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Coronavirus pandemic to slug Queensland’s property prices, industry figures say

Coronavirus pandemic to slug Queensland's property prices, industry figures say

For Queensland mortgage broker and property consultant Carolyn Walshe, it is not a matter of if, or when, the coronavirus will hit property prices, but by how much and for how long.

“You’d have to expect that they’re going to fall,” Ms Walshe said.

“The question is going to be just exactly how much — I think the smartest thing that people can do right now is just to hold back and wait and see what happens over the next few months.”

The latest figures show Queensland reached record median house prices for Brisbane, Noosa and other parts of the state in the last quarter of 2019.

Real Estate Institute of Queensland (REIQ) chief executive Antonia Mercorella agreed that COVID-19 would put a dent in that.

“Inevitably we will see the property market impacted by the coronavirus — I think it would be incredibly naive to think otherwise,” Ms Mercorella said.

“We know that a large volume of people will lose their jobs during this time.

“We know that it will completely erode confidence and those things — security and confidence — are very much key to the property market.”

Last night, Prime Minister Scott Morrison included the property sector in the latest moves to limit social interaction.

“Real estate auctions and open house inspections, in particular open house inspections — that cannot continue,” Mr Morrison said.

He said that from midnight tonight they would not be allowed.

Lenders, investors cannot foresee what’s to come

Ms Walshe, who also advised clients through the global financial crisis — suggested the forced shutdowns of parts of the economy, the restrictions on travel and the massive queues for Centrelink all added to the uncertainty.

“The list of instructions that people have to live under is breathtaking, so until we see some endpoint to all of that, it’s going to be very, very difficult to see exactly where the other side is,” Ms Walshe said.

Ms Walshe said the fact the Federal Government had moved the budget from May to October showed neither it nor investors, could foresee what was to come with any certainty.

“I don’t think anyone can have a lot of confidence at the moment until we see things that are far less alarming,” Ms Walshe said.

“Therefore, less property sales will complete until we have some confidence returned to the market and people are back at whatever semblance of normal work is.”

She said banks would be reluctant to lend, as people’s ability to repay loans also looked uncertain.

“Lenders are now going to be seriously looking at [the] possibility of there being lower numbers of borrowers who are in occupations where their income can be absolutely guaranteed,” Ms Walshe said.

Ms Mercorella said while some investors would be reluctant, others might pounce.

“We will see some investors perhaps getting cold feet and making a decision to suspend that,” Ms Mercorella said.

“But similarly, we will see some prospective investors being quite bullish about it and actually looking at this as an opportunity and probably pouncing on what’s available to try and secure a property at a better price, at a lower price.”

Coronavirus pandemic to slug Queensland's property prices, industry figures say (1)

Renters and landlords also to come under strain

Ms Mercorella said the REIQ’s immediate concern was tenants facing eviction for not being able to make their rent.

“Around 35 per cent of the Queensland population rents,” she said.

“The vast majority of that supply comes via the private investor, so given the predicted job losses, we are concerned about the impact that will have on a tenants ability to make their rent obligations.

“We don’t want to see renters being evicted on account of non-payment.”

She said the REIQ welcomed any support governments could give to tenants.

“Equally, what we need to be cognisant of is that the vast majority of that rental supply is coming from private investors — mum and dad investors — and they will have their own obligations at the other end to the bank.” Ms Mercorella said.

“So the challenge will be how we protect tenants in this in this environment, but also supporting owners who ultimately — if they don’t meet those obligations — will end up defaulting on mortgages, and ultimately having to sell those properties and losing those properties, which will mean that we all lose.”

Coronavirus pandemic to slug Queensland's property prices, industry figures say (2)

Ms Mercorella said there was hope the property market would recover relatively quickly.

She said the Queensland market was robust and recovered well from the global financial crisis.

“Again, we bounced back from the GFC rather well, but I but I do expect that this will be far more severe than that,” she said.

