For the past 3-4 years, many pundits have forecast that “this year” is the year for Brisbane and the city has not delivered
For the past 3-4 years, many pundits have forecast that “this year” is the year for Brisbane and the city has not delivered. It has chugged along steadily but there’s been little in the way of major uplift.
But now the Brisbane boom is upon us. Hotspotting research for the upcoming Autumn 2021 edition of The Price Predictor Index shows just how strong markets are across the Greater Brisbane Area.
The number of growth markets in the Greater Brisbane Area has quadrupled since mid-2020, creating the strongest market in the six years of our quarterly surveys. The uplift in sales activity in the past six months has been extraordinary.
Our new survey has identified 124 suburbs with rising sales activity, compared to 56 in the previous survey and just 28 in the mid-2020 survey. This means the number of growth suburbs doubled in six months and then doubled again within three months.
The previous best result in the six years of our quarterly surveys was 80 growth suburbs six years ago at the start of 2015.
At the same time, the number of plateau markets is the lowest ever, while the number of declining or danger markets has dropped from 37 eighteen months ago to just five now (we continue to classify some of the inner-city apartment markets as danger markets, with vacancies still high there).
The northern precincts continue to be market leaders in Brisbane. The Brisbane-north precinct and the Moreton Bay Region jointly have 51 growth suburbs, including 31 in the Moreton Bay region, which is a record to any LGA across Australia in the six years of these surveys.
This means that three-quarters of the ranked suburbs in the Moreton Bay Region have rising sales activity, a circumstance that makes strong price highly likely in 2021.
The Brisbane-north precinct, which has 20 growth suburbs, continues to impress as one of the strongest of the city’s sectors.
But the growth momentum is occurring throughout the Brisbane metropolitan area, with Ipswich City in the far south-west an exception.
Logan City in the far south has 17 growth suburbs, providing further evidence of the gathering recovery of markets in this precinct.
Brisbane-south (13), Brisbane-inner (11), Brisbane-easts (12), Brisbane-west (7) and Redland City (8) all have substantial numbers of suburbs with rising trajectories. But Ipswich City, with only five growth suburbs, has yet to feel the positive momentum being felt elsewhere in the Greater Brisbane Area.
It doesn’t surprise, therefore, that Brisbane markets have been performing well on price growth, with three-quarters of suburbs across the metropolitan area recording uplift in their median house prices in 2020.
In the most recent quarter, 76% of suburbs had some level of price growth.
With inner-city apartment markets still struggling with high vacancy rates, growth has been less prolific among the unit markets: 56% of the suburbs with unit markets have had growth in their median unit prices in the past year.
House price growth has been spread across the Brisbane metropolitan area, but the upper end of the market has been leading.
St Lucia in the popular western suburbs has lifted its median house price 36% to $1,525,000, while Yeronga in the inner southern suburbs has grown 38% to $1,045,000. The sough-after inner city suburb of New Farm has increased 20% to $1,750,000, while Highgate Hill is also up 20% to $1,200,000. And the most expensive of the eastern bayside suburbs, Manly, has increased 20% to $945,000.
The housing market in inner Brisbane, in contrast to the apartment market, is generally travelling well. In addition to New Farm and Highgate Hill, West End is up 15%, Woolloongabba 10%, Bardon 8% and Coorparoo 7%.
The western suburbs are doing well, led by St Lucia (36%), Fig Tree Pocket (up 18%), Sherwood (13%) and Toowong (12%). All have median prices above $1 million.
The northern suburbs also are out-performing. Inner northern suburbs with median prices above $1 million are growing, including Grange (14%), Ashgrove (13%), Ascot (8%) and Clayfield (9%).
Further north in the middle-ring suburbs, growth suburbs include Nundah (15%), Banyo (12%), Chermside (14%) and Sandgate (11%), while others like Chermside West, Kedron and MCDOWALL have grown 8-9%. These are places with median house prices in the $600,000 to $800,000 range.
The equivalent suburbs in the south are also displaying solid growth, headed by Holland Park (12%), Tarragindi (10%) and Upper Mount Gravatt (11%). Several others are up 8-9%.
Several outer-ring precincts are also doing well. In the Moreton Bay region in the far north, growth suburbs include Eatons Hill (13%), Caboolture South (8%), Beachmere (9%) and Bellara (7%) – mostly locations with median house prices under $500,000. Given the number of suburbs with rising sales activity, we expect price growth to accelerate in this area.
