If there is a defining theme for the Brisbane market over 2020 it has been it’s resilience in the face of a pandemic which has put a halt to interstate and international tourist arrivals for much of the year.

This has not stopped housing values in the city reaching new record highs, with property analysts agreeing that the city, as well as parts of south east Queensland, are on a trajectory of strong growth into 2021. This is against a backdrop of rising values across the major capitals, as the national home value index rose +1.0 per cent in December; the third consecutive month where dwelling values have grown.

Nationally the residential real estate market has proved remarkably resilient, despite a wobble between March and September when COVID protocols interrupted the market – but overall property prices have held steady.

This is largely due to three factors, including the relative success Australia has had controlling the virus, record low interest rates and the government stimulus that has supported businesses and individuals throughout much of the pandemic.

Now let’s take a look at the Brisbane market and how it has performed over December.

Brisbane dwellings continued their steady, determined progress advancing +1.1 per cent over December, for a median price of $521,686. This brings the Queensland capital up +2.1 per cent for the quarter and +3.6 per cent for the year. This places it in the middle of the pack for the major capitals, a position – characterised by a steady and less volatile growth trajectory.

CoreLogic data reports that houses continue to outperform units across the city, advancing +2.1 per cent over December. Property investor and commentator Michael Yardney identifies Queenslanders’ preference for houses over units as the main reasons for this trend.

CoreLogic data reports that houses continue to outperform units across the city, advancing +2.1 per cent over December

If you are looking for suburb specific highlights CoreLogic’s Best of the Best Report 2020 identified Teneriffe (inner city Brisbane) as the Queensland suburb with the highest median house value of $1,859,323.

Michael Yardney points out that, “…in recent months houses in Brisbane have enjoyed improved demand and the number of transactions in the Brisbane housing market are higher than they were pre-Coronavirus.”

He goes on to clarify that property markets within any city are inherently fragmented, and his data shows that, “…freestanding Brisbane houses within 5-7 km of the CBD or in good school catchment zones have grown in value strongly.”

CoreLogic data appears to confirm this, with dwellings in the upper quartile up +1.25 per cent over December. Yardney cautions against investing in certain segments of the Brisbane market which have underperformed, including high-rise apartments, new and off the plan apartments and new housing estates in blue-collar areas.

Like many other regional markets, high demand for property in specific Queensland hotspots like the Sunshine Coast has driven the market up +6.9 per cent over 2020. Contrast this with Brisbane metro’s growth of +3.6 per cent over the same timeframe for some perspective.

Houses dominate sales in most regional markets, and they are posting solid growth here, up +1.5 per cent over December, while units grew a respectable +1.0 per cent over the month.

Sunshine Beach on the Sunshine Coast recorded the highest growth for houses up +27.6 per cent over the year. For units, Noosa Heads has the highest median values at $898,838, while Currumbin on the Gold Coast posted the highest growth over the year advancing +24.0 per cent.

According to property forecasters Hotspotting other regional postcodes showing promise for the 2021, include Mackay, Rockhampton, Gladstone and Townsville – with a recovery in resources behind some of these locations. Toowoomba is also showing promise as new infrastructure projects stimulate the local economy.

Sunshine Beach on the Sunshine Coast recorded the highest growth for houses up +27.6 per cent over the year

Queensland rental market update

Overall Brisbane house rentals have held steady, with a drop in asking rents mainly impacting the inner-city apartment market. According to the SQM, Brisbane’s gross rental yield for houses is currently around 4.0 per cent and for units is around 5.2 per cent.

CoreLogic data indicates that West Gladstone is the Queensland postcode with the biggest change in rents over the year, up +17.4 per cent; while Mackay/Isaac/Whitsundays has the best rental yield of +14.6 per cent.

