Greetings from Scoutable and welcome to our July Wrap Up.
July saw 2,040 properties scheduled for auction across Sydney, with an average clearance rate of 57%. Melbourne saw 2,842 properties scheduled, with an average clearance rate of 60%. Brisbane saw 379 properties scheduled for auction with an average clearance rate of 43%. In comparison, July last year had an average clearance rate of 69% (4,043 properties), 76% (4,329 properties), & 47% (1,407 properties) respectively.
The above data is showing a drop in clearance rates of 12% in Sydney, 16% in Melbourne and 4% in Brisbane, for the July year on year comparison. Across the three cities, there has been a significant drop in the number of properties scheduled for auction.
Government property taxes and housing affordability is a political and social debate that has seen many headlines over recent years. No wonder, considering the NSW government has collected $13.8 billion between stamp duty, land tax and other fees (per a recent article in the Business Insider https://www.businessinsider.com.au/housing-australian-property-nsw-stamp-duty-2018-6. Data from CoreLogic indicates that property-related taxes contributed 52.8% of State Government revenues for the 16/17 financial year.
Almost $7 billion of the $13.8 billion is derived from stamp duty from Sydney alone (per data obtained by the ABC, via a Freedom of information Request - see article below).
$1 billion was collected from just 10 areas in Sydney which have seen several new build developments completed, including Sydney CBD: $345m, St Leonards: $134m, Kellyville: $119m, Mosman: $109m, North Ryde: $106m, Newington: $99.7m, Riverstone: $94.2m, Blacktown: $89.7m, Waterloo: $88.3m and Parramatta: $86.3.
Not suprisingly, the top areas contributing to land tax are in the Eastern suburbs, including Woollahra Municipality: $67.4m, Randwick City Council: $67.3m, Waverley Council: $62.5m and City of Sydney: $53.8m, followed by The Hills Shire: $53.2m.
A cooling property market will clearly influence the government's overall revenue. Thinking more long term, should changes be implemented to government taxes surrounding property, it will clearly have a massive impact on the revenue of the government hence the resistance to change.
If you're thinking of buying or investing in Australian property, get in touch to learn about Scoutable services and how we can assist with your property search.
Till next month,
Kellie Landrey | Principal Buyers Agent
IN THE NEWS
WHY BUYERS SHOULDN'T WAIT FOR THE CRASH
https://www.realestate.com.au/news/second-guessing-the-market-is-a-dangerous-game-say-property-experts/
BYRON BAY RETREAT FOR SALE - MOST VIEWED LISTING IN NSW
https://www.news.com.au/finance/real-estate/sydney-nsw/romantic-byron-bay-property-hits-the-market-with-a-big-price-tag/news-story/c9df5e583645c447b90cd59b3a67271c
NSW STAMP DUTY NETS BILLIONS
http://www.abc.net.au/news/2018-06-18/nsw-stamp-duty-yarn-nets-billions/9877718
PROPERTY OF THE MONTH
5/2 KIDMAN STREET COOGEE
Properties in the Eastern suburbs of Sydney are often considered blue chip investments. This is due to the proximity to the CBD, limited supply of properties, character filled suburbs, access to transport, retail facilities and beaches. Coogee & neighbouring Maroubra are often overlooked for the more known beachside suburbs of Bondi, Bronte and Tamarama. We believe that there is more potential for above average capital growth in Coogee & Maroubra due to the current undervaluation of these suburbs.
July’s property of the month is a prime example of a solid investment in Coogee. Apartment 5, 2 Kidman Street Coogee is located approximately eight kilometres east of the CBD. The property comprises one bedroom, one bathroom, living, eat-in kitchen and balcony with ocean views. The apartment is situated in an art deco block of 10. The property is in walking distance to transport, retail facilities and Coogee beach.
The price guide is $750,000 - $800,000. The property is tenanted, receiving $620 per week. At a purchase price of $800,000, the resulting gross yield is 4.03%.
The property last sold in September 2010 for $525,000. Should the apartment sell for $800,000, it will net the vendor a $275,000 profit or 52% gain in eight years.
If you'd like to know more about this property or any others, please get in touch.
