The top property investment numbers of the week

The top property investment numbers of the week
Jacob RobinsonDecember 7, 2020

"All these computers and digital gadgets are no good. They just fill your head with numbers and that can't be good for you," said the artist formerly and once again known as Prince.

And while the 'Purple One' sure knows how to play funky guitar, his estimation of numerical knowledge by digital distribution is questionable.

Here are but a few of the numbers rumbling through property investor zeitgeist this week.

  • 28%

Miles, Queensland: The limping Surat Basin hotspot

Photo of Miles main street courtesy of Mattinbgn/CC BY-SA 3.0.

Miles, in the Surat Basin Western Downs area of Queensland, is the state's highest yielding suburb, according to RP Data.

But does the 11.17% yield figure really stack up?

Over the past year, Miles' median price movement has dropped 8.16%. But that's not the scary figure for anyone considering investing in the regional mining town.

Miles has a vacancy rate of 28%, according to SQM Research. Enough to deter any investor thinking it could represent a sure-fire cash flow hit.

 

  • $450 million

Sydney Hilton for sale with price expectations in excess of $450 million

The newly refurbished Sydney Hilton Hotel is set to hit the market. With offshore investors circling, price expectations for the 579-room hotel are well over $450 million.

 

  • 10.35%

Can you really get a double-digit rental return in Queensland's Mount Morgan?

With a yield of 10.35%, according to RP Data, Queensland's Mount Morgan appears to offer be an attractive target for investors. 

But is this yield really achievable? 

Property Observer crunched the numbers and found that in this small town, not everything is quite as it appears...

 

  • 14%

Add 14% to Sydney spring auction price guidance: Intelligent Property Services

Like the strange smell at the back of my fridge, the issue of underquoting just doesn't seem to go away.

Intelligent Property Services' Ramon Mitchell browsed a selection of Sydney auction results throughout the month of October to find that the selling price is, on average, 14% higher than the initial price guidance.

One Newtown property sold for nearly a quarter more than its guidance, while a Homebush house fetched $950,000 more than its guide.

 

  • 17

FIRB issued just 17 divestment orders to foreign buyers over past decade

According to evidence presented to The House of Representatives economics committee’s inquiry into foreign investment in residential real estate, since 2003, the Foriegn Investment Review Board has issued just 17 divestment orders to foreign buyers.

In this time period they have also failed to prosecute a single matter for illegally acquiring property in Australia.

The inquiry heard evidence that the current laws are routinely flouted, with foreigners happy to take the risk of not being caught.

 

  • $136 million

Victorian politicians' $136 million of property: What hope is there of housing policy reform?

In the leadup to the Victorian state election there are few issues that unite the jostling parties. But it appears property investment may be one of them.

With Victoria's pollies owning an estimated $136 million of property between them, three academics asked the question: What hope does Victoria have of meaningful housing policy reform?

 

  • 64,000

Over 64,000 Melbourne properties sit vacant: Propser Australia

According to a new report from Prosper Australia, authored by Property Observer's regular columnist Catherine Cashmore, there are over 64,000 vacant properties throughout Melbourne.

According to the report, the Docklands area has the highest proportion of properties that are likely to be vacant based on water consumption.

 

  • $1 million plus

Sydney’s median asking price tips over $1 million mark: SQM Research

Earlier this week, Sydney’s median asking price tipped over the $1 million mark, according to SQM Research.

The research house said that it is impossible to purchase a freestanding house in Sydney’s inner ring for less than seven figures.

 

  • $25,000

Busselton the market leader in regional Western Australia

Picture courtesy of  Greg O'Beirne/CC BY 2.5.

Busselton was Western Australia's top performing regional market over the past 12 months, according to REIWA.

Over this time period, 500 house sales lifted the area's median house price $25,000 to $450,000.

Earlier this week, Terry Ryder explained why he had tipped the town to take off in 2014 and which of the western state's markets to approach more cautiously. 

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