Rental supply has reached crisis point in large areas of Queensland, forcing the real estate industry to call for investor incentives in the upcoming state Budget.
The data from REIQ also shows that the drive to the outer suburbs and regions has created a severe shortage in places like the Gold Coast, Gympie, Rockhampton, Maryborough, Bundaberg, the Southern Downs and the Sunshine Coast.
But it has also forced people back into the CBD, which had been vacated during the worst of the pandemic and had been suffering from low occupancy of office space.
The shortage is understood to have increased rent prices but also meant “rent bidding” has been occurring. This relates to people offering to pay above the advertised price to secure a property.
The Real Estate Institute of Queensland’s Antonia Mercorella said Brisbane’s private rental market had been pushed into unchartered territory by a ‘’pandemic-driven stampede’’ of interstate migrants.
“With no support measures announced for the established housing sector in last year’s State Budget, the REIQ believes the Palaszczuk Government must take immediate action to resolve our current rental crisis,” Mercorella said.
“The State Government say they want to help households transition from community housing to housing in the private rental market.
“Given that, more needs to be done to better support both increased and ongoing property investor activity in the Queensland property market and the contributions they make to the State economy.”
The REIQ wants the First Home Buyers grant expanded to established housing.
While Queensland has a long history of attracting interstate migrants, it picked up during the lockdowns of last year.
ABS data shows that for the year to September 2020, regional Queensland welcomed a net of 14,101 people from interstate, outperforming the number of people arriving to Greater Brisbane of 13,014 over the same period.
The increase has created a real estate boom in many areas of the state with expectations that house prices could increase by as much as 17 per cent Australia-wide this year.
The REIQ said first quarter results for 2021 state rental vacancies showed almost 80 per cent of Queensland’s rental markets remained static or experienced tighter strains on the number of rentals available.
It found 70 per cent of the state’s rental vacancies remain under 1 per cent, with the biggest pinch recorded in Brisbane’s inner city, with rates dropping .5 per cent over the quarter.
“Record-low interest rates, government support and stimulus measures, and the pandemic-driven stampede we’ve witnessed migrating beyond our southern borders have sent Brisbane’s private rental market into uncharted territory, pushing vacancy rates down to their lowest levels since October 2012,” Mercorella said.
“In fact, our capital has seen rental markets across the entire metropolitan tighten quarter-on-quarter for the last four consecutive reporting periods, from Brisbane’s CBD out to the city’s outer rim.”
In the last 12 months, rental vacancies dropped 1.1 per cent across the Brisbane council area while Greater Brisbane saw the market tighten by 0.9 per cent.
She said Brisbane’s CBD achieved an “incredible’’ 4 per cent comeback in rental demand over the year.
The inner city (0-5km) experienced a 1.3 per cent increase and the mid-city region (5-20km) saw a 1 per cent rise.
Some of the tightest vacancies across the capital’s suburban spread include Anstead (0.5 per cent), Birkdale (0.3 per cent), Capalaba (0.2 per cent), Ferny Hills (0.3 per cent), Gumdale (0.4 per cent), Manly West (0.5 per cent), Rothwell (0.2 per cent), Sandgate (0.5 per cent), Shailer Park (0.4 per cent), Thornside (0.3 per cent) and Wakerley (0.4 per cent).
“Where we’re seeing the most pronounced rental demand levels far outstrip available vacancies is across regional Queensland, with the tightest vacancies currently to be found in the Fraser Coast’s Maryborough (0.2 per cent) followed by the Southern Downs (0.3 per cent) and Bundaberg regions (0.5 per cent), while a rate of 0.4 per cent has been recorded across Gympie, Rockhampton and Sunshine Coast,” Mercorella said.
“Meanwhile, the Gold Coast has tightened a further 0.3 per cent to reach a record low of 0.6 per cent in last 15 years of data records.”