CoreLogic data indicates that West Gladstone is the Queensland postcode with the biggest change in rents over the year, up +17.4 per cent

The holiday rental market in many regional locations has been impacted by the COVID flight from cities, with rental vacancy rates in some coastal locations close to zero. CoreLogic data shows that the Gold Coast had a vacancy rate of 1.9 per cent in December ‘19, which dropped to 0.2 per cent in December ‘20. It is a similar story on the Sunshine Coast (1.9 per cent vs 0.1 per cent) and Noosa (1.8 per cent vs 0.2 per cent) over the same timeframe.

The outlook for 2021

Overall the medium/long term outlook is positive for Brisbane, with Westpac forecasting that property values could increase +20 per cent in 2022-23.

Realestate.com.au Chief Economist Nerida Conisbee believes that if low interest rates, government incentives for buyers and the Australian economy continues to reopen, ‘prospects for home sellers in 2021 are positive.’

Michael Yardney believes that property markets will perform strongly in 2021 and 2022 based on the removal of overly restrictive lending rules, the job-friendly Federal budget, and  the prospect of no interest rate rises for at least 3 years.

CoreLogic’s Tim Lawless sounds a word of caution, warning that any fresh COVID outbreaks, ‘…would set back the economic recovery and have a negative, although temporary impact on housing markets.’

Article Source: www.openagent.com.au

Location is everything for these luxurious new developments, whether overlooking the Brisbane River or a stone’s throw from glamorous Surfers Paradise.

Buyers in the market for an apartment well may be spoiled for choice.

Boutique Chevron Island

Even if you’re not a Gold Coast local, you’ve probably heard of Surfers Paradise, famous for its glitz and glamour.

You’re perhaps less likely, however, to be familiar with Chevron Island, an exclusive and slower-paced urban island in the very same neighbourhood.

This boutique development offers 42 luxury apartments on the north-east corner of the island, surrounded by the Nerang River.

The 14-storey building, designed by award-winning BDA Architects, hosts several floor plan options, from two-bedroom homes to four-bedroom penthouses.

The majority of apartments available in the project are two and three-bedroom stock, starting from $499,000.

The development will be home to several high-end amenities, including a pool and spa, gym, rooftop yoga centre, residents’ lounge, barbecue facilities, zen garden and a specialised co-working space.

CEO of Draycon Building Howard Dabit said the project’s design had been responsive to lifestyle changes brought about by the pandemic.

“What we’ve done, which makes this building very unique compared to a lot of the others that are being built at the Gold Coast at the moment, is we adopted the co-work space environment, right from day one,” he said.

“A lot of people are saying because of covid, they want to work from home, they feel more comfortable, and it’s giving them a lot more flexibility.”

The communal space will feature free internet, meeting booths, lounges, a kitchenette, and an array of snacks and drinks. Residents will also have the option to work outside, and to socialise within the space.

Interiors will feature sound-insulated timber floors, European appliances and for those on upper floors, the option to customise elements of the kitchen and butler’s pantry.

Mr Dabit said the superior quality of the project was aided by the fact Draycon was both builder and developer.

“The ideology of the building is the same, you don’t have the developer thinking one way and the builder trying to lessen the quality to ensure that he can make a bigger profit,” he said.

“Because we’re one, we get to integrate that and make it so that we’re happy with the profit levels that we’re making, and we want to provide the quality for the end user, and that’s the advantage of having a builder/developer in such a project.”

The project has begun construction, and is set to be completed about July 2022.

Brookfield Gallery House

Gallery House, 7-11 Wharf Street, Hamilton Photo: Supplied

This riverside development in the blue-chip Brisbane suburb of Hamilton is selling fast, with more than 90 per cent of apartments sold across the two towers.

With both stages completed last year, Gallery House offers 300 apartments, including one to four-bedroom homes, skyhomes and penthouses.

Many of the homes are afforded sweeping views of the Brisbane River, with others facing north to overlook the city’s inner suburbs.

Remaining on the market is a small cross-section of apartments on offer, starting from $387,000 for a two-bedroom unit and from $2,295,000 for penthouses.

Managing director of TOTAL Property Group Adrian Parsons said the development had attracted strong interest from local Brisbane residents.

