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Brisbane set to be Australia’s property market leader: Hotspotting’s Terry Ryder

property market

EXPERT OBSERVER

The Brisbane market has shrugged off the impacts of the pandemic and is in its strongest position in five years to generate price growth. Increasingly, this is translating into evidence of uplift in property values.

Our analysis of sales activity across the Brisbane metropolitan area has identified 56 suburbs with rising momentum, the highest number since late in 2015 and double the number identified in our quarterly survey six months ago.

The numbers show an all-round improvement in the Brisbane market, with a sharp reduction in the number of declining suburbs and a reduction also in the number of danger markets.

Brisbane’s affordability relative to the biggest cities is helping to boost its market, with more people relocating to South-East Queensland from Sydney and other parts of Australia. Brisbane is a natural beneficiary of the Exodus to Affordable Lifestyle trend and is also benefiting from strong consumer confidence as a result of the success in controlling Covid-19.

It’s notable that Brisbane is prominent in the forecasts for prices in 2021 from the major banks. The NAB Residential Property Survey is tipping Brisbane to be the joint leader on dwelling price growth next year, alongside Adelaide and Hobart – with a 7.4% annual rise and similar growth in 2022.

I think this is a tad conservative – and so does ANZ, which is forecasting Brisbane to rise almost 10% next year, with only Perth tipped to do better. Westpac and Commonwealth Bank have also tipped good growth in 2021.

In the six years we have been conducting our quarterly surveys of sales activity and prices, it has been common for northern Brisbane to dominate the positive results – and that is certainly the case in this Summer 2020 survey. Of the 56 suburbs with rising sales activity, 12 are in the Brisbane-north precinct of the Brisbane City Council area and 13 are in the neighbouring Moreton Bay Region.

Both precincts also have a high number of suburbs with consistent sales activity across multiple successive quarters, a notable achievement given the negative pressures in this year of the pandemic.

The rising suburbs in the north of Greater Brisbane include Murrumba Downs (where quarterly sales activity has been 39 44 73), Ashgrove (quarterly sales 54 57 60 72 76 50 78) and Bellara (quarterly sales 23 30 26 40)

While the most prolific markets are in the north, there also has been a notable revival in Logan City in the south. The municipality is the urban bridge between Brisbane City and the Gold Coast and traditionally attracts buyers seeking cheap real estate and good infrastructure.

Logan City markets have been in the doldrums in recent years: six months ago we identified 12 suburbs with a pattern of declining sales, but only five in this latest survey – and there are now nine suburbs with rising sales momentum. At a time when first-home buyers are very active and others are seeking an affordable lifestyle, it’s perhaps not surprising that Logan City would show signs of uplift.

Nearby Ipswich City – another centre of affordable buying in the south-west of the metro area – has only two growth suburbs, so Logan City is the standout of southern Brisbane.

There are growth markets in other parts of the Greater Brisbane area as well – Brisbane-inner (4), Brisbane-east (5), Brisbane-south (3) Brisbane-west (3) and Redland City (5) all have some suburbs with rising sales activity.

There are still six suburbs we classify as danger markets, but that is half as many as two years ago. These are all inner-city suburbs where the market is dominated by high-rise apartments and where vacancy rates continue to be high, in contrast to the rest of the Greater Brisbane Area, and sales rates remain low.

Our analysis of price trends across the Brisbane metropolitan area shows that most suburbs have recorded house price growth in the last 12 months, but an even higher percentage have had growth in the most recent quarter.

This again shows that the city has done well through the pandemic period.

Our analysis shows that 62% of suburbs have recorded annual growth in their median house prices, but 73% have had uplift in the latest quarter.

It’s clear that the top end of the Brisbane market is doing best in this climate, driven partly by the reality that highly-ranked, well-located suburbs in this city often have median house prices in the $800,000s and $900,000s. For people leaving Sydney and Melbourne to relocate to South-East Queensland as part of the Exodus to Affordable Lifestyle, this looks attractive.

Suburbs to record annual median house price growth above 20% include Highgate Hill (28%), Fig Tree Pocket (25%), Nundah (20%) and Windsor (21%).

