Speaking at the quarterly Industry in Focus lunch hosted by the Real Estate Institute of New South Wales and Direct Connect, Mr Baird remarked that the current NSW government is looking for more ways to inject competition into the state's property sector.

He said that the previous state government's imposition of the ad valorem tax was "yet another impost on an industry that is already taxed to its teeth".

In addition to scrapping the tax - a move that takes effect on July 1 - the NSW government has expanded the stamp duty for so-called "empty nesters" and is looking for other ways to boost the property market, Mr Baird explained.

NSW minister for fair trading Anthony Roberts remarked at a recent Real Estate Institute of New South Wales conference that the state should be "number one" in Australia when it comes to property investment.

His comments may boost the confidence of individuals considering a Sydney investment property purchase, as he called for a "smooth and hassle-free" process for buying or selling a home.

Buyer confidence is essential for a "vibrant" property market, he explained.

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Matthew Circosta from Moody's Economy.com also commented on the data, noting: "The housing market is recovering after the floods, with solid demand across the eastern states during the month."

According to the ABS, the April rise in home loan approvals was higher than expected and is the biggest jump since March 2009.

The total value of lending across Australia rose 3.7 per cent, including both investors and homebuyers.

"Steady interest rates, low unemployment, and growing incomes are also giving potential homebuyers confidence to return to the market," Mr Circosta said.

"Combined with April’s strong retail sales and recovering exports, this is a further sign that the economy has bounced back from the flood-induced weak first quarter."

Mr Carr agreed that this week's figures are "a good sign that momentum will rebuild going forward".

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The Real Estate Institute of New South Wales (REINSW) highlighted that the most recent data - for April 2011 - indicates that vacancy rates have slipped below the "crucial" one per cent point and currently stand at 0.9 per cent in the CBD.

This compares with a 1.4 per cent vacancy rate recorded in the city's middle and outer suburbs.

According to Wayne Stewart, REINSW president, the news of the tight rental conditions is "alarming".

He said: "Sydney is a global city, yet the message we are sending out is that we are 'closed for business' because we simply can't provide the level of rental accommodation needed to support the city."

Investors with property in Sydney may be heartened to know that rents in Australia's largest city have increased by 5.3 per cent during the past year.

Figures published recently by RP Data indicate that in spite of slow capital growth, rental rates in Sydney are on the rise.

RP Data analyst Cameron Kusher commented in May that rents are likely to continue to rise in 2011, as a new supply of buildings approved in 2010 are not likely to reach the market before the end of the year.

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Andrew Harvey, the HIA’s senior economist, said this is “primarily due to the average weekly earnings of Sydneysiders faring better than those of Melburnians through the 2011 quarter.”

The latest HIA-Commonwealth Bank Housing Affordability Index Housing reveals that affordability across Australia improved by three per cent during the March quarter.

The HIA points to the growth in average weekly earnings and a softening in house prices as the primary contributors to improved affordability.

''With new home building activity moderating and some easing in pressure on trades, now is a particularly good time to consider building a new home.'' Mr Harvey said.

''Improved affordability is great news for home buyers, particularly first home buyers with sound financial positions who have been considering entering the market in 2011.”

There was no interest rate adjustment over the quarter and the index shows that affordability was still 2.8 per cent below the level registered in the March 2010 quarter.

Affordability increased 1.6 per cent in both Melbourne and Brisbane, while in Adelaide it was up 1.5 per cent, Perth 6.1 per cent and Hobart 4.1 per cent. The only capital city to see a drop (of -0.9 per cent) was Canberra.

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“There is no doubt the residential market is different now to what it was last year with lower price
growth expected and less transactions undertaken, however it does present opportunities for those who are in a position to buy,” the REIV said.

The organisation dismisses talk of a collapse in property prices and notes that the residential housing market in Melbourne and Victoria overall is based on solid fundamentals.

In the past ten years the market has provided capital growth and the only time property prices dropped significantly was during the global financial crisis (when the median house price fell around $70,000).

As soon as Australia’s economy improved following the 2008-2009 crisis the property market also showed signs of recovery.

The REIV believes that such short term fluctuations in the housing market are inevitable but points to the fact most households hold the majority of their wealth in property and for the most part turnover is low.

The state of Victoria sees annual turnover of around $70 billion from approximately 150,000 residential property transactions.

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''Based on the last few weeks, the clearance rate will come down because people who are still negotiating after the reporting deadline don't appear to be getting many sold,'' an industry spokesperson told the Sydney Morning Herald.

And the current market sentiment favours purchasers, ''so vendors need to be realistic with prices to achieve results'', John Keating from Keatings Real Estate in Mount Macedon told the newspaper.

The auction clearance rate last week in Melbourne was at its lowest since November 2008, at 53 per cent, but according to analysts the softening prices are not a cause for alarm but good news for buyers.

Residex analyst John Edwards said vendors may be likely to accept lower sale price offers because of a misconception that the housing market is falling.

He noted the recent Rismark RP Data figures show seasonally adjusted house prices fell 2.1 per cent across Australia in the first quarter of 2011.

''They didn't, and the correction was in fact five times less than this,'' Mr Edwards says, based on the raw rather than seasonally adjusted information.

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This is the view of ANZ economists, despite this month’s indication from the Reserve Bank of Australia (RBA) that an interest rate rise was on the cards due to inflation and the ongoing mining boom.

Data from the Australian Bureau of Statistics reveals that wages increased 3.8 per cent over the last 12 months in Australia and 0.8 per cent in the March quarter. Both figures were lower than expected.

In addition, the Westpac-Melbourne Institute consumer sentiment index is at its lowest level since the middle of 2010, following a 1.3 per cent drop this month.

''For the forward-looking RBA, the weaker-than-expected data flow over the last week (wages, employment, consumer sentiment, housing finance), confirms last year's pre-emptive tightening is doing the job and, as such, there is little urgency to follow up with further policy tightening," economists from the ANZ commented.

''The higher [Australian dollar], which remains above $US1.05, is also becoming a more constraining influence, for both prices and activity,'' they said.

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"Although sales are down, rents continue to be very strong and there seems little likelihood that this will change. As all of the experts will tell you, every market is a good time to buy."

Instead, Mr Wallace advises that people should look for a property investment that represents good value to the individual buyer.

"In essence, you will only be able to borrow to purchase a house at a level that you can afford to repay.

Banks have in place very strict guidelines affecting borrowing outcomes, so the fundamental question for you is whether the property you are looking for provides good value in the current market."

Research recent sales of property in the area where you want to buy and ask the vendor or agent for information about sales. You can often get comparative market assessments from real estate agents.

Also make sure you consider factors such as necessary repairs and renovations. Mr Wallace notes that new homes are attractive for this reason.

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The Real Estate Institute of New South Wales (REINSW) welcomed the legislation after lobbying the government on this point for a number of years.

According to the REINSW, this is good news for the property investment market because it should increase the supply of larger homes in established suburbs, better utilise existing infrastructure and improve the affordability of family homes.

The exemption will now apply to persons aged 55 years or older and to transactions after July 1st 2011 and the dutiable value of the property must not exceed $600,000 in the case of a new home purchase or an off the plan purchase, or $400,000 in the case of a vacant land purchase.

The draft legislation has been passed by the NSW Parliament and is now awaiting assent and scheduled to come into effect on July 1st 2011.

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The maps - which were announced by lord mayor Graham Quirk this week and are available to download from the Brisbane Council website - provide flood risk guidance for more than 60,000 properties in the city.

Mr Quirk commented that the maps will be used as part of the city's efforts to standardise building levels in the wake of the flood.

He told the ABC: "The reports will give residents information around habitable floor areas, so if people are looking to undertake work on their properties or if they want to raise their properties, these flood reports will give them the information they require."

All new residential properties in Brisbane will be subject to a flood standard as part of the state government-endorsed interim measures, which also guide the location of essential services as well as new commercial buildings.

The Greater Brisbane suburb of Loganlea was identified last month as one of Queensland's top investment property destinations thanks to its high rental yields.

Young families are particularly drawn to the district thanks to its amenities, as well as excellent transport links in the Brisbane CBD.

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"The current situation of softer housing conditions and less pressure on trades means that now is a good time to build a new home," commented HIA chief economist Dr Harley Dale.

The HIA JELD-WEN New Home Sales Report is a survey of Australia's major residential builders and indicated that the boost in new home sales was due to a 5.8 per cent rise in sales of detached houses.

"The March result for new home sales reflects an on-going pause in the interest rate hiking cycle and some abatement of the severe weather conditions witnessed in early 2011," Dr Dale explained.

It is an especially good time for property investment in New South Wales, with detached new house sales up 13.5 per cent across the state.

Sales in March increased 11.1 per cent in Queensland, 3.6 per cent in Victoria, and 3.1 per cent in Western Australia.

Although new home sale volumes still linger below the historical average, Dr Dale said a "sustained period of improvement is required for new home sales and a raft of other leading indicators before we can look ahead to healthy levels of residential building activity".

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The Reserve Bank forecast economic growth accelerating to 4.5 per cent in 2011-12 last week, even though it foreshadowed rising interest rates to control inflation.

"It's building public savings, it's boosting skills, it's boosting workforce participation - all of those are critical in the years ahead,'' Mr Swan said in a press conference ahead of entering Parliament House to deliver his budget.