“It will also depend on how long we’re in the situation for, so it really is crystal ball gazing at this stage.”

 

 

 

 

This article is republished from www.abc.net.au under a Creative Commons license. Read the original article.

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Brisbane

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs
These townhome developments have been strikingly well-received, with each selling out of their initial releases quick smart.

Whether in a Gold Coast development hub or a blue-chip Brisbane suburb, these projects offer homes for the downsizer to young professional, and everyone in between.

ONE Bulimba Riverfront 

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (2)

Homes in this luxury development in the blue-chip inner-city Brisbane suburb of Bulimba have been snapped up, with only one townhouse and some apartments left for sale.

The riverside project sits in a highly sought-after location, offering river and city views with a northerly aspect and plenty of surrounding amenities.

“We’ve got everything on our doorstep,” said managing director of Velocity Property Group Brendon Ansell.

“We’ve got the massive Barracks development, we’ve got Hamilton Northshore across the river, we’re a couple hundred metres from the CityCat, and it’s a lovely quiet suburban street, so it ticks all the boxes.”

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (3)

The remaining townhome occupies three storeys, with four bedrooms, four and a half bathrooms, and an internal lift.

The 385-square-metre property also features large balconies overlooking leafy Bulimba, two secure parking spaces and a lap pool overlooking the river.

Mr Ansell said because the Velocity Property Group preferred not to mix products pitched at investors with those for owner-occupiers, space and luxury were integral to ONE Bulimba’s design.

“We’ve got most aspects of the project pretty right; the design, the size, the storage, the price point all hit that sweet spot,” he said.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (4)

“We’re probably the best value riverfront project in Brisbane at the moment.”

The development has so far attracted an exclusive downsizer market, content to move from houses to the spacious townhomes.

Mr Ansell said ONE Bulimba’s exclusivity was a major selling point.

“Our buyers are very much of a similar nature and we’ve created a community of like-minded people,” he said.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (5)

We won’t compromise on that. We are holding firm on our pricing and maintaining that luxury aspect, so that gives them the comfort moving forward that it will hold its value and grow well over time, as well as being a beautiful place to live.”

ONE Bulimba is located at 1/39 Byron Street, Bulimba, Queensland.

A display apartment is available on site.

Vue Terraces

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (6)

In the established regional centre of Robina on Queensland’s Gold Coast, Vue Terraces offers sleek, modern terraced homes.

The staged development has already sold out of all its stock for stages one and two and is currently selling stage three, with stage four to be completed by July.

Each townhome features three bedrooms and two and a half bathrooms across two storeys, with a double garage beneath.

The project also offers amenities exclusive to residents, including a central entertainment area with an in-ground pool, multiple barbecue spots, recreation and leisure spaces, and outdoor showers and change rooms.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (7)

Vue is within walking distance of a host of local amenities, including retail and leisure hub Robina Town Centre, Robina Hospital and medical precinct, Bond University Institute of Health and Sport, and Robina train station and bus exchange.

Nearby are a number of schools, including Somerset College and All Saints Anglican School, Bond University and, of course, the spectacular Burleigh Heads beach.

The site is also well connected to Brisbane and beyond via bus, rail and arterial roads and motorways.

Adjacent to the development is Robina City Parklands, a 22-hectare green space undergoing a substantial $15 million makeover by Gold Coast City Council into the Gold Coast’s “Central Park”.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (8)

Development manager at Robina Group Darrell Irwin said the homes appealed to a “cross-section” of demographics.

“We do have young couples, we do have retirees, and families, so there’s no specific sector of the market we’re targeting,” he said.

“We commenced the project in 2018 and commenced construction later that year, and to date we have sold and settled approximately 150 of the terraced homes, and we’ve got numerous more under contract settling at the moment.”

The development has attracted considerable interest, with many of the homes already sold.

“There’s no other terraced home projects within the CBD of Robina, so in terms of a brand new product in close proximity to all those services, it’s the only offering that the market has,” Mr Irwin said.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (9)

“In terms of townhouse product, larger 170 or 180-square-metre dwellings, there’s a limited supply in central Gold Coast.”

