The latest event in the evolution of the Brisbane market is the strong emergence of the Moreton Bay Region in the far north of the city.
It has joined Logan City in the far south as the precinct with the most momentum in the Greater Brisbane area. Meanwhile, Ipswich City in the south-west is putting its hand up as well.
Most national commentators misunderstand what’s happening with the Brisbane market. They look at that single figure which apparently describes the whole Brisbane metropolitan area and conclude not much is happening. Australian Property Monitors says Brisbane prices rose 5% last year while CoreLogic RP Data says 4%.
But beneath that one generalised (and highly misleading) figure, there has been lots of activity in precincts which have recorded double-digit annual growth in median house prices.
Markets in the Greater Brisbane area have been on the move for about two years. The inner-city suburbs were busy a couple of years ago and then the middle-ring suburbs on the northside surged. Many of them had annual growth in the 13% to 15% range. The middle-ring suburbs on the southside joined the party 12-18 months ago.
Now it’s the outer-ring areas that are leading. There are still rising suburbs in those northside and southside middle-market precincts, but it’s the cheaper areas on the outskirts that have the greatest activity and momentum.
In this regard, Brisbane is displaying the same pattern we have seen over the past three years in Sydney and Melbourne – the upturn started in the near-city areas and gradually gravitated outwards from the centre. The Ripple Effect is alive and well in residential real estate.
In Brisbane, Logan City (which is the urban bridge between Brisbane and the Gold Coast) has been the market leader in terms of sales volumes for the past 12 months or so. But now it’s counterpart in the north, the Moreton Bay Region local government area (which is the urban bridge between Brisbane and the Sunshine Coast) has mounted a challenge.
Like Logan City, Moreton Bay Region is all about affordability, transport infrastructure and jobs nodes. Many of the suburbs of Moreton Bay Region – including Caboolture (the capital suburb), Morayfield and Deception Bay – have median prices in the $300,000s, while Burpengary and Narangba are in the low $400,000s.
These are high-volume housing markets: Caboolture, Deception Bay, Morayfield and Narangba have each recorded over 340 house sales in the past 12 months. Some have seen median prices rise 6-7% in the past year – but, in terms of price growth, they’re just getting started.
Median rental yields are an attraction for investors, ranging from 5.2% to 5.6% in most of the suburbs of the Moreton Bay Region.
The LGA includes the Redcliffe Peninsula, which has heightened appeal because the long-awaited Moreton Bay Rail Link will be completed this year.
The overall region has improved amenity through the evolution of the North Lakes master-planned community, which includes major retail (and will soon include an Ikea superstore).
The region also has good proximity to Brisbane Airport, the Port of Brisbane and the Australia Trade Coast industrial precinct, which means plenty of jobs are handy to the suburbs of Moreton Bay Region.
Originally Published On: http://www.propertyobserver.com.au/
Developer Stakes New Claim in Greenfield Hotspot
Perth-based developer Peet has staked another claim in Melbourne’s blue-chip greenfield corridor, fending off a fierce line-up of bidders for the balance of an existing estate landholding.
It has purchased a 26ha permit-approved chunk of Greencor Developments’ Mystique Estate at Wollert, in the city’s northern residential growth belt.
Peet was among a highly-competitive field of developers circling the holding in Victoria’s greenfield hotspot.
The site is surrounded by other large masterplanned communities including Cedar Woods’ “Mason Quarter”, Dahua’s “Wollert Rise”, Bauenort’s “FindonView Estate” and AV Jennings’ “Lyndarum North”.
It is expected to yield 300 lots—more than half of the 550 lots in the actively trading Mystique Estate in which 250 lots have already sold, constructed and settled.
Marketing agent Kane Malcolmson from Core Projects said the transaction of the 25.75ha holding reflects and underpins the current strength of the Victorian greenfield land market.
He said the off-market expressions of interest campaign resulted in 15 formal offers being put on the negotiating table.
“The property attracted a strong mix of Australian and off-shore interest from developers relishing the opportunity to purchase an established and trading estate within the highly sought-after Wollert precinct,” Malcolmson said.
“It was extremely well contested under very competitive conditions. Peet Limited will deliver a fantastic project across the balance of 300 lots.”
Low interest rates and government stimulus packages have underpinned the strong demand for house and land sites over the past 12 months.
Victorians accounted for 29 per cent of all HomeBuilder applications with close to 30,000 new build applications.
Melbourne’s growth corridors in the north and west were earmarked for an additional 284,000 dwellings in Melbourne’s Urban Growth Boundary.
Cedar Woods, another Perth-based developer, recently bolstered its land supply in Melbourne’s western growth corridor, acquiring 54-hectares for $63.5 million.
The two separate transactions were for a 14.6ha site at Fraser Rise ($30.5 million) and a 39.7ha site at Fieldstone ($33 million), adding a further 725 lots to its pipeline.
Article Source: www.theurbandeveloper.com
Women & Men in Business Features – Profiling our local business community
Regional housing market doubles capital city value growth
Australia’s regional housing market has far outpaced value growth across Australia’s capital cities in the last 12 months, rising 13.0% compared with a 6.4% gain in capital city values.
CoreLogic’s quarterly Regional Market Update, which looks at capital growth over the 12 months to April 2021 in Australia’s 25 largest non-capital city markets, saw Richmond-Tweed take top spot for capital gains across both house and unit markets, with 21.9% and 15.5% annual growth respectively. Bunbury was the worst performer across both house and unit markets, with 3% and -4.4% yearly growth respectively.
CoreLogic’s research director, Tim Lawless, says the faster pace of growth reflects stronger demand flowing into the regional areas of Australia through the COVID-period to date.
“This can partly be explained by the new popularity of remote and flexible working arrangements, but also increased demand for lifestyle oriented properties and holiday homes. No doubt the more affordable housing options across many of Australia’s regional markets is another incentive; in April there was a $247,400 difference between the median value of capital city dwellings and regional dwellings.
“Playing into the lifestyle trend, it’s no surprise to see the Richmond-Tweed area topping the list for capital gains over the past 12 months. This region includes high profile beachside destinations such as Byron Bay, Suffolk Park and Lennox Heads as well as popular hinterland villages such a Bangalow. The median house value across the Byron council area is now $1.4 million, which is higher than Greater Sydney’s median of $1.147 million,” says Mr Lawless.
Best & Worst Performing Regional House Markets – April 2021
Best & Worst Performing Regional Unit Markets – April 2021
“Looking forward, regional housing markets remain well placed to record higher than average levels of demand, especially those markets that are located close enough to capital cities to provide a commuting option, and those lifestyle markets that are popular with sea and tree changers.
“While surging values are probably good news for homeowners in these regions, for those that don’t own a home, affordability is being stretched. Particularly for long-time locals whose incomes are unlikely to be rising at anywhere near the pace of house price appreciation, they may be forced to seek out housing options further afield,” says Mr Lawless.
Article Source: www.corelogic.com.au
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