“We’ve found that the development has been in very high demand since June, where people have either been buying their first home from our one and two-bedroom range, or people have been downsizing from larger homes into a prime riverfront two, three or four-bedroom apartment,” he said.

“People really just love the aspect of living on the river, and the location at Portside Wharf with the recent completion of the Kingsford Smith Drive upgrade makes accessibility from Portside into the city more convenient.

“With the River Walk that has been established, it’s added a new lifestyle element to living in the precinct.”

Mr Parsons said the apartments’ oversized design was perfect for the downsizer market.

“I think one of the main things when people are looking at downsizing from a house is they’re worried that they’re going to compromise too much by moving into an apartment in terms of space, so when these apartments were designed, it was clearly understood who the target market would be,” he said.

“Whether they’re a three-bedroom or a four-bedroom, they’ve got really large living areas, lots of open wide living areas that front onto the river, also with large balconies.

“Not only do the apartments have generous storage inside, but buyers can also buy basement storage areas for other things they may want to store.”

Market Lane

Located in the new CBD in Maroochydore, this Sunshine Coast development will offer 146 apartments in two towers.

Buyers will have the choice of two and three-bedroom configurations, along with a limited selection of penthouses, each offering sought-after views of the coastline and picturesque hinterland.

The development also encompasses six small office terraces, as well as retail and dining.

Embedded within the brand new City Centre precinct, the project is set to enjoy all the perks and amenity of the budding development hub, affording it a 90/100 walk score.

It is situated directly opposite the new town square and a two-hectare park, part of a sizeable chunk of the CBD site earmarked for open space.

Designed with investors and developers in mind, the mixed-use precinct will feature smart technology throughout, including technology-assisted parking, real-time public transport and community updates, wifi hotspots, safety systems and electric car charging stations.

Some 40 per cent of the 53-hectare site will be kept as open space, and waterways will be integrated throughout.

Market Lane itself will offer 450 square metres of ground floor retail and dining, along with a rooftop terrace on one of the towers, replete with an entertaining area and private dining room.

Other amenities available to residents will include a 25-metre resort-style pool and barbecue leisure space in the centre of the development.

The towers will also feature secure access, lifts, an above-ground car park, CCTV, and an on-site facilities manager.

Article Source: www.domain.com.au

First home buyers are flooding back into the property market lured by ultra-low interest rates and government support, with two of the nation’s biggest mortgage brokers experiencing a surge in loan applications from young buyers.

AFG, a major listed wholesale broker, reported a 30 per cent annual jump in its total home loan applications in the latest quarter, as other brokers including Mortgage Choice also said they had seen sharp growth during the summer.

But while the lending surge is underway, analysts are predicting a modest rise in foreclosures as banks stop offering automatic home loan deferrals for customers thrown into financial stress by the pandemic.

AFG chief executive David Bailey said the company’s latest figures showed 22 per cent of loan applications lodged by its brokers in the latest quarter were for first home buyers, compared with the historical average of about 12 to 13 per cent of loans going to first time buyers. Mr Bailey said government incentives for first home buyers and rising prices were helping to fuel the strong demand.

“As we are starting to see clearance rates improve and prices rise across the country, people are starting to worry that they might miss out. They are probably bringing their decisions forward … to take advantage of the incentives,” Mr Bailey said in an interview on Wednesday.

Investors made up only 21 per cent of AFG’s loan applications, the lowest percentage on records going back to 2013.

Australia’s property market proved to be surprisingly resilient to shock from the pandemic, with prices rising in late 2020 after official interest rates were slashed to just 0.25 per cent and banks allowed struggling property owners to put their repayments on pause.

Mortgage Choice chief executive Susan Mitchell said over the past two months the market had been “very buoyant,” with loan applications up by 25 to 30 per cent compared with a year earlier. Ms Mitchell also noted the surge in first home buyer activity, saying these buyers accounted for almost 25 per cent of applications, up from 13 to 15 per cent normally.

“We are seeing the first home buyers back at the same level that we saw back in 2009,” she said.

Article Source: www.brisbanetimes.com.au