Acreage Lifestyle Set To Reach New Affordability Levels As RBA Cuts Rates

As predicted, the Reserve Bank of Australia have cut rates at today’s meeting with the Cash Rate now at a historical low of 0.50%.

Their decision to cut rates is off the back of the Coronavirus causing global economic shutdown along with both wage growth and inflation still remaining stagnant.

The decision is positive for the housing sector and buyer sentiment, especially with affordability set to reach new heights amongst the acreage market.

The PM has put pressure on the banks to pass on any rate cuts, however, at this stage it looks like the banks are expected to pass on 0.08% to 0.13% with fixed rates already cut last week.

The US looks likely to also cut rates in coming weeks, which is indicative of further RBA cuts.

With the quarterly statistics in the latest Autumn edition of The Acreage Report 2020 showing a reduced number of sales during Summer compared to the Spring 2019 quarter, there’s still a large volume of acreage stock available.

This means that whilst the acreage market is still in the early stages of a ‘U’ curve recovery, right now is an opportune time for buyers to secure an acreage lifestyle or invest in affordable land bank opportunities with excellent potential returns.

Source: Herron Todd White

The Sydney residential market has moved from the previous ‘Start of Recovery’ position on the Herron Todd White Property Clock and this month moved into the positive 9 o’clock position on the Property Clock - ‘RISING MARKET’ as the residential market remains extremely active with new record prices being achieved across lots of Sydney suburbs at present.

While money is cheap, easier to access and acreage stock volumes remain high, early Autumn is an excellent time to make your move into the acreage market if you’re looking to buy to live in or invest.

If you have any questions about buying acreage… Or, if you’re already living on acres and you’re not sure whether to sell your acreage property now or you’re currently wondering whether or not it’s better to hold, then don’t hesitate to get in contact with me to discretely discuss your plans.

I hope you find this acreage information helpful.

UPDATE: It’s great to see that the major banks have agreed to pass on the full 0.25% rate cut.

Regards

Greg Vincent

First Home Buyers Set To Fuel Acreage Market Growth

First home buying has soared to 10-year highs as thousands of young people take advantage of stamp duty concessions, record low interest rates and the new federal loan deposit scheme to get into the market.  

There is great opportunity for first home purchasers in both metro and regional locations in 2020, and all of this added activity is helping to fuel price growth amongst the entry level priced properties, as well as the house & land packages.

in a recent article, property expert John McGrath revealed

According to latest ABS data, the number of new loans issued to first time buyers in December was at its highest level since December 2009. 

The figures also showed that first home buyers were borrowing more, with the average loan size up by about $50,000 year-on-year, indicating APRA’s loosening of loan criteria in July and falling interest rates in June, July and October has given young people a bit more borrowing power.  

As developers start to clear lots of their previously oversupplied land stock and home sellers are achieving higher prices for their homes, acreage properties are becoming a more affordable lifestyle and as well as becoming an appealing option for many investors or astute buyers looking to land bank acres on the outskirts of Sydney ahead of the population explosion predicted during the remainder of this decade and beyond.

The historic low interest rates and the need for extra living or storage space for vehicles, equipment, dual accommodation, etc, is making acreage a very appealing option for many of today’s buyers.

The lowest home loan interest rates since the 1950s make this an incredible time to take out your first loan. Rates might go even lower this year to support our economy through the impact of the bushfires and coronavirus so, as always, I recommend taking a variable rate over fixed. 

On top of the Loan Deposit Scheme are state government stamp duty concessions and First Home Owners Grants available across the East Coast in varying forms. Here are the details to remind you. 

NSW - No stamp duty payable on new or established first homes up to $650,000, with concessions available up to $800,000. There is also a $10,000 FHOG if you buy land to build your first home worth up to $750,000; or buy a new house or off-the-plan apartment worth up to $600,000. 

With all of the first home buyer activity plus with both investors and developers back in the market, the acreage market looks set to have a very active Autumn market.

If you have any questions about what’s happening and How’s The Acreage Market? in your area, don’t hesitate to get in contact with me.

Regards

Greg Vincent

There’s An Even Bigger Housing Crisis On Its Way For Sydney And Here’s One Reason Why?

The Daily Telegraph featured an article titled, SYDNEY SUBURB COMES TO LIFE 130 YEARS AFTER PLANS DRAWN featuring…

Plans drawn up 130 years ago to transform Riverstone from farming paddocks to Paddington-style terraces are finally coming to life, with residents staking a claim to building lots. Among them is 22-year-old Chandini Suresh.

