The Urban Developer’s Brisbane housing market insights for May reveals increased demand for houses and approvals for new units has been underpinned by increasing consumer sentiment and a surge in interstate migration.
This resource, to be updated monthly, will collate and examine the economic levers pushing and pulling Brisbane’s housing market.
Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.
Brisbane median house and unit price values
^Source: Corelogic Hedonic Home Value Index – May
Brisbane’s housing boom continued in May with home values climbing another 2 per cent in just one month.
Brisbane values saw a peak-to-trough decline of 0.9 per cent across a four month period last year, before dwelling values recovered to a new record high by October 2020.
House prices have since increased at such a rapid rate that homeowners in Brisbane’s most popular inner suburbs are now collecting up to $50,000 per month in capital gain.
Brisbane home values have increased by 6.2 per cent in the past three months to be up more than 10 per cent annually.
According to Domain, five blue-chip pockets now top the $1 million median mark.
These include Brisbane inner city, inner east, inner west and the inner north where house prices surged by 13 per cent over the past year to $1.2 million, 13.2 per cent to $1.053 million, 10.4 per cent to $1.17 million and 13.1 per cent to $1.1 million, respectively.
While still trailing house price growth by a wide margin, unit values have strengthened across Brisbane as investors start to return to the sector and strong internal migration flows to south-east Queensland, as well as other tailwinds for housing demand more broadly.
Brisbane unit prices have experienced six consecutive months of growth since November 2020.
Brisbane median unit prices grew by 1.2 per cent in May to now be $411,664, which is almost $6,000 more than one month ago.
Brisbane’s housing market: policy updates
The federal government has rolled out its latest budget in May, a single-year plan centring on aged care, childcare, infrastructure, investment tax breaks and more help for home buyers as it tapers off the record spending from last year’s budget.
Strong tailwinds will bolster the Australian economy through the second half of the year, but macro-prudential measures are likely to be introduced to ease house price pressures in 2022.
Queensland faces a “hard road” during the next four years as the state recovers from the coronavirus pandemic, Treasurer Cameron Dick says.
What the experts are saying about Brisbane’s housing market
Head of Research
“The combination of improving economic conditions and low interest rates is continuing to support consumer confidence which, in turn has created persistently strong demand for housing.
“At the same time, advertised supply remains well below average. This imbalance between demand and supply is continuing to create urgency among buyers, contributing to the upwards pressure on housing prices.
“The pace of capital gains has slowed since the end of March, seen in the lower rate of growth in home values, and a softening in auction clearance rates.
“However, housing values are still currently rising faster than the peak rate of growth in recent cycles.”
“Prices will slow in the second half of the year—we’re already seeing more (housing) stock come onto the market and auction clearance rates are slowing,”
“The market will continue to have strong results despite some rises in interest rates for people with fixed loans.
“Some of the three-year and three-year-plus rates are rising a few basis points but it won’t really hit the market hard. It could affect people on the margins.”
“Queensland’s upswing has accelerated over the last three moths and is starting to tip into boom territory.
“Sales are running well ahead of listings, especially for houses, with stock on market down to just 3.4 months of sales in Brisbane – the long run average is five months.
“The only softer markets in the city are top- and middle-tier Brisbane units and the inner CBD.”
Head of Economics
“Housing finance has a strong leading relationship with dwelling prices.
“The strength in lending means that home prices will continue to rise strongly over the near term.
“Lending to first home buyers has declined for three consecutive months which suggests that affordability constraints are biting.”
Brisbane housing market forecasts
NAB had previously predicted a rise of 14 per cent across all capital cities over 2021, but NAB Group chief economist Alan Oster said the bank had upgraded this to 16 per cent rise in Brisbane.
ANZ economists forecast Brisbane house prices will rise by 9.5 per cent next year, as low interest rates and government stimulus flow through the economy.
CBA now expects Brisbane house prices to increase by 16.6 per cent to December 2022 compared to 13.7 per cent in Sydney and 12.4 per cent in Melbourne.
