Ongoing demand for new houses has shored up the construction pipeline for home builders into 2022, according to new home sales data for last month.
The HIA New Home Sales report showed the number of sales had jumped 15.3 per cent despite the end of the Home Builder program earlier this year.
HIA economist Angela Lillicrap said market confidence and low interest rates were underpinning owner-occupier demand for detached dwellings.
“The strength of new home sales nationally suggests that there will be a significant number of new homes entering the pipeline post-HomeBuilder, which will ensure activity remains elevated into 2022,” Lillicrap said.
“Sales in the June 2021 quarter are below the levels experienced during the nine months of the HomeBuilder program but are stronger than the same quarter in 2019.
“Sales are also on par with the June 2018 quarter, which was a strong year for detached home building.”
Private new house sales: Australia
Lillicrap said strong house price growth was also a contributing factor to the ongoing market confidence.
“This strong volume of sales will continue to pull the national economy forward,” she said.
“New home sales in New South Wales and Western Australia were over a third higher in the June 2021 quarter compared to the same time in 2019.
“Sales in Queensland were 4.4 per cent higher compared to the June 2019 quarter, while Victoria is flat (down by 0.1 per cent).
“South Australia had the strongest response to HomeBuilder, but sales since the end of the program remain lower by 14.4 per cent compared to the June 2019 quarter.”
But a KPMG report on The Impact of Covid on Australia’s Residential Property Market has warned of a “tempering” of property prices over the next two to three years.
The research assessed the impact of Covid-19 on Australia’s property prices and found that house prices were between 4 and 12 per cent higher, and units were up to 13 per cent higher than without the global pandemic.
KPMG chief economist Dr Brendan Rynne wrote the report and said stimulus measures introduced in response to the Covid-19 economic downturn had impacted Australia’s property market bth directly and indirectly.
“While our analysis shows that the decline in mortgage interest rates has contributed to the strong property price increases observed over the past year, there is an expectation that house price growth will moderate in the next few years as mortgage interest rates start to rise and the impact of lower than anticipated population growth starts to bite,” Dr Rynne said.
“Our analysis suggests that the recent spike has moved house prices further away from the estimated equilibrium price levels.
“Our expectation is that this disequilibrium will start to contract … over the next two to three years this will place downward pressure on prices and eventually outweigh the positive impacts on prices of the shorter term factors, which are expected to weaken over time.”
Article Source: www.theurbandeveloper.com
Charter Hall leads the charge with $560m industrial deals
Funds management and development juggernaut Charter Hall has swooped on $560 million worth of industrial properties as it builds its pipeline to service the explosive growth in the ecommerce, data and cold storage sectors.
Defying the pandemic-hit market conditions, it has acquired and settled 17 assets which have lucrative high-quality tenant covenants, with long lease terms ranging up to 16.9 years and located in large industrial precincts with proximity to major infrastructure and metropolitan areas.
Further boosting its $16 billion pipeline, Charter Hall has purchased a number of development sites that come with surplus land for expansion and development. The group has forecast the industrial portfolio will grow beyond $20 billion.
Charter Hall is an ASX-listed $7.75 billion diversified manager that specialises in assets with long leases across the traditional sectors of office, retail and industrial as well as fast-moving consumer foods, pubs, healthcare and childcare.
Charter Hall chief executive David Harrison said the acquisitions build on the group’s strong momentum in acquiring high-quality industrial assets in prime locations across Australia.
“We continue to lead the Australian market in deal volume, and our ability to secure high-quality assets off-market continues to deliver long-term value for the business and superior outcomes for our capital partners and investors,” Mr Harrison said.
Major tenant customers secured with the latest acquisitions include Australia Post, Toll, Border Express, Cleanaway, Zirconia (Iron Mountain) and state government agencies. One large site is the distribution centre in Lytton, Brisbane leased by Kmart.
Charter Hall industrial and logistics chief executive Richard Stacker said with a further $3 billion of investment capacity together with a captive development pipeline, “we would expect our $16 billion industrial portfolio to grow beyond $20 billion over coming years.”
The deals reflect how the country’s commercial property sales moved up a gear in the second quarter, with the industrial sector posting the strongest ever quarterly deal flow, the latest Australia Capital Trends report from Real Capital Analytics (RCA) shows.
Benjamin Martin-Henry, RCA’s head of analytics, Pacific, said quarterly sales of industrial stock outpaced offices and retail properties combined for only the second time since the start of 2020, having never achieved this feat in the previous two decades.
“This record was despite a relatively quiet first quarter for the industrial market. With a hefty deal pipeline of around $2 billion of industrial deals awaiting settlement, 2021 is highly likely to be a record-breaking year for the sector,” Mr Martin-Henry said.
Commercial property sales worth $13.4 billion were closed over the second quarter, up 15 per cent on the same period last year. For the first six months of 2021, volumes reached $21.2 billion, up 11 per cent compared to the same period in 2020.
Together with the Charter Hall deals, Blackstone completed the sale of the Milestone Industrial Portfolio to GIC and ESR for $3.8 billion, while LOGOS, together with partners Australian Super, Ivanhoe Cambridge, TCorp and AXA IM Alts, bought Australia’s largest intermodal logistics facility – Moorebank Logistics Park (MLP) in Sydney – for $1.67 billion from Qube.