The Housing Industry Association (HIA) called for the government not to take away incentives from the housing market.

"We don't want to see incentives stripped from the First Home Owners Grant or the Housing Affordability Fund," said HIA chief economist Dr Harley Dale.

"The Housing Affordability Fund has been particularly useful in reducing the price of serviceable land for some projects in NSW."

Current forecasts show the economy growing at four per cent in 2011-12 and 3.75 per cent the year after, positive news for Australian property investment.

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According to the Australian Property Monitors' March Quarterly House Price Report the median house price in the Queensland capital is now $448,669, representing a 4.3 per cent annual fall in house prices.

However, a senior economist from Australian Property Monitors, Andrew Wilson, told the Brisbane Times this a two per cent fall over the March quarter is marginal compared to the expectations of some analysts after the January floods.

"I think a two per cent fall over the quarter is a very good result considering that it will be the main hit that we get from the floods.

"With a little bit of luck we'll start to see that upward shift from the beginning of next year. I guess the value argument starts to move in favour of Brisbane."

Dr Wilson said that the reconstruction starting following the floods will mean money flowing into the local economy and could lead to increased buyer activity.

Property Council of Australia Queensland branch executive director Kathy Mac Dermott also commented on the figures, calling for the government to take steps to reinvigorate the market.

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The latest figures from the Australian Bureau of Statistics (ABS) show that a shortfall of 8,800 homes is expected in 2011.

This means a likely rental supply shortage and a rise in rents, which could be beneficial to those looking to make a buy-to-let investment in Sydney property.

According to Urban Taskforce Australia chief executive Aaron Gadiel, the shortfall is because housing construction in Sydney has been falling well short of the former New South Wales government’s projections.

“Sydney's new home construction is entirely out-of-kilter with the upbeat projections issued by the NSW Department of Planning just 12 months ago,” he said.

Mr Gadiel explained that the Keneally government had predicted Sydney’s supply of new housing would reach 24,900 homes in 2010-11, and rise to 27,000 homes soon after.

"Yet [the ABS figures] tell us that - even with a massive one-off 14.9 per cent public housing boost - just 16,100 new homes are likely to be completed," he said.

He blamed red tape and high development levies for the inadequate rate of home building in Sydney.

The current situation could be beneficial to those looking to position themselves in the Australian property investment market, particularly buy-to-let investors.

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Increased stamp duty relief for pensioners and cuts in stamp duty for first home owners were welcomed by the Real Estate Institute of Victoria (REIV).

REIV chief executive Enzo Raimondo explained that increasing the threshold at which eligible pensioners can gain a stamp duty concession from $330,000 to $750,000 will benefit older people with a property investment plan that involves downsizing.

"This, in turn, will free up homes for first home buyers and the rental market," he said.
Stamp duty for first home buyers will be cut by 20 per cent cut from July and further cuts up to 50 per cent are to be phased in by September 2014.

In addition first home owners purchasing or building a newly-constructed home worth up to $600,000 will get a First Home Bonus of $13,000 for metropolitan areas. This relief is set to remain in place until 2012.

There could be more good property investment news on the horizon as Mr Raimondo also noted that following this commitment by the government "home buyers will hope to see broad-scale stamp duty reform in next year’s budget".

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According to the new report Population and Residential Hotspots published by the Housing Industry Association (HIA), nine of the top 20 building hotspots for 2009-10 were located in Victoria.

The report defined a hotspot as a local area in which the value of approved residential building work exceeds $100 million and the population growth exceeds the national rate.

Dr Harley Dale, chief economist at the HIA, commented: "Victoria, in particular, has benefitted from the temporary boost to population growth in recent years, which was driven primarily by historically high net overseas migration."

He added: "Relatively affordable new housing was also a significant contributor to Victoria dominating the top 20 national hotspot list."

Dr Dale also explained that with "softer housing conditions" in the current market, now may be a good time to consider making a property investment.

Among the Victorian areas making the top 20 list were Cardinia in Pakenham, Melton East and Casey in Cranbourne.

Elsewhere in Australia, areas in west Perth, WA and Pimpama-Coomera in Queensland were identified as other property hotspots, along with Canada Bay in NSW.

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According to the Real Estate Institute of Victoria (REIV), an estimated 610 auctions will take place next weekend (May 7 and 8) and the same figure again for the following weekend (May 14 and 15).

While these are lower than the numbers recorded in the record-breaking fortnight before Easter, the organisation called these figures "typical for this time of the year".

It also noted that while the average number of auctions during each weekend in May last year totalled 868, this was an "unseasonably high" figure. The comparative average in May 2009 was 484 auctions per weekend, while the same month in 2008 saw 666 properties auctioned off.

Melbourne's western suburbs have been highlighted as excellent areas to make a property investment.

In particular, the REIV highlighted Kew, Malvern East, Werribee, Caroline Springs and Footscray as areas experiencing good capital growth during the past year.

Enzo Raimondo, chief executive officer of the institute, suggested that with fundamentals such as population growth, consumer confidence and employment remaining strong, conditions are favourable for future growth in the city's property market.

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Speaking after the community was featured on Property Success - a television program presented by Margaret Lomas on Sky News Business - over the Easter weekend, mayor Darrell White told the Latrobe Valley Express that the region offers "huge opportunities" for investors.

Commenting that the area is a "solid place to invest", thanks to its high-quality schools and universities, strong rental returns and excellent infrastructure, Mr White said: "We look forward to welcoming enquiries from across the country."

He added that recognition from a nationally-broadcast program has showcased the city's best features and "cemented this knowledge in the minds of investors".

Other areas tipped as popular Melbourne property investment destinations include Kew, Malvern East, Footscray, Caroline Springs and Werribee, the Real Estate Institute of Victoria (REIV) highlighted earlier this month.

According to Enzo Raimondo, the REIV's chief executive officer, the Melbourne property market is likely to remain strong in the short-term thanks to a number of positive fundamentals, including consumer confidence, employment and population growth.

REIV figures indicate the Melbourne median house price stood at $565,000 during the March quarter of 2011.

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This is according to Noel Whittaker of the Whitsunday Times, who commented that SMSF holders need to commit to "three major jobs".

He breaks down the management into administration, investment and arranging insurance where it is required.

Mr Whittaker commented that if you have assets of at least $300,000 and are committed to handling these three tasks "with ease", you may be well-placed to consider an SMSF.

He advised investors to be aware of setup costs and annual expenses associated with the exercise and noted that you should always consider your track record in handling growth assets - such as shares or property - before deciding whether or not to embark on a DIY fund.

One expert from the Housing Industry Association commented before Easter that government assistance in the form of tax incentives could help to boost superannuation scheme investment in infrastructure - including residential property.

Graham Wolfe, chief executive of the association, commented that tax incentives could create "much-needed investment" in residential projects in both urban and rural areas of Australia.

Graham Wolfe, chief executive of the HIA, commented that new media reports that the government is considering a new sales tax on investment property are damaging and disturbing.

He commented: "The prime minister or treasurer must deny today's media claims immediately before substantial damage is inflicted on home building in Australia."

Mr Wolfe anticipated that while he has doubts "the Gillard government is really suggesting such a strategy", he called on a representative from the federal government to "clarify its position on today's reports".

Earlier this month, the HIA spoke out in support of tax incentives for property investments made with self-managed super funds (SMSFs).

Mr Wolfe commented that this type of incentive could help to foster "much needed investment" in residential projects.

A similar statement was made by the Real Estate Institute of Victoria (REIV) earlier this month. This organisation suggested that property investment could be encouraged by making cuts to stamp duty and taxes.

REIV chief executive officer Enzo Raimondo commented that buyer confidence could be improved by reductions in taxes and other costs.

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While demand for some types of property - particularly three and four-bedroom homes - increased in the months following the floods, the two-bedroom unit market remained largely unchanged.

Suburbs in some of the worst-affected areas experienced a significant increase in weekly rents during the month of January, particularly as displaced tenants sought rental accommodation immediately following the natural disaster.

Even as the rental market continues to stabilise, some city suburbs have experienced tightening vacancy rates - including the Caboolture area of Moreton Bay and the Redlands, which recorded its lowest vacancy rate in the past 12 months in March.

A number of Brisbane suburbs have been highlighted for their property investment potential in the coming months by the REIQ.

Brisbane City, Spring Hill and Acacia Ridge, as well as a number of outlying communities in the Logan area of Greater Brisbane have all been tipped as having investment potential thanks to the strong gross rental yields recorded in the past 12 months.

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New Real Estate Institute of Victoria (REIV) figures show that April 23 and 24 are set to be considerably slower days than last weekend, which saw a total of 964 auctions take place with a clearance rate of 61 per cent.

While figures this high are not expected to be seen again until the spring, the REIV notes the auction market is likely to bounce back in the week after Easter with an expected 560 homes to go under the hammer on April 30 and May 1.

The following weekend is tipped to be even stronger, with a further 620 auctions scheduled.

While the total volume of sales for 2011 is nine per cent lower than the number recorded during the same period, sales figures are 51 per cent higher than they were in the 2009 January-April period.

The slow Easter weekend caps off a wave of "Super Saturdays" in March and April, which saw a record number of auctions take place in the Victorian capital.

REIV noted the highest clearance rates were recorded in the city's inner-southern suburbs, making them a potentially attractive Melbourne property investment destination.