Source: Daily telegraph

It’s a timely article showcasing how slow the local councils and governments are with providing the necessary housing and infrastructure for Sydney’s growing population.

These past few years of pathetic time-wasting and holding off on projects to try to save votes is going to cause absolute chaos in the housing sector as Sydney bursts at the seams.

Just wait and see what happens this year during the council elections, most of the protectionist Councillors will be too scared to make the necessary decisions for what the communities really need and instead they’ll be making decisions and spruiking promises and running popularity campaigns based purely on trying to protect their job, instead of getting on with the job.

As I shared in a recent article, Draft Report: A Look Into 'The Future For Acreage This Decade'

According to the Australian Bureau of Statistics (ABS) medium-growth model, we can expect Australia’s population to grow to 30 million by 2030 and by the end of this decade Sydney is projected to have a population nearing 6.5 million. That’s an extra 1.4 million on top of the current 5.1 million population of Sydney.

Where on earth are all of these people going to live?

The Aerotropolis will provide some of the housing, but it won’t be anywhere near enough to make a dent in the growing housing demand in Sydney

The proposed plans for the Aerotropolis shows that there are 10 precincts proposed in total, with housing estates not included in all of the precincts.

However, the 2 initial housing precincts:

1. Aerotropolis Core Precinct has a total area of 1382 hectares with housing proposed for 20-24,000 potential residents

2. Northern Gateway Precinct covers 1,616 hectares with housing proposed for 8 - 10,000 potential residents.

The other initial precincts which are scheduled to be signed off on by the end of 2020 are for parkland, waterways, commercial, light industrial, warehousing, freight distribution, agribusiness and urban services.

“Urban services includes industries that enable the city to develop and its businesses and residents to operate. Urban services support the activities of local populations and businesses. They include concrete batching, waste recycling and transfer, printing, motor vehicle repairs, construction depots, and utilities (electricity, water, gas supply)”, according to the Greater Sydney Commission.

There will be more housing provided within some of the Stage 2 precincts, but by the time the initial 2 housing precincts are gazetted, and the necessary services are provided (roads, water, sewer, electricity, and gas, etc) and the blocks of land get registered, then add on top the delay in getting the building approvals processed , plus the time it takes to build the homes, let alone providing community services like schools, transport, shopping centres, etc it’s going to take years to develop.

My prediction is that, it’s unlikely that there will be any homes to live in out in the Aerotropolis prior to late 2022 - early 2023 at the current rate.

By which time Sydney’s population is expected to have grown by another 300,000 people and yet these 2 precincts will only provide at best housing for 34,000, approx. 11% of Sydney’s population growth during that period (and bear in mind that by the time the population has grown by the predicted 300,000 people, they will only just be completing the first of the 12-15,000 places in these precincts. The construction of all of properties for 34,000 people will take around 3 - 4 years to complete, which means that by then there’ll be another 300,000 people in Sydney looking for a place to live.

Apparently, even the mayor of Blacktown admitted recently that the City of Blacktown is currently about 55,000 homes behind where they really need to be …and this is only going to become a more common and growing problem unless something is done, and fast.

The current NSW Government has been spruiking that they’re building the infrastructure for the future and building a better Sydney, but, they need to pull their finger out and get on with providing housing or we’re going to end up with an unfixable housing crisis on our hands.

Right now is the time for the State Government to start fast tracking projects and for the local governments to streamline processing. It’s also time for the Federal Government to invest further in Sydney’s projects, water supply issues and maybe consider a reduction to the volume of immigration until the country can actually cope with the rate of population growth.

I hope I’m wrong, but it currently looks like Sydney’s going to be in one hell of a horrible mess this time next decade.

Regards

Greg Vincent

Acreage Market Wrap - 29th Feb 2020

Hi, and Happy Leap Year Day and welcome to the last leap year Saturday that we'll see for another 28 years.

Plus, today is the last day of Summer ...and Mother Nature has certainly made this a Summer that a lot of us will never forget.

My heart goes out to all of those people impacted by the bushfires, floods and storms we experienced this season.

My name is Greg Vincent and welcome to this week’s Acreage Market Wrap where I share an insight into How’s The Acreage Market?

