Top Headlines Week 15, 2022
- Posted By David Brown
Wagga Wagga Hotel has set a new record for a sale of a country or regional pub sale. The Victoria Hotel was bought buy fund manager Harvest Hotels for $29M. The multi-level venue is located in the heart of Wagga Wagga. The pub features a separate cocktail bar, public bar with TAB, undercover beer garden and bistro. The previous record was held by the Thomas Blamey Tavern that was sold a month ago for $27M. Harvest Hotels raised $48M from wholesale investors to buy 4 big venues in regional NSW. Harvest hotels now owns seven venues across regional NSW worth up to $160M.
Rental prices in Australia have been on a constant upward trend. Capital cities have seen rental prices increase as much as 21.2% over the last 12 months. Experts are not expecting it to slow down either, predicting rental prices will continue to rise and in result deepening the current rental crisis. National the average price increase of rental houses has been 14.7% and units have seen an average of 11.2% increase over the past 12 months. Brisbane saw some of the most dramatic price increases with rental prices increasing 15.2% in the last 12 months alone. Adelaide and Canberra come in close behind, seeing increases of 14.3%. Sydney has also been heavily hit with rental prices increasing staggering 19.1% in the last 12 months. This has been fuelled by record low vacancy rates. Vacancy rates were just below 1% by the end of March.
Build costs could still be on an upward trend due to the Ukraine and Russian conflict. In 2021 building costs rose by 20%, this was caused by material shortages, disrupted supply chains, and the high demand for tradespeople. The building industry is still dealing with the repercussions that COVID-19 had on the industry. The Federal Government has now imposed new 35% tariffs on imports from Russia and Belarus. Although Australians timber supply is small that is imported from Russia and Belarus, there will still be major repercussions, as laminated beams that are used for structural support in new homes will increase build prices by $6K to $11K. Builders are no longer offering fixed price contracts as prices are changing so rapidly it is not feasible for businesses to offer that.
A Sydney Penthouse has been listed for $40M. The architectural masterpiece comes with a private lift, rooftop entertain area, and landscaped gardens. The 483sqm unit boasts 3 bedrooms all with ensuites, multipurpose room on the upper level, the kitchen is fitted with Sub-zero and Wolf appliances, full-sized butler’s pantry, lounge area, dining area, and fireplace. The Entertainment area has a wet bar, barbeque area, landscaped gardens, and spa. The unit also over looks Sydney Harbour Bridge, Opera House, Circular Quay. It’ll be interesting to see how long this penthouse lasts on the market.
The Rental market in Australia is growing tighter and tighter. The nation has now hit a 1% vacancy rate. This is the tightest the rental market has been national in 16 years and it does seem like it will improve anytime soon. Rental properties have halved I the past year. Some suburbs have fallen as low at 0% vacancies. Brisbane current vacancy rate is at 0.7% with 2,457 properties available compared to 5,407 properties available this time last year. As vacancy rates continue to decrease, the price of rental properties continue to rise to prices never seen before. Brisbane had the highest demand for houses in the country, twice that of units. This is been driven by the migration of young families to the region, the promising job market, and lifestyle options. The current data is showing that we have not seen the worst of this crisis yet.