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New figures from the Real Estate Institute of Queensland (REIQ) reported by the Sydney Morning Herald indicate that Brisbane is currently experiencing a rental supply shortage.

This has been caused in part by flood damage from the devastating natural disasters the city experienced earlier this year, as well as limited new development in the city.

According to RP Data research analyst Cameron Kusher, rising rents could be good news for those who are considering a property investment in the city, as the current climate could be beneficial to those who are "looking to strategically position themselves in the market".

Good gross rental yields have been recorded in several Brisbane suburbs over the past 12 months, including Brisbane City and Spring Hill.

Recent REIQ figures indicated both of these suburbs had a gross rental yield of six per cent, making them popular choices for buy-to-let investors.

Acacia Ridge is another suburb to consider, the organisation noted, adding that the average median sale price of a property here is $320,000.

This suburb, with its older-style weatherboard and brick homes, recorded a gross rental yield of 5.9 per cent over the past 12 months.
 

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According to the Housing Industry Association, more could be done to encourage those with self-managed super funds (SMSFs) to invest in a mix of urban and regional projects, which could boost the residential building industry across the country.

"Tax incentives for super funds would certainly raise their attention, shift investment feasibility and encourage financial modelling around much needed investment in residential infrastructure projects," commented Graham Wolfe, the chief executive of the Housing Industry Association.

SMSF property investment is already a popular way to maximise retirement income. Anthony Keane of news.com.au asserted that since the rules regulating this type of investment were relaxed in 2007, many investors have experienced the benefit of investing in property with a super fund.

He cited greater control over retirement savings and the potential tax benefits of this type of property purchase as great incentives for SMSF investment.

This statement was echoed by John Collett of the Sydney Morning Herald, who asserted that investors are increasingly looking to DIY funds as a cost-effective way of growing their balances.

If investors are willing to put in the time and research needed to manage their own fund, they could save money on adviser fees.

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The Real Estate Institute of Queensland (REIQ) highlighted Brisbane City, Spring Hill and outlying communities in Logan, Greater Brisbane, as options worth considering when it comes to Brisbane property investment.

These suburbs have all recorded a gross rental yield of six per cent, making them a popular choice among investors looking for a buy-to-let property.

Acacia Ridge, another community approximately 20km south of the Brisbane CBD, was also highlighted by REIQ as a top performer - with some of the state's best rental yields outside the central mining communities of Dysart, Moranbah and Blackwater.

The older-style weatherboard properties in Acacia Ridge recorded a gross rental yield of 5.9 per cent and the first quarter of 2011 saw an average median sale price of $320,000.

Recovery in the Australian property market is expected to continue in the coming months, as long as interest rates remain steady for the foreseeable future, the chief economist of Master Builders Australia has asserted.

Peter Jones commented that as the market remains in its recovery phase, steady rates will help to maintain the number of home loan approvals and encourage residential building.

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Data from the Real Estate Institute of Queensland indicated that Loganlea recorded a gross rental yield of 5.8 per cent and around one-quarter of the homes in the suburb are owned by property investors.

The weighted average median price of a property here is $318,000 and Loganlea is a popular suburb with young families, thanks to its good transport links with the Brisbane CBD.

Acacia Ridge, located approximately 20km from the Brisbane city centre is another popular property investment area, with gross yields totalling 5.9 per cent over the past quarter.

Across the state, REIQ figures show that rental yields have been largely stable during the past 12 months and the number of people making a property investment in the state increased in February compared with the previous month.

Queensland property investment is likely to gain strength from stable interest rates in the coming months, the Queensland branch of the Property Council of Australia has previously asserted.

Executive director Kathy Mac Dermott commented that other ways the state could encourage property investment include streamlining the development process and ensuring decision-making processes are as efficient as possible.

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The Real Estate Institute of Victoria (REIV) highlighted that Footscray, Werribee and Caroline Springs were among the communities experiencing "good capital growth" over the past 12 months.

Malvern East and Kew were also identified as potentially affordable areas to make a property purchase.

Enzo Raimondo, REIV chief executive officer commented that while the residential market has entered a period of lower price growth and transaction numbers that is expected to continue in the medium-term, the strength of the local economy will affect future growth.

At the moment, he observed, fundamentals including employment, consumer confidence and population growth remain strong.

Mr Raimondo made his remarks as the REIV announced the Melbourne median house price for the March quarter is $565,000.

This figure is down from the December quarter median of $601,000, although the REIV asserts this downward reduction is due to seasonal factors.

Steady interest rates in the coming months could help to boost Australian property investment, Master Builders Australia highlighted last week.

Peter Jones commented that the building industry would be boosted by stable interest rates - which in turn could increase the number of home loan approvals.

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This is according to Edward Palmisano, NSW deputy executive director of the Property Council of Australia, who recently outlined the body's Five Good Ideas for a Sustainable Future.

Building sustainable growth, encouraging built environments to adopt a greener outlook, creating government-inspired change, transforming energy use and building affordable communities were identified by the council as key areas of focus.

Mr Palmisano said: "All we need is government to create a vision, show leadership and commit - from day one - to a bold legacy for future generations."

A number of key points in the Property Council of Australia's plan could help to boost property investment in Sydney - particularly better infrastructure financing, urban renewal projects and programmes for community revitalisation.

A further boost to property investment in the NSW capital could be the completion of the North West Rail Link, which has recently been fast-tracked.

The new link - previously identified by the Property Council of Australia as the city's top public transportation priority - is likely to make investment property in the north-west suburbs particularly appealing.
 

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According to the Real Estate Institute of Victoria (REIV), this weekend marks the second half of the "busiest pre-Easter fortnight in recent history", with around 1,000 auctions expected to take place.

During the same time last year, REIV figures show that a total of 928 auctions took place during the weekend before Easter, with a clearance rate of 83 per cent.

While lower clearance rates have been recorded in 2011, the volume of properties on the market alone means sales numbers are likely to be high.

The REIV highlights that in 2009, 437 homes went on the auction block and the clearance rate was 73 per cent - resulting in a total of 341 homes sold.

In comparison, if the clearance rate for this weekend's auction is 60 per cent, approximately 600 homes would be sold.

The REIV states: "This highlights that even with current clearance rates many vendors are achieving the desired outcome - a sale."

Melbourne suburbs with good transport links to the CBD - including South Yarra - have been tipped as potentially wise choices for property investment, as these areas tend to have high tenant demand.
 

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According to the Property Council of Australia, greater western Sydney has "enormous potential" and is currently the country's third-largest economy after Sydney and Melbourne CBDs.

The council is hosting a panel discussion on May 6 to discuss strategies for "unlocking the vast potential" of greater western Sydney and a number of prominent local representatives are expected to take part.

University of Western Sydney chancellor Peter Shergold and Parramatta City Council chief executive officer Robert Lang will be joined by Alan Zammit, managing director of UPDM and chairman of Norwest Association on the panel discussion, which will be held at the Westin Hotel in Martin Place.

They are expected to discuss the challenges and opportunities faced by this growing and dynamic region, which is home to 150 of Australia's 500 top companies and one-tenth of the nation's total population.

Glen Byres, NSW executive director of the Property Council of Australia, recently called on the state government to do more to actively encourage investment in retail, commercial and residential development.

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The Real Estate Institute of Victoria has called for more assistance to first time buyers, improvements to land tax and a reduction in property taxes in its new Budget submission to the state government.

According to Enzo Raimondo, REIV chief executive officer, reductions in taxes could lead to improved buyer confidence. He highlighted that REIV research regularly shows that first-time buyers in particular "require continuing assistance", although the number of state government grants offered to this essential group has fallen by 131 per cent in the past two years.

"The reduced numbers are a direct result of decreasing affordability," he asserted.

While the federal government is set to host its Tax Summit later this year, Mr Raimondo noted that it is important to address residential property issues at the state level too.

The Victoria government is set to cut stamp duty for first-time buyers by 20 per cent from July 1st - a move which the REIV estimates could save them $6,232 on a median-priced property.

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John Collett of the Sydney Morning Herald reported that this sector is becoming a particularly appealing one for investors, particularly as DIY funds tend to be even more cost-effective as balances grow.

However, Trish Power of superguide.com.au commented that the 'self-managed' aspect of SMSFs should not be taken lightly.

She commented that investors lose the flexibility of a self-managed super fund if they are not prepared to make their own investment decisions - plus they could be paying high fees to an adviser, which defeats the purpose of managing their own retirement fund.

Instead, it is wise for SMSF investors to actively take charge of their fund and grow their own retirement nest egg.

One option is to make a property investment using a SMSF - an increasingly popular option since rules governing this type of investment were relaxed in 2007, according to Anthony Keane of news.com.au.

He asserted that the potential tax benefits of purchasing a property with a super fund make the investment appealing, in addition to having greater control over your retirement savings.

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Bina Brown wrote that "it makes sense" for everyone to "take an active interest" in their superannuation account to ensure they make the most of their retirement savings.

DIY super funds are often an attractive option for investors with a minimum of $300,000 to get started - although they do require an increased understanding of how superannuation works.

SMSF holders benefit from greater flexibility and control compared with standard super funds, and they will need to take an active role in directing their specific investment decisions.

Another advantage to a self-managed fund is the ability to invest in non-financial assets - a broad category that includes property investment.