So this week, the uncertainty of the Corona Virus has had an enormous impact on the share market as well as the value of the Aussie dollar.

As a result we should start to see a lot more investors looking at moving their money into property investment.

Prediction: I anticipate that many will be opting to land bank or future invest in the acreage market to capitalise on the inevitable rezonings and urban sprawl that will take place around Sydney's fringe suburbs throughout this next decade.

Despite the RBA holding rates steady this month, several of the banks have just cut their mortgage rates for investors in anticipation of an increased uptake in investment loans from investors moving across from the share market. There will also be an increase in Mum & Dad investors who after the recent property price increases will now have extra equity in their home that they could use to buy an investment property and start expanding their property portfolio.

If you're thinking about investing in property, earlier this week, John McGrath shared his top tips for property investment in 2020.

In other news, Infrastructure Australia released the 2020 Infrastructure Priority List earlier this week. There are 147 infrastructure proposals on the list, which is the largest since its inception, with 37 new proposals added this year.

Whilst the infrastructure links to the Western Sydney Airport and the extension of the Sydney Metro rail through to the city and out to Bankstown will have some impacts, the three main projects that will have a direct impact on acreage in this area are…

1. Proposal to raise Warragamba Dam

2. South Creek Integrated Land Use And Water Cycle Management

3. The Outer Sydney Orbital (M9) corridor.

To find out more about the 2020 Infrastructure Priority List click here.

So, what’s happening in the acreage market?

As predicted, there’s now a lot more acreage stock coming onto the market.

In fact there were 28 new acreage properties listed this week (the largest number we've seen so far this year) which means that currently there are a total of 395 acreage properties For Sale across the entire region.

This overall total includes 218 acreage properties For Sale throughout all of The Hawkesbury, 125 in The Hills and another 52 For Sale within Sydney’s North-West acreage areas of Penrith and Blacktown.

But, there’s only been 6 acreage properties Sold this week and 15 properties that are currently ‘Under Contract’ across the entire region.

…and Autumn looks set to be an extremely active acreage market off the back of the positivity in the housing market with auction clearance rates hovering back up around the 80% mark again.

However, the reality is that with the current rate of new acreage stock coming onto the market, it will take a dramatic increase in sales volume over the coming months before we can start experiencing a booming sellers market in the acreage sector again.

Out in the field this week, there were a lot of enquiries from buyers who are now fully qualified and ready to purchase if they find the right property.

Also, this week I’ve been putting the finishing touches to The Acreage Report (Autumn edition) which will be going off to print next week. It includes an exclusive report on 'The Future For Acreage This Decade' and here’s a ‘Sneek Preview’ of part of that report.

Draft Report: A Look Into 'The Future For Acreage This Decade'

While I was putting together this latest report all I kept finding myself asking was if Sydney's population is projected to increase by 1.4 million in this next decade, then where on earth are all of these people going to live.

To find out more, check out the link above, and if you want to receive a copy of The Acreage Report (Autumn edition) before it goes to print then register now at…

TheAcreageReport.com.au

The current edition of The Acreage Report 2020 (Summer edition) was by far the most popular edition we’ve released to date, but, I have a feeling that this next edition is going to be even more popular.

The Acreage Report is packed full of valuable insights and updates about exactly what's happening within the Hawkesbury, Hills & Sydney’s North West acreage market.

Plus, when you grab a copy you’ll also receive instant access to The McGrath Report 2020 which features some great information from property expert, John McGrath.

So there you have it, that’s it for this week’s Acreage Market Wrap.

If you’ve got any questions about anything I’ve shared this week or would like to discuss any of your acreage plans with me, don’t hesitate to get in touch.

Thanks for watching and bye for now.

Regards

Greg Vincent

John McGrath’s Top Tips For Property Investment In 2020

With the share market suffering huge losses this week, with the ABC reporting today that the…

“Australia's share market has joined Wall Street in a correction, falling more than 10 per cent since their recent record highs, while the Australian dollar plumbed a fresh 11-year low.

In the space of just a week, the ASX 200 has gone from a record closing high of 7,162 last Thursday to a low of 6,427 in today's session.

This morning's initial 3.3 per cent slump took the losses above 10 per cent since that record, marking the beginning of what traders call a "correction".

To enter a "crash" or "bear market" share prices would need to lose another 10 per cent from there.

Looking at the broader market, represented by the All Ordinaries index, Australian shares have lost more than $240 billion in value since their highs last week. 

