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Australia’s House Prices Forecast to Grow 5pc in 2020: Moody’s

Australia’s House Prices Forecast to Grow 5pc in 2020 Moody’s

After the largest downturn in 40 years, the Australian residential property market is moving out of its correction with a forecast 5.4 per cent increase in national house prices in 2020.

Corelogic and Moody’s 2019 third quarter housing forecast report has predicted a significant uptick across the east coast capital city residential markets next year, led by a 7.7 per cent expansion in Sydney.

Melbourne’s house values will follow close behind, expected to grow 7 per cent in 2020 after a 9.2 per cent fall in 2019.

Brisbane’s market, which has fared better than most other capital cities, is still working through a moderate correction with house prices forecast to grow 2 per cent in 2020.

Moody’s economist Katrina Ell is confident that the housing correction has largely passed along the east coast.

“The national index for home values has fallen for almost two years, before house values began to rise in [Sydney and Melbourne] in the September quarter,” Ell said.


Home Value Forecasts: Corelogic-Moody’s

2020 (Houses)2020 (Apartments)2019 (Houses)2019 (Apartments
National5.45.1-7-3.8
Sydney7.77.9-8.4-5.9
Melbourne74.8-9.2-1.8
Brisbane25.4-1.8-1.3
Perth-0.7-0.8-7.8-8.6
Adelaide1.40.8-0.50.7
Hobart1-0.44.12.7
Canberra (ACT)5.12.62.6-1

^ % change year ago. Source: Corelogic, Moody’s Analytics.

Despite record levels of household debt and the softest economic conditions in a decade, Ell said that the Reserve Bank is doing the lion’s share of the heavy lifting.

“The RBA has reduced the cash rate by 75 basis points so far this year [with] a further 25-basis point reduction expected for early 2020.

“This could trigger a pickup in the Sydney and Melbourne housing markets that is more aggressive than forecast [and] would likely lead to further household leveraging.”


Sydney home prices set to pick up 8pc in 2020

Ell points out that it is important to keep Sydney’s correction in context.

“House prices in Sydney remain around 60 per cent higher than they were in 2012.

“Housing values have risen at a faster rate than what fundamentals—income, population and interest rates—suggest, and are overvalued relative to the equilibrium value.”

As a result, Ell predicts Sydney home value growth will be far from the lofty gains of recent years.

Housing values are predicted to rise by an average 7.7 per cent for houses and 7.9 per cent for apartments in 2020, followed by an improvement of 7.6 per cent for houses and 8.4 per cent for units in 2021.

Australia’s House Prices Forecast to Grow 5pc in 2020 Moody’s 1

Melbourne home prices set to pick up 7pc in 2020

The fall in house values has been most acute in Melbourne’s inner suburbs, particularly the inner south where prices have fallen by as much as -19 per cent from their peak.

Ell says the recovery in the greater Melbourne area is broad-based but led by a notable uptick in the inner east.

After a 9.2 per cent decline in house values in 2019, the report forecasts 7 per cent growth in 2020 followed by a 7.8 per cent increase in 2021.

Apartments are predicted to decline more modestly by -1.8 per cent across 2019 with a 4.8 per cent increase in 2020 and a slight 0.8 per cent uptick in 2021.

“Like Sydney, the correction has largely passed,” Ell said.

“In 2020, a strong recovery is predicted for most suburbs, though values in the west and south east suburbs are likely to grow at a relatively weaker pace.”

Australia’s House Prices Forecast to Grow 5pc in 2020 Moody’s 2

Brisbane apartment market set to pick up 5pc in 2020

Despite faring better than most states over 2019, Brisbane is still not immune to the nationwide downturn and is experiencing a moderate -1.8 per cent correction.

Higher supply in the Brisbane apartment market crippled growth, with apartment approvals in Brisbane during the apartment-supply glut—from 2013 to 2016—outnumbering housing approvals by an average 3 to 1.

