Brisbane’s residential real estate sector performs relatively steadily throughout its price cycle, avoiding dramatic dips, swings, peaks and fluctuations, according to the latest report from valuation firm Herron Todd White.
“Long-term property owners tend to do fairly well as long as their asset selection is on the mark,” the March report found.
“There is also a fairly typical range of buyer types. Our first home owners are motivated by affordability and getting the most bang for their buck. Their tick list will obviously be driven by location, but they’re also keen to find decent size allotments, potential for renovation, proximity to amenities and easy access to the CBD or a wellestablished lifestyle hub,” the report continued.
“While many of our first home buyers would no doubt like to buy within the five-kilometre radius, their price point usually means a balance between location and property type and quality. As such, there are those able to cope with a second-hand unit in a prime near-city position, while others will seek a newer home on a larger lot in a suburb a bit further out.”
“Both options could appeal to first home buyers at a similar price point Of note also is that first home buyers are becoming more prominent in our market.”
“The $15,000 state government first home buyer grant (which is limited to new property) and federal government deposit scheme are helping to boost their numbers. Add to that low interest rates as a motivation to getting first timers on the property ladder.”
Conversely, upgraders in Brisbane are looking to draw on increased value in their existing homes to secure better-quality accommodation in their location of choice.
“Their desired suburb will probably be dictated by their households needs. Young professional couples might look to move out of units and head towards a detached home with some renovation potential so there’s opportunity to build fast equity.”
Upgraders are mostly looking for the advantage of more space or larger yards and hopefully improved location compared to their first home – While upgraders will reside anywhere from outer suburbs through to near CBD depending on the budget, many find themselves in mid-range suburbs with easy access to the city.
“Family buyers could almost be considered an advanced subset of upgraders. These buyers are typically driven to certain properties by school catchments, proximity to public transport, parks, amenities and lifestyle amenities.”
“While many family buyers might want to look for renovation potential, there are plenty who are motivated to acquire something ready to live in so as not to tie up their weekends doing upgrade work.”
Brisbane downsizers and empty nesters are looking for low-maintenance homes with lock-and-leave potential to allow for trips out of town – a smaller detached dwelling of good quality and with a low maintenance yard, the report found.
“We are also seeing ever increasing numbers seeking accommodation in high-end units of minimum two (even three) bedrooms. They like the security while still having space for the kids and grandkids to stay. Downsizer locations vary from the CBD through to the bayside suburbs.”
Downsizers are also drawn to large apartments in suburban nodes within close proximity of shopping centres, amenities and hospitals.
The final buyer group highlighted in the report is the business professional – These buyers want to be close to the CBD or suburban nodes so their commute is short.
“Again, low maintenance is a priority as is public transport and lifestyle facilities. It’s suspected that these buyer numbers may well increase from the interstate migrant cohort coming to Brisbane chasing a better lifestyle than in Sydney or Melbourne,” the report found.
“The above list is, of course, not exhaustive. We are seeing a societal demographic shift with the rise of single-person households, multi-generational homes, single-parent families and share ownership among friends.”
“It’s envisaged that these varying household makeups will spur innovative and thoughtful design changes that will become more common over the next few years,” the report concluded.
This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.
Brisbane and QLD property market update – December 2020
If there is a defining theme for the Brisbane market over 2020 it has been it’s resilience in the face of a pandemic which has put a halt to interstate and international tourist arrivals for much of the year.
This has not stopped housing values in the city reaching new record highs, with property analysts agreeing that the city, as well as parts of south east Queensland, are on a trajectory of strong growth into 2021. This is against a backdrop of rising values across the major capitals, as the national home value index rose +1.0 per cent in December; the third consecutive month where dwelling values have grown.
Nationally the residential real estate market has proved remarkably resilient, despite a wobble between March and September when COVID protocols interrupted the market – but overall property prices have held steady.
This is largely due to three factors, including the relative success Australia has had controlling the virus, record low interest rates and the government stimulus that has supported businesses and individuals throughout much of the pandemic.
Now let’s take a look at the Brisbane market and how it has performed over December.
Brisbane dwellings continued their steady, determined progress advancing +1.1 per cent over December, for a median price of $521,686. This brings the Queensland capital up +2.1 per cent for the quarter and +3.6 per cent for the year. This places it in the middle of the pack for the major capitals, a position – characterised by a steady and less volatile growth trajectory.
CoreLogic data reports that houses continue to outperform units across the city, advancing +2.1 per cent over December. Property investor and commentator Michael Yardney identifies Queenslanders’ preference for houses over units as the main reasons for this trend.
