Residential Performance

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Prime property prices only increased by 1.9% in the year to September 2015 around the world, according to Knight Frank’s Prime Global Cities Index with Vancouver and Sydney leading the rankings with standout performances. 
The index, which monitors and compares the performance of prime residential prices across key global cities, reports an increase of 20.4% in Vancouver in the year to September 2015. A shortage of supply and strengthening local demand alongside foreign interest are the reasons behind the strong performance. 
Sydney ranks not far behind with an increase of 13.7%, while Melbourne sits in fifth place with an annual increase of 9.4%. The weak Australian dollar, an undersupply of new homes and a strong local economy are behind Sydney’s accelerating values, and to an extent Melbourne as well. In addition, Melbourne has been named ‘The Most Liveable City in the World’ for the fifth time in a row by the Economist Intelligence Unit. 
Michelle Ciesielski, director of residential research, at Knight Frank Australia said the lower Australian dollar had influenced the number of ex-pats buying back in Sydney and Melbourne, taking advantage of buying a prime property in these ideal conditions.
Shanghai also recorded double-digit annual price growth, up 10.7% in the year. The reversal of strict housing policies and the introduction of new fiscal measures, including tax and interest rate cuts, have fuelled demand in Shanghai. 
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Looking beyond the top rankings, the overall performance of the index was less than robust, Knight Frank noted.
The index now stands 34.1% above its low in Q1 2009 but its annual rate of growth is slowing. 
Kate Everett-Allen, residential researcher at Knight Frank noted the index’s annual rate of growth had slowed significantly from 7% two years ago to 1.9%.”
Some 73% of cities recorded positive annual price growth in the year to September down from 91% two years ago.
Singapore was the weakest performing prime market tracked by the index for the seventh consecutive quarter, but the rate of annual decline has slowed from -15.2% at the end of Q2 to -7.9% this quarter. 
Analysis by world region highlights that Australasia leads the Prime Global Cities Index, with an average annual price growth of 11.6%, followed by North America at 8.5%. Europe has entered positive territory this quarter with an increase of 0.8%. However, performance here varies from an increase of 9.4% in Monaco to -5.1% in Zurich. 
As QE unwinds and a US rate rise draws near, prime assets will remain on the radar of investors and HNWIs. The big question mark surrounds not Greece and the Eurozone but the slowdown in the Chinese economy. Wealth from China will continue to flow into overseas property markets with the UK, US, Canada and Australia being key target destinations. 
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jchancellor-FAypfDUnLy

Sydney shines in Knight Frank global cities report

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<div>The number of residential vacancies dropped in August to give a vacancy rate of 2.3 percent, according to SQM Research.</div>
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 The latest SQM research shows vacancies dropping in all capital cities, pushing up rents, especially in Sydney and Melbourne where vacancy rates are now below 2 percent.
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<img src="/images/2016/09/21/Screen%20Shot%202016-09-21%20at%2011.10.04%20AM.png" alt=""> SQM Research managing director Louis Christopher said Sydney and Melbourne recorded vacancies rates of 1.7 percent and 1.9 percent, respectively, while Hobart had the tightest rate at just 0.5 percent.</div>
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<div>"In contrast, Perth recorded the highest vacancy rate of 5.0 percent in August, though it fell by 0.2 percentage points from a record high of 5.2 percent in July," he said.</div>
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<div> "Reflecting a high vacancy rate, Perth has recorded big falls in asking rents of 9.6 percent for houses and 11.4 percent for units over the past 12 months. </div>
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"Yearly falls have also been recorded in Darwin, with asking rents down 1.5 percent for houses and 5.5 percent for units. In contrast, asking rents jumped in Canberra, up 12.1 percent for houses and 9.6 percent for units. The asking rent for a three-bedroom house in Sydney jumped 4.8 percent to $713 a week over the year to September 20 and in Melbourne, rents jumped to $486, up 3.4 percent. "Despite a very tight vacancy rate, Hobart continues to record the most affordable rental accommodation with rents for houses at just $343 a week and units averaging $279 a week. 
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<div>"Looking forward, fears of an apartment oversupply in Melbourne, if true, cannot come soon enough, as at present, having a vacancy rate trending down below 2 percent is highly suggestive that landlords are in control of the market.  "Sydney too is likely to remain a landlord's market as the city's growing population creates demand for new stock. The only area right now recording sustained increases in vacancies is the Hills District, including the Kellyville area." </div>
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jonathanchancellor-7SQnKwU6yx

