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Brisbane rents: Landlords in ‘rosier position’ as unit oversupply eases

Brisbane rents Landlords in ‘rosier position’ as unit oversupply eases

Brisbane rents are creeping up and the proportion of vacant homes is inching down, as the city’s rental market recovers from years of oversupply, experts say.

Asking rents for units rose 1.3 per cent to a median $380 a week over the past year, the latest figures from the Domain Rental Report for the September quarter show.

House rents also edged up 1.3 per cent to a median $405 over the same time period, according to the report released on Thursday.

The combined vacancy rate fell 0.1 percentage points to 2.2 per cent during the September quarter.

It comes after a wave of new apartments were built in Brisbane’s inner city in recent years, with the extra supply keeping a lid on rents.

Domain research analyst Eliza Owen said the market was now in good health, despite appearing to be near-stagnant.

Median weekly asking rents for units
REGIONSEP-19JUN-19SEP-18QOQ % ∆YOY % ∆
Brisbane – City wide$380$380$3750.0%1.3%
Brisbane – East$405$405$4000.0%1.3%
Brisbane – North$370$365$3631.4%2.1%
Brisbane – South$385$380$3751.3%2.7%
Brisbane – West$400$415$390-3.6%2.6%
Brisbane Inner City$420$425$410-1.2%2.4%
Ipswich$295$295$2960.0%-0.3%
Logan$300$300$3000.0%0.0%
Moreton Bay – North$315$315$3100.0%1.6%
Moreton Bay – South$340$335$3351.5%1.5%

For units, the stability was a positive story compared to oversupply-induced market weakness a few years back, Ms Owen said.

“There’s been a lot of fear about over-development but in the building space there’s been tightening of dwelling completions,” she said. “They’ve come down sharply and are returning to long-run average levels.”

Rents were now trending up and vacancy rates down, she said.

“The picture for south-east Queensland in terms of rental returns is pretty good, it’s also one of the most affordable rental markets for houses.”

Ms Owen said interstate migration, mostly from Sydney, was a major factor in keeping the rental market balanced.

“The tightening of the rental market is off the back of strong population growth and a very affordable lifestyle, and this is reflected in the rental vacancy rate which is down to 2.2 per cent from 2.6 in the previous year,” she said.

Median weekly asking rents for houses
REGIONSEP-19JUN-19SEP-18QOQ % ∆YOY % ∆
Brisbane – City wide$405$400$4001.3%1.3%
Brisbane – East$450$450$4500.0%0.0%
Brisbane – North$435$435$4300.0%1.2%
Brisbane – South$435$435$4400.0%-1.1%
Brisbane – West$490$485$4801.0%2.1%
Brisbane Inner City$550$530$5203.8%5.8%
Ipswich$350$350$3500.0%0.0%
Logan$365$360$3651.4%0.0%
Moreton Bay – North$375$370$3651.4%2.7%
Moreton Bay – South$410$413$410-0.6%0.0%

Space Property projects director Adam Gray said the unit market was threatening to tip into under-supply for sales, which could have a flow-on effect to the rental market.

“There’s a few reasons, one of the main reasons we’re not putting as much supply in,” he said. “There’s certainly a lot less cranes, and apartments being built than there once was.

“A lot of that was happening in the inner city and now rents are rising and rental vacancy rates are dropping.”

Ray White Brisbane CBD principal Dean Yesberg did not think a looming under-supply was something to worry about yet.

“No, definitely not,” he said. “We’ve got enough supply coming through to cater.”

The bulk of rentals were being filled because of new employment opportunities in the Queensland capital, said Mr Yesberg.

“The mining industry are getting into a better situation and that’s seen an increase in families coming to Brisbane, well qualified people coming up here for jobs,” he said.

“The coal mining people are getting into full swing, then there’s a lot of infrastructure going into Brisbane right now – the Cross River Rail and Queens Wharf casino, [for example].”

Median weekly rents – houses

CAPITAL CITYMEDIAN WEEKLY RENTQOQYOY
Sydney$525-0.9%-4.5%
Melbourne$4300.0%0.0%
Brisbane$4051.3%1.3%
Adelaide$3850.0%2.7%
Perth$3701.4%5.7%
Canberra$5500.0%0.0%
Darwin$4901.0%-2.0%
Hobart$4500.0%9.8%

Urbis director of property economics and research Paul Riga said young people were continuing to drive the rental market, particularly for units in the inner city.