While the popular Surfers Paradise precinct remains at 0.8 per cent over the quarter, other areas are unprecedentedly tight with the Gold Coast’s northern suburbs recording a median of 0.7 per cent. The southern suburbs has a median of 0.4 per cent.
The State Government has been approached for comment.
Article Source: inqld.com.au
Residents in one of Australia’s fastest-growing cities are forced to sleep in cars as rental crisis bites
The rental situation in one of Australia’s fastest growing cities is so dire that desperate renters are having to sleep in their cars and in caravan parks.
Rental vacancy rates have plummeted below one per cent in most parts of the Gold Coast – down to below half a per cent in many suburbs – including Burleigh, Arundel, Coolangatta, Coomera and Varsity Lakes.
The rental squeeze is being driven by a range of factors, including Covid refugees coming from Melbourne and Sydney and also returning home from overseas.
The Gold Coast has long had steep population growth but if anything it appears to have increased in recent years and the city’s housing is evidently not coping.
Leading demographer Mark McCrindle said recently population projections keep changing and the city reach a population of one million by 2034 – 16 years earlier than previously expected.
The imbalance between available properties and people who want them is so severe that it is creating an accommodation crisis leading to a homelessness problem in the city many Australians falsely romanticise as a dream place to reboot their lives.
Vicky Rose, manager of the Nerang Neighbourhood Centre, told Daily Mail Australia that 80 per cent of her enquiries are about ‘accommodation stress’, with increased homelessness inevitable.
‘We are saying ‘don’t come here’, unless you have a job and plenty of money behind you,’ she said said.
‘People dream of the sun, surf and sand and yes it’s a great holiday destination, but it’s not a great place to live unless you can afford it.
‘The coast of living is up there with Sydney and Melbourne and people mistakenly assume its going to be cheaper.’
She said shonky landlords are making the situation worse by trying to cash in on the red hot market.
‘There’s a marked marked increase in long terms tenants – average joes – seeing their tenancy ended abruptly because they can’t increase the rent as much as they want.
‘So the owner kicks the tenants out saying they want to renovate, they paint one door and put it back on the market for an extra hundred dollar a week.’
Two property managers Daily Mail Australia spoke to both said the rental market was busier than they’d ever seen it, with applications for properties flooding inboxes.
Misty Kelly, of agency The Blue Door had received 50 enquiries and seven applications within two days of listing a four bedroom house with a pool at Upper Coomera, 26km from Main Beach.
‘There’s a huge demand, not enough properties and that creates a lot of pressure,’ she said.
‘People are sounding desperate.’
‘I’ve been an agent for 15 years and this is nothing like I’ve ever seen before.’
Ms Kelly said because there is more demand than supply, she advises young people not to move out of home because ‘prices are inflated’.
‘They need to let those people really in need get a property and not go homeless.’
Aside from people moving from interstates, she’s also seen people coming home from overseas move into their investment properties.
Carmen Kennedy, of Coomera Realty told the Gold Coast Bulletin people are ‘desperate’.
‘They were just so desperate, staying in cars and sleeping at caravan parks. It’s been pretty tough couple of months for people out there,’ she said.
Both Tallebudgera Creek Tourist Park and Ashmore Palms Holiday Village confirmed to the Daily Mail they had seen increases in people booking in because they couldn’t find a home to rent.
‘I’ve never seen it like this before,’ Carly Stanaway of JW Prestige, told Daily Mail Australia.
‘A lot of people are struggling, they are all applying for same property at once,’ she said.
‘They keep putting in applications getting knocked back, even though they have good applications, it’s just because so many people are applying.’
She was holding two open houses within two days of listing a modest brick semi at 30 Bullimah Avenue, Burleigh Heads, where the rent looks Sydney-like at $750 a week.
The suburb’s vacancy rate is just 0.4.
Article Source: www.dailymail.co.uk
Brisbane Housing Market Insights: May 2021
Brisbane housing market insights for May reveals increased demand for houses and approvals for new units has been underpinned by increasing consumer sentiment and a surge in interstate migration.