Article Source: www.brisbanetimes.com.au
Southport, Gold Coast apartment development site sells for $6 million
Sales activity for high-density-zoned development sites in Southport had been relatively subdued compared to the rest of the Gold Coast market
A Southport, Gold Coast development site – once planned for a 47-level tower – has sold at auction for $6 million.
It was bought by an undisclosed Gold Coast investor.
The 2430sq m site is at 114 Scarborough St, on the corner of Hicks St.
The receivers listing was sold by Colliers International who had five bidders compete.
It fetched above price expectations.
“Sales activity for high-density-zoned development sites in Southport has been relatively subdued this year compared to the rest of the Gold Coast market,” agent Steven King said.
“While sites in southern beachside markets continue to attract record prices, this sale demonstrates that Southport has begun its development site rebound,” he told the local paper.
The vacant site is within Southport’s designated Priority Development Area.
It was reported that a NSW-based company and Chinese investors had previously planned a 47-level apartment/hotel tower.
The DA approval was for a 47 level tower comprising of a 225 bed hotel and 264 (1, 2 and 3 bed) apartments
The site had cost $7.65 million, The Gold Coast Bulletin reported.
The site borders the Gold Coast City Council’s recently proposed “Towers Of Power” government and court precinct, a proposed $300 million development.
Article Source: www.urban.com.au
Mosaic Property Group lodge next Gold Coast apartment development after double Mermaid Beach sell-out
Mosaic Property boss Brook Monahan says the development will set a new benchmark of luxury living for an upmarket boutique building
The South East Queensland developer Mosaic Property Group are set for their next development on the Gold Coast.
It’s going to be their most boutique offering yet, with just nine whole floor apartments planned for the Burleigh Heads dress circle The Esplanade.
It will be located just up the road from their successful 47 apartment development Grace by Mosaic, which sold out in just a few months late last year.
The new apartments at 42 The Esplanade, dubbed The Heads in the submission to the Gold Coast City Council, will be designed by the architecture firm bureau^proberts and will replace the current brick apartment block built over five decades ago.
Mosaic Property boss Brook Monahan says the development will set a new benchmark of luxury living for an upmarket boutique building in Burleigh Heads.
“This is a genuinely world-class, one-of-a-kind address,” Monahan told Urban.
“We are pleased to have the opportunity to create another outstanding address in Burleigh Heads, following the success of our first Burleigh project, Grace by Mosaic, which sold out in a matter of months.
“Our primary goal with 42 The Esplanade is to make it the most desirable, exclusive, and in-demand place to live on the entire beachfront in Burleigh.
Monahan says the the design draws on the areas’ natural beauty.
“The composition boasts honest materiality and elegant form,” Monahan says. It is singular in its execution while remaining authentic within the local context.”
In the design statement, bureau^proberts say the architectural design has a strong focus on subtropical building form, with a lightweight and breathable façade, lush green landscaping that continues from the ground level up and around the building, and an organic floor plate that pays homage to the undulating Burleigh headland.
Mosaic are already fielding enquiry from their VIP, pre-launch access list.
The Heads will feature a ground level pool, dining and lounge area. The apartments start on the ground level, the first complete with a large 130 sqm terrace with outdoor kitchen and landscaping.
Each apartment above will have balconies over 35 sqm.
Mosaic double-down in areas where they’ve seen great success. They had the same idea in the exclusive Mermaid Beach area, further north on the Gold Coast
After seeing success at Bela, Mosaic bought a site a few doors down on Peerless Avenue and created Dawn, which secured 95 per cent of its sales within its first two weeks of its pre-release to their database.
9 storey built form;
• 9 x 3-bedroom dwelling units;
• Two (2) levels of basement car parking with 29 resident spaces and 3 visitor spaces;
• Ample on-site landscaping and deep planting areas sufficient to contain large shade trees and balance the built form elements;
• Generous communal open space on the ground level and large private balconies for each apartment oriented to the beach;
• Pedestrian access directly off The Esplanade frontage; • Vehicle access to First Avenue via the adjoining development site, 4 First Avenue;
• Highly articulated building envelope with large boundary setbacks and separation to maintain residential amenity and privacy;
• Subtropical architectural design focused on enhancing the character of Burleigh Heads
The site at 42 The Esplanade gives new opportunity to acknowledge Burleigh’s beachfront appeal. The tower’s form is sensitive to its site and neighbourhood by responding to the existing Norfolk Pine trees, key aspect views and privacy requirements from its neighbours. The 9, single floor, vertically stacked coastal homes achieve stunning beachfront and headland views by opening the living areas out to the east, with the master bedroom placed prominently to give the residents an unrivalled northern aspect. The glazed envelope is protected down each side with horizontal batten screens which rhythmically move in and out as they rise up the building.
The slab edges move and fold around the building, reaching out to connect its inhabitants with the Esplanades’ parkland, then cutting in to open up views and angle breezes through the interior spaces. The movement of the floor plate is an homage to the undulating outcrops of the nearby headland.
Landscape is employed at the ground level to interact with the street and give space to the existing Norfolk Pine which has been previous been constrained on all edges. This allowance of space is replicated up the building with the southeast corners being cut back to give the tree its breathing space. Vegetation is continued up and around the building, creeping through the screens and with time, will drape and soften the building edges and contribute to the visual and micro-climatic coolth around the tower. As response to the beachfront climate, large outdoor living areas reduce the reliance on indoor conditioning. Breezes are mapped such that openings across and through the plan allow for effective cross ventilation of the interior
Article Source: www.urban.com.au
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