was $1195 a week.
Lastly, a key issue resulting from the pandemic has been the significant increase in mental health illness, OBrien is a strong supporter of mental health and I would like to acknowledge the fundraising from the people within OBrien in raising in excess of $15,000 in October to support the magnificent programs within Beyond Blue, the Love Me Love You Foundation and through our very own OBrien Real Estate foundation.
That’s all for this week, I’m Jason Mudford and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.