This resource, to be updated monthly, will collate and examine the economic levers pushing and pulling Brisbane’s housing market.
Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.
Brisbane’s typically slow-moving property market has continued to rise as part of a once-in-a-decade boom that experts say could fuel a further 10 per cent rise in house prices in the coming year.
Brisbane house prices have soared to record heights for the seventh consecutive quarter, with tight stock levels and strong demand across all demographics increasing competition.
Investors have also made their way back into the market and competition is heating up.
The latest Corelogic home value index shows Brisbane dwelling prices have risen by 1.7 per cent on a rolling four-week basis.
Brisbane house prices advanced a further 1.8 per cent during April, pushing it up 6.2 per cent for the recent quarter and 9.6 per cent for the year to date.
The current median value for dwellings is $558,295 which is $10,000 higher than just a month ago.
^Source: Corelogic Hedonic Home Value Index – April
The resurgence of buyer interest in the Brisbane property market has meant that auction clearance rates have consistently been in the 70 per cent range.
Clearance rates across April notably higher for houses compared to apartments, reflecting broader trends.
Hot spots included Brisbane’s inner city, inner east, inner west and the inner north – where house prices skyrocketed by 13 per cent over the past year to $1.2 million, 13.2 per cent to $1.053 million, 10.4 per cent to $1.17 million and 13.1 per cent to $1.1 million.
Brisbane auction clearance rates
|Week||Clearance rate||Total Auctions|
|Week ending 11 April 2021||80.9%||123|
|Week ending 18 April 2021||72.7%||104|
|Week ending 25 April 2021||76.2%||105|
|Week ending 2 May 2021||76.0%||104|
^Source: Corelogic Auction Clearance Rates – April
Brisbane is experiencing one of the tightest rental markets in a decade on the back of high demand coupled with extremely low supply.
Across April, Brisbane’s rental markets are experienced a tightening of supply, with vacancy rates currently sitting at 1.8 per cent.
Rental returns and yields have significantly increased in Brisbane, with rents soaring from 5 per cent to 15 per cent.
Gross rental yields sit at 4 per cent for houses and 5.2 per cent for units—much higher than other capital cities such as Sydney and Melbourne.
Some of the tightest vacancies across the capital’s suburbs include Anstead (0.5 per cent), Birkdale (0.3 per cent), Capalaba (0.2 per cent), Ferny Hill (0.3 per cent), Gumdale (0.4 per cent), Manly West (0.5 per cent), Rothwell (0.2 per cent), Sandgate (0.5 per cent), Shailer Park (0.4 per cent), Thornside (0.3 per cent) and Wakerley (0.4 per cent).
Brisbane residential rental vacancy rate
|City||April 2021 vacancy rate||Monthly % change|
^Source: SQM Research – April
Rental stock on market
|City||April 2021 vacancies||Vacancy net loss|
^Source: SQM Research – April
Brisbane rent prices
|Type||Rent||Monthly % change||Annual % change|
^Source: SQM Research – April
Brisbane’s housing market has remained particularly unaltered by the closure of international borders, where historically high demand from overseas migrants has been disrupted.
Tight stock levels and strong demand across all demographics have made it incredibly difficult not only to find a property to buy but to also secure something at a reasonable price.
Loan data shows investors have started coming back into a housing market they had largely vacated and the boom is being driven overwhelmingly by established owner occupiers.
Another big part of the demographic buyer base helping drive demand in Brisbane has been first homebuyers.
Brisbane’s proportion of home loans that remained on deferral at the end of March was just 0.7 per cent, indicating a very very low likelihood of distressed selling.
The seasonally adjusted estimate for total dwelling units approved in Queensland in March was 4547, 12.1 per cent up on February’s figures.