Vacancy rates drop, big city rents jump: SQM

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The detached housing market has pushed New South Wales to a greater lead over Victoria in the HIA Housing Scorecard.
The scorecard ranks each states and territories on the performance of their respective housing market.
Shane Garrett, HIA senior economist, said the large states dominate the top rankings in the latest HIA Housing Scorecard, with NSW extending its lead in first place thanks to a remarkable performance on the detached house side.
“In second place on the HIA Housing Scorecard, Victoria was particularly strong for home renovations activity but also did well on the detached housing side.
“In this edition of the HIA Housing Scorecard, Queensland grabbed the bronze medal with a solid showing on the multi-unit side. 
“Outside of the Top Three, South Australia and the ACT occupied the mid-table positions. Western Australia, the Northern Territory and Tasmania are all neck-and-neck with declining market momentum on the HIA Housing Scorecard. 
“Probably the starkest result from today’s HIA Housing Scorecard concerns the volume of First Home Buyer loans, which have fallen well below their long-term average in each state and territory. The obstacles to housing affordability for first home buyers merit a national-led response."
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NSW tops latest HIA Housing Scorecard, first home buyer loans fall

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The Canberra home auction market has produced another robust winter result with the clear prospects of another strong spring selling season ahead, according to Domain.
Canberra recorded an auction clearance rate of 69.2 per cent over the three months ending August – the highest winter clearance rate recorded since 2009 and the fourth-highest on record.
The strong result was reported despite a record number of auctions with 694 homes listed over winter.
This was 75 more homes, or 12 per cent higher, than the previous record set over winter last year.
Canberra also reported a record-high winter median auction price of $687,500 which was 4.2 per cent higher than the median recorded over winter 2016.
Belconnen reported the highest winter clearance rate of all the Canberra regions with a strong 80.7 percent result, followed well behind by the Woden Valley with 69.6 per cent, Canberra central, 67.6 per cent, Tuggeranong, 66.3 per cent, Gungahlin, 65.2 per cent and Weston Creek with 50.0 per cent.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
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Region
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<td valign="top" width="89">
Median price
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<td valign="top" width="66">
Auctions
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<td valign="top" width="96">
Clearance rate
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<td valign="top" width="102">
Belconnen
</td>
<td valign="top" width="89">
$590,000
</td>
<td valign="top" width="66">
192
</td>
<td valign="top" width="96">
80%
</td>
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<td valign="top" width="102">
Canberra Central
</td>
<td valign="top" width="89">
$968,000
</td>
<td valign="top" width="66">
143
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<td valign="top" width="96">
67%
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<td valign="top" width="102">
Gungahlin
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<td valign="top" width="89">
$745,000
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<td valign="top" width="66">
123
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<td valign="top" width="96">
65%
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<td valign="top" width="102">
Tuggeranong
</td>
<td valign="top" width="89">
$588,500
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<td valign="top" width="66">
106
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<td valign="top" width="96">
66%
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Weston Creek
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$683,500
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59
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50%
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Woden Valley
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$773,000
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<td valign="top" width="66">
71
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69%
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Belconnen also reported the highest number of winter auctions with 192 followed by Canberra central 143, Gungahlin, 123, Tuggeranong, 106, Woden Valley, 71 and Weston Creek with 59 auctions.
Canberra central recorded the highest median auction price over winter at $968,000, followed by Woden Valley, $773,000, Gungahlin, $745,000, Weston Creek, $683,500, Belconnen, $590,000 and Tuggeranong close behind with a median of $588,500.
Canberra is set to maintain its winter momentum though spring and continue as one of the nation’s strongest capital city housing markets.
Belconnen has the highest proportioned of rented properties in 2016 in metropolitan Canberra, according to a recent CoreLogic report.
The property data firm says that 62% of properties in the area were rented.
Below is the residential vacancy rates for Belconnen according to SQM Research.
<a href="https://www.propertyobserver.com.au/images/2017/07/27/Screen%20Shot%202017-07-27%20at%2011.38.28%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/27/Screen%20Shot%202017-07-27%20at%2011.38.28%20am.jpg" alt="">
However this is slightly lower than the 63% in 2006, but higher than the 55% in 2011.
Below is the implied property gross rental yield for Belconnen according to SQM Research.
<a href="https://www.propertyobserver.com.au/images/2017/07/27/Screen%20Shot%202017-07-27%20at%2011.39.07%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/27/Screen%20Shot%202017-07-27%20at%2011.39.07%20am.jpg" alt="">
A two bedroom apartment at<a href="https://www.realestate.com.au/property-apartment-act-belconnen-421919866" target="_blank"> 32/1 Playfair Place</a>, Belconnen (above) is available for $340 per week.
Another two bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-act-belconnen-421645394" target="_blank">37/20 Beissel Street</a>, Belconnen (below) is available for $460 per week.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/27/37_20%20Beissel%20Street.jpg" alt="">
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Belconnen Canberra's best performing winter suburb

