Official Newsletter of Hamton Property Group

Market Update by Steve Buxton

The residential property market has continued to strengthen since our last newsletter.

The continued volatility in global stock markets, combined with positive press relating to direct property as an improving investment choice have fed a dramatic strengthening in our own enquiry levels.

In the last quarter this has translated to increased sales in a number of projects many of which are now either fully reserved or if not sold out, then almost fully committed.

These include Abito in Fitzroy, The Rathdowne in Carlton, Rize in Richmond and Baymarque in Brighton. In addition our recently launched land subdivision, Prospect Hill in Diamond Creek is almost 50% sold with construction due to commence in a few weeks. This has far exceeded our expectations and provides further evidence of a stronger market.

The conditions for investment in property remain extremely favourable:

  • rents continue to grow off the back of historically low vacancy rates;
  • capital values are starting to rise steadily in new and second hand apartment and townhouse stock;
  • auction clearance rates (a great measure of consumer confidence) are in excess of 80%
  • interest rates have remained stable; and
  • population growth continues unabated, bringing around 50,000 new residents to Victoria annually.

Whilst the news remains extremely positive for investors and owner occupiers, tenants and younger buyers are finding the strengthening market challenging, and in many cases, unaffordable. As we move into 2008, Hamton are tailoring a product to address these issues. Stay tuned for further information!