Earlier this week, Trish Power of superguide.com.au advised investors that it is important to remember the 'self-managed' aspect of DIY superannuation.

She explained that if investors place control of their SMSF in the hands of an adviser rather than make investment decisions on their own, they could risk paying high fees.

This, Ms Power added, defeats the purpose of having a self-managed fund and she urged investors to actively take charge of their account if they choose to use a SMSF.

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Peter Jones of Master Builders Australia commented that while the housing market continues to recover, interest rates need to remain consistent.

He asserted that while the decline experienced in the market during 2009-10 has largely been arrested, recovery is likely to happen at a slow pace.

Higher interest rates work "against a recovery in residential building", Mr Jones explained, adding that this could lead to lower numbers of home loan approvals.

Mr Jones said: "Still suffering from the credit squeeze and bank lending practices, it is critical for the interest rate sensitive residential building industry that there is an extended pause in Reserve Bank monetary policy."

This statement was recently echoed by the chief economist of the Housing Industry Association.

Dr Harley Dale of the trade body commented that it is the responsibility of both federal and state government to boost Australian property investment through better legislation.

He commented that levels of new home sales for February 2011 were "considerably" lower than the last two years.

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The organisation enlisted Urbis to draw up a number of suggested changes, which the Property Council's Queensland executive director Kathy Mac Dermott says identify "roadblocks" in the current system.

Urbis' research draws on a number of best practice examples from around the world and identifies a number of key issues acting as a barrier to the Queensland property market, including a lack of flexibility and minimal co-ordination between different government bodies.

Ms Mac Dermott asserted that the state needs a streamlined process to assess developments and speed up decision-making.

In addition, improving accessibility to dispute resolution processes - similar to the system currently in place in Victoria - could help property investors in Queensland.

"Cheaper and faster dispute resolution will vastly improve the viability of development and will also play a part in improving housing affordability in Queensland," she explained.

Former Victoria premier Jeff Kennett commented last month that urban areas in Queensland - namely Brisbane and the Gold Coast - need to take inspiration from cities such as Melbourne when it comes to long-term residential property planning.

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The organisation recently applauded the new O'Farrell government's commitment to the project in the form of a designated team to see the rail link through to completion.

The PCA's NSW executive director Glen Byres commented that the new train link is "essential for our future prosperity", adding that this has now been recognised by the new premier and transport minister.

"It will finally provide public transport for commuters in the north-west, one of two dedicated growth centres in Sydney," he said.

Mr Byres added that in a recent PCA report on infrastructure investment, the North West Rail Link was identified as Sydney's top public transport priority.

He concluded: "We showed the enormous economic benefits of reliable transport infrastructure, including increases in gross state product, exports, investment and employment."

Last week, Mr Byres stated that Sydney property investment is "critical" and a number of other reforms to the planning system should be made to better facilitate this.

He highlighted that an "independent umpire" - such as the Planning Assessment Commission - could help to determine which projects should be given priority.
 

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According to Glen Byres, the council's NSW executive director, investment in NSW is "critical" for the state's future and a number of steps can be taken to ensure it goes ahead.

He called for a depoliticised, independent process to ensure that important investments can go ahead, adding that an "independent umpire" can help cut down on red tape.

Mr Byres explained that a body such as the Planning Assessment Commission can play two important roles - it can "act as a gatekeeper" to decide which projects should be given special status and then approve or reject them accordingly.

"All reforms to the planning system should be done in a seamless and simple way," he stated, adding that an independent committee can boost confidence in the way decisions are made.

In Queensland, organisations such as the Urban Land Development Association (ULDA) help to keep infrastructure costs low and speed up the planning approval process.

This is according to Real Estate Institute of Queensland executive director Kathy Mac Dermott, who added that this organisation can boost property investment by ensuring developments can be carried out "in a timely manner".

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Aaron Gadiel commented that NSW was Australia's top state for building activity until 2007, but since that time, Victoria has outpaced its northern neighbour.

He explained: "The value of Victorian building activity is 12 per cent higher than in NSW. Per head of population, investment in Victorian building is running at one-and-half times that of NSW."

Mr Gadiel made his remarks as he welcomed Brad Hazzard to his new role as the state's planning minister.

The former shadow minister has spent four years campaigning about planning issues and speaking to members of the community and is ideally-placed to take urgent action in the state's property sector, Mr Gadiel noted.

The new O'Farrell government is set to make a number of changes that could affect property investment in Sydney and elsewhere in the state.

During his campaign, the new NSW premier pledged that the ad valorem property taxed would be scrapped by his government - a move which was applauded by the Real Estate Institute of New South Wales.

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Ahead of Easter, the next two weekends are set to see a total of 2,010 auctions take place in the city, compared to 1,962 during the same period in 2009.

However, the REIV point out that although the number of auctions is higher, clearance rates are lower now than they were at the same time last year.

For example, last weekend 815 auctions were held across Melbourne, with a clearance rate of 60 per cent. By comparison, the same period in 2010 saw a total number of 502 auctions with a clearance rate of 84 per cent.

News of the next fortnight's record-breaking auction figures follows a wave of "Super Saturdays". REIV noted that the weekends in March and April leading up to Easter showed a significant increase in the number of auctions held in and around Melbourne, although it is not yet clear if the trend will continue into the winter months.

Individuals planning to purchase an investment property in Melbourne may do well to seek out housing in the inner-southern suburbs, as clearance rates are up to 15 per cent higher here than destinations in the western and northern parts of the city.

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According to Tim McKibbin, chief executive officer of the Real Estate Institute of New South Wales, the decision to leave interest rates at 4.75 per cent suggests the Reserve Bank of Australian recognises the uncertain state of the country's economy.

"We are digging ourselves out of the mud and the RBA aren’t in a position to say the economy is strengthening by increasing interest rates," he commented.

Rates are assessed on a number of factors and he noted that the price of consumables - including fruit and vegetables, which increased after this summer's natural disasters - would have likely been a factor in this month's decision to keep them steady.

Mr McKibbin added that the RBA should continue to assess the state of the economy on a month-to-month basis, although predictions indicate that rates could increase between 0.25 per cent and one per cent in the next 12 months.

Last month, Pamela Bennet, chairman of the Real Estate Institute of Queensland, commented that the state will likely begin to see improvement in its property investment market later this year if interest rates remain steady.

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Cameron Kusher asserted that as the number of properties advertised for sale is at "the highest level it has been since we started collecting this data", vendors may be more inclined to discount residential property.

The large stock of homes, he explained, may give investors more leeway when it comes to negotiating prices and getting "the best possible deal".

Figures published by RP Data for February suggest that household income growth is rising, while the value of Australian property is holding steady.

"When you consider that Australian inflation was 2.7 per cent in the year to December 2010, in real terms Australian residential property values have been declining, which is a good outcome for prospective buyers," he explained.

Figures published on March 31 by the Real Estate Institute of Victoria showed that the first quarter of auctions for 2011 yielded a year-to-date clearance rate of 63 per cent.

However, some Melbourne suburbs recorded significantly higher rates of clearance, particularly in-demand areas such as Malvern (93 per cent), Epping (91 per cent) and Moorabbin (86 per cent).

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Speaking yesterday (April 4), REINSW president Wayne Stewart commented that the organisation is looking forward to "working closely" with Anthony Roberts, MP in his new role on the O'Farrell government's first Cabinet.

"I will be seeking an urgent meeting with Mr Roberts to brief him on the negative impacts of the recent amendments to the Residential Tenancy Act, which are worsening the state's rental crisis," Mr Stewart commented.

He added that the legislation equally affects tenants and landlords - and it will be the role of the new government to "reintroduce balance into the equation".

Mr Stewart added that REINSW is keen to work together with Mr Roberts on a range of issues relevant to property investment, landlords and tenants, as well as real estate agents.

The Housing Industry Association recently highlighted the need for immediate action from federal and state governments to address the state of the residential building industry across Australia.

It published its National Outlook - a quarterly report on the country's residential building industry - last Friday (April 1), which showed "a significant drop" in housing starts during the first quarter of the year.
 

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According to Clovis Moore, the cities have a number of similarities - both are situated on the waterfront and face challenges when it comes to the issues of sustainability and population growth.

As Sydney moves to regenerate suburbs such as Green Square, Redfern and the harbourside development at Barangaroo, its planners would do well to examine the Big Apple's outlook on "major waterfront renewal", she commented.

Ms Moore added: "Creating the kind of city Sydneysiders want, the kind of city that attracts talent and encourages innovation, means being economically sound, easy to get around, and just a great place to live and work."

Rental vacancies continue to fall in Sydney and newly-elected NSW premier Barry O'Farrell needs to take immediate action to boost confidence in property investment, according to a leading industry body.

Wayne Stewart, president of the Real Estate Institute of NSW, said that the new government needs to outline its property strategy as quickly as possible - tackling issues such as taxation and planning systems, which have been identified as barriers to Australian property investment.

Mr O'Farrell pledged to scrap the ad valorem tax on property as part of his election campaign - a move which was supported by the Property Council of Australia.

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This is according to the Housing Industry Association (HIA), which published its National Outlook today.

The quarterly report shows housing starts could fall by as much as 15 per cent in 2011 to a total of 143,430.

Dr Harley Dale, the HIA's chief economist, highlighted that housing starts have only increased in two years out of the past ten.