Westpac has also updated its property forecasts, with Brisbane real estate prices tipped to surge 20 per cent between 2022 and 2023.
|Week||Clearance rate||Total Auctions|
|Week ending 9 May 2021||72.0%||196|
|Week ending 16 May 2021||73.3%||163|
|Week ending 25 April 2021||73.3%||169|
|Week ending 30 May 2021||71.9%||192|
^Source: Corelogic Auction Clearance Rates – May
Brisbane continues to be the capital city that provides buyers and investors with “most bang for buck” for both houses and units.
The number of buyers searching for homes in the $1 million price point in Brisbane has gone up 30 per cent in the last three years, from 20 per cent of all buyers in 2019, to 26 per cent today.
By comparison, the number of buyers searching for homes around $500,000 has tanked by 43.3 per cent, and those shopping around $750,000 has fallen 16.6 per cent.
Median house values across Brisbane range from $380,000 (Archerfield) to $2 million (Teneriffe), with the median house value in the Brisbane local government area now $754,500.
New listings (less than 30 days old) in Brisbane slowed across May falling by 7.1 per cent with the downward trend in old listings suggesting strong absorption rates.
The proportion of Brisbane sellers bumping up their asking price mid-campaign continues to tail off from peak levels reached late last year.
Vendors in the premium suburbs of Brisbane were the most bullish, indicating the upper end of the market will continue to lead price growth in the coming months.
|City||April 2021 vacancy rate||Monthly % change|
Rental stock on market
|City||April 2021 vacancies||Vacancy net loss|
Brisbane rent prices
|Type||Rent||Monthly % change||Annual % change|
^Source: SQM Research – April
Vacancy rates have fallen further in Brisbane, putting increased pressure on asking rents.
The biggest drops in rental vacancies and listings were concentrated in the CBD and around universities.
Traditionally in Brisbane, vacancy rates have been tight; hovering well below the level of 2.5 per cent vacancies, which traditionally represents a balanced rental market.
However, record-low rates, government support, and stimulus measures, and the pandemic-driven rush north by residents of Melbourne and Sydney has powered the recovery in Brisbane’s rental market, driving the rate down to a near nine-year low.
Brisbane’s rental vacancy rate fell to 1.4 per cent in April from 1.7 per cent in January and was well down from 2.2 per cent a year earlier, according to SQM Research.
Queensland building approvals
^Australian Bureau of Statistics, (Suspension of trend series between May 2020 and Jul 2020 due to Covid-19)
|Dwelling||Approved||Monthly % change|
^Source: Australian Bureau of Statistics; Reference period April
Detached building approvals reached a record level for the third consecutive month in April 2021.
Detached housing approvals increased by 14.8 per cent in the three months to April 2021, to be 63.7 per cent higher than the same time last year.
Although new home sales fell in April, the results suggest that a significant number of new homes are still entering the construction pipeline for customers post HomeBuilder.
Low interest rates, strong house price growth and an increased preference for detached homes and regional areas will continue to drive demand for new houses over the months to come.
In seasonally adjusted terms, detached approvals saw the biggest increase in the three months to April 2021 compared to the same time last year in Queensland, up 65.7 per cent.
According to the Australian Bureau of Statistics, residential construction surged by 10.2 per cent in Queensland across the March quarter.
Queensland home loan lending indicators
|Region||First home buyer loan commitments||First home buyer ratio – dwellings||First home buyer ratio – housing|
^Source: Australian Bureau of Statistics – April
New data from the ABS and APRA have provided updated insights into the housing lending space, which is highly correlated with trends in home prices and sales volumes.
Lending for the purchase of property hit record highs through April 2021.
Across Queensland, the number of loans to owner-occupiers for the construction of a new dwelling in the three months to April 2021 compared to the same time last year more than doubled in to be up 145 per cent.
However, the concentration of mortgages regarded as “higher risk” remained around average levels through the start of the year.