In Logan City in the far south, Underwood is up 12% to $615,000, while suburbs with medians in the $400,000s and $500,000s are showing solid uplift in the 7-8% range, including Daisy Hill, Loganholme, Shailer Park and Waterford.
Article Source: www.urban.com.au
Two green bridges underway, Brisbane City Council seeks feedback on two more
Construction on two green bridges linking Brisbane’s inner-city suburbs is slated to begin this year, but the location of three other planned bridges remains unclear.
- Brisbane City Council pledged $550 million for five green bridges in 2019
- Two bridges begin construction this year and two others are out for consultation
- A planned bridge at Bellbowrie has been scrapped
In 2019, Lord Mayor Adrian Schrinner made a $550 million pledge to build five new green bridges, catering for pedestrians and cyclists, to reduce vehicle traffic and improve the city’s connectivity.
At Tuesday’s public and active transport committee meeting, Brisbane City councillors were given an update on the progress of the green bridges program.
Public and active transport committee chairman Ryan Murphy told the committee the council wanted state or federal funding support alongside the $550 million already committed.
The $190 million Kangaroo Point green bridge will be 470 metres long and 6.8 metres wide, with separated cycling and pedestrian lanes, linking the inner-city suburb with the City Botanic Gardens.
Construction on the Kangaroo Point and Breakfast Creek bridges will begin this year, with the council now out to tender for both.
Consultation for two West End bridges
Community consultation on the bridges from West End to St Lucia and West End to Toowong was extended following concerns the December-January consultation was too short.
For the West End bridges, suggested locations put forward by Brisbane City Council would either place the landing pads on public parks, such as Orleigh Park in West End and Guyatt Park in St Lucia, or on private property.
Greens councillor Jonathan Sri, in whose ward both West End bridges would sit, said it appeared the third option for the St Lucia bridge — between Keith Street in St Lucia and Boundary Street in West End — was most supported.
“I’ve heard from several residents who’ve said they think the Option C location for the St Lucia bridge is preferable from a transport perspective, but they have concerns about the scale and design of the exact alignment proposed by council, and the associated home resumptions,” Cr Sri said.
“The vast majority of residents seem to prefer alignment Option A for the Toowong Bridge, and it seems like the Toowong bridge in general has a lot more support.”
Option A for the Toowong bridge would see the bridge land at 600 Coronation Drive — the former ABC Towoong site now owned by developers Sunland, but put up for sale late last year.
Last year, Cr Schrinner ruled out purchasing the 600 Coronation Drive site saying the cost would be prohibitive, but said the council would consider resuming a portion of the land for a green bridge if needed.
LNP councillor James Mackay, in whose ward of Walter-Taylor the two bridges would land, recently spoke at a rally for a group opposed to a possible Guyatt Park alignment for the St Lucia to West End Bridge.
Cr Mackay referred queries about his community’s opinions to the lord mayor’s office.
Fifth green bridge site unknown
In mid-2020 a fifth proposed bridge, from Belbowrie to Wacol, was scrapped after several rounds of community consultation found little support.
The council is preparing options for a fifth bridge location, the committee heard.
Deputy Labor leader Kara Cook in a statement said she had lodged a petition with more than a thousand signatures calling for a bridge on the eastern side of the river.
Cr Cook said a bridge in her area — around Bulimba and Hawthorne connecting across to New Farm or Teneriffe — had been mooted since at least 1925.
Technical challenges are greater for the eastern section of the river as any new bridge must be of a height to allow ships through and would span a wider section of water.
Article Source: www.abc.net.au
Commercial Market Update – Brisbane Fringe Cityscope February 2021
The latest research from Brisbane Fringe Cityscope shows in the last three months property sale numbers have increased but sales figures have had a slight increase. The last three months to the beginning of February 2021 recorded 22 sales for a total of $114.2 million, with $23.7 million for commercial, $4.4 million for commercial strata, $4.2 million for retail, $4.3 million for retail strata and $77.5 million for other.
In comparison, the last three months to the beginning of November 2020 recorded 14 sales for a total of $98.9 million, with $86.2 million for commercial, $1.5 million for commercial strata, $800,000 for retail strata and $10.5 million for other.