It is the biggest weekly drop for both Australian and US share markets since October 2008, during the peak of the global financial crisis market chaos.

The Australian dollar has also again plumbed financial crisis depths, falling to 65.29 US cents during afternoon trade.”

A Turn Towards Property Investment

When share markets fall a lot of investors often look to invest in the housing market again to diversify and spread their risk as bricks and mortar is seen to provide a more resilient investment during uncertain times. Whilst the bad news surrounding the impacts of the current global health crisis is causing turmoil & chaos amongst business.

If you’re thinking of switching across to investing in property, we’ve got some news! It’s now not only easier to get a loan but several of the banks have just cut their mortgage rates for investors, despite the RBA holding rates steady this month.

Property investment should always be for the long term and it’s certainly advantageous to get started when rates are at record lows.

if you’d like to know more about investing in property, and gain some valuable insights from one of Australia’s leading property experts, make sure you check out John McGrath’s top tips for property investment in 2020 here

Also, when looking at investing in property, it’s worth checking out my recent article titled…

Draft Report: A Look Into The Future For Acreage This Decade.’

There’s going to be some massive changes in the acreage market this decade.

Plus, I currently have some great opportunities amongst the acreage sector located on the fringes of Sydney which are showing excellent returns and excellent potential for growth along with future development opportunity.

Don’t hesitate to contact me if you’d like to know more about these properties and the long term benefits of investing in acreage.

Regards

Greg Vincent

Draft Report: A Look Into 'The Future For Acreage This Decade'

Please help... DRAFT REPORT: A LOOK INTO THE FUTURE FOR ACREAGE THIS DECADE!

Hi, I'm currently in the process of writing a report on 'The Future For Acreage This Decade', see the first part of the report below.

But as I'm writing this report, one question just keeps going over and over in my mind... 'Where on earth are all of these people going to live?'

First part of the report...

"Australia’s population clock ticked over to an historic milestone: 25 million people in August 2018. It took Australia 23 years to increase from 15 million people to 20 million people. But the latest 5 million, to reach the 25 million milestone, was added in just 14 years.

According to the Australian Bureau of Statistics (ABS) medium-growth model, we can expect Australia’s population to grow to 30 million by 2030 and by the end of this decade Sydney is projected to have a population nearing 6.5 million. That’s an extra 1.4 million on top of the current 5.1 million population of Sydney.

Now when you consider the latest North West Growth Sector precincts already released like Riverstone East (Stages 1 and 2) provides 3500 homes and Vineyard Stage 1 will add a further 2300 homes and these precinct plans were finalised in August 2016 and December 2017 respectively, and only one precinct has several homes completed or being built, whereas, the other precinct doesn’t have a single parcel of land ready to build on as yet.

With the latest census showing Sydney having an average household size of 2.72, these 2 precincts will eventually accommodate approx.16,000 people in total, but, if it takes 4 years to go from precinct release to homes built, with an extra 1.4 million people going to live in Sydney in the next decade, our city will conservatively need approximately 400,000+ more homes and very quickly."

I know the Aerotropolis precincts are going to add enormously to the volume of housing, but, there's a lot more that will need to be done to accomodate Sydney's population growth.

I'd be really interested in gaining any insights from town planners, community leaders and acreage owners currently living on the fringes of the development areas or anyone who has ideas about what can be done.

Thank You in advance.

UPDATE: The full report is available in The Acreage Report 2020 (Autumn edition), grab your copy at www.TheAcreageReport.com.au

Regards

Greg Vincent 

South Creek Integrated Land Use And Water Cycle Management Is Now On 2020 Infrastructure Priority List

The 2020 Infrastructure Priority List has uncovered the scale of the challenge for Australian governments in addressing emerging and enduring infrastructure needs.

“Australia’s infrastructure task is getting bigger and more complex across our fast-growing cities as well as regional areas,” said Ken Morrison, Chief Executive of the Property Council of Australia.

“The Infrastructure Priority List is a huge call to action for our governments to support the city-shaping and nation-building projects that are needed for a growing population, to boost productivity and sustain our standard of living.

At a Glance:

• The Infrastructure Priority List new focus areas are on water, waster, coastal inundation and road maintenance

• There are 147 infrastructure proposal on the list, the largest since its inception

• 37 new proposals were added this year

…with one of the key Priority Initiatives being the South Creek integrated land use and water cycle management scheme which is scheduled for assessment by the NSW Government within the next 5 years.

