News

The latest happenings in the Melbourne property market. For our Essays and The Secret Agent Report, see our Research page.


Category Archives For: The Inside Perspective

The Secret Agent Report – Sound

We have just released our latest Secret Agent report! In this report, we discuss an important yet often overlooked consideration prior to buying a home: sound. Why does sound matter, especially in today’s highly urban environment? And does proximity to noise, such as busy roads and railway lines, affect the value of inner city property?

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the Sound report now!

The Sound Report


Predicting Mortgage Rates

Historically, treasury bonds have been considered one of the most secure investments that can be made – especially in a country with a stable government such as Australia. The bond holder is almost guaranteed to receive half-yearly coupon payments plus all their principal once the maturity date is reached. Treasury bonds can therefore be considered a risk-free asset and the yield received is the risk-free rate for investment. For a bank giving out a home loan, the interest rate charged usually depends on the risk-free rate plus the risk premium, determined by the likelihood of the borrower to repay his loan.

We’d expect the average mortgage rate and treasury bond yield to behave similarly – that is, when bond yields increase, so should the mortgage rate, and vice versa. When we looked at the average variable mortgage rate and 10 year treasury bond yields in Australia, both move up and down in the same direction, although not always at the same time.

However, when you compare current variable mortgage rates with 10-year treasury bond yields from 8 months ago, we see that a strong relationship exists (see Fig.1). What this means is that we can now estimate the mortgage rate 8 months from now (September 2016).

Fig1

Read the full post


21st Century Pollution: Noise

As part of our upcoming report on Sound, we decided to look at one of the downsides of living in the inner suburbs of Melbourne. For some, the idea of living close to – or within – the city is extremely desirable, especially if you’re a young professional. But is it possible to be too close to the centre of all the action? We wanted to find out if inner city properties lost any value being located on noisy main roads.

For our purpose, we defined a noisy road as any street with two or more lanes, or a road with tram tracks on it, and narrowed our study to inner North suburbs. We made sure that the only variable was whether the house was located on a noisy or a quiet street, keeping other property traits as similar as possible.

Read the full post


A Matter of Price and Size

Is a more expensive house also a larger house? Usually yes, but does a 10% bigger property also cost 10% more? The answer, interestingly enough, is that it depends on the area.

The size of a property and the price do not always move up or down proportionately, but by different amounts depending on the suburb.

Travancore, Northcote and, surprisingly, Hawthorn offer the best value for money in the inner suburbs, while Albert Park, Middle Park and, unsurprisingly, East Melbourne, landed on the other end of the value spectrum.

To figure out what is a good deal on a house in any suburb, look at the percentage that price is greater or smaller than the average price, then compare this to how much bigger or smaller the land area is over the average. Finally, consider additional factors, including build quality, location and surroundings.

Read the full post


The Secret Agent Report – Sustainability

We have just released our latest Secret Agent report! To kick off 2016, we look at sustainability and its relationship to property. Whether you are purchasing an existing house or building from ground up, there are several ways you can make your new home more sustainable.

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the Sustainability report now!

Sustainability Report


The Secret Agent Report – End of Year Review

We have just released our latest Secret Agent report! Yet another year has passed, so it’s time to look back at 2015 and reflect on the performance of the property market around inner Melbourne.

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the End of Year Review report now!

End of Year Review 2015


The Secret Agent Report – The Beauty of Symmetry

We have just released our latest Secret Agent report! This month, Secret Agent investigated the relationship between symmetry, beauty and value. We dove into the history of beauty and carried out studies to determine if better looking façades in fact attract a premium compared to less attractive ones.

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the Beauty of Symmetry report now!

The Beauty of Symmetry Report


The Secret Agent Report – Motherhood

We have just released our latest Secret Agent report! This month, we revisit the subject of health in the living environment, but with a particular focus on expectant mothers and newborns. As the harm from toxins and chemicals is amplified on our young, choosing a new family home must be carefully considered.

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the Motherhood report now!

Motherhood Report


The Secret Agent Report – Temperature

We have just released our latest Secret Agent report! To welcome the first month of Spring, we are investigating if daily and monthly temperatures have any effect on auction results.

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the Temperature report now!

Temperature Report


The Secret Agent Report – Melbourne Metro Rail Project

We have just released our latest Secret Agent report! This month, we are reviewing the Melbourne Metro Rail Project and investigate its potential effects on property prices.

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the Melbourne Metro Rail Project Report now!

Melbourne Metro Rail Project Report