Connect with us

Brisbane

Brisbane rents reach record high in December quarter 2020: Domain Rent Report

Brisbane rents

Unprecedented rates of interstate and overseas migration have sparked one of Brisbane’s strongest rental markets in a decade, with the city clocking record-high median prices that, in parts, are outstripping Melbourne.

Rental prices for houses rose by $10 to $425 a week during the December quarter, with units following close behind at $400 per week – up from $395 three months earlier, the latest Domain Rent Report shows.

It’s the city’s second consecutive quarterly price rise, and one that industry experts say could spell the end of Brisbane’s budget property era, with the pandemic-fuelled migration and a soaring property market the key drivers.

Domain senior research analyst Nicola Powell said for the first time in five years it was cheaper to rent a unit in Melbourne than Brisbane, with houses undergoing the steepest annual increase in seven years thanks to those two consecutive quarters of growth.

Brisbane rents

Source: Domain Rent Report, December quarter 2020

“Brisbane gained the most interstate residents than any other capital over the June quarter … the lure of the city is real – from the lifestyle and the climate to the containment of the virus,” Dr Powell said.

“Tenants are (also) seeking liveability, affordability and are no longer tied to a specific location in the work-remote era. Brisbane’s vacancy rate is likely to tighten further in the coming months due to the rising interest from southern states and the flow of residents from regional Queensland into Greater Brisbane.

“This is a milestone because the commentary around Brisbane has been around that heightened unit development … but the city has passed that construction peak, and now we’ve seen that pool of stock decline.”

Dr Powell said the estimated choice of vacant rentals had also dropped by about one third in recent months – a trend that had reverberated out to Queensland’s top lifestyle hot spots, the Gold Coast and the Sunshine Coast.

“House and unit rents reached record highs in the Sunshine Coast and Gold Coast – in fact, they both outperformed Brisbane,” Dr Powell said.

“Gold Coast house rents increased $20 over the quarter and year to $540 a week.”

Brisbane rents

Source: Domain Rent Report, December quarter 2020

Across Brisbane, median rents are up by $15 a week compared to December 2019, with the vacancy rates down by one percentage point over the past 12 months to a tight 1.9 per cent.

It comes as Brisbane emerges from its snap three-day lockdown, with open house inspections limited to 20 people until 1am January 22.

Director of property management at Place Estate Agents Brisbane, Cathie Crampton, said the red-hot rental market led to a record-breaking month for their team during December – with an unprecedented 20 per cent of rentals leased by interstate or overseas tenants.

“Some of those properties were leased sight unseen as well,” Ms Crampton said, adding that the vacancy rate was extremely low.

“We had over 100 groups through one of our recent rental listings … in fact, the demand is so high we’re increasing the rent prices in 35 per cent of our listings.

“[The market] has almost tipped to the edge – there’s just so much demand and no supply. I haven’t seen conditions like these in 15 years.”

While the rental price hike could place pressure on low-income tenants, Ms Crampton said the market was undergoing a necessary price correction, following several years of sluggish growth.

“There were no rental increases, quarter on quarter, for a long time … so it’s an inevitable adjustment,” she said.

“And now we have optimum conditions to increase rent and improve yield – there has never been a better set of conditions in Brisbane.”

Ray White Bulimba and East Brisbane managing principal, Brandon Wortley, said the soaring rental industry had particularly reached new heights in the prestige sector – with houses priced at $1000 or more a week in incredibly high demand.

“There’s a lot of parts to this growth – but in our eyes, it’s the record migration from what we call ‘boomerang renters’,” Mr Wortley said.

“These are people who were originally from Brisbane but who moved abroad to chase a career or life experience … and I think honestly in this period (during the pandemic) they’ve gone ‘holy smokes I’m so far from home right now’ so that’s driving a lot (of our rental market).

“A lot of them have also forgotten a lot about the city, so what they are doing is renting (rather than buying) to test out a neighbourhood for six or 12 months.

“But then there are those who want to buy – to take advantage of the record-low interest rates – but because there’s such a high volume (of people) in this sector, it’s also driving the rental market.

“I think there’s a lot more interest in upper-end rentals than there has been historically … and we’re in that sweet spot right now and I think it will continue for a while.”

 

Article Source: www.domain.com.au

Brisbane

AMP Capital Adds Office Tower to Milton Green

AMP Capital

AMP Capital plans to build a 14-storey commercial tower near the Brisbane River as part of the Milton Green precinct on Coronation Drive.

The recently-approved plans for Milton Green Building 7 add a new office tower to the 1.3ha inner-city site at 6, 12 and 18 Little Cribb Street, Milton.

It is part of the larger four-hectare precinct formerly known as Coronation Drive Office Park with six A-grade commercial towers and several smaller buildings jointly owned by AMP Capital Funds Management and Sunsuper.

The design by Hassell and Richards & Spence adds a “more contemporary and subtropical” design to the previously approved 2012 plans.