The South Creek catchment covers an enormous area of Western Sydney which includes the Aerotropolis extends from where it reaches the Hawkesbury River to the north and runs almost as far south as Narellan and is bounded by Blacktown to the east and almost to Penrith to the west.

As part of the Western Sydney City Deal, the commitment is to Restore and Protect South Creek

The South Creek corridor from Narellan to Hawkesbury has been identified as an important environmental spine and organising landscape element for the Western Parkland City. The NSW Government will develop a strategy for South Creek that will investigate its restoration and protection as part of the broader strategy of integrating land use and water management within the 63,000 hectare catchment.

The Western Sydney Aerotropolis is going to be where most of the development and infrastructure focus will be in this next decade.

It’s going to be very interesting to see how Infrastructure NSW are going to minimise the downstream impacts to the Hawkesbury River and avoid large scale ecological impacts as Western Sydney keeps developing over the next decade and beyond.

Our population is growing rapidly and as Ken Morrison Chief Executive, Property Council of Australia outlined

“This is the ‘new normal’ for Australia’s infrastructure challenge, not just a short-term boom,”

“We need to plan for, fund and deliver new infrastructure on a much bigger scale and over a longer period of time than we have experienced previously.

“This will require a new mindset from our governments and the community – one which is always focused on constantly planning and building for the future."

Mr Morrison said that as the Infrastructure Priority List continued to grow, only seven projects had ‘graduated’ from the list to project delivery stage.

“We need to see more projects moving into delivery stage if we are going to keep with the demands of a growing nation,” said Mr Morrison.

Regards

Greg Vincent

Acreage Market Wrap - 22nd Feb 2020

Hi, my name is Greg Vincent and welcome to this week’s Acreage Market Wrap where I share an insight into How’s The Acreage Market?

This week, the RateMyAgent industry awards were held and I’m extremely proud to share that our McGrath Rouse Hill office received an Agency of the Year Award for sales in 2020.

This outstanding result is not only a fantastic achievement for our team at Rouse Hill, but it’s also a terrific outcome for our clients as we constantly aim to raise the bar for customer service and set new standards of excellence to ensure that you receive the best possible experience and outcome.

On top of that, the McGrath Network also won the Large Agency Network of the Year award. I feel extremely proud to be part of such a customer-focused and professional group of estate agents.

In other news, this week HIA and CoreLogic released figures to show that the demand for residential land has increased 45.9 per cent since March last year.

“With leading indicators showing that the housing market has improved and the increased demand for residential land is further evidence of the growth occurring in the market.

Plus, with Sydney’s rapidly increasing population combined with a shortage of available land these two factors have played a big part in driving home prices up substantially over this past decade.”

With demand for land picking up, it is important that an adequate supply is maintained each year to avoid undue pressure on housing affordability, which should put pressure on the State Government, Planning NSW and Local Councils to start releasing more acreage properties for subdivision because in the end people are going to need somewhere to live and soon.

For more information visit, Increased Demand For Residential Land Set To Have A Positive Impact On The Acreage Market

As more of the North West Growth Centre Precinct Plans are released and acreage parcels become rezoned, the surrounding acreages also become highly sought after and the positive flow-on impacts are felt across the entire acreage market.

So after a lengthy wait for so many acreage owners living on Sydney’s fringes, I anticipate that the pressure for more land releases is now becoming far too great for the state government and local councils to hold them back for too much longer.

Plus the extra stamp duty, extra rates and infrastructure contributions from the developers will help add millions of dollars to their coffers to help them provide much needed community services like transport, schools, hospitals, etc.

Also, with data just released by the Australian Bureau of Statistics shows the value of new housing loans has surged by almost 21% since the Morrison Government was returned, with new owner occupier mortgages in NSW and Victoria being the main drivers.

The Federal Government First Home Loan Deposit Scheme has been extremely popular and it’s helping to fuel the bottom end of the market which will have a flow on effect into the acreage market over the coming weeks... and as I mentioned in an article earlier this week, Early Autumn Looks Like Being A Much More Active Time To Sell Your Acreage Property.

The Latest Insight Into What’s Happening In The Hills Housing Market?

Now for something a little different, this afternoon I went along to see today's auction at 57 Hadley Circuit, Beaumont Hills. I thought I’d drop by to get a clearer picture of exactly how strong The Hills residential market currently is. ...and I must say that it's on fire.