As new lending continues to rise, ABS housing lending indicators have pointed to a continued shift in the profile of the buyer, with first home buyer lending falling for a third straight month against a rise in other types of secured finance.
While the investor segment saw the fastest increase in the value of finance, owner-occupier buyers who were not first home buyers (such as up-sizers, movers and down-sizers) maintained the most dominant share of housing finance for the purchase of property by value.
Queensland interstate migration
|Region||December (quarter) 2020 arrivals||December (quarter) 2020 departures||December (quarter) 2020 net|
^Source: Australian Bureau of Statistics – December quarter 2020
Brisbane’s population grew by 1.9 per cent during 2019-20, recording the highest growth rate of all capital cities, according to Australian Bureau of Statistics data.
Queensland experienced its biggest boom in new residents in almost two decades the December quarter of 2020, with a net gain of 30,000 people from interstate.
Queensland’s population is expected to surge by more than a quarter of a million people in the next four years according to forecasts in the federal budget, as people flood in from other states.
Treasury boffins have predicted Queensland is set to gain around 20,000 people from interstate each year for the next four years—amounting to almost 85,000 new residents by mid-2025.
Next year alone, federal treasury estimates see Queensland gaining 23,800 new interstate residents, while Victoria is set to lose 1200 and New South Wales is tipped to shed as many as 15,500.
Queensland’s population is predicted to hit 5.44 million by mid-2025, up from 5.17 million in June 2020.
Article Source: www.theurbandeveloper.com
Competition Heating Up for Rental Properties
The residential rental market just got tighter with the number of new listings reaching its lowest point since before the pandemic.
The availability of rental properties dropped -3.9 per cent in August, according to the Proptrack rental listing report from REA Group.
Rental volumes dropped the fastest in Melbourne at -16.9 per cent and Canberra at -29.9 per cent as lockdowns hampered the market.
Meanwhile in Sydney, “green shoots” were starting to appear with a 6.7 per cent increase in new rental properties as one-on-one inspections were introduced and activity picked up.
Change in rental listings
|Location||Monthly new listings||Annual Change||Total listings||Annual change|
Source: REA Group from realestate.com.au August 2021 data
REA Group director of economic research Cameron Kusher said in the report that the fall brought national rental listings to their lowest point since December 2019.
“The rental market has become even more competitive with the availability of rentals close to an all-time low,” Kusher said.
“The crunch in rental supply is being felt regionally, too. Total rental listings were at an historic low at the end of August in regional NSW, regional WA and regional Tasmania.
“Regional Victoria and regional Tasmania were the only regions in which total listings recorded a year-on-year increase.”
Nationally the vacancy rate remained at a multi-year low of 1.6 per cent in August, according to Domain.
This report showed in Brisbane, Hobart, Adelaide and Darwin landlords could use the tight levels to increase rent on new listings.
However in Melbourne, vacancy rates were continuing to rise, hitting 3.8 per cent.
Sydney remained relatively steady, with levels at 2.6 per cent since June.
While the rental market remains competitive, soaring property prices have pushed rental yields to all time lows.
Article Source: www.theurbandeveloper.com
Brisbane’s best property buys: Six must-see homes under $780,000
It’s a tough property market out there for buyers, with lots of competition and not much for sale. Here are six homes for under $780,000 – but you’ll need to be quick.
26/128 Merivale Street, South Brisbane
It is unsurprising more than one in two local residents in this neighbourhood had not been born in 1981. This stylish apartment holds big appeal for first-home buyers wanting to live within blocks of local bars, cafes, shops, myriad education campuses and the riverside buzz. It has two bedrooms and two bathrooms, and a car space on title. Right in the thick of the inner-south riverside action, 52 per cent of residents are aged between 20 and 39.
