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Mix 106.3's Real Estate Show - 11/07/26 · The Real Estate Show

0:01
Speaker 1: Cameron Renee's real estate show on Mix one O six
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Speaker 1: point three Step into Stylish, Low maintenance Living in Canberra's
0:08
Speaker 1: Inner North to Burg by JW.
0:10
Speaker 2: Land.
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Speaker 3: Well, can we had another awesome show on Mixed one
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Speaker 3: and six point three on the weekend and it's time
0:15
Speaker 3: for another podcast?
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Speaker 4: Yes, and d Bushy Martin from No How Property Finance,
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Speaker 4: and he sent the headline over to us, and he
0:21
Speaker 4: gave us a couple of options of things that he
0:23
Speaker 4: could have spoken about for the show on Saturday, but
0:25
Speaker 4: the headline that he sent was a cracker and I
0:28
Speaker 4: just thought, this is it, this is what we're going
0:29
Speaker 4: to talk about, and it read quote unquote flat pack finance.
0:34
Speaker 4: Huh has the bank finally unblocked the building pipeline?
0:39
Speaker 5: Yes, so he spoke about a bank. We'll let you
0:42
Speaker 5: learn more about which one.
0:43
Speaker 4: I wonder which bank it was?
0:45
Speaker 3: Well, were you We are to find out if you listen.
0:47
Speaker 3: I'm talking about relaxing lending rules if you have a
0:50
Speaker 3: flat pat home because traditionally they wouldn't lend money unless
0:54
Speaker 3: it was physically installed on the site.
0:56
Speaker 4: Bushy Martin explains everything, and he's very entertaining way the number. Yes,
1:00
Speaker 4: we're all so flying.
1:01
Speaker 5: Weren't they numbers?
1:02
Speaker 3: We're flying? Domain's latest quarterly rent report came out, so
1:05
Speaker 3: we spoke to doctor Nicola Powell from Domain who broke.
1:08
Speaker 5: It all down for us and explained what it meant
1:10
Speaker 5: for Camera.
1:10
Speaker 4: And as I said in the show on Saturday, I
1:12
Speaker 4: love when we speak to a data scientist and there's
1:14
Speaker 4: numbers and figures flying all over the place. But when
1:17
Speaker 4: she opens the report for the first time, what does
1:19
Speaker 4: she go for? Which page is it that does it?
1:21
Speaker 4: For a data scientist?
1:22
Speaker 5: Absolutely super interesting.
1:24
Speaker 3: And we also checked in with Peggy McCallister from my
1:26
Speaker 3: agent down at the South Coast, as we like to
1:28
Speaker 3: do every now and then, to see what's happening property
1:30
Speaker 3: wise over there.
1:30
Speaker 4: I love living in Camera yep, but I love going
1:33
Speaker 4: to the coast.
1:33
Speaker 3: But we're so close, Like how lucky are we to
1:35
Speaker 3: live here and be able to visit there?
1:37
Speaker 4: It is, as the Mighty Midnight Oil once sung about, Yes,
1:40
Speaker 4: best of both worlds. Absolutely all right, that's what's doing
1:44
Speaker 4: on the podcast with the Real Estate Show. It's all
1:46
Speaker 4: thanks to j W.
1:47
Speaker 1: Lamb.
1:47
Speaker 4: Thank you for listening. A mixed one of six point three.
1:52
Speaker 5: Well Cam Flat Pack Finance.
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Speaker 3: What actually is that and has the bank finally unblocked.
1:58
Speaker 5: The building pipeline?
2:00
Speaker 3: Now, you know, when we're running with a headline like
2:02
Speaker 3: that in our show, it can only come for one
2:04
Speaker 3: of our regular guests, one of our very special regular guests,
2:07
Speaker 3: Bushy Martin from No How Property Finance.
2:09
Speaker 5: Bushy, good morning, Good morning guys.
2:12
Speaker 6: I love the subject, so they can't wait to unpack
2:14
Speaker 6: it for you.
2:15
Speaker 3: Yes, unpacked the flat pack. Now, look, tell us what
2:19
Speaker 3: all this means. What has changed with the way modular
2:22
Speaker 3: homes can now be financed?