“There’s a bit of a mix, when we look at the building manager feedback, the Gen Y demographic is driving that market,” he said.

“They’re here for employment and maybe from Sydney so their first port of call won’t be to buy, it will be to rent.

“It’s not a majority but it’s just grown in proportion. Some of our building managers are suggesting up to 20 per cent of their rental inquiry is coming from interstate.

“It’s a rosier position if you’re a landlord, definitely.”

Median weekly rents – units

CAPITAL CITYMEDIAN WEEKLY RENTQOQYOY
Sydney$520-1.0%-4.6%
Melbourne$4200.0%2.4%
Brisbane$3800.0%1.3%
Adelaide$3101.6%3.3%
Perth$3100.0%3.3%
Canberra$4700.0%4.4%
Darwin$380-1.3%-5.0%
Hobart$3953.9%12.9%

 

 

Source: www.domain.com.au

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Brisbane

Where can first-home buyers find a home under the First Home Loan Deposit scheme cut-off?

Where can first-home buyers find a home under the First Home Loan Deposit scheme cut-off

First-home buyers hoping to take advantage of a new government scheme will have to look to the outer city fringes to find a free-standing house, new analysis shows.

But, they will be able to choose from up to 40 per cent of all properties, including units in each capital city.

The federal government’s First Home Loan Deposit scheme, introduced at the start of this year, helps first home buyers to purchase a property under various price caps.

Designed to enable the purchase of a modest residence, homes worth up to just $700,000 are eligible for Sydney, while the cut-off is $600,000 in Melbourne, $475,000 for Brisbane, $500,000 in Canberra and $400,000 in Perth.

It lets buyers avoid paying lenders mortgage insurance even with a deposit as low as 5 per cent, for singles on an income of $125,000 or less, or couples with a combined income of $200,000.

The government then goes guarantor for the rest of the deposit, in effect allowing people to take out low-deposit loans without paying lenders mortgage insurance or going to the “Bank of Mum and Dad” to top up their deposit.

Only 10,000 loans are available nationwide per financial year, and since the scheme was introduced at the start of this year, 6500 of those spots have already been snapped up.

So, where can these buyers find a home under the price caps for each capital city?

An analysis by Domain of reported property sales in each capital city from July to December last year showed just where first-home buyers had the best chance of jumping onto the property ladder.

Brisbane had the highest percentage of any capital city of property sales under its threshold of $475,000 – with more than 13,500 of its 33,315 sales meeting the price cut off.

The lowest percentage of sales under the threshold was in Canberra, which saw 34 per cent of total properties sold under its cap of $500,000 – and only 13 per cent of properties were houses.

What is available for first-home buyers?

  Percentage of property type sold below the price caps
Capital cityFHLDS price capHousesUnits/apartmentsAll dwellings
Brisbane$475,00034%65%41%
Perth$400,00033%62%35%
Adelaide$400,00032%69%38%
Hobart$400,00035%51%38%
Canberra$500,00013%62%34%
Darwin$375,00024%70%39%

 

Domain economist Trent Wiltshire said the scheme was designed to target a “modest home”.

“I think the price caps seem pretty reasonable, when you look at all the capitals you can buy around 30 to 40 per cent of all properties put up for sale in the second half of last year,” Mr Wiltshire said.

He said houses in the inner and middle suburbs that met the price caps were hard to come by, but that in the outer suburbs there were more options.

“It’s pretty obvious that it’s going to be hard to buy a house in the inner city,” he said. “Also, in all the capitals, quite a high proportion of units are available.”

Melbourne and Darwin also saw a low number of house sales that met their price caps of $600,000 and $375,000 respectively.

Areas with the most house sales in Melbourne included the statistical areas of Wyndham – which included suburbs Werribee, Hoppers Crossing and Point Cook – Casey South (Cranbourne, Hampton Park, Narre Warren South) and Whittlesea-Wallan (Bundoora, Mill Park, Mernda). More than half of all house sales in these areas were for less than $600,000.

First National Westwood agent Rob Westwood said his agency, based in Werribee, purposefully put properties on the market on Christmas Eve last year in the hopes of catching the eye of First Home Loan Deposit scheme punters.