This, he explained, signals that state and federal governments must work quickly to boost the Australian property market and ease the burdens faced by first-time buyers and tenants.

Dr Dale identified a number of key areas for reform - including taking measures to boost new housing developments and avoiding new legislation that could impact the construction of new properties, including the proposed carbon tax.

In addition, he suggested that "exorbitant taxes, charges and fees" should be re-evaluated and a designated minister should be appointed at the federal level to address residential property issues.

The Property Council of Australia recently highlighted the importance of organisations such as the Urban Land Development Authority, which help keep infrastructure costs down.

According to the council, these organisations will continue to be useful until local authorities are better-equipped to take on this role themselves.
 

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This compares with 86 per cent at the end of the same three-month period last year and 74 per cent in the previous year.

According to new figures published today (March 31) from the Real Estate Institute of Victoria (REIV), the suburb with the highest rate of clearance is Malvern at 93 per cent.

Other high-performing suburbs include Epping (91 per cent) and Moorabbin (86 per cent).

REIV figures also show that financial turnover in the residential property market is 17.5 per cent below last year's figures - although it is 48 per cent above 2009 levels.

Previously, the real estate body reported that when it comes to Melbourne property investment, people are currently looking to the city's western suburbs.

Earlier this month, REIV identified Reservoir, Taylors Lakes and Berwick as areas of high demand, while growth was also recorded in Sunbury, Essendon and Epping.

The city was hailed at the recent MIPIM conference in Cannes, France for its innovative efforts to support a growing population and denser areas of development - including additional onsite recycling and solar power.

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Australia's largest independently-owned mortgage broker released new figures yesterday (March 30) showing that the number of fixed-rate mortgage approvals recorded in February fell to 10.7 per cent of all approved home loans.

This compares with 15.3 per cent in January and similar figures recorded in November and December 2010.

According to Kristy Sheppard, a spokesperson for Mortgage Choice, suggested that lenders are offering incentives in an effort to earn "vital market share".

She added: "A move away from fixed interest rates may also signal an uptick in positive consumer sentiment towards the economic outlook."

In related news, the housing market is tipped to enjoy growth opportunities after recent developments in Australia's bulky goods sector.

Speaking to the Sydney Morning Herald, bulky goods director for CB Richard Ellis Alistair Palmer commented that this sector is "strongly linked to the performance of the housing market".

Mr Palmer explained that as Ikea is set to open a new store at Tempe and Bunnings Warehouse Property Trust has recently decided to purchase ten new stores, this "should signal growth opportunities" in the housing market that could extend to 2015.

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Speaking after remarks made by Brisbane lord mayor Campbell Newman, who suggested that the role of the UDLA may be reduced under an LNP government, Kathy Mac Dermott said this outlook is "concerning".

The Queensland executive director of the council asserted that the UDLA actually offers a boost to Brisbane property investment, as it helps to keep infrastructure costs down.

She said that until local authorities are better able to take on this role themselves, the UDLA has an important role to play in ensuring approvals are handled in a timely manner.

"This body remains relevant and important in Queensland," Ms Mac Dermott emphasised, adding that the ULDA takes a considerable amount of pressure off of local councils.

It would be "irresponsible" to restrict the organisation's powers before evaluating the ability of these local authorities to carry out the same tasks - particularly when it comes to planning functions and development assessment, she explained.

Ms Mac Dermott has previously spoken about other ways in which property investment in the state can be strengthened.

The Property Council of Australia has recently called for a number of "urgent reforms" to be made in Queensland, including better leadership, lower taxes and improved infrastructure planning.

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Dr Harley Dale, chief economist of the Housing Industry Association (HIA), made his remarks as the trade body published its newest figures.

According to the HIA - JELD-WEN New Home Sales Report, new home sales in February 2011 were up 0.6 per cent compared to the previous month.

This, according to Dr Dale, is a considerably lower rate than the growth seen in the past two years and he asserted that action is needed from legislators to encourage buyers.

"The onus is on federal and state governments to reinvigorate the policy reform process to reduce the excessive costs of new housing," he commented.

Housing was identified as a key issue in the recent NSW election by the Property Council of Australia, which emphasised that urgent action is needed to address the issues of affordability and availability.

New premier Barry O'Farrell pledged during his campaign to scrap the ad valorem property tax if he was elected to power - a move which could boost property investment and save the state an estimated $429 million, according to the council.

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The Financial Standard reported new research into SMSFs by Rainmaker, which suggests that the average person's awareness of such funds is largely myth-driven.

Many people mistakenly believe that the industry is largely made up of small SMSFs, which could perform better in industry funds or platforms.

But the reality, according to analysis of APRA and Australian Tax Office figures, is that the average SMSF member balance is $500,000 and the average SMSF annual contribution currently totals $50,000.

The Rainmaker report says that the percentage of people with SMSF balances totaling less than $200,000 has fallen from 43 per cent to 26 per cent in the past six years.

Wealth managers, the researchers add, "should be encouraged" by these figures.

You can use your SMSF to purchase a long-term investment property, provided you have accumulated specified superannuation benefits and you have met other specified criteria.

A recent study from Russell Investments and the Self-Managed Super Fund Professionals Association of Australia suggested that three in four of the 831,000 Australians with a SMSF are confident in their fund.

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Speaking at the Property Council of Australia's Big Future symposium, which was held this month in Brisbane, Jeff Kennett said that Queensland needs to catch up if it wants to keep pace with cities such as Melbourne, which have infrastructure in place to support an increasing number of residents.

He stated: "Neither Brisbane or the Gold Coast were planned with a vision for 100 years."

Mr Kennett added: "You're still trying to adjust to a larger population in a city that has grown but hasn't been planned."

Queensland executive director of the Property Council of Australia Kathy Mac Dermott has also highlighted the need for long-term planning in Brisbane and the surrounding areas.

She recently referred to the property industry as the "engine room" of the state's economy, as it is the largest private sector contributor.

Outlining the Property Council's five recommendations for reform earlier this month, she pointed out that infrastructure investment, stronger leadership, better growth planning and reduced taxes, fees and charges are all needed to boost the Queensland property market.

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Speaking after Saturday's Coalition election victory, Glen Byres commented that Barry O'Farrell's pledge to scrap the ad valorem tax could deliver a $429 million saving to the NSW economy and is a "welcome sign to investors" that the state wants capital.

Mr Byres stated: "The premier has shown he understands that NSW needs to treat investment more sympathetically if we are to reclaim the mantle as the nation's economic engine room."

He also added that land needs to be made available more quickly for housing and employment throughout the state - particularly in Sydney, where housing supply is currently running at half the pace of demand.

Furthermore, urban infrastructure needs "smarter funding" and development applications need to be treated more efficiently, Mr Byres asserted.

Earlier in the month, Mr Byres spoke out against the ad valorem levy, calling it a "sneaky tax" that acts as a "second wave" of stamp duty.

The ad valorem tax was first introduced in last year's NSW State Budget and applies at 0.2 per cent of any property transfer valued between $500,000 and $1 million - and 0.25 per cent on properties priced higher than $1 million.

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This is according to research by Russell Investments and the Self-Managed Super Fund Professionals Association of Australia, which highlighted that just over half of people with pooled super funds have the same confidence.

The Sydney Morning Herald reports that self-managed super funds represent over $400 billion of the country's $1.3 trillion superannuation sector and suggests that DIY funds are becoming increasingly popular with people between the ages of 32 and 40. In fact, it is estimated that one in six respondents in this age group is likely to set up a SMSF within the next 20 months, according to a recent poll.

SMSFs can be used to purchase a long-term residential investment property, as long as you have met specified criteria and have accumulated a certain amount of superannuation benefits.

The property purchased with a SMSF can be leased under the standard terms and conditions of a tenancy - making it a potentially useful investment for the future.

Property investment uses asset growth, rental return and taxation benefits to increase levels of wealth - in fact, you'll find that you are able to generate considerably more retirement income with a property investment than with a superannuation fund alone.

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Speaking after the publication of new OECD research into home ownership in 18 developed countries, Aaron Gadiel pointed out that Australia is among only five countries that have seen home ownership rates decrease since the 1990s.

Home ownership levels fell to 69.5 per cent from 71.4 per cent during the study period, OECD figures show. Luxembourg, Greece, France and Mexico were the only other countries to record a similar trend.

By contrast, home ownership increased from 61.3 per cent to 68.9 per cent in Canada and from 67.5 per cent to 70.7 per cent in the UK.

Mr Gadiel commented: "There's no doubt that the underlying problem is Australia's national housing undersupply of 200,000 homes.

"Our town planning laws, high development levies and lack of urban infrastructure investment, have deprived Australia of the housing we need," he added, pointing out that this issue needs to be identified as a priority across all government levels.

Property is an interesting area of focus in this weekend's NSW election. Opposition leader Barry O'Farrell has pledged to scrap the ad valorem tax if he is elected, which experts say may boost the appeal of Sydney property investment.

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This is according to Wayne Stewart, president of the Real Estate Institute of New South Wales, who asserted that the "chronic shortage" of rental property must be addressed immediately by the new state government.

In particular, measures need to be taken to boost confidence in property investment and the government would do well to outline a comprehensive plan for reforming the property market before voters take to the polls this weekend.

