A leading real estate commentator has conceded that high growth predictions for one state have been overstated, warning of the possibility of oversupply dragging the market down.
CoreLogic RP Data research analyst Cameron Kusher has poured cold water on hopes the 2018 Commonwealth Games on the Gold Coast would trigger significant price growth in south-east Queensland, saying predictions of strong capital growth in the region have been overhyped.
“Well you probably could say it has been overhyped, given us and a lot of other people have been predicting that there’d be pretty strong price growth for the last few years,” Mr Kusher said in an interview with Sterling Publishing.
“We haven’t really been seeing the value growth that a lot of people were expecting.”
Mr Kusher said the upcoming Commonwealth Games were unlikely to have an impact on market activity further afield, and may even increase the risk of oversupply in a city prone to boom and bust cycles.
“I think the Commonwealth Games don’t really have much of an impact outside of anything other than the Gold Coast, I don’t think that’s why we’re seeing a lot of new unit construction in Brisbane – I think that’s related to other factors.”
“Certainly I think over the next 26 months we’re going to see quite a lot of new supply coming onto the Gold Coast market. We’re already seeing a lot of new unit approvals again, so obviously I think for the last seven or eight years there hasn’t been a lot of new development, so it’s probably time for some new development.”
However, Mr Kusher said there were concerns of “too much” development on the Gold Coast, and there could be more supply than demand after the Commonwealth Games.
It’s not all bad news for investors who have purchased in the south-east Queensland region.
Capital growth may have been underwhelming over the last couple of years, but an improving jobs market and changing international economies may provide a slight boost in the coming year, according to Mr Kusher.
“I think the big thing that’s been missing from the south-east corner of Queensland is the job creation. If you have a look after the last twelve months there’s actually been some fairly steady job creation compared to what we’ve been seeing beforehand and particularly full-time employment. The other thing that will obviously help south-east Queensland is the lower Australian dollar. Fewer people from Australia theoretically will holiday overseas and more people from overseas will come and holiday in Australia so that should help the south-east corner.”
“The market continues to, I guess we could say, move a little sideways. [There’s] no real momentum for price growth and I think it’s just a lack of enthusiasm, particularly amongst the lower-priced areas out in Brisbane, out to the west and the north and down to the south of the Brisbane area,” Dr Wilson said, referring to Brisbane’s poor annual price growth performance compared to other capital cities.
“I think that’s again an under-performance by the local economy which is keeping concerns over job security and unemployment, and keeping confidence subdued. There are still high listing numbers in those outer suburbs of Brisbane.”
Why Hope Island is attracting every kind of buyer
The best representation and offering of Hope Island living is the standout Hope Island Resort gated community, of which the Peninsula Collection represent the last apartments on offer
Hope Island, despite not being named after hope but instead colonial aristocrat Captain Louis Hope, remains one of Queensland’s premier living and holiday destinations.
Hope Island is attracting every kind of buyer, from young families who are attracting to the local schools, to downsizers and retirees who want to live the lifestyle that Hope Island offers.
Investors, as well as first home buyers, have been interested given the price point of the apartments on the island in comparison to the houses, which have fetched upwards of $10 million in recent years.
Infrastructure is already well in place on the Island, with marina shopping and dining precincts, medical facilities, and three 18-hole golf courses. The Links Golf Club in particular is recognised internationally for its 18-hole championship design and multi-million dollar clubhouse.
Some other activities on offer include the nearby tennis centre, theme parks and diving attractions.
Hope Island also plays host to a bustling nightlife with some highlights being Georges Paragon, Boardwalk Tavern and The Verandah Bar.
New property on Hope Island however is becoming increasingly scarce, with only a limited amount of land left to be developed.
There’s been huge demand due to the lack of supply for Peninsula Collection, the last stage of the The Peninsula Hope Island, a development by the ASF Group.
They’ve seen everything snapped up, from the blocks of waterfront land on offer, to a variety of townhouses.
Peninsula Collection is the last piece for ASF, comprising just 63 apartments designed by Archidiom.
The three-bedroom apartments, which have nearly 120 sqm of living space, start from just $565,000. The three-bedroom apartments rise to $780,000 for the 133 sqm apartments, which also include a study room.
The biggest apartments on offer, with five bedrooms and four bathrooms, have nearly 180 sqm of living area and start from $1.28 million.