Two extra storeys were added to the design to accommodate a pre-committed tenant’s requirements for “campus style facilities”.

Despite added levels, the commercial space will be slightly reduced to 29,530sq m and retail to 320sq m with large end of trip facilities to be built on the ground floor taking advantage of employees using the Bicentennial Bikeway.

The multi-level carpark and child care centre on the site will be retained while a tennis court will be transformed into an urban common area.

“AMP Capital’s continued engagement and commitment to transform a commercial office park that once reflected values of an era past into an active and vibrant and green village neighbourhood,” the application said.

“Establishing four new activated and covered pedestrian axis that is alive with multiple offerings, this project will be a catalyst for future development of adjacent sites and establish a new streetscape identity for the precinct.”

The Milton plans are are the latest in a wave of development approvals by Brisbane City Council along the river.

 

Article Source: theurbandeveloper.com

Continue Reading

Brisbane

The richest streets in Brisbane, revealed

richest streets in Brisbane

There is always a lot of attention on Sydney and Melbourne’s affluent areas and property markets, but what about the wealthy Australians in Brisbane?

Where do they live?

Brisbane’s property market were very resilient during the challenges of 2020 and now Brisbane housing values are going gangbusters.

The recent increase has pushed dwelling values to a new record high for the area.

With median prices in Brisbane, at around $520,00, being far less than those in Sydney or Melbourne the ‘affordability factor’ of lower property prices is driving more investment into the area and more interest from highest-earners who are able to get more bang for their buck.

Unfortunately Queensland postcodes didn’t feature on the ATO’s recent top 10 suburb rich list, but there is an abundance of wealthy residents and high priced properties, so with the help of realestate.com.au, Domain Group and census data, I’ve put together my own list of exclusive areas where Brisbane’s richest call home and then I’ll reveal the top 10 Brisbane streets.

4005 (Teneriffe, Inner Brisbane)

richest streets in Brisbane

Population: 5,341

Median income: $127,972

Median house price: $1.962 million

According to Corelogic data, the Inner Brisbane suburb of Teneriffe has the highest median house price of any area across the Queensland capital.

Despite being an industrial town in the past, the proximity to the city and riverside views has made it ideal for affluent, young Australians with average ages of just 20-39 and median annual incomes of $127,972.

With few houses in this inner city location, the median house price comes in at a whopping $1,962 million.

However, even units in Teneriffe are more expensive than the rest of Brisbane with a median of $570,000.

4155 (Chandler)

richest streets in Brisbane

Population: 1,453

Median income: $128,752

Median house price: $1.6 million

The exclusive suburb of Chandler is a high-demand market with an impressive median property price of $1.6 million to match its median resident income of $128,752 per year.

The peaceful and secluded semi-rural suburb consists largely of bushland and residential properties on acreage and is close to Brisbane’s major commercial precincts of Carindale and Capalaba and the CBD is just 20 minutes away.

4171 (Bulimba)

richest streets in Brisbane

Population: 6,851

Median income: $126,516

Median house price: $1.31 million

Builmba’s leafy streets and large blocks attract the Queenslanders able to spend big on impressive houses and an elegant lifestyle.

Sitting just 4km from the city and with all the amenities you could ever need, Bulimba is popular with young and established professionals.

Bulimba houses are seeing an impressive amount of interest with an average of 432 visits per property listing, way about the state average of 374.

With its close proximity to the city and gorgeous waterfront cottages, Bulimba has a median house value of $1,31 million and residents earn an average $126,516 per year.

4007 (Hamilton)

richest streets in Brisbane

Population: 6,984

Median income: $98,488

Median house price: $1.48 million

Despite a slightly lower median resident income of $98,488, Hamilton houses alone have grown 9% over the last five years to a median of $1.48 million.

The affluent and upscale postcode is popular for riverside high-end dining and a hip weekend food market with live gigs attracting a young average resident age of 20-39.

4005 (New Farm)

richest streets in Brisbane

Population: 12,534

Median income: $93,704

Median house price: $1.6 million

Once the humble home of immigrants and workers, New Farm is now popular and low maintenance living for people who like food, fun and farmer’s markets right on their doorstep.

Thanks to the increasing desirability of the area, New Farm has enjoyed an enormous 442% price growth in its property in the last 20 years as some of Brisbane’s high-income earners flock to take advantage of the exclusive lifestyle.

Like Bulimba, property demand in New Farm is strong, with realestate.com.au recording 674 visits per property for listings in the area, nearly double the Queensland average of 374.

Here are the top 10 most expensive streets in Brisbane.

richest streets in Brisbane

Article Source: propertyupdate.com.au

Continue Reading

Brisbane

Brisbane auctions: Ashgrove weatherboard sells for $1.27 million in strong weekend

A post-war cottage that last sold in the 1960s for just over $7000 has been snapped up for a whopping $1.271 million at auction, after 17 registered bidders battled it out for the Ashgrove four-bedroom abode adorned in weatherboard and Besser brick.