Expensive planning systems, high property taxes and other factors - including the valorem and land taxes - have been highlighted as major barriers to Australian property investment.

Mr Stewart commented: "All of these factors collectively discourage people from investing in the private rental market and they need to be immediately addressed by the new premier in the first days of the next government."

He made his remarks following the announcement of new REINSW figures that saw Sydney's rental vacancy rate fall 0.4 per cent to 1.1 per cent in February.

Earlier this month, opposition leader Barry O'Farrell announced he plans to scrap the ad valorem property tax if he wins Saturday's election.
 

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The Real Estate Institute of Queensland (REIQ) chairman commented that Queensland is likely to see positive effects from the rebuilding stimulus and the resources sector reflected in the property market later this year.

She added: "Interest rates also look like they will be steady for a number of months, which will give many buyers and sellers the confidence they need to go ahead with their property plans."

Ms Bennett made her comments ahead of the REIQ Business Luncheon, which is set to be held on March 31st at the Surfers Paradise Marriott Resort and Spa.

The event will see businesses, developers and real estate professionals across south-east Queensland gather with economists to discuss the larger issues facing the state's economy and re-growth in the wake of the devastating floods earlier this year.

Australian property investment in Brisbane's waterfront is likely to remain strong, it was reported earlier this month.

One estate agent asserted to the Brisbane Times that the river is the city's answer to Sydney Harbour - a high-demand location where people will always be keen to live.

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Michael Russell made his comments following the release of the latest Productivity Commission report, which suggested that undersupply, rather than interest rates, is the main cause of the current property shortage.

He said: "We need to dissolve the rolls of red tape that limit the supply of land for development."

Mr Russell added that planning guides need to be formulated to better assist developers and time could be saved if land was automatically zoned for urban use - making it easier to release land when it is needed.

"Increasing the supply of residential properties in the low to medium price range will deliver a reduction in pricing pressure," he added.

Such changes could also see the market opened up to higher levels of property investment and help to solve the shortage of rental accommodation in cities such as Sydney.

Property looks to be a key issue in the upcoming state election. Opposition leader Barry O'Farrell has pledged to scrap the ad valorem property tax if his party comes to power after the vote later this week.

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While it has not yet been determined when the attraction will reopen as the construction process is "highly influenced by adverse weather conditions," according to a spokeswoman, Melbourne lord mayor Robert Doyle has spoken of his wishes to have the wheel up and running as soon as possible.

"I hope the wheel is up and running as soon as possible so the nearby traders can have certainty and so it can start drawing people down to Docklands," he commented to the Herald Sun.

The new Southern Star Observation Wheel replaces the attraction closed in January 2009 due to structural cracks. An updated, improved model is set to boast a new central star design, as well as a colourful LED light show with more than a million combinations and colours.

It is likely to give the Docklands - a centrally-located suburb with good links to the CBD a boost, as is a newly-planned $9 million library and community centre.

A new state primary school is also planned at Digital Harbour. In Queensland, figures compiled earlier this month suggested that proximity to educational precincts, shopping centres and retail outlets are important factors investors consider before they purchase an investment property.

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Mason Cowle, director of Ellivo Architects, commented to Architecture Design that numerous residential and mixed-used developments planned for flood-affected areas near Brisbane's riverbanks are now being reworked.

He emphasised that the changes will "work with the unpredictability of the river" and the new designs will be made in accordance with Brisbane city council's new legislation.

Mr Cowle said: "We have stripped back a number of development designs, eliminating flood prone basements, checking real flood levels and modifying designs to allow low risk areas to flood, whilst raising services, transformers and habitable areas above the new Q100 level."

He added that long-term interest in Brisbane as a property investment destination is not likely to be affected by January's floods - particularly on the riverfront, where investors will always find value.

Ian Murray, acting chief executive officer of the Real Estate Institute of Queensland, commented that in spite of the devastating floods, many Brisbane suburbs are likely to experience growth in the coming year. Fortitude Valley, Brisbane City and New Farm have all been identified as particular areas for growth.

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Demand is currently highest in suburbs such as Berwick, Taylors Lakes and Reservoir, according to the organisation's Robert Larocca, while Essendon, Epping and Sunbury also showed growth, the Herald Sun reported.

He commented that the median house price in Melbourne is not likely to experience another 20 per cent increase - as observed last year - as affordability remains buyers' "biggest concern".

This, he added, is why demand is "typically higher in more affordably-priced suburbs".

Overall, the number of Melbourne auctions is starting to pick up, Mr Larocca commented.

A steady few weeks of strong auctions has previously been predicted for Melbourne in the lead-up to Easter, with some property experts expecting a string of "super Saturdays" this autumn.

Earlier this month, representatives of the city met in Cannes, France to discuss Melbourne's strategy to accommodate its ever-growing population at the MIPIM conference.

Solar power and additional onsite recycling were identified as measures that could be taken to help the city prepare for denser areas of residential development.

City planners, mayors and developers from Australia, France, the UK and Italy were among those in attendance at the international conference.

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A total of 619 homes have been sold in Blacktown over the past year, making it Sydney's most popular suburb.

The Daily Telegraph reports that property values in Sydney's fibro capital have increased seven per cent and highlighted that Blacktown is home to some of Sydney's highest levels of new development.

Sydneysiders are thought to be drawn to the area thanks to Blacktown's affordable housing stock, as well as well-established infrastructure links, which make it a popular area for property investment.

In fact, prices across Sydney's western suburbs continue to rise, with Bansktown, Fairfield, Penrith, Liverpool and Parramatta all showing growth of between two and five per cent.

This is in contrast to the eastern suburbs, where some areas have seen price falls of up to 20 per cent.

Housing affordability and availability is a key issue in the forthcoming state election, the Real Estate Institute of New South Wales has asserted.

Wayne Stewart, president of the organisation, has asserted that all political parties need to address rental availability and property affordability, particularly in Sydney.

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Glenn Byres asserted that as existing council boundaries were established more than a century ago, they "lack any real relevance to existing transport corridors and commercial centres".

He suggested that reforms could give local authorities "a strong financial base" that could better allow them to invest in infrastructure and keep pace with a growing population.

Mr Byres added that similar local government reforms were carried out "seamlessly" in Queensland and Victoria and it is now time for NSW to catch up.

He made his comments following the publication of a new policy paper titled Local Government Reform, in which the Property Council of Australia urges the state government to consider restructuring councils' roles and financial structures.

Population growth is a main driver of Sydney's property prices, according to data collected by Residex earlier this month.

The Daily Telegraph reported that prices in 40 suburbs in Sydney's west and inner-west recorded top sale prices for blocks of land, houses and units since January last year.

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REINSW president Wayne Stewart commented that the organisation has called on all the major parties to address three key accommodation issues in their election platforms.

In addition to affordability and availability, he also emphasised that more should be done to solve the rental accommodation crisis many tenants currently face in Sydney.

"Housing affordability and availability, be it ownership or renting, is front and centre as a key issue in the NSW state election," he commented.

Mr Stewart made his remarks after shadow police minister Mike Gallacher told a Sydney radio programme that Sydney's high housing costs makes it difficult for essential workers to live in the city, particularly police.

Many officers face long commutes to get to work because of property prices, he added.

Opposition leader Barry O'Farrell has asserted that if his party comes to power following the March 26 state election, he will scrap the ad valorem property tax.

This move, backed by the Property Council of Australia, could open up the market to increased property investment and could save taxpayers hundreds of millions of dollars, the group noted. 

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The Brisbane Times reported that real estate agents in the city do not feel that demand is waning for riverfront property, with one agent asserting that the river is like Brisbane's answer to Sydney Harbour. "It's where people will always want to live," commented Dean Yesberg.

Some of south-east Queensland's most expensive homes are situated on Brisbane's riverfront. While many of these properties were located close to the riverbank, they were spared from the floods by just a few metres, the newspaper reported.

The most expensive property on the Brisbane riverfront is owned by Lorna Jane Clarkson - the name behind the successful Lorna Jane brand of sports and activewear - and is thought to be worth $10.3 million.

Queensland executive director of the Property Council of Australia, Kathy Mac Dermott, recently referred to the property industry as the state's "engine room", as it is Queensland's largest private sector contributor.

She called for a number of reforms to boost investor confidence in Brisbane, including strong government leadership, better plans for growth, more investment in infrastructure and cuts to taxes and fees.

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City planners, developers and mayors of a number of major international cities gathered last week in Cannes, France for the MIPIM conference and Melbourne showcased some of the city's unique plans to deal with a growing population.

Among the plans for the city are denser areas of residential development along Melbourne's main corridors. Additional onsite recycling and solar power will be used to help address the city's urban expansion, the Mail & Guardian reported.

Representatives from Melbourne's real estate industry joined their contemporaries from the UK, France and Italy - among many others - to discuss the challenges faced by city planners and developers as a result of expanding populations.

A property investment plan is needed in Melbourne to help address the chronic shortage of rental accommodation in the city, the Real Estate Institute of Victoria asserted earlier this month.

The organisation highlighted skyrocketing rents in the city, pointing out that the construction of new homes will help to alleviate some of the problems renters face.

Figures from the Victorian government's Office of Housing indicate that the medium rent of a three-bedroom house in the city has risen by 43.5 per cent between 2006 and 2010.

This compares to a 21.1 per cent increase on the same type of property during the previous five-year period.