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GUEST OBSERVATION
The highest-ranked areas in an Australia-wide assessment of smart city performance are all in metropolitan regions with higher population densities. “Australia’s 60 top-performing local government areas house more than quarter of the nation’s population,” we note in the newly released Smart Cities Down Under report.
As well as highlighting major regional disparities, our analysis reveals the local government areas we assessed against four smart city indicator areas generally perform strongly in one of these, “Liveability and Well-being”. Performances are weaker in “Sustainability and Accessibility” and “Governance and Planning”. High performance in “Productivity and Innovation” existed only in the top-performing areas.
We assessed 180 local government areas (out of 563 in Australia), representing more than 85% of the nation’s population, against <a href="https://eprints.qut.edu.au/123317/" target="_blank">smart city criteria</a>. We included all local government areas in metropolitan Australia (<a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/1270.0.55.001%7EJuly%202016%7EMain%20Features%7EGreater%20Capital%20City%20Statistical%20Areas%20(GCCSA)%7E10003" target="_blank">Greater Capital City Statistical Areas</a>) and regional local government areas with populations of more than 50,000.
<a href="https://images.theconversation.com/files/313419/original/file-20200203-41532-pt7dd4.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/313419/original/file-20200203-41532-pt7dd4.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Locations of investigated local government areas. Author provided
This study is an expanded version of the <a href="https://eprints.qut.edu.au/118349/" target="_blank">Smart Cities of the Sunshine State 2018</a> report.
It’s not all about technology
Cities are complex systems and should be evaluated in a holistic way. This means not placing excessive weight on technological achievements – such as <a href="https://www.bbc.com/news/technology-49674533" target="_blank">tech for tech’s sake</a> – in lieu of economic, social, environmental and governance outcomes.
Our <a href="https://eprints.qut.edu.au/132495/" target="_blank">conceptual framework</a> to evaluate <a href="https://eprints.qut.edu.au/118033/" target="_blank">smartness levels</a> was built on the four pillars of economy, society, environment and governance. The evaluation criteria are shown below.
<a href="https://images.theconversation.com/files/313427/original/file-20200203-41532-1gtwmto.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/313427/original/file-20200203-41532-1gtwmto.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Author provided
We categorised the 180 local government areas we assessed into three performance categories:
<ul>
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Leading, the best-performing cities
</li>
<li>
Following, the cities with achievements and potential, but not at the level of the best performers
</li>
<li>
Developing, the cities with some progress and potential, but not as substantial as the other two categories.
</li>
</ul>
Who's leading the way?
All areas in the leading category were completely contained within capital city metropolitan areas.
New South Wales ranked first with 20 local government areas. Then came Western Australia (14), Victoria (12), South Australia (9), Northern Territory (2) and Queensland, Australian Capital Territory and Tasmania (1 each). In terms of population in leading areas, the ranking changed to: NSW (2,348,388 people), Victoria (1,477,964), Queensland (1,131,155), WA (557,163), ACT (397,397), SA (370,719), NT (112,590) and Tasmania (50,439).
You can see below how the combined results for each of leading, following and developing performers compare against the four smart city indicator areas.
<a href="https://images.theconversation.com/files/313429/original/file-20200203-41503-l2qcgs.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/313429/original/file-20200203-41503-l2qcgs.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Comparison of leading, following and developing cluster performances. Author provided
You can see the smart city performance matrix of your local government area <a href="https://eprints.qut.edu.au/136873/" target="_blank">here</a>.
Key steps towards smarter cities
Metropolitan local government areas dominate the leading performance category. Mechanisms such as the Australian government’s <a href="https://theconversation.com/au/topics/city-deals-26196" target="_blank">City and Regional Deals</a> and funding through the <a href="https://www.infrastructure.gov.au/cities/smart-cities/" target="_blank">Smart Cities and Suburbs Program</a> have delivered some tangible impacts.
The performance is less strong in regional Australia. A national smart city strategy and guidelines are needed to help make these localities and communities smarter.