The stunning home was promoted perfectly by the McGrath team and with the bidding starting at $1.2m it climbed quickly and kept climbing way beyond the $1.5m reserve …and amongst some very spirited bidding the property ended up being SOLD for $1.67 million. Nearly $200,000 above reserve.

Here’s the Facebook Live video I recorded of the auction (from when the bidding was up around $1.5m).

Congratulations to both the owners and the successful bidders, and well done to our McGrath team for another sensational result.

....and the good news for acreage owners is that the positive wave is on its way, but, it comes with a word of warning. Be very careful if you're waiting for the acreage market to increase before you sell and your plan is to move closer into the city, you may actually be better off moving now before the prices in The Hills keep climbing higher and higher. It's just some food for thought.

So, How is the Acreage Market?

More acreage properties are starting come onto the market with another 13 new acreage listings launched this week which means that there are now currently 381 acreage properties for sale across the region.

This overall total includes 214 acreage properties For Sale in The Hawkesbury, 117 throughout The Hills and another 50 For Sale within Sydney’s North-West acreage areas of Penrith and Blacktown.

There were 6 acreage properties SOLD this week along with another 15 acreages currently Under Contract.

Out in the field, after over 6,000 internet views, 153 enquiries, 35 inspections, as well as 7 contracts having been issued and 3 parties negotiating very competitively, the property at 7 Everett Place, Annangrove has now gone ‘Under Contract’.

As you can see from those stats there are lots and lots of acreage buyers actively looking to move onto acreage at present.

So, perhaps if you’re thinking about selling your acreage property I may just have the right buyer for your place currently sitting there waiting for you amongst my acreage database.

Also, for anyone watching who may be looking to buy an acreage property, I regularly sell properties before they even appear on the real estate websites, so if you want to be kept in the loop about any new listings before they hit the broader market, make sure you get in contact with me and ask to be added to my Exclusive Pre-Launch Acreage Database.

For example, I have several new listings about to come onto the market, one of them is a stunning 25 acre property right beside the Hawkesbury River in Lower Portland which is a perfect Acreage Escape and playground for anyone into waterskiing, horse riding, motorbikes, etc.

If you'd like more information about this 25 acre property or any of the other properties that I have coming up, simply get in touch with me.

Lastly, to wrap up, I just wanted to let you know that I'm currently just adding the finishing touches to the upcoming Autumn Edition of The Acreage Report 2020 which features a special article that provide “A Look Into The Future Of What’s Ahead For Acreage This Decade”.

So, if you want to be amongst the first to receive the exciting new Autumn edition then register now at www.TheAcreageReport.com.au and at the same time you'll receive a copy of The Acreage Report 2020 (Summer edition) plus The McGrath Report 2020 which includes insights from property expert, John McGrath.

The new Autumn edition will not only feature that exclusive article, but you'll also get the most up-to-date acreage market statistics and insights into what's happening within the Hawkesbury, Hills & Sydney’s North West acreage market.

So, there you have it. That's it for this week’s Acreage Market Wrap.

As usual if you’ve got any questions about anything I’ve shared this week or if you’d like to discuss any of your acreage plans with me, don’t hesitate to get in touch.

Thanks again for tuning in and bye for now.

Regards

Greg Vincent

McGrath Rouse Hill Receives Agency of the Year Award

This outstanding result is not only a fantastic achievement for McGrath Estate Agents Rouse Hill but it’s also a terrific outcome for our clients as our team constantly aim to raise the bar for customer service and set new standards of excellence to ensure that you receive the best possible experience and outcome.

In addition to our Rouse Hill office receiving an Agency of the Year Award for sales in 2020, the McGrath Network also won the Large Agency Network of the Year award at the RateMyAgent Awards last night!

I am extremely proud to be part of such a customer-focused and professional group of estate agents.

We look forward to continuing to set the standard of excellence along with having the opportunity to combine the enormous resources of McGrath Estate Agents along with experience and energy to help you achieve your real estate goals.

Regards

Greg Vincent

Increased Demand For Residential Land Set To Have A Positive Impact On The Acreage Market

Even though Australia’s population is still growing at a rapid rate, with the preliminary estimated resident population of Australia at 30 June 2019 being 25,364,300 people which was an increase of 381,600 people in a year according to Australian Bureau of Statistics, yet residential land sales slowed significantly during this period which had a stalling effect on development and construction.