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Revitalisation similar to the Fortitude Valley Neighbourhood Plan could boost development in the neighbourhood and increase its appeal to those who wish to make an Australian property investment.

Brisbane lord mayor Campbell Newman agreed that it has been "many, many years" since a planning exercise was carried out in Spring Hill, but added that "the timing is right now" to start the process.

He added that approximately 30 neighbourhood plans set up by Brisbane City Council are currently underway, with each Neighbourhood Planning exercise taking around two years to complete.

Brisbane City Council may have recently given a boost to Australian property investment by setting a new interim flood level so rebuilding efforts and new construction projects in the city can get underway as quickly as possible.

The measures were praised by Kathy MacDermott, Queensland executive director of the Property Council of Australia as key to rebuilding investor confidence in the wake of the devastating floods experienced in Brisbane earlier this year.

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Dr Andrew Wilson asserted that demand for mid to high-price properties in Sydney is likely to increase later in 2011. Strong economic growth will reinforce the NSW capital's position as Australia's commercial centre, which is likely to fuel demand for property, he predicted.

Sydney currently has 127 suburbs where the median property price is more than $1 million, compared with three in Brisbane and 38 - tipped to be 44 by the end of the year - in Melbourne.

The Sydney median house price is $637,258, according to December quarter 2010 data from Australian Property Monitors.

This compares to the median house price of $574,850 and $577,870 in Melbourne and Canberra, respectively.

Glenn Byres, executive director of the Property Council of Australia, asserted recently that new infrastructure projects planned for Sydney could boost property investment in the city.

Extensions to the current Light Rail system and a tunnel that would connect the CBD with Botany bay could be good news for Australian property investment and enhance quality of life for current Sydney residents, he commented.

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Louis Christopher commented that the market is "not racing or failing" but is instead moving at a steady level, Smart Company reported.

He added that although other property experts have suggested property prices in some areas in Sydney could rise by up to ten per cent this year, he feels this figure may be "optimistic" unless interest rates are cut within the next two or three months.

Mr Christopher also commented that this past weekend saw Sydney take an "uncharacteristically high result" in the auctions market, with a clearance rate higher than 60 per cent.

Meanwhile, figured published earlier this week by Residex indicate that prices are on the rise in a number of Sydney's south-western suburbs as a result of the city's growing population.

The Daily Telegraph reported that the area has experienced record growth when it comes to property prices as more first-time buyers and investors look to affordable property.

Industry insiders have recently tipped suburbs featuring family-friendly homes as prime areas for Australian property investment, as well as centrally-located units with good transport links to the CBD.

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Urbis has been enlisted to carry out a body of research, which offers the Property Council a starting base from which it can monitor the city's population.

The findings, titled Delivering on Melbourne's Population Plan, indicated that the city is currently not building enough properties to meet its population forecasts and the Australian Property Council has come up with a list of recommendations for the local and state governments.

These include identifying clear and strategic goals related to infrastructure and economic sustainability, as well as setting clear housing targets at the metropolitan and local level.

In total, an estimated 27,692 additional dwellings a year may be required over the next 20 years to provide a suitable number of dwellings for the growing Victoria population.

New figures published last week indicated that up to 100 city suburbs could have an average million-dollar price tag on property by 2014 if prices continue to increase at their current rate.

The data, from the Real Estate Institute of Victoria, indicates that 44 suburbs are expected to pass the million-dollar mark this year.

Many of these - including Prahran, Windsor and Port Melbourne - are ideally-placed for property investment thanks to their proximity to transport links and the CBD.

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The data, collected by Residex, showed that the area has experienced record growth when it comes to property prices over the past year, the Daily Telegraph reports.

Prices also increased in nearly one dozen south-western suburbs near Campbelltown - thought to be a direct result of the city's rapidly-growing population.

The Residex data shows that many of the top sales were for relatively modest properties and managing director John Edwards observed they indicate a growing number of people moving to the suburbs - where property tends to be more affordable for first-time investors and new buyers.

In fact, many of the record sales were made on relatively modest properties - including a four-bedroom Greenfield Park villa and a three-bedroom home in Airds, near Campbelltown.

Suburban homes should be one focus for Australian property investment, according to one industry insider.

Property Council of Australia executive director Glen Byres pointed out last week that a mix of family friendly homes and inner-city apartments are needed in Sydney to address rising demand for new properties.

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An estimated 831,000 Australians are currently adopting a DIY approach to their super fund and research from Russell Investments and the Professionals Assocation of Australia indicate SMSF holders are getting younger.

Their findings suggest that one in six survey respondents between the ages of 32 and 46 plan to set up a SMSF in the next two years, the Sydney Morning Herald reports.

Furthermore, DIY investors express more confidence in their super and enjoy higher returns than those using pooled funds.

SMSF investors also have an increasing number of choices when it comes to their assets - including art and property.

Residential property investment has been an option for SMSF investors since 2007 and is considered an excellent long-term option for future capital growth.

In fact any Australian who meets the specified criteria and has built up a certain amount of super benefits may be eligible to use money borrowed from a super fund to fund a residential property purchase.

Properties bought with a SMSF can be leased under the normal conditions of a tenancy, and well-researched investment property locations could lead to potentially high returns.

Independent Australian property investment news provided by OzInvest - the safe and easy way to invest in property.

This is according to Kathy Mac Dermott, the state's executive director of the Property Council of Australia, who called the property sector "Queensland's engine room".

However, she said the engine is "stalling" under current regulations and called for urgent reforms to be made to boost investor confidence.

In the Property Council of Australia's 2011 Advocacy Agenda, the organisation calls for five reform targets to support Australian property investment.

These include planning for growth, speeding up development assessment, infrastructure investment, cuts to taxes and fees and stronger leadership.

"We need the strong leadership demonstrated by government during the natural disasters of early 2011 to continue and be applied to reigniting Queensland's economy," Ms Mac Dermott commented.

New interim building measures that will raise Brisbane's new flood level to that of the January 2011 flood are set to be finalised by the local authority when it meets next Tuesday (March 15).

The new height specifications will affect all properties constructed in flood-affected areas and will raise the floors of all new-build homes to 50cm above the city's flood level.

Independent property investment news provided by OzInvest - the safe and easy way to invest in property.

This week, Wayne Stewart asserted that the state's political leaders need to be challenged to address the issues of housing availability and affordability.

He explained that neither Labor or the Coalition parties have expressed a clear-cut property strategy thus far, but much needs to be done to combat these ongoing issues and make the market more appealing for investors and first-time buyers.

Sydney has made plenty of headlines recently when it comes to residential property and the city's housing market is tipped to gain plenty of momentum in the coming year.

In fact, the number of approved dwellings in Sydney is expected to skyrocket in 2011-2012, with growth of 21 per cent expected by the end of the year, according to figures from BIS Shrapnel.

This will bring the total number in line with figures last seen in 2003-04 and - according to Angie Zigomanis, BIS Shrapnel's senior manager for building and constructing - growth is expected to continue into 2012 and beyond.

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The firm's executive director Brian Stewart commented that it is important to let new projects proceed in the wake of the national disasters, adding that the measures will allow "a range of projects in South Brisbane" to go ahead, the Sydney Morning Herald reports.

The measures could also spell welcome news for property investment as the city begins the rebuilding process.

Brisbane City Council, which brought forth the measures, intends the interim solution to allow rebuilding efforts in the city to begin before a Royal Commission enquiry on the issue is made public next January.

The measures have also been applauded by the Queensland division of the Property Council of Australia, as well as state premier Anna Bligh, who commented that the measures could prove to be "very helpful" for Brisbane residents.

Under the interim regulations, the floors of any new-build homes must be constructed at least 50 cm above the level the floodwaters reached during the January natural disaster.

The January 2011 flood level will become the city's new defined flood level following a council meeting in the coming week.

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A new proposal brought by Brisbane City Council would see new homes in flood-affected areas built to new height specifications.

This could see flooring constructed 50 cm above the level floodwaters reached and would be an interim solution until a Royal Commission can clarify the issue.

Kathy MacDermott, Queensland executive director of the Property Council of Australia, claimed the measures could provide a sensible solution for those who are rebuilding their homes and may also boost the confidence of property investors as the city moves forward in the wake of catastrophic flooding earlier this year.

"The Property Council has identified restoring investor confidence as a key challenge following the floods and the interim planning measures sends a clear signal that Brisbane is open for business," she said.

Praising the "welcome and workable" measures, she added that the city's proposals outline a "clear path of action" when it comes to rebuilding the city.

Investment property in Brisbane's inner-west suburbs received an additional boost earlier this week with the announcement that a large public park is planned for the site of the former Milton Tennis Centre.

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New figures from the Real Estate Institute of Victoria indicated that the number of so-called million dollar suburbs - where the median house price exceeds seven figures - will continue to rise, the Herald Sun reports.

The newspaper compiled a list of the Melbourne suburbs that are expected to pass the million-dollar mark this year. Many of them are in ideal areas for property investment, with good transport links to the CBD.

St Kilda, St Kilda East, South Melbourne, Port Melbourne, Prahran, Windsor, Caulfield South and Fitzroy North were all identified as suburbs that will achieve million-dollar median prices this year.

Although residential building activity in Victoria's capital at an all-time high, demand still continues to outstrip supply.

