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Brisbane’s Olympic property boom set to push these suburb prices sky high

Olympic

House prices in key inner Brisbane suburbs are tipped to more than double in the decade leading up to the 2032 Olympics as economists predict an imminent golden age of property for the Queensland capital.

The city’s thriving inner east – including Woolloongabba and Dutton Park – and Albion, Paddington, Hamilton and Kelvin Grove are some of the hot spots expected to boom off the back of major infrastructure spending ahead of the games, with Greater Brisbane set to soar past the million-dollar median house price mark soon, experts say.

New data from PRD revealed Brisbane’s median house price could collectively rise to $1.2 million by 2032, with Hamilton – which will accommodate the athlete’s village – predicted to leap from its $1.65 million house price average to just under $4 million after the Olympics.

Tennyson, which currently boasts a median house price of just under $1 million, could rise to just over $2 million and Woolloongabba – where many Olympic events will be held at the Gabba – could also soar from its current median of $1.086 million to just over $2 million, the PRD report said.

Greater Brisbane suburbs Olympics analysis for houses
Suburb 2011 2016 2020 2021# Projected Growth Year After Event Projected Growth G20 Average
Brisbane
Hamilton $824,000 $1,200,000 $1,625,000 $1,650,000 $1,885,950 $3,990,670
Tennyson $515,000 $687,000 $770,000 $970,000 $1,108,710 $2,052,520
Chandler $1,040,000 $1,200,000 $1,650,000 $1,600,000 $1,828,800 $3,385,600
Woolloongabba $623,000 $775,000 $875,000 $951,000 $1,086,993 $2,012,316
South Brisbane $805,000 $1,617,000 $1,050,000 $1,210,000 $1,383,030 $2,560,360
Redland Bay $450,000 $525,000 $575,000 $638,000 $729,234 $1,350,008
Ipswich $325,000 $326,000 $420,000 $435,000 $497,205 $1,052,086
Herston $697,000 $737,000 $885,000 $908,000 $1,037,844 $1,921,328
Spring Hill $950,000 $910,000 $1,060,000 $1,150,000 $1,314,450 $2,433,400
Gold Coast
Coomera (house) $353,000 $488,000 $515,000 $550,000 $628,650 $1,163,800
Broadbeach (units) $463,000 $550,000 $593,000 $625,000 $714,375 $1,322,500
Sunshine Coast
Alexandra Headland $570,000 $920,000 $1,210,000 $1,110,000 $1,268,730 $2,348,760
Twin Waters $651,000 $737,000 $930,000 $1,077,000 $1,231,011 $2,278,932
According to the Domain House Price Report for the June quarter, Greater Brisbane’s current house price is at a record high of $678,236.

Ray White’s national chief economist, Nerida Conisbee, said while the Olympics would likely serve as an insurance policy to keep the real estate sector’s cogs spinning, the city was already charging towards a sizzling decade of property growth – partially thanks to COVID-19.

Many inner suburbs, she said, were now poised to sprint past the $1 million median house price milestone in coming months as long as interstate migration continued and the state could maintain its already low coronavirus case numbers.

“The other thing that is great about Brisbane is, while it’s getting more expensive, it’s still relatively cheap, so even though we’re starting to see some movement in pricing it’s still good and it’s still offering a cheaper alternative to other cities,” Ms Conisbee said.

“As for the Olympics, it puts Brisbane on the global stage so I guess one of the things that will help Brisbane over the coming years is simply maintaining that high level of migration … but at this stage, I don’t see it softening.”

While house prices in some suburbs within the city’s golden inner ring had already jumped by more than 30 per cent over the past year, Ms Conisbee said even blue-chip pockets such as New Farm were considered a steal compared to their Sydney counterparts. This, coupled with the lifestyle on offer in Queensland, had driven a record number of migrants from NSW and Victoria.

The Domain House Price Report for the June quarter recently revealed New Farm houses  were sitting at just under $2 million.

“I think definitely the inner suburbs are worth looking at and the premium suburbs are the ones to watch … you can’t live in the best suburb of Sydney for $2 million so that’s where Brisbane is looking really good at the moment,” Ms Conisbee said.