Townhomes at Vue Terrace start from $629,000.

The development is located at 1 East Lane, Robina, Queensland.

Minnippi Quarter

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (10)

This $121-million master-planned community set in Brisbane’s east offers the rare opportunity to purchase freehold land, along with architecturally-designed terraced homes.

The project will offer 172 townhomes, ranging from two to four bedrooms, along with 20 freehold blocks, ranging from 360 to 602 square metres in size.

Located in Carina, eight kilometres from the CBD, the 5.2-hectare site is framed by greenery as it borders the 90-hectare Minnippi Parklands.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (11)

The development’s name is a nod to its emphasis on green space, with a quarter of the site, including a 6000-square-metre private park, dedicated to recreational natural environments.

Minnippi Quarter is also home to an array of residents’ amenities, including an on-site community hub with private dining and co-working spaces, a 25-metre infinity lap pool, a gym overlooking green space, an entertaining pavilion with barbecue and lounge space, and even an on-site dog and car wash facility.

Most of the freehold lots have been snapped up, and sales have now opened for the second of four townhouse releases.

General manager for Queensland at Frasers Property Australia Scott Ullman said the development’s commitment to green space set it apart.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (12)

“This is far from a normal in-fill townhouse development,” he said.

“It’s got some really unique features in and around the quarter of the site that’s maintained as green open space, and that’s really hard to come by.

“There’s a lot of green space, outdoor recreation opportunities but, in addition to that, it’s obviously well located to transport, local sporting clubs, Westfield Carindale just down the road, and only about eight kilometres to the city.”

He said an enthusiastic market response demonstrated buyers’ keenness for outdoor space in developments.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (13)

“[The green quarter] is unique and the market’s obviously recognising that,” he said.

“Obviously the sales success that we’ve been experiencing right through this period has reflected the market’s desire and acceptance of that.”

Prices for townhouses range from $485,000 for a two-bedroom home to $725,000 for a four-bedroom home, overlooking open space.

Townhouse developments snapped up quickly in desirable south-east Queensland suburbs (14)

Minnippi Quarter is located at 193 Fursden Road, Carina, Queensland.

An on-site sales and display centre is open Mondays to Wednesday and weekends.

 

 

 

This article is republished from www.domain.com.au under a Creative Commons license. Read the original article.

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Brisbane

‘Absolutely inundated’: Lack of stock drives Queensland interest

‘Absolutely inundated’ Lack of stock drives Queensland interest

As open-home restrictions begin to lift, a Brisbane agency has reported huge interest from first home buyers clamouring to get onto the property ladder despite COVID-19.

Coronis Agency has reported that it had more than 80 potential buyers attend the first scheduled open home of an Archerfield property.

The three-bedroom, two-bathroom property only hit the market last Thursday and received more than 56 phone and email enquiries within 48 hours.

Director Anthony Hunt said the agency was “absolutely inundated with buyer enquiries within 30 minutes of the property going live, with many buyers asking to schedule a private inspection on the Thursday night or Friday as they were eager to beat the rush on Saturday”.

“In the end, I opened the property up on Friday afternoon and had nine groups of buyers turn up purely from responding to their calls and emails,” he explained.

He added that at the Saturday open home, which was the first advertised inspection, “it took more than an hour to get everyone through the property due to the social distancing restrictions, but on the whole, everyone was really understanding and willing to wait their turn”.

Mr Hunt said the general feedback he received from most parties is that “they want to buy something right now, despite everything going on with COVID-19”.

“Many of them are first home buyers with pre-approval who are looking to get their foot on the property ladder and aren’t fazed about going out in public to attend open homes,” he said.

The director believes that what they’re more concerned about is the lack of properties to choose from and how quickly properties are selling at the moment.

By Saturday afternoon, Mr Hunt said he had received four offers and it was under contract by Saturday night for a price that exceeded the seller’s expectations, “so they’re very happy”.