Place, Michael Hatzifotis 0414 048 604
1/118 Railway Parade, Norman Park
In the inner-east suburb bearing the name of Queensland governor Sir Henry Norman, this three-level townhouse has a fittingly blue-chip, elevated vantage over three levels. A garage, carport and porch form the ground level. Level two is all about socialising, with a breezy front balcony and a private rear courtyard accessed via glass sliders from the open-plan living, dining space and a modern kitchen. Level three holds the sleeping quarters and another balcony. The local primary is about 300 metres north. Two city train stations are within 500 metres.
Place, Chris Frangi 0481 113 362
52 Violet Street, Hemmant
A striking renovation of a humble original house set on 405 square metres of land. Today the three-bedroom weatherboard features a sassy stained-timber deck with slat screening and covered area at its rear, ready for all-season entertainment with lofty views. Bulimba Creek, park walking tracks and the city train station are within two blocks. There is a double garage, fences and European kitchen appliances.
First National, Brad McDonald 0404 418 220
21/2 Little Street, Albion
A Little apartment with a big personality, thanks to its warm decor and semi-circular front balcony. The floor plan is fluid. The 3.3 metre-by-5.1 metre balcony flows to an open dining-living space and the kitchen with bench and storage, before reaching two bedrooms, including the main with en suite and walk-in wardrobe. Its complex is listed as “pet-friendly”.
One Percent Property, David Sullivan 0447 070 595
59 Folkstone Avenue, Albany Creek
Families scouting houses with room to give each other space will get it at this double-storey residence. Its clever design creates four living zones: two indoors, including a large rumpus downstairs and a more formal lounge upstairs; and two outdoors, including a covered patio and an upstairs timber deck. There are three bedrooms and 610 square metres of land. The bathrooms are modern and the kitchen has timber benches.
Coronis, Josh Quinn 0429 945 847
185/293 North Quay, Brisbane City
Anyone who has skydived knows its amazing weightless feeling when nothing separates you from the world around you. This neat sky home gives its occupant a similar sense of boundless space, with uninterrupted views of the inner bends of Brisbane River and cityscape. Think ideal city getaway pad or first home with one bedroom, one bathroom and one car space.
Ray White, Benjamin Williams 0412 067 016
Article Source: www.domain.com.au
Brisbane-based developer Siera lodges Chevron Island apartment development plans
The Brisbane-based development and construction firm, Siera Property Group, are the latest in a wave of developers heading to the Gold Coast for the first time.
Seira, headed by the managing director and founder Brent Thompson, has laid plans on the sought-after Chevron Island for a 17-level project dubbed Tapestry, paying homage to the Island’s new Home of the Arts precinct.
The plans by the local BDA Architecture will see 83 apartments built on a 1,518 sqm site at 39-43 Darrambal Street, toward the southern end of the island.
Thompson, who sits on the board of UDIA QLD and chairs the Brisbane City Council Policy Committee, sees it as a shift in thinking for the company, who made their name in the Queensland capital developing luxury townhouses in Brisbane’s inner ring.
“Due to some council restrictions in Brisbane, we needed to identify a new opportunity where we could put a lot of effort in to what we’re delivering,” Thompson said.
Thompson has spent a lot of time on the Gold Coast over the last 18 months, spending time understand the Gold Coast market, as well as the Sunshine Coast and Brisbane, and why each market has been so desirable for different reasons.
“Spending time on the ground allowed us to understand what was coming to the market, what developers were saying, and who was buying sites and where,” Thompson added.
He identified some nice beachside opportunities, but really wanted to create something that was targeted at a wider net, rather than the multi million dollar apartments that are limited to the fortunate few.
“We want the local owner occupier, who could be living in a medium-size house in the area, to be able to downsize or rightsize, or have others who just want to find a new lifestyle, and have the opportunity to do so without being priced out.”
The 55 metre building will comprise 28 three-bedroom apartments and 55 two-bedroom apartments, around half of those with multipurpose rooms. There will be six apartments per level until level 14 where there will be five.
The two-bedroom apartments start from 84 sqm, while the three-bedroom units have internal living areas between 113 sqm and 141 sqm. Every apartment has a balcony of at least 10 sqm, as well as their own parking space.