The “knock-down” property at 21 McCormack Avenue – which had been in the same family for five decades – sparked a feeding frenzy among home-hunters on Saturday, with 78 bids accrued after the bidding started at $800,000.

Selling agent Matthew Jabs, of Place Estate Agents Newmarket, said the auction was one of the most emotional sales he’d clocked, with more than 100 people turning out to witness the transaction of the 1960s abode.

“This home had been in the same family [for all those years] and it has all the key elements. It’s north-facing with city and park views and, in terms of the actual house, it can be knocked over,” Mr Jabs said.

“All the bidders wanted to build their dream home there and, in the end, it was a local family that bought it.

“It was very emotional because of how long the family had had the home. It belonged to an elderly lady and it’s the only home she’s ever owned.”

The cottage, which sits on a 607-square-metre block, was one of a handful of pre-war and post-war homes to transact for close to a million dollars or more over the weekend – alongside a handful of high-end sales, revealing the strength of the city’s market.

In total, 35 properties were sold from a reported 49 to deliver a clearance rate of 71 per cent, almost double the rate from this time last year.

Among those was a prime piece of land with a run-down original  two-bedroom Queenslander at 37 Pine Street, Hamilton, which clocked one of the weekend’s top results after it sold for $1.837 million to a local family through Dwight Ferguson, of Ray White Ascot.

The ageing home, which sits on a 1365-square-metre parcel in one of the city’s top blue-chip suburbs, features just two bedrooms and a bathroom. It attracted 23 registered bidders.

“Most of those bidders had a go so it was a bit of a frenzy initially,” Mr Ferguson said.

“We got down to three bidders at the end and then announced the home was on the market at $1.7 million, and the reserve was below that.

“This is the best level of auction activity I’ve seen in 30 years — buyers have a lot of confidence. I didn’t expect this [level of market action]. It’s just incredible.”

In Paddington, an old cottage at 19 Plunkett Street that was renovated into a glamorous four-bedroom masterpiece clocked the city’s top reported sale of the weekend, after it fetched $2.45 million under the hammer through Nick Penklis, of Space Property.

Mr Penklis said a mature couple from the Sunshine Coast won against six registered bidders, with interest being high throughout the campaign thanks to the quality of the renovation and the prime location.

“The sellers rebuilt the old cottage after they bought the home 10 or 11 years ago – and that old cottage is now the main bedroom,” Mr Penklis said.

“I think everyone in Brisbane is getting good results right now and more people are putting one step forward at auction.”

At a Ray White auction event in Bulimba, the very first home of sellers Brisbane Lions AFL player Ryan Lester and his wife, Emi, sold under the hammer for a reserve smashing $931,000, just over $300,000 more than they paid in 2014.

The modest three-bedroom, two-bathroom cottage, at 12 Princess Street, Camp Hill, attracted 151 groups over a two-week auction campaign, with nine registered bidders battling it out on the day.

Selling agent and principal ofRay White Metro North David Treloar said the bidding came down to two competitive parties, with the under-bidder being a Hong Kong expat, and the ultimate buyer being a Kangaroo Point local.

“All of our auction campaigns at the moment are only running for two weeks, because of the insatiable demand from buyers,” Mr Treloar said.

“And, this was a small home in a really ordinary street, but it was something a buyer could just move into.

“It was also the first home of Mr Lester, who was married last year. He and his wife have had a baby and he’s signed a new two-year contract, so he’s looking for something bigger.”

A pint-sized two-bedroom cottage on a 405-square-metre block at 51 Didsbury, East Brisbane, secured a top result on Saturday, after selling for $925,000 – $225,000 more than the vendors paid for it in 2014.

Selling agent Madi Roche, of Ray White Bulimba, said a first-home buyer secured the winning bid in what she described as an “insane auction”.

“We actually sold that property to the vendors in 2014 for $700,000, so they were over the moon. They weren’t expecting it to sell for so much.

“I think a year ago we still would have had a lot of interest on that home but maybe it would have sold for about $820,000, so that’s a big price jump.”

Wrapping up the hot weekend of auctions was the indoor/outdoor masterpiece at 23 Deramore Street, Wavell Heights, which Place Estate Agents New Farm agent Heath Williams sold for $1.2 million.

Mr Williams said the home, built by Owen Architectures director Paul Owen, had accrued enormous interest over just two weeks and was snapped up by a local buyer.

“We gave out 15 contracts prior to auction but it ended up being a two-horse race between two girls,” Mr Williams said.

“We’d set out with a four-week campaign, but we reduced it to two because the numbers were so high.”

 

Article Source: www.domain.com.au

Continue Reading

Positive Cashflow Property

duplex designs, dual occupancy homes

Property Investment Advice

gold coast property management

Trending