Recent figures have shown that there has now been a significant turn around and residential land demand has increased 45.9 per cent since March 2019, according to HIA economist Angela Lillicrap and CoreLogic's Head of Residential Research Eliza Owen.

“The first half of 2019 was particularly rough for the residential building industry, with falling house prices, uncertainty surrounding the election and the credit squeeze all weighing on
confidence,” said HIA Economist Angela Lillicrap. 

“Leading indicators in the final months of 2019 show that the housing market has improved and the increased demand for residential land is further proof of this. A shortage of land is one of the factors that has driven home prices to increase over the past decade.”

"With demand for land picking up, it is important that an adequate supply is maintained each year to avoid undue pressure on housing affordability.”  

According to Eliza Owen, CoreLogic’s Head of Residential Research demand for land and dwellings has rebounded strongly from June last year, which is also reflected in a 6.7 per cent rebound in national dwelling values over the past 7 months.”

Source: HIA and CORELOGIC

"Prices for land and housing are likely to rise further over 2020, though this may be slightly mitigated by higher listing levels coming to market, as sellers take advantage of price increases.” their report said

With the median lot price in Sydney increasing over the past decade from $272,750 to $445,000 along with the 45.9 per cent increase in demand since March last year, we are currently experiencing an increase in demand for rezoned acreage from developers.

With developers now back in the market again, there is now an excellent opportunity for acreage owners to create a more competitive environment amongst the developers to ensure that they achieve the best outcome when selling their rezoned acreage.

As more sales start to take place within the rezoned areas, many of these property owners will be looking to relocate onto acreage around the fringes of the development area or further out to get away from all the construction and congestion.

This will start to push prices as more and more buyers see acreage an excellent opportunity for future growth as well as enjoying a quieter lifestyle.

If you have an plans to sell your acreage property, right now could be a good time to catch up to discuss the best way forward and how to maximise the value of your property.

If you’ve got any questions about how to take advantage of the current market and achieve the best outcome, don’t hesitate to get in contact with me.

Regards

Greg Vincent

Early Autumn Looks Like Being A Much More Active Time To Sell Your Acreage Property

As mentioned in this week’s Acreage Market Wrap, I shared that more acreage properties are starting to get Sold as we’re nearing the end of the Summer 2020 selling season, “with 16 sales this past week plus another 13 acreages currently Under Contract and positivity back in the market” …and this positive trend looks set to continue.

In a recent article, property expert John McGrath shared how the early bird sellers will catch the worm

With “data just released by the Australian Bureau of Statistics shows the value of new housing loans has surged by almost 21% since the Morrison Government was returned, with new owner occupier mortgages in NSW and Victoria the drivers.” 

The Federal Government First Home Loan Deposit Scheme has been extremely popular and it’s helping to fuel the bottom end of the market which will have a flow on effect into the acreage market over the coming weeks.

The initiative was so popular that reportedly 5,700 first home buyers have already signed up. In fact, a few brokers I have spoken to said that many have missed out on being amongst the first 10,000. The good news is that there will be another opportunity for a further 10,000 to apply when the next batch becomes available on July 1 which will further fuel the positive growth in the housing market.

Latest figures from SQM Research show the number of homes for sale increased nationwide in January, which is quite unusual for the holiday month, but they remain well down on 12 months ago. 

The biggest increase was in Sydney where listings for sale rose 5.1% in January compared to December but are still almost -25% down on January 2019. Auction clearance rates in the first couple of weeks of February were in the 70%-range, which is considered strong. 

With historically low interest rates plus houses in the residential areas selling a lot faster and many now achieving record prices, an upgrade to an acreage lifestyle property has become more achievable and affordable.

Early Autumn looks set to be a very active period within the acreage sector with lots more qualified buyers now entering the market.

If you’re thinking of selling, early Autumn could be the perfect time to capitalise on the current positivity in the market and secure a high quality buyer for your acreage property within a shorter period of time.

If I can be of any assistance to you, don’t hesitate to get in contact with me.

From a great insight into the current property market, make sure you check out John McGrath’s article about how the early bird sellers will catch the worm

Regards

Greg Vincent

Acreage Market Wrap - 15th Feb 2020

Hi, my name is Greg Vincent and welcome to this week’s Acreage Market Wrap where I share an insight into How’s The Acreage Market?