2:24
Speaker 6: Yeah, well this is a really good story because up
2:26
Speaker 6: until now banks have treated faculty built homes a bit
2:28
Speaker 6: like suspicious luggage at the airport. They wouldn't release the
2:31
Speaker 6: money until a house had safely landed on site, which
2:34
Speaker 6: is a bit like delivering the fire thing which are
2:36
Speaker 6: after the shed's burnt down, guys. And to be honest,
2:39
Speaker 6: about as useful as contraception as a convent. So yeah,
2:42
Speaker 6: technically available, but actually practically pointless, which means that flatbat
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Speaker 6: finances finally, And there has been a bit of a
2:49
Speaker 6: financial face up till now, but that's finally changing, I'm
2:52
Speaker 6: going to say, because one major bank can now find
2:54
Speaker 6: up for sixty percent, sometimes after eighty percent while the
2:57
Speaker 6: home's off site and Tasmania is also backing that same
3:01
Speaker 6: gap with a government guarantee. So factory fabrication factory finance
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Speaker 6: are finally facing the same direction of the money can
3:07
Speaker 6: now travel with the house instead of waving goodbye from
3:10
Speaker 6: the lighting dock. So it's really good news.
3:12
Speaker 5: Okay.
3:12
Speaker 4: So two questions come out of that for me straight away.
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Speaker 4: Number one, why the aversion? So why have banks have
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Speaker 4: been not supportive of this? And then which bank?
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Speaker 7: Yes?
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Speaker 6: Well, I'll answer the second one. First, it's actually the
3:25
Speaker 6: Commonwealth Bank that's got behind it, and I guess the
3:30
Speaker 6: issue has been that banks generally lend against the land
3:34
Speaker 6: and whatever bulb to to it. So that means that
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Speaker 6: half the house seeing in the factory isn't yet considered
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Speaker 6: security by the banks on a suburban block, and you
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Speaker 6: can't understand its ability goes belly up. Bank can't exactly
3:46
Speaker 6: repossess the pantry tile way they on sweat and then
3:48
Speaker 6: flog the reroof on marketplace guys. Because the traditional finance
3:53
Speaker 6: follows a sort of four neat completion steps on site,
3:56
Speaker 6: so you slab it, frame, lock up and finish but
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Speaker 6: as we know, modulate housing can do several stages at
4:01
Speaker 6: the same time under one factory roof, while the foundations
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Speaker 6: are actually happening somewhere else. So the builders of want
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Speaker 6: of the cash before the construction, and the banks have
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Speaker 6: wanted construction before cash, and that's led buyers trapped between
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Speaker 6: them a bit like a possum and the revolving doors,
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Speaker 6: leaving them pretty busy in but worldle bit getting absolutely nowhere.
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Speaker 6: So it's great that we're finding seeing this come through
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Speaker 6: and we're finally seeing the removal of that banking blockage
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Speaker 6: because there's never been a construction issue. So you know,
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Speaker 6: we're now pulling that fat financial cork out of our
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Speaker 6: housing supply pipe hopefully.
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Speaker 5: And so Commonwealth's on board.
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Speaker 3: Do you think other banks are likely to come on
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Speaker 3: board to eventually or there'll still be that reluctance there.
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Speaker 6: Well, I think that the Commonwealth Bank is still the
4:43
Speaker 6: biggest bank in the country by by far, and if
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Speaker 6: they and they're pretty conservative, so if they're making the moves,
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Speaker 6: and it's likely they're coming on board, and it's happening
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Speaker 6: at a good time because the bank's business is down
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Speaker 6: given what's happening in the marketplace generally, and they're starting
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Speaker 6: to sharpen their pencils. This is a really good time
5:01
Speaker 6: to get on board. And I actually hope governments are
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Speaker 6: state and federal level get on board with this as well,
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Speaker 6: because everyone's talking about their housing supply shortage. Well, this
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Speaker 6: is a great way to improve that pretty significantly.
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Speaker 4: And I tell you what, Bushy, and you won't know this,
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Speaker 4: but overnight it's just been announced here in the act
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Speaker 4: parcel of land that it's had a question mark over
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Speaker 4: it for a long long time, it's just been released.