The inner-city house markets (in contrast to the apartment markets) are doing well, with good annual price growth in Bardon (10%) and Coorparoo (15%), as well as Highgate Hill.

Inner northern suburbs are also performing, including Grange (17%), Windsor and Nundah.

The upper end western suburbs are a standout. In addition to Fig Tree Pocket, there has been strong annual growth in median house prices in Sherwood (12%), St Lucia (14%) and Toowong (13%).

In the south, Yeronga (15%) and Greenslopes (10%) have done well, while in the affordable far north, there has been notable uplift in Woody Point (15%) and Beachmere (10%).

 

The post “Brisbane set to be Australia’s property market leader: Hotspotting’s Terry Ryder” appeared first on the propertyobserver.com.au Blog

Brisbane

New apartment developments pop up in prime locations in Brisbane, Gold Coast, Sunshine Coast

apartment developments

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

apartment developments

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

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Brisbane

First home buyers flood back into market on low rates, rising house prices

house prices

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.

Mortgage broker Homeloanexperts.com.au said inquiries since December were more than 60 per cent higher than the same period last year, also citing strong interest from first home buyers and expats returning to Australia.

Alongside government support for first home buyers, banks have also cushioned the housing market by allowing customers to pause repayments temporarily, but most borrowers will have to make their usual payments from March, when several government stimulus programs also end.

The end of all these stimulus measures and supports simultaneously could result in a small lift in foreclosures, property data analysts SQM Research managing director Louis Christopher said, but he was not concerned about a “mass forced sale event”.

“The banks have done well in managing the loan deferrals. They have shrunk from their peaks at the beginning of the pandemic,” Mr Christopher said.

Starr Partners chief executive Doug Driscoll was “perplexed and bewildered” about the strength of the property market during the pandemic.

“The leniency and the patience of the banks is stopping there from being any tsunami of forced sales. There will naturally be a slight increase in foreclosures [at the end of the repayment holidays] but not a severe spike,” Mr Driscoll said. “Everything last year was pointing to foreclosures and price falls but it’s just business as usual.”

 

Article Source: www.brisbanetimes.com.au

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Brisbane

Tight rental market forces tenants to find their edge or risk losing out to competition

rental market

With vacancies rates dipping below 1% in parts of the region and a surge in demand, competition for rental properties is fierce in South East Queensland. Renters currently applying for properties are being forced to put their best foot forward to put them ahead in the eyes of landlords.

Managing Director of Solutions Property Management Laura Valenti said there had been a staggering increase in property demand over the past few months: “Demand is extremely high. In fact, I have never seen such high demand and low supply,” she said.

“We manage over 1000 properties in the greater Brisbane area and since the beginning of November 2020 our vacancy rate has been zero.”

With so few available rental properties, having an edge over other applicants is vital. While some people are offering more rent than advertised, some tenants are seeing better outcomes after completing a free, online tenancy skills course developed by the Tenancy Skills Institute.

The course was developed after extensive consultation with property managers, and covers the top four skill sets identified as crucial to a positive tenancy; communication, rights and responsibilities, maintaining a rental property and budgeting. Once complete, graduates are awarded a certificate to support future rental applications.

Tenancy Skills Institute State Manager, Mark Davidson explained tenants who complete the course will stand out from the crowd.

“Tenants who demonstrate an understanding of their rights and responsibilities, are effective communicators, budget well to pay the rent on time and maintain the property are at an advantage.

“The certificate might just make the difference on a rental application for some property managers.” said Mark.

Laura Valenti’s agency Solutions Property Management is just one of a growing number of industry supporters who agrees the course is of high value for tenants.

“It [the course certificate] would definitely put them above others who have a similar application,” said Laura.

Since it began, the Tenancy Skills Institute has given over 2000 Queenslanders a head-start in their rental journeys. Experienced renter, Wendy* believes that without the course she would still be searching for housing.

Wendy said: “The course did me great, I found it interesting, helpful and enjoyable.

“I was finally approved for a property after completing it and moved in at the start of January.”

 

Article Source: www.miragenews.com

 

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