This policy should take on the following findings of our <a href="https://eprints.qut.edu.au/135135/" target="_blank">international study of smart cities</a>:
<ol>
<li>
smart cities that focus only on technology seldom work
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<li>
local governments should adopt the role of facilitator
</li>
<li>
risks need to be shared with the private sector
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<li>
local governments should be open to innovations and learn from mistakes
</li>
<li>
smart cities should focus on being inclusive
</li>
<li>
resource consumption must be considered, particularly in relation to the longevity of technological infrastructure
</li>
<li>
long-term sustainability depends on renewable resources
</li>
<li>
smart cities require a smart community that is knowledgeable, conscious, forward-thinking, engaged, united and active.
</li>
</ol>
The <a href="https://research.qut.edu.au/smartcity/home/people/urban-studies-lab/" target="_blank">Urban Studies Lab</a> at Queensland University of Technology prepared the report in partnership with the Commonwealth Department of Infrastructure, Transport, Regional Development and Communication. Our <a href="https://research.qut.edu.au/smartcity/" target="_blank">Smart City Research Team</a> has had conversations with city managers, mayors, local government professionals and key community stakeholders (e.g., businesses, not-for-profits, NGOs and academic institutions, among others). These conversations confirm local governments have a critical role to play if Australia is to manage vexing societal challenges from climate change to accessing economic opportunities, and even dealing with transformations driven by information technologies such as <a href="https://theconversation.com/driverless-vehicles-could-bring-out-the-best-or-worst-in-our-cities-by-transforming-land-use-84127" target="_blank">automation</a>, <a href="https://theconversation.com/valleys-alleys-and-roundabouts-innovating-beyond-a-precinct-24290" target="_blank">innovation</a> and <a href="https://theconversation.com/artificial-intelligence-should-benefit-society-not-create-threats-36240" target="_blank">artificial intelligence</a>).
Local governments do not function well in isolation. Any local government is only as strong as the other local governments within its vicinity. They must interact to share and access public resources.
Leading cities can learn from the <a href="https://www.propertyobserver.com.au/https://www.planetizen.com/node/67338" target="_blank">frugal innovations</a> of their less fortunate peers. Our best-performing cities are similar to incumbents in the industry sector in that they face their own challenges to modernise.
Too often these cities seek solutions that are not frugal and cannot leverage indigenous knowledge. Less well-resourced communities must engage in different modes of innovation. We believe better networks need to be set up to foster dialogue and exchange practices across communities.
The good news in our report is that our leading cities fare well. The not-so-good news is that the other local governments need to be brought along on a transformation journey. No city is an island, and no country can treat cities as independent elements.
Australia, we believe, should consolidate its <a href="https://eprints.qut.edu.au/103038/" target="_blank">local governance and planning</a> culture to lead the change.<img src="https://counter.theconversation.com/content/130881/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/tan-yigitcanlar-119434" target="_blank">Tan Yigitcanlar</a>, Associate Professor of Urban Studies and Planning, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847" target="_blank">Queensland University of Technology</a>; <a href="https://theconversation.com/profiles/karen-vella-124890" target="_blank">Karen Vella</a>, Associate Professor and Head, School, Built Environment, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847" target="_blank">Queensland University of Technology</a>; <a href="https://theconversation.com/profiles/kevin-clyde-desouza-535757" target="_blank">Kevin Clyde Desouza</a>, Professor of Business, Technology and Strategy, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847" target="_blank">Queensland University of Technology</a>; <a href="https://theconversation.com/profiles/luke-butler-953109" target="_blank">Luke Butler</a>, Research Assistant, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847" target="_blank">Queensland University of Technology</a>, and <a href="https://theconversation.com/profiles/nayomi-kankanamge-953583" target="_blank">Nayomi Kankanamge</a>, PhD Candidate, School of Built Environment, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847" target="_blank">Queensland University of Technology</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/smart-city-or-not-now-you-can-see-how-yours-compares-130881" target="_blank">original article</a>.
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