While a number of Olympic events will be scattered around the city and even on the Sunshine Coast and the Gold Coast, said Place Estate Agents Bulimba lead agent Matthew Hackett, eastern suburbs close to the Gabba were already posting incredible price growth with demand continuing to skyrocket.

“While the potential with the Olympics is hard to say because we don’t know where the market is going, I think house prices could go up 65 per cent in the next year (in key inner-east pockets),” Mr Hackett said.

“In fact, in the next six months we’ll see extremely good growth as a lot of people are still coming from interstate. Brisbane is coming into its own now and I would definitely be buying within a four-kilometre ring of the city.”

Mr Hackett said the city’s south side would also soar, with spots such as Mount Gravatt attracting a record number of buyers and, as a result, posting major price growth.

“I just sold a home there at auction over the weekend for $900,000 and it sold just a few months before for $750,000,” he said.

The city’s long-suffering apartment market is also tipped to grow off the back of the housing market boom, with high-end units already in hot demand, Mr Hackett said.

According to Place Advisory, Woolloongabba’s prime positioning as a central hub for the Olympics would ensure high price growth moving forward, particularly with a “much-needed” facelift worth millions on the cards and increased connectivity provided by the Cross River Rail.

Place Advisory said it expected Annerley, Dutton Park and Coorparoo to also soak up the “flow-on effect”.

Thanks to the proposed conversion of Albion Park dog track into a stadium, the team also tipped the inner-northern suburb to soar, alongside Portside and Hamilton which, aside from being the home of the athlete’s village, also has the new cruise terminal.

Finally, Herston, Kelvin Grove and Paddington are expected to reap the benefits of the games, thanks to Brisbane Live being the likely hub for entertainment in 2032.

Brisbane local Tracey Parr has already witnessed the gargantuan rise of the city’s inner-eastern precincts, having just sold her investment home at 29 Geelong Street, East Brisbane for $1.192 million at auction last Saturday.

The three-bedroom cottage “in desperate need of a reno” last sold for $640,000 in 2011 and has been “rented out every day since”. Dozens of buyers flocked to the home as the spotlight increasingly turned on the popular suburb.

“Brisbane has generally gone through a lot of growth in the past six months but particularly that precinct (around Geelong Street) because it’s so close to the city and just walking distance to the Gabba,” Ms Parr said.

“So there was a lot of interest [at the auction] and we had 11 bidders. That area is really up and coming, there’s a lot of potential and it’s already got really charming cafes.

“It feels a lot like Melbourne now.”

Ms Parr said she felt the area was fast becoming a golden ticket for investors with all the ducks now in a row for nothing short of a house price explosion.

 

Article Source: www.domain.com.au

Brisbane

Australian property reaches 32-year annual growth peak in September

It’s no secret that Australian real estate has been going gangbusters this year, but CoreLogic’s latest findings really help just how big this boom has been.

Property prices grew another +1.5 per cent in September, pushing the median Australian home price up +20.3 per cent over 12 months. That’s the highest rate of annual growth since June 1989.

This truly is a once in a generation event and a major opportunity for sellers. But, with gains slowly reducing and a rush of stock expected to come to the market, are things about to change?

National property values: September 2021

Houses Units
$719,209
Monthly change: +1.6%
$586,993
Monthly change: +1.1%

While the overall sentiment is that the market has been cooling off since the +2.8 per cent monthly peak in March, a +1.5 per cent jump in September is still well above the decade average (+0.4 per cent).

Australia’s median property price is now $674,848, almost exactly $100,000 more than it was at the beginning of January 2021.

Australian property

Houses in Sydney, Brisbane, Adelaide, Hobart and Canberra all gained at least another +2.0 per cent in September, with Melbourne up +1.1 per cent.

Regional markets had another strong month and on the whole outperformed the capitals. Among the biggest movers were NSW (+2.0 per cent), QLD and Tasmania (+1.7 per cent) and units in WA (+2.4 per cent).

Even though we’re still looking at big monthly numbers in many cities and regions, the bigger picture does show that growth is easing off.

Australian property As the CoreLogic report states, “although growth conditions remain positive, it is becoming increasingly clear the housing market moved past its peak rate of growth.”

New spring listings hit the market but total stock is still well down

With lockdowns pushing the start of the spring selling season back, there’s been plenty of anticipation around fresh listings coming to the market—and they’re finally arriving.

