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Brisbane to outshine Sydney and Melbourne dwelling prices in 2020: Westpac

Brisbane to outshine Sydney and Melbourne dwelling prices in 2020 Westpac (2)

Brisbane dwelling prices will outperform those in Sydney and Melbourne in 2020, according to Westpac.

They believe the Queensland capital will see eight per cent increases next year, above the six forecasted for the two major capital city markets.

Westpac suggest the strong momentum in Sydney and Melbourne will fade as affordability issues re-emerge and population slows.

Brisbane is well positioned due to its affordability and population inflows.

“Momentum heading into 2020 is clearly positive, albeit uneven across markets,” Westpac advised.

They said in the near term, the main guidance comes from current price momentum, auction markets, listings and their buyer sentiment measures.

“Nationally, these are all showing positive prospects for early 2020 with price growth accelerating, auction clearance rates riding high in Sydney and Melbourne, listings showing a clear tightening and a positive pulse from buyer sentiment pointing to a further lift in demand.

“The cyclical momentum is strongest in Sydney and Melbourne but is also showing a notable pick up in Brisbane. Adelaide and Hobart are seeing a more muted lift with Perth yet to pull out of its multi year price decline.

Brisbane to outshine Sydney and Melbourne dwelling prices in 2020 Westpac (1)

They predict a number of factors to shape residential property over 2020.

“The first is policy – we expect the RBA to cut rates by another 25bps at its February meeting and to turn to so-called unconventional policy measures to provide additional stimulus,” Westpac advise.
The second factor is supply, both in the form of sellers returning to the market and the physical supply of new dwellings. New listings fell to extreme lows in 2019.
“Our analysis suggests the listing cycle tends to follow the sales cycle by about six months. A likely lift in new listings will test the depth of demand in the first half of 2020. The supply of newly built dwellings will also remain elevated. Completions eased back from a record 218k in 2018 to an estimated 205k in 2019.
“Our projections have this easing to around 175k in 2020, still well above average pre-boom levels with about 50k of that high rise dwellings. New supply could prove difficult to absorb and will weigh on prices and rents in some segments – Sydney’s rental vacancy rate and Melbourne’s stock of unsold units being key areas to watch.
Westpac believe would-be buyers in Sydney and Melbourne will be priced out of the markets and will seek more affordable markets if the current price resurgence continues, which will slow growth.
“As 2020 unfolds we expect another dynamic to come to the fore around affordability and population flows.
“Despite the price correction in 2017-18 and a further lowering in interest rates, affordability remains relatively stretched in Sydney and Melbourne.
“The resurgence in prices see these markets run into the same affordability constraints that emerged in 2016-17 as prices near previous peaks.
“Investor activity will lift as low deposit rates and equity volatility drive more interest in real estate but funding is likely to remain a constraint on investors.”
Source: www.propertyobserver.com.au
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Brisbane

Inner-Brisbane commercial building sold on tight yield during COVID-19

Inner-Brisbane commercial building sold on tight yield during COVID-19

A new commercial building situated in a prominent corner position in the inner-Brisbane suburb of Ashgrove has sold in a deal representing a tight yield for Queensland.

The fully-leased medical and retail property at 9 Ashgrove Road, which also has frontage to Crawford street, was sold for $8.88 million at a passing yield of five per cent, with a passing net income of $444,300 per year.

It was purchased by GDA Diversified Property Trust having been listed by Eloper Group in a deal negotiated by Blake Goddard and Matt Barker of Knight Frank in conjunction with Michael Hedger, Darren Collins and Jack Morrison of CBRE.

Completed in May 2019, the Ashgrove building offers 618 sqm of medical/retail accommodation over two levels on an 800 sqm site with secure basement car parking for 26 vehicles.

It is 100 percent leased to three tenants including the Bank of Queensland, Ashgrove GP clinic and RecoverWise Physic, with 75 per cent of the income generated via the medical tenants, which are well- established in the precinct.

Mr Goddard said the campaign generated a suburban record for price per square metre of net lettable area of $14,369 and yield for an asset of this nature.

Mr Collins said the best interest came from the passive investors including numerous parties who work in the medical industry and were attracted to the strong lease covenants on this 100 per cent leased asset with an 8.5 year WALE (by income).

It is set just 4.5km from the Brisbane CBD.

 

 

 

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

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Brisbane

The suburbs where it’s cheaper to buy than rent

The suburbs where it's cheaper to buy than rent
As the coronavirus continues to wreak havoc on the housing market, Queensland is defying expectations – in some suburbs, it’s cheaper to buy than to rent.
Jessica Arneill has been renting for seven years, but has finally achieved the dream of buying her own home.
“We were paying $440 a week (rent), now with our mortgage it’s actually $20 cheaper with our own house,” she said.
It’s a similar story across the state’s south-east.
Currently, a $400,000 loan over 30 years at three percent nets a repayment of $390 a week.
In many suburbs – including North Lakes, Narangba, Morayfield, Darra, Rocklea, Acacia Ridge, Forest Lake, Ipswich, Ormeau, Pimpama and Upper Coomera, buying a property actually costs less.
The first home-buyer’s grant, low interest rates and other incentives like reduced stamp duty and the builder’s grant, are helping the region defy the COVID-19-induced property slump.
This article is republished from www.9news.com.au under a Creative Commons license. Read the original article.
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Brisbane

Olympics, Billion-Dollar Projects Brighten Brisbane Outlook

Olympics, Billion-Dollar Projects Brighten Brisbane Outlook (1)

Hosting the 2032 Olympic Games, along with a swathe of major projects and infrastructure, could play a critical role in Brisbane’s recovery from the coronavirus pandemic.

With the largest local authority in the southern hemisphere, Brisbane is well-positioned post-pandemic with $20 billion worth of major development on the way and $49.5 billion committed to transport infrastructure.

Major development projects include the $5.4 billion Cross River Rail, $3 billion Queen’s Wharf casino and the Brisbane Airport redevelopment.

The region, home to one in seven Australians, has put its hand up to host the 2032 games—the first location to announce it would bid for the $5 billion-plus games, under new rules that allow a region, rather than a city, to host the event.

“There is already a need for jobs and growth in the Queensland economy arising from the impact of Covid-19,” Australian Olympic Committee president John Coates said.

Olympics, Billion-Dollar Projects Brighten Brisbane Outlook (2)

“Our partner three levels of government recognise a potential 2032 Olympic and Paralympic Games as a critical part of the state and nation’s economic recovery in the short term, quite apart from all of the long-term health, wellbeing, economic and sporting legacies.”

Brisbane deputy mayor Krista Adams, Brisbane Marketing chief executive Brett Fraser, ASM Global Asia Pacific chief executive Harvey Lister and Brisbane Marketing chairman Paul Spiro will discuss the key projects and initiatives driving Brisbane post-pandemic, at The Urban Developer’s upcoming Brisbane Reimagined webinar.

Panellists will touch on major economic priorities and their impact on the property sector as well as recent changes to the City Plan and the impact on the property sector.

This event is a must for anyone invested or considering investing in the greater Brisbane region.

 

 

 

This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.

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