Frasers Property Australia has commenced construction of Riverlight North, the eleventh residential project within the $700 million Hamilton Reach masterplanned community located at Northshore, the largest waterfront urban renewal project by the Queensland Government.
With 85 apartments over 11 levels, comprising of one, two-and three-bedroom floorplans and two penthouses, Riverlight North has a total value of $48.4m.
Riverlight North adjoins the nearly sold out Riverlight East which was recently reported as the highest selling apartment project in Brisbane’s inner north and second highest in inner Brisbane for the December quarter according to the Apartment Essentials Report1.
Hamilton Reach is now home to almost 1,000 residents and includes award-winning projects Atria, Green Quarter, Newport and River Homes.
Frasers Property has appointed builder Tomkins to construct Riverlight North which is expected to employ around 300 workers throughout construction, with completion slated for the second quarter of 2021. Tomkins has previously constructed the Newport and River Homes projects within Hamilton Reach.
Scott Ullman, General Manager Residential Queensland for Frasers Property Australia, says that getting construction of Riverlight North underway was a positive sign for property and construction markets during the challenges of COVID-19.
‘Hamilton Reach has experienced strong sales this financial year – particularly for the last remaining Riverlight East apartments – so it is both timely and exciting for the crane to be going up and for construction to be commencing on Riverlight North,’ Mr Ullman said.
‘The two Riverlight buildings are similar with the same high quality of finish, however we have catered for the ongoing demand for three-bedroom apartments by increasing the proportion of this apartment style in the North building,’ he said.
‘Throughout COVID-19 restrictions, construction has remained an essential activity, so we are very proud to be commencing building with Tomkins and their associated sub-contractors, while following strict COVID-19 site safety and social distancing protocols. It is vital to our economy that construction projects such as Riverlight North forge ahead.
‘We have already sold a number of Riverlight North apartments off the plan and are anticipating similar popularity to that experienced with adjoining project, Riverlight East, thanks to the lifestyle appeal of Hamilton Reach, the quality of the apartments and the resident facilities on offer.’
Riverlight North is the first Hamilton Reach precinct set to have its own ‘sensory garden’ – a shared landscaped community garden space to incorporate fresh herbs such as rosemary and mint along with other plant species like aromatic jasmine and frangipani.
Riverlight North will also have access to the Riverlight resident facilities that include a 20-metre lap pool with sundeck, fully equipped gymnasium, dining and function room and award-winning landscaped gardens and barbecue area. Residents will also have access to kayaks and bicycles for exploring Hamilton Reach and its surrounds.
Riverlight North apartments are priced from $422,500 for a one bedroom apartment, from $517,500 for a two bedroom apartment and from $750,000 for a three bedroom apartment. There are also two penthouses on Level 11 priced from $1.55 million.
Hamilton Reach residences attract strong rental rates which as at November 2019 were on average, $401 per week for one bedroom apartments, $513 for two bedroom apartments, $782 for three bedroom apartments and $912 for four bedroom residences2.
Both Riverlight East and North residences are a superior lifestyle choice with over 1,700 sqm of landscaped gardens and spaces to explore and apartments that offer premium views of the Brisbane River, Royal Queensland Golf Club and surrounding parklands.
The Hamilton Reach Sales and Display Centre is currently open by appointment at 310 MacArthur Avenue, Hamilton with virtual tours also available. Call Frasers Property on 13 38 38 or visit www.hamiltonreach.com.au for more information.
1 Urbis Apartment Essentials Report – December 2019 quarter, Urbis Australia.
2 Real Property Consultants (RPC) rental figures, as at November 2019.
This article is republished from www.marketscreener.com under a Creative Commons license. Read the original article.
Unit oversupply remains an issue in Brisbane CBD: RiskWise’s Doron Peleg
The inner-city Brisbane unit market, already hit hard by unit oversupply, continues to remain a huge danger zone for investors since the advent of COVID-19.
Not only is equity risk the major issue for investors, increased vacancy rates and risk to cash flow are also heavily impacting the market.
According to RiskWise Property Research CEO Doron Peleg, things have not improved in the market since the pandemic hit and, if anything, have become worse.
“RiskWise reported in July 2018 that there were 14,813 units in the pipeline in inner-city Brisbane for the next 24 months, being an addition of 20.1 per cent of the current stock,” Mr Peleg said.
“Two years later and there is still a very high level of supply with 5,431 units in the pipeline, making up an addition of 5.9 per cent of the current stock.”
Pete Wargent, co-founder of Buyers Buyers, a national marketplace now offering affordable buyer’s agent services to all Australians, said that rental demand had been weak for CBD apartments for some time.
“The trend has been exacerbated by the pandemic, and CBD rents have been very soft” Mr Wargent added.
Analysis by RiskWise in 2018 showed unit over-supply in inner-city Brisbane had created weakness in the market leading to an elevated level of risk for investors and, therefore, lower valuations and rising defaults on settlements.
“The issue of oversupply is not a new problem and has been there for a few years and the continuous weakness of the unit market in inner-city Brisbane should raise red flags for developers and lenders,” Mr Peleg said.
“Defaults have been rising and will continue to do so.
“One of the key factors has been developers’ lack of foresight regarding unit oversupply as well as the impact of lending restrictions introduced from 2014. It seems there has been no methodological and structured risk-management approach including identification, assessment, and mitigating action plans to address those risks.