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Speaker 4: It is huge and so this is an opportunity for
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Speaker 4: three thousand brand new homes to be built.
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Speaker 6: Incredible, now, bring it on. I mean, this is what
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Speaker 6: Australian needs to be doing, is getting out of the
5:34
Speaker 6: way with some of these exercises that have just been
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Speaker 6: done forever but haven't improved the situation. We've got a
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Speaker 6: really good opportunity now and it's a good time given
5:42
Speaker 6: the pressures that are on housing generally.
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Speaker 2: Yeah.
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Speaker 3: Absolutely, Well we'll wait and see what happens. Super interesting
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Speaker 3: development and love that you are able to join us
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Speaker 3: to share the details of that, Bushy.
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Speaker 5: Thanks so much.
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Speaker 6: Thanks Thanks Damach.
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Speaker 3: She is Bushy Martin from no how property finance. They're
5:57
Speaker 3: talking about flat pack finance.
5:59
Speaker 6: Well, KEM.
6:00
Speaker 3: Domain's latest quarterly rent report came out through the week.
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Speaker 3: And when these reports come out, as you've said, there's
6:05
Speaker 3: always lots of numbers and data and information.
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Speaker 5: It's kind of like, Okay, what does this all.
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Speaker 3: Mean for U numbers fine everywhere, yep, how do we
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Speaker 3: filter through this and what does it mean for Canberra?
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Speaker 5: And that's the question we like to ask.
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Speaker 3: And so this morning, doctor Nicola Pell, head of Research and.
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Speaker 5: Economics at Domain, joins Ushi Nikola, good morning, good morning.
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Speaker 3: Now, look, can you give us an overview of this
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Speaker 3: latest research and what's been revealed?
6:26
Speaker 5: What does it look like for Canbra.
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Speaker 2: So we have nationally seen a strong reacceleration of asking
6:32
Speaker 2: rents and that is a similar thing in Canberra. We
6:35
Speaker 2: did see house rents increase point ten dollars over the
6:39
Speaker 2: gym quarter and actually for Canbra house rents that's the
6:41
Speaker 2: strongest gum quarter we've.
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Speaker 7: Seen in eight years.
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Speaker 2: So it does mean a record high house rent but
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Speaker 2: units actually remained unchanged across the act, which means for
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Speaker 2: the past six months they've just been holding at that
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Speaker 2: record high five eighty a week.
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Speaker 5: Okay.
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Speaker 4: So the numbers are the numbers, but there's also a
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Speaker 4: story behind the numbers.
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Speaker 5: What is the story for this report?
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Speaker 2: So I do think that obviously we've seen three rate
7:05
Speaker 2: hikes this year, so the holding costs for investors have
7:08
Speaker 2: obviously increased. I think part of that means that there
7:11
Speaker 2: is a bit of pass through to asking rents. And
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Speaker 2: obviously we've seen such a change in sentiment amongst investors
7:17
Speaker 2: as a result of the budget. While I don't think
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Speaker 2: that that change is actually having an impact on supply,
7:23
Speaker 2: I do think it's influencing sentiment and that is what's
7:26
Speaker 2: coming out in some of our major capital cities, particularly
7:28
Speaker 2: Sydney in Brisbane.
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Speaker 5: Okay.
7:30
Speaker 4: And I love asking people who love their numbers. So
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Speaker 4: you put the report together and the numbers are crunched.
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Speaker 4: There's numbers flying everywhere, data all over the place. When
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Speaker 4: a data scientist like yourself opens up the report for
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Speaker 4: the first time, where do you go, what's the first page?
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Speaker 6: Look?
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Speaker 2: I have to say this one report really did take
7:52
Speaker 2: me by surprise. And what took me by surprise, and
7:54
Speaker 2: it's really hard to take me by surprise, I mean,
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Speaker 2: doing housing for close to two decades, So it was
8:00
Speaker 2: this strong reacceleration in rent particularly in Sydney. Sydney rents
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Speaker 2: jumped by fifty dollars in three months. I got the
8:07
Speaker 2: team to dive into the data double check that everything
8:10
Speaker 2: we were seeing with true accurate reflecting today's market conditions.