“Recently, approvals between the two building types have converged, which should lead to a broad-based recovery in apartment values from 2020 onwards,” Ell said.

As a result, apartment prices are expected to perform better than house prices at least in the medium term.

Australia’s House Prices Forecast to Grow 5pc in 2020 Moody’s 2

 

 

 

Source: theurbandeveloper.com

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Brisbane

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs
These townhome developments have been strikingly well-received, with each selling out of their initial releases quick smart.

Whether in a Gold Coast development hub or a blue-chip Brisbane suburb, these projects offer homes for the downsizer to young professional, and everyone in between.

ONE Bulimba Riverfront 

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (2)

Homes in this luxury development in the blue-chip inner-city Brisbane suburb of Bulimba have been snapped up, with only one townhouse and some apartments left for sale.

The riverside project sits in a highly sought-after location, offering river and city views with a northerly aspect and plenty of surrounding amenities.

“We’ve got everything on our doorstep,” said managing director of Velocity Property Group Brendon Ansell.

“We’ve got the massive Barracks development, we’ve got Hamilton Northshore across the river, we’re a couple hundred metres from the CityCat, and it’s a lovely quiet suburban street, so it ticks all the boxes.”

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (3)

The remaining townhome occupies three storeys, with four bedrooms, four and a half bathrooms, and an internal lift.

The 385-square-metre property also features large balconies overlooking leafy Bulimba, two secure parking spaces and a lap pool overlooking the river.

Mr Ansell said because the Velocity Property Group preferred not to mix products pitched at investors with those for owner-occupiers, space and luxury were integral to ONE Bulimba’s design.

“We’ve got most aspects of the project pretty right; the design, the size, the storage, the price point all hit that sweet spot,” he said.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (4)

“We’re probably the best value riverfront project in Brisbane at the moment.”

The development has so far attracted an exclusive downsizer market, content to move from houses to the spacious townhomes.

Mr Ansell said ONE Bulimba’s exclusivity was a major selling point.

“Our buyers are very much of a similar nature and we’ve created a community of like-minded people,” he said.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (5)

We won’t compromise on that. We are holding firm on our pricing and maintaining that luxury aspect, so that gives them the comfort moving forward that it will hold its value and grow well over time, as well as being a beautiful place to live.”

ONE Bulimba is located at 1/39 Byron Street, Bulimba, Queensland.

A display apartment is available on site.

Vue Terraces

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (6)

In the established regional centre of Robina on Queensland’s Gold Coast, Vue Terraces offers sleek, modern terraced homes.

The staged development has already sold out of all its stock for stages one and two and is currently selling stage three, with stage four to be completed by July.

Each townhome features three bedrooms and two and a half bathrooms across two storeys, with a double garage beneath.

The project also offers amenities exclusive to residents, including a central entertainment area with an in-ground pool, multiple barbecue spots, recreation and leisure spaces, and outdoor showers and change rooms.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (7)

Vue is within walking distance of a host of local amenities, including retail and leisure hub Robina Town Centre, Robina Hospital and medical precinct, Bond University Institute of Health and Sport, and Robina train station and bus exchange.

Nearby are a number of schools, including Somerset College and All Saints Anglican School, Bond University and, of course, the spectacular Burleigh Heads beach.

The site is also well connected to Brisbane and beyond via bus, rail and arterial roads and motorways.

Adjacent to the development is Robina City Parklands, a 22-hectare green space undergoing a substantial $15 million makeover by Gold Coast City Council into the Gold Coast’s “Central Park”.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (8)

Development manager at Robina Group Darrell Irwin said the homes appealed to a “cross-section” of demographics.

“We do have young couples, we do have retirees, and families, so there’s no specific sector of the market we’re targeting,” he said.

“We commenced the project in 2018 and commenced construction later that year, and to date we have sold and settled approximately 150 of the terraced homes, and we’ve got numerous more under contract settling at the moment.”

The development has attracted considerable interest, with many of the homes already sold.