While 140 Granard Road was “beautifully presented”, the agent expressed the opinion that the main reason it was so popular with buyers was because it offered “great value for money in a suburb only 15km from Brisbane CBD”.

He iterated that buyers are willing to look outside of their desired suburb to purchase the right property.

His message to those who are considering holding off on selling? Don’t wait.

“In the past week, the Coronis sales team has received more than 1,000 buyer enquiries, and from that, 550-plus groups attended an open home on the weekend, so there is no doubt about it — buyers have a strong appetite to purchase now, they just need more options to choose from,” he concluded.

 

 

 

This article is republished from www.smartpropertyinvestment.com.au under a Creative Commons license. Read the original article.

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Brisbane

Rio’s New Digs Hit High Point

Rio’s New Digs Hit High Point

Hutchinson Builders has topped out the “first-of-its-kind” full merging of two separate commercial buildings in Brisbane’s $700 million Midtown Centre.

Mining giant Rio Tinto signed a 10-year lease deal in 2019 on the 27-storey, Fender Katsalidis-designed tower, developed by AM Brisbane CBD Investment, a joint venture between wealth manager Ashe Morgan and developer David Mann’s DMann Corporation.

The project involves the $175 million connection and refurbishment of the former Health and Forestry Buildings located at 155 Charlotte Street and 150 Mary Street—acquired in 2017 for $66 million—into a cross-block hub comprising a commercial tower, with a public laneway connecting both streets.

Rather than using the conventional method of joining the existing 20-storey buildings by a skybridge, the buildings have been merged from top to bottom using a base podium and exterior, to provide large campus-style 2,500sq m floor plates.

The infill is locked in by a new level 20 slab supporting an additional six levels above, to form the single 26-storey tower currently being constructed by Hutchinson Builders—who, like other “essential services” have continued work while adapting to Covid-19 social distancing measures.

Fender Katsalidis director Mark Curzon said the infill completion is a huge accomplishment in terms of commercial design outcomes, adaptive reuse and sustainability in Australia.

“Through good design, we have given new life to the buildings in a somewhat unconventional but highly innovative and technically considered manner.

“We’re leading the way for more environmentally-friendly adaptive reuse while meeting commercial objectives in creating large floorplates that would otherwise be unattainable in this CBD location,” Curzon said.

Compared with a demolish and rebuild scenario, Midtown Centre’s infill achieves a claimed 231 per cent cumulative impact reduction across all environmental indicators, including a 37 per cent carbon dioxide reduction compared to a new build.

Rio’s New Digs Hit High Point (2)

Curzon said that although the successful merging of the structures in the Midtown development rests partly on the fact that the two buildings’ original designs mirror each other, the technique was transferable.

“The infill has afforded significant environmental savings, adding to the viability of this technique and its potential to be implemented across other buildings that sit side-by-side.”

Fender Katsalidis principal James Mills said the project sets a new standard for the repurposing of buildings.

“Despite nothing of this scale or nature taking place in Australia previously, we have found a way to add value to the site through a cutting-edge architectural process that is exemplar for Brisbane and beyond.

“Our work at Midtown Centre is focused on bringing the buildings in line with today’s needs, increasing net lettable area and producing environmental sustainability through the design of commercial assets,” Mills said.

Rio’s New Digs Hit High Point (3)

Even before coronavirus created the new normal of social distancing, which in turn is set to have transformative impact on office design—Ashe Morgan chairman Michael Moss predicted the “customised office solution” prescribed for Rio Tinto would “create a benchmark for workplaces of the future”.

The centre features a level 20 “sky garden”, landscaped garden terrace atop the podium and “green seam” encasing the tower along with landscaped areas across the development totalling in excess of 3,000sq m.

With the Midtown centre slated for completion in mid-2020, the next phase of construction involves the addition of six levels to create a single tower from the new level 20 slab.

 

 

 

This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.

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