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Speaker 2: So that's really what surprised me is just how strong
8:19
Speaker 2: the reacceleration in rents that we saw pretty much across
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Speaker 2: most houses across our major capital cities.
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Speaker 3: And what about the vacancy rating camera, what's that looking like.
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Speaker 3: Is there lots of rental stock here.
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Speaker 2: So the vacancy rate still is technically a landlord's market,
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Speaker 2: so that means that the vacancy rate sits below two percent,
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Speaker 2: and in the act it's one point two percent. The
8:41
Speaker 2: thing with Canberra is the vacancy rate is higher compared
8:44
Speaker 2: to other capital cities, So I mean the outlook is
8:47
Speaker 2: a bit better for tenants in Canberra than other major cities,
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Speaker 2: and the vacancy rate is slightly higher than the same
8:53
Speaker 2: time last year.
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Speaker 6: So it does show that there is a bit.
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Speaker 2: Of increase in available rentals and I think that that's
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Speaker 2: probably one of the aspects that's feeding into the stability
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Speaker 2: that we're seeing in unit rents across camera.
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Speaker 5: Okay, well it's very interesting.
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Speaker 3: We love chatting to you because you know, like Cam said,
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Speaker 3: you get these reports, he is all these numbers and
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Speaker 3: you're able to explain it to us really really well.
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Speaker 5: So thank you so much for your time. Nikola, thank you.
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Speaker 5: That's doctor Nicola Powell, head of Research and economics that domain.
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Speaker 3: Well, can we know how can Baron's love to go
9:23
Speaker 3: to the coast not just in summer but all year
9:25
Speaker 3: round whenever they get the chance to duck over there
9:27
Speaker 3: and get away for a little bit, And so we
9:30
Speaker 3: thought it's high time we check in with what's happening
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Speaker 3: down their property wise.
9:33
Speaker 4: Do you know what I love about going on to
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Speaker 4: the coasts? So essentially I grew up in the salt water, right,
9:38
Speaker 4: so when you drive down yep, and the first time
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Speaker 4: you open the door.
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Speaker 3: You can smell it and you just get that with
9:44
Speaker 3: of salt air, it's so good and it's the whole thing,
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Speaker 3: Like it's even the drive there, going past Pooh's Corner
9:50
Speaker 3: and just the whole experience when start to finish is
9:52
Speaker 3: really cool, especially if you've got little ones. Anyway, we're
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Speaker 3: going to get a South Coast property update this morning
9:57
Speaker 3: and say good morning to Peeky McAllister licensed a agent
10:00
Speaker 3: at my agent, Peggy Goo morning, how are you.
10:02
Speaker 7: I'm fantastic, thanks, Renee.
10:05
Speaker 3: Now, look a lot like I feel like a fair
10:06
Speaker 3: bit has happened since we spoke to you in April.
10:09
Speaker 3: How has a South Coast property market trapped through it all?
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Speaker 7: Look, it certainly is quieter than what it was, but
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Speaker 7: we do still have genuine buyers out there, who are
10:19
Speaker 7: people that are looking to retire here or make that
10:22
Speaker 7: move for lifestyle purposes to the coast, and they are
10:25
Speaker 7: still keen to buy.
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Speaker 4: Okay, and you've been in the real estate game for
10:28
Speaker 4: quite some time down there on the coast, you would
10:30
Speaker 4: have seen the ebbs and flows of the market over
10:33
Speaker 4: the years. How is it sitting in compared to other
10:35
Speaker 4: years and other periods.
10:37
Speaker 7: Yeah, absolutely, you know, definitely we are more prone than
10:41
Speaker 7: the cities to those lower sort of market conditions. I
10:45
Speaker 7: would say that the market that we're in right now
10:47
Speaker 7: reminds me of the twenty nineteen market, just you know,
10:50
Speaker 7: coming into that sort of quiet time before COVID. It
10:54
Speaker 7: was pretty quiet here then, or even sort of similar
10:56
Speaker 7: to around the market down here, like twenty twelve than
11:00
Speaker 7: eleven market, which was, you know, just a slow coastal market.