A limited number of the 5-bedroom apartments include a dual-key access option and many of the three-bedders come with a study integrated into the floorplan.
Completion is forecast for 2023, with construction set to begin in a few months.
Residents will also have access to The Peninsula BBQ area and waterside gazebo beyond the Hope Island Resort offerings like a fitness centre and swimming pool.
Article Source: www.urban.com.au
Why investors snap up apartments in Aria Property Group’s Brisbane apartment developments
Aria Property Group have pushed the envelope not only on sustainability but value at their newest tower, Trellis in South Brisbane
Aria Property Group always have a steady stream of interest from off the plan investors in their Brisbane apartment developments.
Investors who bought in to one of Aria’s most recently completed developments, The Standard, Aria, located in the heart of the Fish Lane arts precinct, saw great success.
Those who bought pre-completion have secured resales between 10 per cent and 38 per cent more than what they paid. Owner-occupiers showed the greatest keenness on the resales.
The investors who decided to hold on to their apartments are seeing strong 5.48 per cent rental yields throughout the building.
Aria’s latest development, Trellis, also in South Brisbane, is also expected to be a hit with investors.
The 12-story building with 110 apartments is Aria’s most sustainable yet, with 60 percent of the building covered in greenery of some variety. It will feature trellises within which improve biodiversity, as well as solar technology and even Tesla batteries and charging stations.
There’s over 1,000 sqm of recreational amenity space, including the Temple of Wellness on the ground floor and the Residents’ Rooftop Club on level 13. That features magnesium baths and an infinity pool with views across Brisbane. Amenity is also high on the priority list for tenants.
Apartments in Trellis start from $739,000 for a two-bedroom, two-bathroom apartment. Three-bedroom apartments are priced from $1,084,000 to $1,224,000.
Completion is forecast for mid-2023.
The Brisbane apartment market has continued to show strength over 2021, after a resilient 2020 in the wake of the pandemic.
Research from property data firm CoreLogic showed Brisbane apartment values rose 0.6 per cent over September, triple the growth of apartments in Melbourne.
At the end of 2020, the median apartment value in Brisbane was at a yearly high of $390,000. Now it’s $430,000.
Unit rental prices have also seen steady growth in 2021, up 3.5 per cent over the past 12 months.
This growth trend is expected to continue, backed in large part by billions of dollars in investment from both private and public sectors as part of the pipeline for the 2032 Olympics.
Article Source: www.urban.com.au
Why the rise of the Sunshine Coast’s prestige market is only just beginning
Once a humble home for barefoot surfers and retirees seeking sand in their golden years, the Sunshine Coast is now one of Australia’s most prized playgrounds for prestige buyers, with property prices swelling by up to 46 per cent in 12 months across its most sought-after postcodes.
Fuelled by exclusivity, driven by development restrictions along the coastline and augmented by the remote working wave – the relaxed region just a couple of hours north of Brisbane is also becoming a mecca for cashed-up tech wizards with nine key suburbs now members of the million-dollar-plus club for median house prices
It’s a region that also obliterated the Queensland house price record with the $34 million sale of a Sunshine Beach trophy home at 17 Webb Road in June this year – a sale that came hot on the heels of the $14 million transaction of 8 Noosa Court, Noosa Heads, a three-bedroom penthouse that eclipsed the previous Sunshine Coast apartment record by $5 million.
Both sales were handled by Tom Offermann, of the eponymous real estate firm.
While the quiet beachside strip still lacks the grandeur of Sydney’s Darling Point or the overwhelming wealth of Melbourne’s Toorak, property experts say the unstoppable wave of buyer demand is paving the way for an unprecedented growth cycle.
“Our buyer base was traditionally wealthy, self-funded retirees, but now we’re seeing this massive influx of young, financially capable families who are picking up properties in A-grade positions, and we’re seeing a lot of younger wealth that’s coming out of IT, finance and tech that’s tapping into new lifestyle opportunities [off the back of COVID-19]. So, we’re right at the beginning,” Adrian Reed of Noosa’s Reed and Co Estate Agents said.
“The abundance of nature, shopping, the beaches and the prestige amenity that is afforded to us is pretty desirable … and it’s all limited stock, so there’s going to be [further] price increases. In fact, we’re probably in what appears to be the early stages of a fairly significant growth cycle.
Article Source: www.domain.com.au
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