“We definitely noticed the difference straight away,” Mr Westwood said. “That first Saturday back after New Year’s, there was a big influx of first-home buyers.”

The most house sales in Brisbane were in the Brown Plains statistical area, which included suburbs Chambers Flat, Boronia Heights and Marsden. The most units were sold were in the Brisbane inner area, which included Brisbane City, Fortitude Valley and New Farm.

LJ Hooker Browns Plains agent Scott Brannigan said he had seen more first home buyers interested in taking advantage of the home loan scheme.

“It’s a good time to get in, especially if you’re a first-home buyer, with all the incentives available.”

Brisbane: first-home buyers using the FHLDS have plenty of choice in Brisbane’s outer suburbs and also units in the inner-city

Proportion of sold properties under Brisbane’s $475,000 price cap, by SA3 region

Where can first-home buyers find a home under the First Home Loan Deposit scheme cut-off

Canberra’s price cap has been set at $500,000, and in nearly all districts except Weston Creek, 30 to 40 per cent of properties sold were under the threshold, the analysis found.

But first-home buyers may need to look for an apartment, with very few houses sold below the price point in most regions.

Canberra: there are few options for first-home buyers using the FHLDS to purchase a house

Proportion of sold properties under Canberra’s $500,000 price cap, by SA3 region

Where can first-home buyers find a home under the First Home Loan Deposit scheme cut-off 1

Perth, Adelaide and Hobart all had cut-offs of $400,000.

In Perth, the areas south of the city were most accessible, with 82 per cent of homes sold in Kwinana below the price cap. Rockingham offered 66 per cent of homes under the cut-off, with 61 per cent in Mandurah.

Perth: most opportunities for first-home buyers using the FHLDS are in Perth’s southern suburbs and in Mandurah

Proportion of sold properties under Perth’s $400,000 price cap, by SA3 region

Where can first-home buyers find a home under the First Home Loan Deposit scheme cut-off 2

For Adelaide, Onkaparinga near the Mclaren Vale wine region had the most house sales that would suit first-home hopefuls.

In the northern suburbs, 87 per cent of homes in Playford were below $400,000, and 76 per cent in Salisbury.

Adelaide: most opportunities for first-home buyers using the FHLDS are in the north

Proportion of sold properties under Adelaide’s $400,000 price cap, by SA3 region

Where can first-home buyers find a home under the First Home Loan Deposit scheme cut-off 3

In Hobart, the North West area was the most popular for houses under $400,000.

Some 72 per cent of sales in the Brighton region were accessible, while the inner suburbs proved a challenge with only 12 per cent of homes below the threshold.

Hobart: for first-home buyers using the FHLDS there are few options under the price cap in the inner suburbs

Proportion of sold properties under Hobart’s $400,000 price cap, by SA3 region

Where can first-home buyers find a home under the First Home Loan Deposit scheme cut-off 4

 

 

 

 

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

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Brisbane

Six houses sell for more than $1 million in bumper Brisbane auction weekend

Six houses sell for more than $1 million in bumper Brisbane auction weekend (3)

Brisbane’s auction market posted another bumper weekend, with six properties selling for more than $1 million. A total of 81 properties went to auction at the weekend, with a healthy clearance rate of 64 per cent.

The five-bedroom, three-bathroom house at 12 Cavell Terrace, Ashgrove, sold under the hammer in a busy auction. About 60 people gathered at the house to watch for just 15 minutes as a massive 11 registered bidders battled for the gorgeous home.

Bidding opened at $1.2 million and the competition quickly came down to three bidders. The house was called on the market at $1.44 million, narrowing the field down to two bidders who bumped up the price in increments of $1000 to $5000.

After several minutes of fierce competition, the hammer was dropped and the house was sold for $1,542,000.

Six houses sell for more than $1 million in bumper Brisbane auction weekend (4)

The property was marketed by selling agents Christine McKay & Toni Malaquin of Harcourts Solutions. Mrs McKay said there was immense interest in the property, with 98 people inspecting over the three-week campaign. Some visited the house five times.

She said the majority of this interest came, unsurprisingly, from professionals and families with younger children.

“We ran a very tight campaign over three weeks,” she said. “Very good advertising, beautiful photography. It’s a typical Ashgrovian, and they are a very popular home.”

