National Property

National housing update (AFR Pg.1 & 4)  

• The RBA has announced that upward pressure on house prices has eased with prices falling in August for the third month in a row. 
• Home prices fell by 0.2% in August from the previous month and a decline of 1.2% over the past three months.   
• Building approvals also declined for the fourth time in a five month period. 
• Approvals declined by 4.7% in August from the previous month with private sector approvals declining by 4.3% and public sector dwellings by 39.6%. 
• Despite the cooling in house prices, it is widely anticipated that the RBA will raise official rates by 0.25% to 4.75% next Tuesday.

Penthouse property update (AFR Pg.53)

• The market for high-end luxury penthouses has cooled off as a result of the GFC and uncertainty surrounding business conditions.
• A decline in the number of luxury home sales has impacted upon the penthouse market as these downsizers are a strong buyer profile for penthouse product.
• In Sydney penthouse sales have been slow with two prominent developments, The Hyde and The Residences, both overlooking Hyde Park containing penthouses with values anticipated to be above $20 million.
• Fraser Property’s Lumiere development, overlooking Town Hall on George Street Sydney has been unable to sell seven multi-level penthouses despite strong sales of two and three bedroom units within the development.
• Elsewhere in Sydney CBD Frank Tagg has been unable to attract a purchaser for his penthouse atop the Swissotel on Market Street at an asking price of $7.5 million after paying $4.5 million in 2000 and has since been leased.
• Other apartments currently on the market include a whole floor apartment on the top floor of The Quay in Circular Quay at an asking price of $20 million and the Top of the Town penthouse in Darlinghurst currently asking $7 million after acquiring the property for $8.25 million in 2007.
• In Queensland the 1,000m² penthouse on the 74th floor on the Q1 building in Surfers Paradise is being marketed without an asking price and reportedly for less than replacement cost.
• In Melbourne penthouse sales have been stronger with the sale of a $15 million apartment known as The Melburnian and an $11 million sale of a penthouse on Clarendon Street.
• The weaker climate for high end apartments has resulted in many developers tailoring projects towards smaller, more affordable product.