CoreLogic data reports that houses continue to outperform units across the city, advancing +2.1 per cent over December
If you are looking for suburb specific highlights CoreLogic’s Best of the Best Report 2020 identified Teneriffe (inner city Brisbane) as the Queensland suburb with the highest median house value of $1,859,323.
Michael Yardney points out that, “…in recent months houses in Brisbane have enjoyed improved demand and the number of transactions in the Brisbane housing market are higher than they were pre-Coronavirus.”
He goes on to clarify that property markets within any city are inherently fragmented, and his data shows that, “…freestanding Brisbane houses within 5-7 km of the CBD or in good school catchment zones have grown in value strongly.”
CoreLogic data appears to confirm this, with dwellings in the upper quartile up +1.25 per cent over December. Yardney cautions against investing in certain segments of the Brisbane market which have underperformed, including high-rise apartments, new and off the plan apartments and new housing estates in blue-collar areas.
Like many other regional markets, high demand for property in specific Queensland hotspots like the Sunshine Coast has driven the market up +6.9 per cent over 2020. Contrast this with Brisbane metro’s growth of +3.6 per cent over the same timeframe for some perspective.
Houses dominate sales in most regional markets, and they are posting solid growth here, up +1.5 per cent over December, while units grew a respectable +1.0 per cent over the month.
Sunshine Beach on the Sunshine Coast recorded the highest growth for houses up +27.6 per cent over the year. For units, Noosa Heads has the highest median values at $898,838, while Currumbin on the Gold Coast posted the highest growth over the year advancing +24.0 per cent.
According to property forecasters Hotspotting other regional postcodes showing promise for the 2021, include Mackay, Rockhampton, Gladstone and Townsville – with a recovery in resources behind some of these locations. Toowoomba is also showing promise as new infrastructure projects stimulate the local economy.
Sunshine Beach on the Sunshine Coast recorded the highest growth for houses up +27.6 per cent over the year
Queensland rental market update
Overall Brisbane house rentals have held steady, with a drop in asking rents mainly impacting the inner-city apartment market. According to the SQM, Brisbane’s gross rental yield for houses is currently around 4.0 per cent and for units is around 5.2 per cent.
CoreLogic data indicates that West Gladstone is the Queensland postcode with the biggest change in rents over the year, up +17.4 per cent; while Mackay/Isaac/Whitsundays has the best rental yield of +14.6 per cent.
CoreLogic data indicates that West Gladstone is the Queensland postcode with the biggest change in rents over the year, up +17.4 per cent
The holiday rental market in many regional locations has been impacted by the COVID flight from cities, with rental vacancy rates in some coastal locations close to zero. CoreLogic data shows that the Gold Coast had a vacancy rate of 1.9 per cent in December ‘19, which dropped to 0.2 per cent in December ‘20. It is a similar story on the Sunshine Coast (1.9 per cent vs 0.1 per cent) and Noosa (1.8 per cent vs 0.2 per cent) over the same timeframe.
The outlook for 2021
Overall the medium/long term outlook is positive for Brisbane, with Westpac forecasting that property values could increase +20 per cent in 2022-23.
Realestate.com.au Chief Economist Nerida Conisbee believes that if low interest rates, government incentives for buyers and the Australian economy continues to reopen, ‘prospects for home sellers in 2021 are positive.’
Michael Yardney believes that property markets will perform strongly in 2021 and 2022 based on the removal of overly restrictive lending rules, the job-friendly Federal budget, and the prospect of no interest rate rises for at least 3 years.
CoreLogic’s Tim Lawless sounds a word of caution, warning that any fresh COVID outbreaks, ‘…would set back the economic recovery and have a negative, although temporary impact on housing markets.’
Article Source: www.openagent.com.au
New apartment developments pop up in prime locations in Brisbane, Gold Coast, Sunshine Coast
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
First home buyers flood back into market on low rates, rising 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.
“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
- Property Management6 years ago
7 Common GST Mistakes On Property
- Residential4 years ago
Ipswich Proves Frontier In Affordable Housing
- Infrastructure3 years ago
Decision on horizon for key marina section of huge North Harbour development at Burpengary
- Market Place3 years ago
How to make $1 million ‘flipping’ houses
- Developments3 years ago
Brisbane and interstate investors drawn to up-and-coming King Street precinct
- Market Place3 years ago
Moreton Bay makes top 10 list of places to invest in property
- Brisbane2 years ago
Queensland leads the way in market recovery
- Developments4 years ago
Caboolture West could be Australia’s next major regional centre