The vendors had lived in the house for several years. Their children have recently moved out, so they’re now downsizing to the country. Meanwhile, the buyers were a young family with children.

Six houses sell for more than $1 million in bumper Brisbane auction weekend (1)

Mrs McKay said the result demonstrated the importance of running a good campaign that ticked all the boxes. It also spoke to a Brisbane auction market that was brimming with buyers keen to walk away with a shiny new set of keys.

“There’s huge numbers of buyers out right now, and very little stock,” she said.

Elsewhere, the five-bedroom, two-bathroom house on 607 square metres at 32 Dennis Street, Grange, sold for $1.32 million. While on the other side of the city, the five-bedroom, three-bathroom house set on a spacious 767-square-metre block at 28 Coneyhurst Street, Carindale, sold under the hammer for $1,215,000.

Nearby, the classic Queenslander at 95 Belgrave Street, Morningside, was sold in a hotly contested auction for $1.03 million, marking the first time the property had been put to market in 42 years.

Six houses sell for more than $1 million in bumper Brisbane auction weekend (4)

About 40 people packed into the home to watch for 15 minutes as five registered bidders attempted to stake their claim on the two-bedroom, one-bathroom house set on a substantial 809-square-metre block.

Bidding opened at $850,000, with two bidders very quickly moving to the front of the pack. As the price continued to rise, a third bidder got involved before the auction was paused briefly at $960,000.

A few bids later, the house was called on the market at $995,000, and then quickly snatched up by the highest bidder for $1.03 million.

Selling agent Samuel Battel, of Harcourts Property Centre, said the size of the block combined with its low to medium-density zoning meant the property appealed to a wide variety of buyers.

“We had an investor there,” he said. “We had two renovator owner-occupiers who were going to do a bit of work straight away, probably live in it for 12 months then maybe think of selling it. We had a developer who ended up buying the property, and we had another owner occupier there that was very much looking for their long-term family home.”

Mr Battel said properties of this block size were increasingly hard to find, so buyers saw it as a very rare opportunity. This was amplified by the property’s history, and that it hadn’t been to market in such a long time.

“It’s a more and more scarce product,” he said. “Particularly that close to the CBD; the majority of them are being chopped up. Either in half, if possible, or having townhouses put around them.”

The vendors had moved out of the house several years ago, but saying goodbye was still an emotional experience because the house had acted as a family home for many years.

 

 

 

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

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Brisbane

Brisbane Poised To Attract More Buyers

Brisbane Poised To Attract More Buyers

Brisbane’s housing market is poised to attract many potential homebuyers this year, supported by its infrastructure pipeline and the increasing interstate migration, according to a forecast by the Finance Brokers Association of Australia (FBAA).

The affordability gap between Brisbane and the two biggest capital city markets, Sydney and Melbourne, has influenced the influx of people to Queensland, boosting the housing demand in Brisbane.

FBAA said Sydney’s property cycles, in particular, have been the driving force of interstate migration to Brisbane.

“The real effect of this migration increase has come into question and rightly so, how influential can an additional 30,000 people be to an entire capital city market. The driving force is the affordability gap between Sydney and Melbourne,” FBAA said.

Recent figures from the Australian Bureau of Statistics show that Sydney is currently 64% more expensive than Brisbane.

“Each time we’ve seen the price gap rise, we’ve seen an exodus of people out of New South Wales to Queensland resulting in Brisbane price increases,” FBAA said.

Furthermore, the pipeline of infrastructure developments in Brisbane might boost its appeal to potential buyers.

Some of the anticipated developments include the Brisbane Airport expansion, Brisbane Metro, Northshore Hamilton Precinct, Cross River Rail, Brisbane Live, and Queens Wharf redevelopment.

“The evolution of Brisbane combined with the proven market drivers will be critical to the direction in which Brisbane’s property cycle moves. In terms of price rises, we’ll require the imbalance of supply and demand to favour the demand,” FBAA said.

According to a separate forecast by Domain, Brisbane is slated to record the second-highest price growth this year next to Sydney.

“We forecast the median house price to rise by 8% in 2020 and in 2021. This follows a period of soft price growth when Brisbane’s house prices rose only 5% in the previous three years,” said Trent Shire, an economist at Domain.

With this price-growth projection, Brisbane could witness its median house price go over the $600,000 mark for the first time.

 

 

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

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