This week, after 6 months it was great to see that every bushfire in NSW has now been declared “contained”, but it wasn’t without Mother Nature sending down so much rain that we ended up with extensive flooding throughout the district along with an earth tremor in the Hunter which was felt by residents around the Oakville & Maraylya area.

With several bridges closed throughout the district during the floods, many people either remained on the other side of the river or did the long drive out through Bell and around the mountains to get to work. Whilst it was very frustrating and devastating for many of those located in the lower lying areas, I really feel for everyone impacted as there are a lot of locals who are currently going through the arduous task of cleaning up the huge mess made by the flood.

Upon reflection, we were extremely fortunate that the Warragamba Dam levels were so low that no water had to be let out of the dam like they’ve had to do in previous floods. Earlier this week I wrote about how the ‘Low Warragamba Dam Levels Saved Us From A More Major Flood Disaster’ and one thing’s for sure, there will be a lot more said about the nature of this latest flood and the soon to be released Environmental Impact Statement regarding the State Governments proposal to raise Warragamba Dam wall will provide a great opportunity for everyone living amongst the communities located downstream of the dam to have their say and send a strong message to the government about protecting lives and livelihoods. If you’d like more information, here’s the article I shared.

Also, during this week’s floods I shared some helpful tips about what you should do during a flood and how to ‘Keep Your Animals Safe During An Emergency In The Hawkesbury-Nepean Region’.

So, what’s been happening in the acreage market?

As expected more acreage properties are starting get Sold with 16 sales this week plus another 13 acreages currently Under Contract. With the positivity back in the market, more stock is coming onto the market, with another 13 new acreage listings hitting the market this week. The overall number of acreage properties For Sale across the entire region, reduced by 7 this week from the 395 total of last week down to 388 For Sale this week.

This overall total includes 218 acreage properties For Sale throughout all of The Hawkesbury, 123 in The Hills and another 47 For Sale within Sydney’s North-West acreage areas of Penrith and Blacktown.

Out in the field, there was an increase in enquiries from buyers this week plus positive activity at today’s Open Homes.

This week I launched a new acreage property for auction at 6 O’Dell Street, Vineyard which is an excellent lifestyle home on 5 acres located in the Vineyard Stage One Release Area of the North West Growth Centre.

If you’re looking for an extremely rare acreage investment/land bank opportunity with nearly $55,000 per year rental income it’s definitely worth checking out. For those interested here’s a link to the property & don’t hesitate to contact me if you’d like to more information.

Also, after negotiating with several interested parties at the first open that we home held at the 5 creekfront acres property at 197 Willeroo Drive, Windsor Downs, this week after an extended cooling-off period the property was Sold for $1.65 million.

During the sales process there was a huge amount of flood water on the property which could’ve easily derailed the sale. Instead I worked very closely with the purchaser and held the sale together for my client by keeping the buyer fully informed about the extent of the flooding with photos and video updates as well as regularly updating them about the tides and flood level peaks.

From my experience I’ve found that buyers really just want to be kept informed with the facts and address problems head on rather than leaving purchasers in the dark or trying to ignore what’s happening. I was totally transparent and upfront (which is the way that I prefer to do business) and as such the sale went ahead despite the fact that flood waters were still flowing across the property.

Investors Are Back

In other news, something else that I've noticed this past few weeks is that there has been a definite increase in the number of investors who are now looking at investing in the property market.

Many are looking to capitalise on the low interest rates, good returns and increase their asset value during the predicted property price growth in 2020.

I also posted an article yesterday with some information for investors, here’s a link to that article too.

Now, lastly, over the next few weeks I’ll be finalising the Autumn Edition of The Acreage Report 2020 which will feature “A Look Into The Future Of What’s Ahead For Acreage This Decade”.

So, if you haven't already grabbed yourself a copy of The Acreage Report 2020 (Summer edition), make sure get yours now at www.TheAcreageReport.com.au and you’ll be amongst the first to receive the new Autumn edition complete with the latest acreage updates and insights into what's happening within the Hawkesbury, Hills & Sydney’s North West acreage market.

So, that’s it for this week’s Acreage Market Wrap.

If you’ve got any questions about anything I’ve shared this week or if you’d like to discuss any of your acreage plans with me, don’t hesitate to get in touch.

Thanks for tuning in and bye for now.

Regards

Greg Vincent