“There’s no other terraced home projects within the CBD of Robina, so in terms of a brand new product in close proximity to all those services, it’s the only offering that the market has,” Mr Irwin said.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (9)

“In terms of townhouse product, larger 170 or 180-square-metre dwellings, there’s a limited supply in central Gold Coast.”

Townhomes at Vue Terrace start from $629,000.

The development is located at 1 East Lane, Robina, Queensland.

Minnippi Quarter

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (10)

This $121-million master-planned community set in Brisbane’s east offers the rare opportunity to purchase freehold land, along with architecturally-designed terraced homes.

The project will offer 172 townhomes, ranging from two to four bedrooms, along with 20 freehold blocks, ranging from 360 to 602 square metres in size.

Located in Carina, eight kilometres from the CBD, the 5.2-hectare site is framed by greenery as it borders the 90-hectare Minnippi Parklands.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (11)

The development’s name is a nod to its emphasis on green space, with a quarter of the site, including a 6000-square-metre private park, dedicated to recreational natural environments.

Minnippi Quarter is also home to an array of residents’ amenities, including an on-site community hub with private dining and co-working spaces, a 25-metre infinity lap pool, a gym overlooking green space, an entertaining pavilion with barbecue and lounge space, and even an on-site dog and car wash facility.

Most of the freehold lots have been snapped up, and sales have now opened for the second of four townhouse releases.

General manager for Queensland at Frasers Property Australia Scott Ullman said the development’s commitment to green space set it apart.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (12)

“This is far from a normal in-fill townhouse development,” he said.

“It’s got some really unique features in and around the quarter of the site that’s maintained as green open space, and that’s really hard to come by.

“There’s a lot of green space, outdoor recreation opportunities but, in addition to that, it’s obviously well located to transport, local sporting clubs, Westfield Carindale just down the road, and only about eight kilometres to the city.”

He said an enthusiastic market response demonstrated buyers’ keenness for outdoor space in developments.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (13)

“[The green quarter] is unique and the market’s obviously recognising that,” he said.

“Obviously the sales success that we’ve been experiencing right through this period has reflected the market’s desire and acceptance of that.”

Prices for townhouses range from $485,000 for a two-bedroom home to $725,000 for a four-bedroom home, overlooking open space.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (14)

Minnippi Quarter is located at 193 Fursden Road, Carina, Queensland.

An on-site sales and display centre is open Mondays to Wednesday and weekends.

 

 

 

This article is republished from www.domain.com.au under a Creative Commons license. Read the original article.

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Brisbane

‘Absolutely inundated’: Lack of stock drives Queensland interest

‘Absolutely inundated’ Lack of stock drives Queensland interest

As open-home restrictions begin to lift, a Brisbane agency has reported huge interest from first home buyers clamouring to get onto the property ladder despite COVID-19.

Coronis Agency has reported that it had more than 80 potential buyers attend the first scheduled open home of an Archerfield property.

The three-bedroom, two-bathroom property only hit the market last Thursday and received more than 56 phone and email enquiries within 48 hours.

Director Anthony Hunt said the agency was “absolutely inundated with buyer enquiries within 30 minutes of the property going live, with many buyers asking to schedule a private inspection on the Thursday night or Friday as they were eager to beat the rush on Saturday”.

“In the end, I opened the property up on Friday afternoon and had nine groups of buyers turn up purely from responding to their calls and emails,” he explained.

He added that at the Saturday open home, which was the first advertised inspection, “it took more than an hour to get everyone through the property due to the social distancing restrictions, but on the whole, everyone was really understanding and willing to wait their turn”.

Mr Hunt said the general feedback he received from most parties is that “they want to buy something right now, despite everything going on with COVID-19”.

“Many of them are first home buyers with pre-approval who are looking to get their foot on the property ladder and aren’t fazed about going out in public to attend open homes,” he said.

The director believes that what they’re more concerned about is the lack of properties to choose from and how quickly properties are selling at the moment.

