The Research Insights Archives | Blue Wealth Property

What does the UK’s recent property upswing tell us?

15 September 2020Luke GrahamLeave a comment

Earlier this month, statistics from the UK’s Nationwide Building Society were discussed in The Guardian. Figures from August indicate the UK has reached an all-time high average house price of £224,123, which follows four months of weaker prices. This has been attributed to pent up demand during an extended lockdown period, as well as government stimulus such as the stamp duty holiday. The last time Nationwide’s average house price increased by this much in a month, a Harvard undergraduate by the name of Mark Zuckerberg was launching a social networking site from his dorm room called TheFacebook (February 2004).

Residential building approvals indicate low-supply future

7 September 2020Luke GrahamLeave a comment

As you might expect, the number of residential building approvals have generally trended lower since the pandemic ramped up after March. Prior to that, we had actually seen an upswing (particularly in NSW and Victoria). This was likely in anticipation of the transition we expected to see in the market this year. Rental vacancies were trending downward, lending conditions were markedly improving, and confidence was returning to the market.

Population growth in a pandemic: what does this mean for property?

1 September 2020Luke GrahamLeave a comment

In August, a group of academics from the University of Queensland’s Centre for Population Research released a study assessing population growth scenarios as a result of coronavirus. Population and demographics feature as one of four macro drivers in our research model. This may seem intuitive. Changes to a population will inevitably result in changes to the requirements for homes in which they live.

The Melbourne suburbs joining REA’s million-dollar list

25 August 2020Luke GrahamLeave a comment

In July, REA (realestate.com.au) released data on 46 suburbs which achieved seven-figure median price tags in the 2019-20 financial year. More than half of them are in Melbourne, which is welcome news to those fretting the possible consequences of coronavirus’ second spike. The remainder of the list is dominated by New South Wales and Queensland.

Who are the property market’s biggest winners of the pandemic?

17 August 2020Luke GrahamLeave a comment

Conveniently for Australia, we had only just begun recovering from a tough couple of years in the property market as coronavirus hit. All signs were pointing to a promising 2020, with the Triple Treat of relaxed banking regulations, cash rate decreases and political stability all expected to place upward pressure on property market activity. Since the virus descended upon us, positive sentiment diminished, but not entirely. As a result, some parts of the country have fared better than others. It is important, however, to note that these exceptional times are both unique and temporary. A few short months of strong performance is no indication of healthy market fundamentals. Many of these markets would not pass our long-term oriented research model. Some are therefore unlikely to represent viable long-term investments.

Housing finance upswing as home buyers adjust to new normal

10 August 2020Matthew AnschauLeave a comment

In the first half of 2020, we have seen a lending environment directly influenced by the coronavirus pandemic. In January this year, before the pandemic hit Australian shores, Australia’s lending commitment rates were thriving amidst rising demand for owner occupier housing. Notably, ABS data indicated eight months of uninterrupted growth in housing loan commitments. Within this environment we had seen increased buyer’s activity driving demand for credit within the market and banks easing lending conditions in the wake of the 2015-2019 credit crunch.

How is the market responding to COVID’s second spike?

4 August 2020Luke GrahamLeave a comment

When I saw the impressively low numbers of coronavirus in Australia, I was pleasantly surprised. We Australians aren’t known for our adherence to rules, even if it means preserving our lives. Low and behold, a series of quite significant social distancing contraventions have since led to a second spike. Fortunately, by global standards, Australia is still doing extremely well. In fact, Australia’s current death toll is equal to about three days’ worth of COVID-related deaths in the United Kingdom. With the Victoria-induced second spike surpassing the country’s first, let’s hope the worst is now behind us.

How JobMaker infrastructure projects could impact your investment property

25 July 202027 July 2020Matthew AnschauLeave a comment

In order to stimulate the economy following the outbreak of coronavirus earlier this year, the federal government announced JobMaker. The scheme offers fresh infrastructure investment that will fast track key projects in Australian states and territories. This will provide economic and employment growth, prompting expectations that national unemployment will not exceed 8 percent as predicted by Treasury Secretary Dr Stephen Kennedy.

So, negative gearing is back in the news…

21 July 202021 July 2020Luke GrahamLeave a comment

Over the past week, a number of articles have been published by Australian media outlets on taxation, stimulus packages, and of course, negative gearing. This follows the launch of the HomeBuilder scheme, one of multiple packages aimed at stimulating economic activity during the coronavirus fallout. Recent ATO figures have also fuelled commentary, with the Sydney Morning Herald exclaiming that “the cost to Australian taxpayers of negatively gearing rental properties had climbed to $13.1 billion ahead of the 2019 election…”

Ignoring your super in a good way..?

13 July 2020Luke GrahamLeave a comment

It’s the year 2047. The Australian population is fast approaching 40 million, most of the world’s superpowers have reached their net-zero emissions targets and President of Mars Elon Musk is celebrating his 76th birthday. Born at the dawn of the 1980s, you’re looking forward to finally retiring and accessing the wealth you created through superannuation. What a time to be alive!

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