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Sydney population exodus large enough for another city

By Simon Pressley

Promoted by Propertyology

The growing trend for people relocating away from Sydney will continue to shift housing demand to other parts of Australia. And, the opportunities for property investors extend much further than capital cities.

Over the last 6 years, a combined 107,737 people have relocated away from Greater-Sydney to an interstate location – that’s as many as the entire resident population of Australia’s 20th largest city, Bendigo (founded 180 years ago).

The Australian Bureau of Statistics has just released state-by-state population figures for the quarter ending December 2016. National population grew by 372,800 (1.55 per cent) last year, the highest since 2013. Overseas migration (183,621) accounted for 49 per cent of total growth.

Across the 8 states and territories, Victoria was the strongest (146,628 or 39 per cent of Australia), followed by New South Wales (116,382), and Queensland (70,442).

The data highlights that it’s Victoria first and daylight second. Victoria’s 2.4 per cent growth rate is streaks ahead of second placed, ACT (1.7 per cent), NSW (1.52 per cent), and QLD (1.46 per cent).

Tasmania’s population growth has defied many less informed critics and increased from a meagre 0.1 per cent growth in 2012 to a respectable 0.58 per cent in 2016, putting it ahead of Northern Territory and in the same league as Western Australia and South Australia. The outlook for Hobart’s property market continues to be exciting.

In a historical sense across the last decade, the biggest downturn trend is in Western Australia which has seen population growth slip from 3.6 per cent in 2012 (then the best in Australia) to a mere 0.66 per cent in 2016. After 43 consecutive quarters of positive interstate migration, Western Australia has now seen 11 consecutive quarters of declining interstate migration. The December 2016 quarter decline of 3,665 is its worst on record. The cliff being created is deeper than the Grand Canyon.

Northern Territory has also experienced continual population growth rate decline from its peak of 2.9 per cent growth in 2008 to 0.26 per cent in 2016.

Queensland’s population growth rate peaked at 2.6 per cent in 2009 while the 1.46 per cent growth in 2016 was similar to the last 3 years.

Interstate migration data often contains some interesting trends for property investors (generally a lagging indicator of employment trends) and the latest data didn’t disappoint.

Victoria was the biggest beneficiary of interstate migration last year (17,987 net people relocated to Victoria - an all-time record).

12,822 people relocated away from New South Wales in 2016, including 4,112 in the December quarter (the highest since June 2012). Further analysis of the data confirmed an exodus from Sydney with 20,532 people migrating away in 2016. It now seems official that we’re in the midst of a cycle whereby Sydney’s housing affordability challenges are (again) shifting demand to other parts of the country; a trend which Propertyology anticipates will grow deeper in coming years.

Conversely, Queensland has now experienced 5 consecutive quarters with positive interstate migration of more than 3,000 people (14,652 migrated to QLD in 2016). The 4,844 interstate migrants in the December quarter was Queensland’s highest since December 2007.

With better quality infrastructure and employment opportunities than many city folk appreciate, parts of regional Australia are attracting significant interstate migration. In New South Wales, MaitlandMaitland, SA Maitland, NSW (1,083), Shoalhaven (1,425), and Tweed (1,546) are the biggest beneficiaries. In Victoria, Bendigo (1,257) and Geelong (3,187) produced some impressive numbers. SunshineSunshine, NSW Sunshine, VIC Coast (6,200) and Gold Coast (6,247) attracted nation-leading interstate migration. Busselton (898) backed the trend in Western Australia.

Propertyology is a national property market researcher, award-winning buyer’s agency, Telstra Business Award finalist. Simon Pressley is also a REIA Hall Of Fame Inductee and a three-time winner of the REIA and REIQ Buyers Agent of the Year award.

 

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  ["title"]=>
  string(51) "Boost for investors as app sets up off-site bidding"
  ["alias"]=>
  string(55) "boost-for-investors-as-new-app-sets-up-off-site-bidding"
  ["introtext"]=>
  string(144) "

Property investors are now able to identify and bid on auctions remotely using a new live-streaming functionality launched by Gavl.

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Called “Request an Auction”, the new functionality enables users to watch and bid on any Sydney or Melbourne auction remotely.

Through Gavl, prospective buyers are now able to register to bid on their preferred auction. The platform will obtain permission from the listing agent and confirm within 48 hours.

Vendors can also request to have their auctions broadcast to a larger buyer audience.

