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Hegney Property Valuations Albany is a member of the Hegney Property Group. Hegney's Albany office services the geographic areas extending as far east as Hopetoun, as far west as Walpole and extending north to Cranbrook and Gnowangerup.
The Albany office is under the leadership of licensed valuer Mark Eaton who worked for some years in Hegney's Perth office specialising in both commercial and residential valuations before moving to Albany to establish the Hegney office in this fast developing region.
3 February 2010
"On the Ground" Update
by Mark Eaton, Hegney Property Valuations Albany
The force driving demand within Albany through the majority of 2009 was the first homebuyer market. As a result, activity was largely focussed on the vacant land market and the established property market up to $400,000. A significant reduction in land prices as a result of an oversupply in the market and strong competition among developers helped the popularity of vacant land.
The established residential property market over $400,000 proved tough in 2009 as most people outside of the first homebuyer market focussed on job security and saving. Those who ventured into the upper end of the property market in 2009 enjoyed less competition and a number of attractive buys have since come to light.
Late 2009 and early 2010 has seen a broadening of demand within the Albany residential property market as a decline in demand from first homebuyers has resulted in slowing vacant land turnover and the lower price end of the established market. In contrast, the residential property market in the mid to high value range has improved in recent times resulting in a more even distribution of demand. Although investors are present in the market, a lot of investor focus appears to be in the capital cities of Perth, Melbourne and Sydney.
Generally, the market appears to have reached its bottom and recent evidence suggests, a small growth in values has returned to some sectors. Although the bargains prevalent in the market earlier in 2009 are getting harder to find, the market is still considered to favour buyers.
The trend for a more even distribution of demand should continue in Albany through 2010 and although demand is likely to improve, strong price increaes may still be a short way off. An existing oversupply of residential vacant land, combined with the recent reduction in demand for land within Albany should maintain pricing pressure on land within the short term and this is also likely to flow into the established market.
It is worth mentioning however that recent events within the local mining industry including discussion involving the sale of the BHP Ravensthorpe mine and final approvals for Grange Resources Southdown Mine have the potential to stimulate further demand within the region and reduce the oversupply of land sooner than expected.
11 December 2009
"On the Ground" Update
by Mark Eaton, Hegney Property Valuations Albany
Demand for property within Albany has largely returned to normality in Albany in recent times. The sub $400,000 residential market that was by far the strongest market in Albany through most of 2008 has eased as first homebuyer demand declined. In contrast, the residential property market in the mid to high value range has improved in recent times resulting in a more even distribution of demand.
An existing oversupply of residential vacant land, combined with a recent reduction in demand for land within Albany should maintain pricing pressure on land within the short term and this is also likely to flow into the established market.
Recent events however, within the local mining industry including the sale of the BHP Ravensthorpe mine and granting of approvals for Grange Resources Southdown Mine have the potential to stimulate further demand within the region.
Further improvements in local and surrounding industries combined with a continued strong population growth within the region has the potential to reduce the oversupply of land sooner than expected.
Generally, the market appears to have reached it's bottom and recent evidence suggests a small growth in values has returned to some sectors. Although the bargains prevalent in the market earlier in 2009 are getting harder to find, the market is still considered to favour buyers.
15 June 2009
"On the Ground" Update
by Mark Eaton, Hegney Property Valuations Albany
Prior to the world economic upheaval, the media reported many stories on Australia's "two paced economy". The two paced economy referred to the strong economic growth being experienced by the resource rich states of Western Australia and Queensland compared to the low growth of other Australian states that relied more heavily on market sectors such as manufacturing.
Albany is currently experiencing a two paced property market. The affordable or lower value property market is enjoying strong demand and high property turnover. However, this is in stark contrast to the medium to high value end which is experiencing demand, long marketing times and low property turnover.
The increase of the First Home Buyers Grant offered by the Government has generated strong demand for properties in the lower value end of the market, typically under $400,000 in value. This strong demand is unlikely to be sustained at current levels. As the current First Home Buyers Grant is scaled back, first home buyer demand will inevitably decrease, eventually resulting in a sizeable reduction in the demand for properties under $400,000. Given the original deadline to receive the boosted First Home Buyer Grant has now passed, most first home buyers who were in a position to purchase a property are likely to have already done so.
The void left by the reduction in the first home buyer demand is likely to be picked up by a gradual increase in demand from the investment market. The investment fundamentals in property are becoming more attractive as interest rates remain steady and rents increase. The low supply of rental properties has also resulted in very low vacancy rates. This has all combined to provide some of the best gross rental yields seen from some time.
In recent times, low demand for medium to high value properties has resulted in a number of these properties purchased at bargain basement prices in Albany. While this climate is attractive for cash up bargain hunters, it is less endearing to those trying to sell their property. Signs are emerging however that this disparity between supply and demand may be slowly drawing to a close.
Recent statistics released from RP Data have indicated that a price recovery has begun in Melbourne and Sydney. The National Home Value Index has risen 3.9% in Sydney and 4.5% in Melbourne so far this year. The property cycle in Western Australia has lagged behind the eastern states in the past and while this should continue, an improvement in commodity prices could see the widespread recovery in the Western Australian property market arrive sooner than expected.
Finally, the share market has seen a healthy rally in recent times. The large scale destruction of wealth caused by the significant falls in the share market throughout 2008 has had a direct and significant impact on property prices and confidence, particularly for the medium to high values sector of the residential property market. Conversely, the continuation of the recent recovery in the share market will result in wealth creation. This creation of wealth should eventually translate into improved demand for the medium to high end property market.
The emerging signs therefore, point towards a waning of the current two paced property market and a return to market normality. Market confidence should slowly return as positive media reporting and growth figures gather momentum. This, combined with wealth creation should improve demand across the broader market. The bargain hunters may soon need to work a lot harder.
23 March 2009
"On the Ground" Update
by Mark Eaton, Hegney Property Valuations Albany
The residential property market in Albany is currently considered to be two paced. A strong first homebuyer market is boosting demand for residential property under approximately $450,000. Although the demand for properties in the lower price brackets are considered strong, this does not appear to have resulted in any significant increases in market values. The remaining market is still a little slow with longer marketing times and accurate pricing typically required however the odd sale still achieves a robust price.
Recently published statistics have indicated that Albany has resisted the majority of the downturn that has impacted the residential property market across the state in recent times. In addition, in contrast to the general decline in market values of 4% to 5% for the Albany Urban Area, these statistics show significant growth in some suburbs within the townsite. Unfortunately, these statistics are not considered to accurately reflect what is really happening "on the ground".
Overall, the established residential property market appears to have generally declined approximately 10% to 12%. The residential vacant land market has faired significantly worse with declines in market values of approximately 25% to 30% as a result of an oversupply of land on the market.
This trend of a general decline in residential property values and a greater decline in residential land is also evident in other communities of the Great Southern Region such as Denmark.
The residential rental market remains strong however with low volumes of property available for lease at any given time. This has led to an increase in rental levels over the previous 12 months.
The decision by BHP to discontinue the operation of their Ravensthorpe mine has received much press recently. The impact on both the Ravensthorpe and Hopetoun communities has and will be significant. Interestingly, a lifestyle estate located near Hopetoun heavily reduced it's asking prices for lots from approximately $220,000 to approximately $75,000 following the closure of the mine. All remaining lots sold within a very short timeframe, showing that there is still money available when a bargain presents itself.
For more information please contact:
Mr Mark EatonDirectorHegney Property Valuations - AlbanyPhone: 0414 281 141Email: markeaton@hegney.com.au
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