11:03
Speaker 3: Yeah, and you said there's still buyers around. Is it
11:05
Speaker 3: predominantly people from outside coming into the coast or local
11:09
Speaker 3: people just looking.
11:10
Speaker 7: For Look, we've had a big run in the last
11:13
Speaker 7: sort of two months of people buying in self managed
11:16
Speaker 7: super and obviously that's just about to end for certain
11:19
Speaker 7: types of properties, so we still have had investors looking
11:22
Speaker 7: at that option. I just had one exchange this week
11:25
Speaker 7: with a self managed super buying residential, just getting in
11:28
Speaker 7: before the cutoff.
11:30
Speaker 5: But obviously that is going.
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Speaker 7: To change a little bit moving forward. We've got a
11:33
Speaker 7: lot of retiree still wanting to move to the area
11:35
Speaker 7: for that coastream, and we still do have families moving
11:38
Speaker 7: down here. We've got people who are looking at employment
11:41
Speaker 7: with the new regional hospital, so there's still a bit
11:44
Speaker 7: going on.
11:44
Speaker 4: Okay, And just with that regional hospital area in mind,
11:48
Speaker 4: in the Maja Maruya area, is there any one place
11:52
Speaker 4: on the coast that people are interested in or is
11:54
Speaker 4: it sort of spread across?
11:56
Speaker 7: Look, it is quite spread, and it was interesting, you know, Yes,
12:00
Speaker 7: today I was reading up on the development on the
12:02
Speaker 7: south coast, and there's actually quite a bit of development
12:04
Speaker 7: going on everywhere. You've got apartments going up in Batemans Bay,
12:08
Speaker 7: you've got an apartment approval that they're trying to get through.
12:11
Speaker 5: In Maria, you've got.
12:12
Speaker 7: Subdivision expansion south of Maria Maria Regional Hospital, and then
12:16
Speaker 7: a lot of tourism and sort of that type of
12:19
Speaker 7: activity in the room. So there are bits in pieces
12:22
Speaker 7: all the way through the Yubadala shire which is really exciting.
12:27
Speaker 5: Okay, excellent, And is there a place you'd like to
12:29
Speaker 5: mention this morning?
12:30
Speaker 7: Right?
12:30
Speaker 4: Come on, of course, would you like to.
12:32
Speaker 7: Mention this morning? So I have a fantastic place in Maria,
12:36
Speaker 7: and of course it's very close to the new regional
12:38
Speaker 7: hospital which is due to be completed next year. What
12:41
Speaker 7: is a really defining feature about this line is it's
12:43
Speaker 7: a really neat and tidy home. But it's set on
12:46
Speaker 7: one and sixty eight square meters, so it does have
12:49
Speaker 7: dual occupancy and subdivision potential. So it could be something
12:53
Speaker 7: that you lease out the house for now and then
12:55
Speaker 7: look at building a second dwelling at the back and
12:57
Speaker 7: getting a double income O.
13:00
Speaker 3: Lots of opportunity there well, people should definitely check.
13:02
Speaker 5: That one out. Peggy, thank you so much.
13:04
Speaker 3: We love catching up with you, so thanks for taking
13:06
Speaker 3: the time my pleasure.
13:07
Speaker 5: That's Peggy McAllister from my agent.
13:09
Speaker 7: There.
13:09
Speaker 3: The property she was just talking about, eighteen Kitely Street
13:13
Speaker 3: in Maruya. Eighteen Kitely Street, Maruya are listed at seven
13:16
Speaker 3: hundred and forty nine thousand dollars.
13:18
Speaker 5: So go online and have a look.
13:19
Speaker 4: Oh it's a great little spot so deleetly yep, just
13:22
Speaker 4: google that addressing and it'll come up. Well, those are
13:24
Speaker 4: the interviews we most enjoyed in last week's Mix one
13:27
Speaker 4: O six point three real Estate Show. If you love
13:30
Speaker 4: hearing about the latest trends, or you're just up for
13:32
Speaker 4: a sticky beak, be sure to drop by for a
13:34
Speaker 4: listen this Saturday between nine and ten Cam and Rene's
13:38
Speaker 1: Real Estate Show on Mix one O six point three