Sydney in particular has seen a huge surge of new properties coming online, +23.1 per cent up from August according to SQM Research.

Australian property

Melbourne listings are up a healthy +9.9 per cent, with plenty more expected to come once restrictions ease further, while Brisbane, Perth and Adelaide have also seen a bump up in their numbers.

Canberra, which entered lockdown later than Sydney and Melbourne, seems further from returning to ‘normal’ again, and the drop in listings reflects that. But Sydney’s path through could foreshadow what’s to come in the other locked-down markets.

Even with new listings coming online, CoreLogic says the total amount of stock on the market is still “extremely low” (-25.5 per cent below the five-year average) and with demand remaining so high, desperate buyers are snapping up whatever they can.

Australian property

“Nationally, homes are selling in 35 days, up from 29 days in April, and vendor discounting levels remain around record lows at – 2.8 per cent,” Mr Lawless says.

It’s also worth noting that, even with total listings so low, the total number of monthly sales are well beyond the five-year average, suggesting that most of anything that’s making it to the market is being bought up.

With days on market and vendor discounting so low, auction clearance rates back up to their highest levels since March and available stock on the market way below average, all the indicators point to very strong selling conditions as spring moves on.

Affordability issues continue to cool the market

Even though we’re still seeing well-above-average monthly growth, the overall trend since March 2021 has been towards easing gains.

CoreLogic’s research director Tim Lawless believes this has in part been driven by first home buyers being squeezed out of the market thanks to soaring prices and fewer government incentives.

“With housing values rising substantially faster than household incomes, raising a deposit has become more challenging for most cohorts of the market, especially first home buyers,” he says.

He points to ABS lending data, which shows that the number of first home buyer loans fell -20.5 per cent between January and July, suggesting that those buyers may have changed their tactics to ‘rentvest’—seeking an investment property in cheaper markets while renting where they live.

It’s widely forecast by the big banks and pundits alike that growth will continue to slow into 2022 as more buyers are priced out of the market, so it’s unlikely that sellers will be able to gain too much more out of this cycle.

Houses are still outperforming units despite high prices, but that could change

It may seem contradictory to the above, but house prices continue to increase at a more rapid rate than units even though detached housing is becoming less and less accessible to buyers.

In most capital cities, houses have outpaced units this year by double or more.

Thanks to the prevalence of remote working now, the ‘race for space’ mentality is still driving people to seek lifestyle improvements during the pandemic, and that means houses have been in hot demand.

There’s a chance that could change in some of the country’s most expensive markets, though, and houses may cool off while units make up some ground.

As BuyersBuyers co-founder Pete Wargent told OpenAgent, affordability constraints have meant a number of buyers—particularly in markets like Sydney—have had to adjust their new home search.

“My guess is that, the way the median house price has gone in Sydney, there will be a shift towards units,” he said. “Prices are so high now that affordability will start to bite for the detached house market.”

What’s next for the Australian property market?

There’s been a lot of talk about if and when APRA may tighten home loan lending conditions, and that’s now been announced.

From November it will become more difficult for borrowers to be approved for a mortgage, a move that is widely tipped to slow down the already cooling market as buyers may end up with less purchasing power.

CoreLogic also predicts that, once lockdowns have ended and people return to more normal spending habits, the conditions that have helped many save considerable amounts of money during the pandemic may shift and demand for housing could ease.

They also suggest the influx of stock expected as the spring selling season continues to unfold will start to give buyers more choice and dilute some of the frenzied demand we’ve seen, which could take more heat out of the market.

So, in the medium term, there are a number of factors that look set to reduce growth. But for now, with stock low and demand high, interest rates remaining at record lows and pent-up pressure ready to release from lockdowns, it’s very much a seller’s market right now.

Article Source: www.openagent.com.au

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Brisbane

The Fernery, Brisbane apartments in Ferny Grove, hit 70% sold

The Fernery comprises of 82 luxury apartments at 47 Conavalla Street, Ferny Grove, with a resort-style rooftop recreational deck for residents

The $140 project, Ferny Grove Central, in Brisbane’s north-west has seen 70% of its apartments sold two months after its construction began.

The Fernery comprises of 82 apartments featuring 1, 2 and 3 bedroom apartments in the low rise project.