The 12 months leading up to early February 2021 recorded 60 sales for a total of $323.5 million, more than $212.6 million less than the same time last year.
The table below shows sales recorded for the past eight updates of Brisbane Fringe Cityscope:
Significant sales recorded this quarter total nearly $80 million, these sales include:
After a failed sale to iProsperity, interests associated with Amora Hotels & Resorts have purchased the 296-room Novotel Brisbane Hotel for just over $67.8 million; the hotel will be rebranded following Novotel’s lease expiring in late April this year. JLL Hotels & Hospitality Group negotiated the sale. The hotel last traded for $63.5 million in 2010.
A three-storey child care centre at 20-22 Marie Street, Milton has been sold for $8.435 million; it was purchased through The Trust Company (Australia) Limited. The property, formerly an office building, was extended and refurbished in 2018 for use by the a 120-space child care centre. It previously traded for $6.15 million in 2017.
Developer, builder and property managers, Pellicano, have purchased 68 Brunswick Street, Fortitude Valley for $8 million from Metro Property Group. The property was originally going to house stage 4 of the adjoining Central Village development. The 5,374 sqm site was sold through JLL Brisbane and has Council approval to demolish the existing buildings on site.
Properties for sale include:
- Lanmor House, 124 Brunswick Street and 52 Amelia Street – a two-storey office building and a two-storey warehouse/office building, with a combined area of 960 sqm and associated car parking. For sale by expressions of interest, closing February 24, 2021; agent, Colliers International (Hunter Higgins and Nick Wedge).
- 29 Amelia Street, Fortitude Valley – two-strata units (the whole building) with a combined 828 sqm of office space over two levels, plus ground floor car parking for 20 vehicles. For sale by expressions of interest, closing February 18, 2021; agent, C Property Qld (Sam Callanan and Joe Kennedy).
- 196 Wickham Street, Fortitude Valley – a two-storey retail/entertainment building with lower ground level to the rear. For sale by offers to purchase; agent, Commercial Brisbane (Glenn Corrigan and Tom Chan).
Properties under contract (conditional or unconditional) include:
- 38 Warry Street and adjoining car parking at 41 Kennigo Street – 2,955 sqm of office space (the former Keatings Bread Factory site) and an adjoining carparking for 20 vehicles. Under contract; agent, Cushman & Wakefield Brisbane (Peter Court and Mike Walsh) and CBRE Brisbane (Jack Morrison and Peter Chapple).
- 72 Costin Street, Fortitude Valley – a single-storey plus mezzanine, brick office building with car parking for 15 vehicles. Net lettable area, 507 sqm. Under contract unconditionally with a long, one-year settlement period expected; agent, Colliers International Brisbane (Hunter Higgins and Nick Wedge). The property was advertised with a potential leaseback agreement from 9-months to three-years.
Article Source: www.corelogic.com.au
Brisbane, Gold Coast, Perth outstrip Sydney and Melbourne prestige property markets
The hunt for a house that’s not just a home, but a COVID-free castle, has pushed up prestige property prices in Perth, the Gold Coast and Brisbane, with a new report revealing the three cities outstripped the nation’s two biggest capitals during 2020.
The Knight Frank Wealth Report 2021, released today, also revealed the trio made a global splash in the Prime International Residential Index (PIRI 100), which tracks the movement of luxury home prices across the world’s 100 best residential markets.
Off the back of surging buyer demand, low interest rates and a greater emphasis on lifestyle, the three cities, with Perth in the lead, were ranked in the top 44 of prestige markets, after they each clocked up annual price growth of more than 2.5 per cent.
Sydney was ranked 56 – after prestige home prices grew just 1.1% – while Melbourne came in at 63 after prices rose 0.9 per cent.
A roaring resources sector and a push towards relaxed lifestyle locations saw Perth not just top the national list and rank 34th globally, but dramatically leap from last place among Australian capital cities in 2019 after prestige property prices soared by 3.6 per cent last year.
Luxury home prices in the Western Australian capital had remained almost stagnant the year before, rising by just 0.9 per cent.
The Gold Coast achieved a global ranking of 36 after prices grew by 3.2 per cent – compared to 1.8 per cent growth the year before.
Article Source: www.domain.com.au
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