Co-founder Joel Smith said that auctions streamed on Gavl attract 47 per cent more viewers than traditional ones.

He said that Request an Auction will be valuable for remote buyers.

“Buyers are able to have Gavl attend any auction they nominate, so they will never have to miss out on an opportunity due to logistical complications in physically attending the auction.

“Vendors, too, have the opportunity to directly book an auction with us, so they can open up their event to buyers all around the world. With more potential buyers, they’re giving their property the chance to receive more bids and maximise their sales result.”

Mr Smith said that prior to the Request an Auction app, buyers were limited to what they could achieve through the Gavl technology.

Gavl is a live-streaming and bidding platform for real estate auctions.

Mr Smith said that it has streamed more than 6,000 auctions, which have achieved 3.5 million views from 50 countries.

Gavl’s Request an Auction function is currently being offered in Melbourne and Sydney only.

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Boost for investors as app sets up off-site bidding
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  ["title"]=>
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  string(278) "

Having to split her time between Hong Kong and her original base of Sydney has not slowed Julia Tita’s goal of building a high-performance Australian property portfolio. Instead the resulting alterations to her strategy have positively impacted her investing success.

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Having recently purchased her 6th property, Julia joins host Tim Neary to discuss her journey, share her ups and downs over the years, and reveal her thoughts on why some properties are better than others.

Julia also explains why she no longer makes a move without the help of a buyer’s agent, why working with a strong team of specialists is extremely important and discloses her long-term property ambitions.

If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: FacebookTwitter and LinkedIn.

If you have any questions about what you heard today, any topics of interest you have in mind, or if you’d like to lend your voice to the show, email [email protected] for more insights!

RELATED AREAS OF INTEREST:

Why is Australian property so unaffordable?
Brisbane infrastructure attracts international interest
Going global
Australia desirable to foreign investors

AREAS MENTIONED:

Eagleby
Charters Towers
Townsville
Brisbane
Paddington
Sydney
Orange
Melbourne 
Glen Iris
Bondi

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How a move to Hong Kong impacted Julia’s Australian property goals
object(stdClass)#1195 (52) {
  ["id"]=>
  string(5) "18159"
  ["title"]=>
  string(88) "‘Common’ referrer practice of being paid on both sides of the fence coming to an end"
  ["alias"]=>
  string(82) "common-referrer-practice-of-being-paid-on-both-sides-of-the-fence-coming-to-an-end"
  ["introtext"]=>
  string(246) "

The practice of property investment firms sharing undisclosed kickbacks among the supply chain involved in development sales will be outlawed in NSW on 1 July this year under the Real Estate Reform being handed down by regulators in NSW.

" ["fulltext"]=> string(2238) "

Property commentator and valuer, Suburbanite’s Anna Porter, said the reform will address conflicts of interest.

She said they arise when a mortgage broker, accountant or financial planner receives part of the commission from the property firm, who receive their fees from the developer or seller.

“This puts the broker into a position by which they are being paid on both sides of the fence,” she said.

“Until now this has been a grey area and there was nothing stopping this practice.” 

Ms Porter said this has been a common practice in the industry.

"Some well-known mortgage broking firms openly admit to receiving $5,000–$10,000 per referral in their pocket.”

She also said this process has been going on for decades.

"Property investment firms commonly pass some of their commission on to the mortgage broker, accountant or financial planner as a reward to them for passing on the referral. This means that many brokers or financial service providers are making significant amounts of money just to refer on to a property firm, often totalling hundreds of thousands of dollars a year," Anna Porter said.

Ms Porter said the Property, Stock and Business Agents Amendment (Property Industry Reform) Bill 2017 will be in force from July this year, and will prohibit this practice unless the broker or referring partner also holds a real estate industry license.

"Under the new laws, if the broker takes a referral fee from the property firm, they will have to be a licensed real estate agent and also hold a corporation’s license,” she said. 

“Subsequently, every transaction that they receive a referral fee from, they will be putting their license up against the transaction and taking full liability for the conduct, practices and outcome of that transaction, even if they have little to do with the transaction; they are a party to it financially and therefore take as much risk as everyone else in the transaction.”

Mr Porter said where a referrer holds a real estate license, and receives a part of the sale commission, they may find themselves in breach of the ethical requirements under the act.

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‘Common’ referrer practice of being paid on both sides of the fence coming to an end

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