According to Housing Industry Association senior economist Andrew Harvey, construction on an estimated 60,000 new properties began in 2010 across the state of Victoria - compared to the decade average of 42,500.

It is thought that the undersupply of rental properties that grew from 2005 to 2009 has contributed to rising rent in the city. The head of the Real Estate Institute of Victoria recently commented that until more can be done to address the situation - including increased property investment and the construction of even more homes - rents in Melbourne are likely to remain high.

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Campbell Newman said in a statement that the land – which was formerly the site of the Milton tennis centre – will be “a great public park for all residents to enjoy”.

He added: “The former Milton Tennis Centre site provides a rare opportunity to secure a site of this size within the inner west for parkland.”

Members of the local community will have input when it comes to designing the park’s facilities and it is likely the 3.5 hectare site will balance sport and recreation facilities with open parkland, the Courier-Mail reports.

It is expected that consultations on the park’s uses and design will get underway later in the year.

The park could spell good news for Australian property investment, as a recent report from the Real Estate Institute of Queensland suggested buyers are looking for properties close to desirable amenities.

In particular, family-friendly investment property located near a wide selection of schools, retail outlets, shopping centres and other mod cons could prove profitable for investors.

Brisbane investment property has been highlighted by the organisation as particularly desirable to buyers, as the Queensland market offers plenty of long-term benefits.

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According to BIS Shrapnel, the number of dwelling approvals in the state is expected to rise by mid-year as the economy continues to recover in the wake of the GFC.

It is thought that approvals could rise by up to 21 per cent, resulting in levels not seen since 2003-04.

BIS Shrapnel’s senior manager for building and constructing, Angie Zigomanis, said the figures could indicate a rising number of first-time buyers and upgraders entering the market.

She commented: “The latest data to the month of December 2010 indicates the actual number of loans given to first-home buyers was [at] the highest level since December 2009.”

Rental demand for Sydney investment property is also expected to rise in the coming year, new figures from the Real Estate Institute of New South Wales have suggested.

This past January, the total vacancy rate in Sydney was recorded at 1.5 per cent.

Organisation president Wayne Stewart said the number of vacancies could tighten in the coming months – and that measures to encourage Sydney property investment could help to meet increasing tenant demand. 

According to statistics compiled by Australian Property Monitors, the December 2010 quarter median house price was $141,546 higher than the recorded figure for March 2009.

The median house price for Melbourne was $574,850 in the final quarter of 2010.

While it is expected that the housing market may enter into a quiet period in the next few months, buyer sentiment could revive “sooner rather than later in 2011”, according to Dr Andrew Wilson, senior economist for Australian Property Monitors.

Writing for the Sydney Morning Herald, he suggested that “encouraging” early auction results, rising incomes and a growing economy could all help to boost buyer activity later in the year.

Figures published by Victoria’s Office of Housing earlier this month showed that the median rent of a three-bedroom residential property in Melbourne has risen by 43.5 per cent between 2006 and 2010 – highlighting rapidly-rising tenant demand for property in the city.

Experts have previously predicted that Melbourne’s property investment market could gain momentum as early as March or April, if the strong auction results recorded in February can be sustained.

Suburbs located close to the inner city have been identified as particularly attractive areas for Melbourne property investment in 2011.

Speaking after REIV announced that rental prices in the Victorian capital have skyrocketed during the past six years, while the vacancy rate for residential homes in Melbourne has steadily remained below three per cent.

Quoting figures from the Victorian government’s Office of Housing, he pointed out that the median rent of a three-bedroom house in Melbourne increased by 21.1 per cent between 2000 and 2005, but in the following five-year period, the rent on the same property rose by 43.5 per cent.

“For the rental market the only solution is to build more homes, which investors can then make available for the rental market,” he commented.

High rents will continue to be a fact of life for Melbourne tenants until the 2005-2009 undersupply can be addressed.

Inner-city suburbs including South Yarra have been tipped as potentially-popular areas to make a Melbourne property investment this year.

Experts have suggested the city’s property market is likely to gain momentum this autumn, particularly in March and April.

While treasurer Wayne Swan said the state should prepare for a "hit to growth" in the March quarter, subsequent quarters will see a "rebound", the Courier Mail reports.

Westpac senior economist Matthew Hassan agreed, commenting that low figures for the month of January are common at the best of times, so the low number of building approvals granted during this time is not a cause for concern.

Furthermore, he told the AAP that the number of approvals is likely to rise as the year goes on.

He said: "As the year progresses there should also be some uplift as the repair work sees major renovation and rebuild work for affected houses."

The comments were made following new figures from the Australian Bureau of Statistics today (March 3) that showed 12,342 properties were approved in Australia in January.

While this is a 15.9 per cent fall from the previous month’s figures, market analysts from IG Markets and major financial institutions were largely unconcerned.

The Real Estate Institute of Queensland has previously hailed the state as "ideal" for property investment, thanks to tightening vacancy rates and building pressure on rents.

It noted that Queensland buyers are well-positioned to enjoy long-term returns on their property investments.
 

The leader of the opposition commented that planning legislation needs to be simplified and more should be done by the new government to encourage 'mum and dad' investors back to the Sydney property market, the Southern Courier reports.

He said: "The rental crisis is caused by a lack of confidence of investing in property, in building and construction."

Mr O'Farrell added that under the Coalition's newly-announced policies, the planning system would be changed to simplify construction rules and ensure processes occur in a timely way.

"We're talking about rebalancing Sydney's growth," he added.

Shelter Offshore recently hailed Sydney - which has a rapidly-growing population of more than 4.5 million people - as a brilliant place for property investment, citing its "very good real estate options".

The publication praised the city's numerous employment opportunities, as well as its top-ranking schools, well-respected healthcare standards and vibrant cultural scene, as brilliant for property investment.

It particularly highlighted Sydney's appeal to expatriate investors, thanks to its sandy beaches and favourable climate, as well as its wide range of amenities, restaurants, bars and shopping centres.

Phil Reeves commented that the stadium - which will be home to the Gold Coast Suns from May onward - will be "terrific" for the local economy, ABC reports.

He added that the renovation - which is currently on-schedule and on-budget - could provide a valuable boost for both Brisbane and the Gold Coast, particularly when it comes to creating new jobs.

"On game days there'll be about 700 people employed and that does not include the amount of economic impact for hotels, for restaurants," he said.

A thriving economy is just one of many reasons to consider making an Australian property investment - and the Brisbane area is no exception.

Queensland property investors view the potential for future capital growth as the top incentive to purchase property in the state, according to research published by the Real Estate Institute of Queensland (REIQ).

74 per cent of buyers said this was their top reason for purchasing an investment property, according to REIQ. Other investors said they felt property offered a better long-term return than a super or shares, while a further group claimed their main reason for purchasing an investment property was to fund their retirement.

Figures compiled by the Real Estate Institute of Queensland (REIQ) have identified the suburb - which is located 22 km from Brisbane - as a favourite of families and first-time buyers thanks to its proximity to the range of contemporary homes on offer, as well as its proximity to a wide selection of schools.

According to REIQ managing director Dan Molloy, Forest Lake has a number of attributes that investors should be aware of when selecting a suburb for their investment property purchase.

"[Forest Lake] offers affordably-priced contemporary homes that often have all the mod cons. It is also located amongst a wide variety of infrastructure from shopping centres and retail outlets to educational precincts," he commented.

In December 2010, REIQ highlighted conditions in Queensland were "ideal" for property investors, as the market offers plenty of long-term benefits.

The organisation added that with vacancy rates tightening in the state, pressure is building on rents - news which could benefit property investors in the months ahead.

Writing for BusinessDay, Michael Buxton explained that international property investment offers plenty of benefits to the Australian economy, as the construction industry makes up an estimated 6.8 per cent of the country's gross domestic product and 9.1 per cent of the workforce.

He called the government's property laws for overseas investors "a win-win for Australia" as they allow foreign capital into the country while retaining ownership of the property domestically, rather than overseas.

Furthermore, in the current period of short supply and heavy demand, foreign investors could "help to rebalance the market and lead to reduced rents and increased affordability," he said.

One city property investors may wish to research is Melbourne. The property market here is tipped to gain momentum in the months of March and April thanks to high levels of new stock listed over the coming weeks.

Mal James of James Buyer Advocates told the Age that while it remains to be seen whether the next two months represent sustained growth or a short post-Christmas "afterglow", competition between property investors continues to rise in the Victorian capital city.
 

Aaron Gadiel, speaking on behalf of the property development industry organisation, called on the state government to support the construction of new homes in NSW.

He commented that the government can boost housing supply by cutting down the "huge regulatory costs" developers face, easing the restrictions surrounding the construction of new homes and contributing more public funds to the infrastructure of high-growth communities.

Mr Gadiel also pointed out that the land price of existing housing stock in areas such as Sydney's CBD has been driven up due to the fixed supply of inner-city freestanding properties.

This means that low-rise apartment development is usually not commercially viable in these regions and developers instead need to look towards higher-density housing in the city's inner and middle ring suburbs.

Other growth areas for real estate investment in Sydney include family-friendly detached properties in new suburbs at the edge of the city.

Sydney property investment is buoyed by strong demand from tenants - Mr Gadiel estimated that approximately 30 per cent of Sydney's residents are currently renting homes or apartments.