There are 94 parking spaces across the two levels of basement parking, and 29 on the street level.
The street level will feature extensive raised planters and a water feature on entry to the lobby, where there will be a number of garden rooms and resident office space with a kitchen.
Crowning Tapestry will be a resident rooftop, complete with a resort-style swimming pool with day beds, a spa, and a pool deck. A barbecue and alfresco area, will sit in landscaping, as will dining surrounded by an edible garden. There’s set to be a private dining space with a terrace and fire pit, a gym with sauna and steam room, and a lounging area with a lawn.
It was important for Thompson to go local with all of the intricacies that come with developing a project. He’s used local architecture firm BDA, and is engaging local Gold Coast builders to deliver the project, despite Siera’s previous experience in building their developments.
He’s even gone a step further and, given the Gold Coast City Council’s efforts to make Surfers Paradise an arts and cultural hub, has engaged local artist Tanya Blanchard to create a piece of artwork that will hang in the lobby when completed.
“There’s a great local community on Chevron Island. It’s a tight-knit community, while being ideally located just five minute walk from the international tourist hub of Surfers Paradise,” Thompson says.
BDA says the architecture of the proposed development is sculptural and smooth-lined.
“A mixture of vertical blade walls and horizontal slab edges responding to available views and natural light. Cantilevered balcony’s protrude from the building body with curved edges softening the feathered edges,” the submission to the Gold Coast City Council read.
“Colours and materials have been selected to create a lightly textured and timeless material palette. White render, concrete, glass and timber screening create a rich and layered coastal effect.
About the developer
Siera Group, a property development and construction company, was established in 2014 by Brent Thompson.
Their primary focus has been apartments and terraces in Brisbane. In the last seven years, they’ve developed more than 70 residential dwellings in key growth markets in South-East Queensland, with a total end value of $50 million.
One of the main focuses is to acquire premium sites within established community settings, with strong connectivity to lifestyle amenity, where they feel our investment in design can make a positive contribution.
Fast Facts from BDA Architecture
This project offers an exciting opportunity to introduce a high quality apartment building into the heart of the emerging cultural precinct of Chevron Island. The project’s design makes strong architectural gestures that acknowledge it’s connection to the HOTA Precinct, Surfers Paradise beach-front and the Nerang River.
The 1,518sqm site is in a prime location, fronting Darrambul Street, in the heart of Chevron Island. Just steps away from the theatre of the Surfers Paradise hospitality scene, it’s beaches, and Evandale’s Arts Precinct, this area is fast transforming into the Gold Coasts cultural hub.
The site boasts 360 degree access to some the Gold Coasts best views, capturing the surfers skyline and beaches, wide spans of the Nerang River to the Broadwater and uninterrupted views to HOTA and the Gold Coast hinterland beyond.
The project’s unique location, in an emerging retail, restaurant, and cultural hub weaves together diverse backgrounds, experiences, cultures and tastes. This forms the ‘Tapestry’ that is modern apartment living with high quality communal facilities designed to create connections, community and sense of place.
The project comprises a total of 83 apartments (194 bedrooms) in a building that is 17 storeys. The apartments sit over a well-considered, split level podium, which seeks to conceal services from the pedestrian interface by housing on a mezzanine level, residing over the sloping driveway. This approach allows an almost double-height lobby space activating Darrambul Street and providing a high level of amenity for building users.
Apartments are a mix of 2 and 3 bedroom options that cater for a number of price points and encourage genuine diversity of ownership/occupation. The building also presents a well-defined pedestrian and vehicular entry, with resident parking located to the rear of the site and in 2 levels of basement.
‘Tapestry’ offers a high quality contemporary design, which looks to confidently engage and enhance Darrambul Street, positively contributing to the core Chevron Island precinct and it’s transformation into the Gold Coast’s cultural hub.
Article Source: www.urban.com.au
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