Some 85% of the buyers come from surrounding suburbs through Colliers since the April launch.

Some 70% of the sales have been to owner-occupiers. For investors, based on an appraisal by local agents, the yield is likely to be circa 5%.

The Fernery

The Fernery 47 Conavalla Street, Ferny Grove QLD 4055 

Apartments prices at The Fernery start from $349,000.

There will be a resort-style rooftop recreational deck with 15-metre pool set among landscaped sub-tropical surrounds.

The Fernery is a joint venture project by Honeycombes Property Group and MaxCap Group.

The Fernery is the residential centrepiece of Ferny Grove Central, the $140 million landmark urban renewal project, which has been almost eight years in the making.

It will transform the northern Brisbane suburb with a new Transit Oriented Development (TOD) which combines apartment living, a major retail centre and an entertainment precinct .

Its construction contract is with builder Broad Construction, a subsidiary of CPB Contractors, part of the ASX-listed CIMIC Group.

Peter Honeycombe is managing director of Honeycombes Property Group, which has over 25 years had more than $1.5 billion in projects that are either completed or under construction.

More than 800 full time jobs are being supported by the development, including about 285 jobs directly tied to the construction project.

Construction of Ferny Grove Central is expected to take 28 months with completion set for late-2023.

The most high-profile example of Honeycombes’ urban redevelopment projects is the award-winning Coorparoo Square, a $252 million urban renewal development completed in 2018.

With property projects at the fore, MaxCap Group has invested more than $10bn across more than 370 loans since inception in 2007.

 

Article Source: www.urban.com.au

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Brisbane

House Prices Still Soaring Despite Lockdowns

House Prices

Home values are still rising at their fastest pace in more than 30 years despite lockdowns in Australia’s two biggest cities and the foot coming off the pedal over the past six months.

They jumped another 1.5 per cent in September, bringing the total increase for the first nine months of the year to 17.6 per cent, according to Corelogic.

Nationally, home values have soared by 20.3 per cent over the past 12 months to a median of $676,848, which is up $8334 from last month.

The annual growth rate is now tracking at its fastest pace since the year ending June 1989.

But while the market conditions remain positive, the monthly growth rate is continuing to lose steam and ease back from its peak of 2.8 per cent in March.

Corelogic research director Tim Lawless said worsening affordability—with increasingly higher barriers to entry for non-homeowners and fewer government incentives—was slowly putting the brakes on growth rates.

“With housing values rising substantially faster than household incomes, raising a deposit has become more challenging for most cohorts of the market, especially first home buyers,” he said.

Lawless said a prime example was Sydney, where the median house value at just over $1.3 million now means the typical buyer needs around $262,300 for a 20 per cent deposit.

“The slowdown in first home buyers can be seen in the lending data, where the number of owner-occupier first home buyer loans has fallen by -20.5 per cent between January and July,” he said.

“Over the same period, the number of first home buyers taking out an investment housing loan has increased, albeit from a low base, by 45%, suggesting more first home buyers are choosing to ‘rent vest’ as a way of getting their foot in the door.”

September house prices: Corelogic

House Prices

Corlelogic’s research indicates the monthly change in house values remains positive across all capital cities with Hobart (2.3 per cent) and Canberra (2 per cent) notching up the largest growth, while Darwin (0.1 per cent) and Perth (0.3 per cent) recorded the softest growth.

Generally, house values are still rising faster than unit values with the exception of Hobart and Darwin, where unit values have risen 5.4 percentage points and 4.8 percentage points more than house values, respectively, during the past 12 months.

Across regional Australia, however, unit values rose faster than house values in the September quarter.

“This is probably a reflection of stronger demand for downsizing options and holiday homes in popular coastal markets,” Lawless said.

AMP Capital chief economist Shane Oliver said ultra-low mortgage rates, an ongoing relatively low level of homes for sale along with a resumption of economic and jobs market recovery once lockdowns end, pointed to further home price increases ahead, albeit at a slowing rate.

“A surge in listings once lockdowns end could act as a bit of a dampener on price growth,” he said. “But this looks to be more of an issue in Melbourne where listings have fallen sharply in recent weeks and where economic uncertainty is greater, but less so in Sydney where listings have already been increasing.”

 

Article Source: www.theurbandeveloper.com

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