By Saturday afternoon, Mr Hunt said he had received four offers and it was under contract by Saturday night for a price that exceeded the seller’s expectations, “so they’re very happy”.

While 140 Granard Road was “beautifully presented”, the agent expressed the opinion that the main reason it was so popular with buyers was because it offered “great value for money in a suburb only 15km from Brisbane CBD”.

He iterated that buyers are willing to look outside of their desired suburb to purchase the right property.

His message to those who are considering holding off on selling? Don’t wait.

“In the past week, the Coronis sales team has received more than 1,000 buyer enquiries, and from that, 550-plus groups attended an open home on the weekend, so there is no doubt about it — buyers have a strong appetite to purchase now, they just need more options to choose from,” he concluded.

 

 

 

This article is republished from www.smartpropertyinvestment.com.au under a Creative Commons license. Read the original article.

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Brisbane

Rio’s New Digs Hit High Point

Rio’s New Digs Hit High Point

Hutchinson Builders has topped out the “first-of-its-kind” full merging of two separate commercial buildings in Brisbane’s $700 million Midtown Centre.

Mining giant Rio Tinto signed a 10-year lease deal in 2019 on the 27-storey, Fender Katsalidis-designed tower, developed by AM Brisbane CBD Investment, a joint venture between wealth manager Ashe Morgan and developer David Mann’s DMann Corporation.

The project involves the $175 million connection and refurbishment of the former Health and Forestry Buildings located at 155 Charlotte Street and 150 Mary Street—acquired in 2017 for $66 million—into a cross-block hub comprising a commercial tower, with a public laneway connecting both streets.

Rather than using the conventional method of joining the existing 20-storey buildings by a skybridge, the buildings have been merged from top to bottom using a base podium and exterior, to provide large campus-style 2,500sq m floor plates.

The infill is locked in by a new level 20 slab supporting an additional six levels above, to form the single 26-storey tower currently being constructed by Hutchinson Builders—who, like other “essential services” have continued work while adapting to Covid-19 social distancing measures.

Fender Katsalidis director Mark Curzon said the infill completion is a huge accomplishment in terms of commercial design outcomes, adaptive reuse and sustainability in Australia.

“Through good design, we have given new life to the buildings in a somewhat unconventional but highly innovative and technically considered manner.

“We’re leading the way for more environmentally-friendly adaptive reuse while meeting commercial objectives in creating large floorplates that would otherwise be unattainable in this CBD location,” Curzon said.

Compared with a demolish and rebuild scenario, Midtown Centre’s infill achieves a claimed 231 per cent cumulative impact reduction across all environmental indicators, including a 37 per cent carbon dioxide reduction compared to a new build.

Rio’s New Digs Hit High Point (2)

Curzon said that although the successful merging of the structures in the Midtown development rests partly on the fact that the two buildings’ original designs mirror each other, the technique was transferable.

“The infill has afforded significant environmental savings, adding to the viability of this technique and its potential to be implemented across other buildings that sit side-by-side.”

Fender Katsalidis principal James Mills said the project sets a new standard for the repurposing of buildings.

“Despite nothing of this scale or nature taking place in Australia previously, we have found a way to add value to the site through a cutting-edge architectural process that is exemplar for Brisbane and beyond.

“Our work at Midtown Centre is focused on bringing the buildings in line with today’s needs, increasing net lettable area and producing environmental sustainability through the design of commercial assets,” Mills said.

Rio’s New Digs Hit High Point (3)

Even before coronavirus created the new normal of social distancing, which in turn is set to have transformative impact on office design—Ashe Morgan chairman Michael Moss predicted the “customised office solution” prescribed for Rio Tinto would “create a benchmark for workplaces of the future”.

The centre features a level 20 “sky garden”, landscaped garden terrace atop the podium and “green seam” encasing the tower along with landscaped areas across the development totalling in excess of 3,000sq m.

With the Midtown centre slated for completion in mid-2020, the next phase of construction involves the addition of six levels to create a single tower from the new level 20 slab.

 

 

 

This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.

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