Queensland building approvals
^Australian Bureau of Statistics, (Suspension of trend series between May 2020 and Jul 2020 due to Covid-19)
|Dwelling||Approved||Monthly % change|
Queensland home loan lending indicators
|Region||First home buyer loan commitments||First home buyer ratio – dwellings||First home buyer ratio – housing|
^Source: Australian Bureau of Statistics – March
|Region||September (quarter) 2020 arrivals||September (quarter) 2020 departures||September 2020 quarter net|
^Source: Australian Bureau of Statistics – September quarter 2020
Brisbane’s housing market: policy updates
Australia’s central bank will maintain low interest rates to support the country’s ongoing economic recovery and surging housing market, buoyed by its busiest Easter auction market on record.
Strong tailwinds will bolster the Australian economy through the second half of the year, but macro-prudential measures are likely to be introduced to ease house price pressures in 2022.
Queensland faces a “hard road” during the next four years as the state recovers from the coronavirus pandemic, Treasurer Cameron Dick says.
Brisbane housing market forecasts
ANZ economists forecast Brisbane house prices will rise by 9.5 per cent next year, as low interest rates and government stimulus flow through the economy while Commonwealth Bank updated its forecasts, projecting a strong rebound in prices across the second half of 2021.
CBA now expects Brisbane house prices to increase by 16.6 per cent to December 2022 compared to 13.7 per cent in Sydney and 12.4 per cent in Melbourne.
Westpac has also updated its property forecasts, with Brisbane real estate prices tipped to surge 20 per cent between 2022 and 2023.
Article Source: www.theurbandeveloper.com
Gold Coast apartment development insights: What happened on the GC in April?
Urban have wrapped up all the moves across the Gold Coast in April
The Gold Coast apartment market is one of the most active in Australia, as much for developers as it has been for buyers.
From planning documents to approvals and sales successes, Urban have wrapped up all the moves across the Gold Coast in April.
FORME lodge plans for luxury Burleigh Heads development
The latest news came from developer FORME, who lodged plans for a second Koichi Takada-designed boutique residential complex in Burleigh Heads at the end of April.
The 17-level tower of just 30 apartments on the sought after The Esplanade is high-end luxury, with interiors being handled by MIM Design.
Cala Dei sales launched
Having sold out of all of their stock across their whole portfolio, the South East Queensland developer Spyre Group officially launched sales at Cala Dei in Coolangatta.
Cala Dei, which will replace the Komune Resort on Marine Parade, will comprise 31 apartments across its 12 levels designed by bureau^proberts. It will sit in landscaping by CUSP.
The Lacey Group secure approval for The Monroe at Palm Beach
The Gold Coast-based developer Lacey Group have been given the green light by the City of Gold Coast for its $32 million Palm Beach development The Monroe.
The project of 33 apartments and a beach house on the exclusive Jefferson Lane has been designed by Plus Architecture and is located adjacent to the Palm Beach Surf Club.
Lacey Group know the area well, having had success on the same street where they sold out The Jefferson, the $32 million development of 46 apartments.
88 Burleigh sells half its apartments
Allure Property Corporation have secured the sales of over half of their apartments in their boutique apartment development 88 Burleigh within just four weeks of the project launch.
Local and interstate downsizers with an existing connection to Burleigh Heads have been the drivers in the $55 million worth of sales, with the average price point around $2.65 million.
Place Projects agent Bruce Goddard said there were 360 inquiries within the first two weeks of its launch.
Cru Collective secure Kirra Beach site
The Gold Coast developer Cru Collective is jumping on the hype that has been surrounding Kirra Beach in recent years.
Cru, who sold out their $40 million Siarn Palm Beach development in September last year, have acquired a prime 635 sqm corner site at 2 Musgrave Street, on the corner of Musgrave and Winston Street.
Devine Development Group lodge plans for Alba Residences
The longstanding Queenslander developer Devine Development Group have lodged plans for a $105 million apartment project Alba Residences at North Burleigh.
Set on the dress circle Esplanade facing the beach, the 21 level tower designed by bureau^proberts will comprise half and full floor residences catering for the top end of the market, with prices starting from $2.25 million.
Article Source: www.urban.com.au
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