“This takes us back to the feasibility stage which includes the assessment of the projected fair market value and the likelihood of defaults and their potential consequences. Developers and lenders must find the right balance between taking risk and making profit.
“COVID-19 has only served to increase the risk. Currently, there are many high-rise properties being offered to a smaller number of investors. This is because there are less investors in the market due to the pandemic.
“The point is that if developers and lenders had put more proper risk-management practices in place, this could all have been avoided.”
Mr Peleg said it must also be remembered the value of off-the-plan property could decrease between the original contract date and settlement resulting in capital loss, as the equity in the home could be reduced, and this was well known in inner-city Brisbane.
He also stressed that investors buying rental apartments unsuitable for families were taking an enormous gamble, with both equity and cash flow risk expected to materially increase. Serviceability is also a major factor for investors who rely on a stable rental income to cover the costs associated with property and particularly the mortgage.
Mr Wargent of Buyers Buyers said houses for investors often carried significantly lower risk for those with the right budget because renters, especially in the more established suburbs, included families and, in many cases, those with permanent full-time jobs. They were also more likely to deliver good medium and long-term capital growth.
Additionally, as rental properties are not fully substitute products with owner-occupied dwellings, there is inherent risk associated with them as they do not appeal to families looking for three bedrooms, with outdoor space, close to schools, transport, and employment hubs.
This article is republished from https://www.propertyobserver.com.au/ under a Creative Commons license. Read the original article
Queensland Extends Commercial Eviction Moratorium
Queensland commercial tenants impacted by the pandemic are set to get further relief, with the state government extending the ban on evictions until the end of the year.
The move means that to the end of 2020 commercial leaseholders can’t have their lease terminated if they fall into arrears as a result of the Covid-19 pandemic.
First introduced in March by the national cabinet, the six-month ban on evictions are due to expire at the end of this month.
Leaving out residential tenancies, the Queensland government’s latest announcement pushes the moratorium on evictions in the commercial space to the new date of 31 December 2020.
Queensland’s announcement comes as other states have extended eviction protection.
Last month, Victoria extended its own ban on evictions for both residential and commercial tenants until 31 December.
While Western Australia and South Australia have each put a six-month extension in place for residential and commercial tenancies until the end of March.
Attorney-General Yvette D’Ath said that landlords and tenants had been working together “in good faith” to “tackle the economic challenges”, describing the announcement as “a shot in the arm” for many small businesses still struggling because of the pandemic.
“This extension is about giving businesses, and the thousands of workers they employ, the certainty they need in these challenging times,” D’Ath said.
With no mention made about Queensland residential tenants, the end of the moratorium looks set to remain as 29 September.
The Queensland government’s decision has been criticised by three of the five members of its Covid-19 Housing Security Subcommittee; Queensland Council of Social Service (QCOSS), Q Shelter and Tenants Queensland.
“Since the Covid-19 crisis began, demand for the state’s tenant advisory services has increased drastically,” Tenants Queensland chief executive Penny Carr said.
“Particularly from tenants fearing eviction after losing their jobs or having their income reduced as a result of Covid-19.”
The code extension means that affected businesses can come forward to receive assistance under the code until 31 December.
Buyer Demand Builds in the Outer Suburbs
Buyer demand has significantly jumped compared to last year across all capital cities aside from Melbourne.
The Domain buyer demand indicator shows that the market has rebounded in recent months—revealing the top suburbs piquing buyer interest.
Houses and apartments in the outer-suburban areas of Sydney, Melbourne, Brisbane and Perth, were the highest in demand for the month up to 6 September.
This follows a state of hiatus caused by caused by Covid which is ongoing in Victoria where restrictions have stopped inspections and dropped listings.
Domain senior research analyst Nicola Powell said they tracked people who were most likely to buy, indicated by shortlisting, sending inquiries, inspecting and frequently viewing photos.
“The current health crisis has changed the way we use our homes, and for some altered our purchasing decisions and property wish lists,” Powell said.
“And while Covid-19 lockdowns sent buyer demand into a state of hiatus, activity from people likely to buy has rebounded in all capital cities apart from Melbourne.”
Top greater Sydney suburbs
|1.||Hawkesbury demand increase since Covid||Rouse Hill-McGraths Hill||Wollondilly (Houses)|
|2.||Rouse Hill-McGraths Hill||Pennant Hills-Epping||Richmond-Windsor (Houses)|
|4.||Hornsby||Eastern Suburbs-south||Gosford (Units)|
|5.||Dural-Wisemans Ferry||Warringah||Hawkesbury (Houses)|
Top greater Melbourne suburbs
|1.||Whitehorse-west||Mornington Peninsula||Macedon Ranges (Houses)|
|2.||Macedon Ranges||Cardinia||Manningham-east (Houses)|
|3.||Manningham-east||Knox||Mornington Peninsula (Units)|
|4.||Mornington Peninsula||Maroonah||Yarra Ranges (Houses)|
|5.||Yarra Ranges||Kingston||Frankston (Units)|
Top south-east Queensland suburbs
|2.||Nundah||Coolangatta||Noosa hinterland (Houses)|
|3.||Carindale||Redcliffe||Gold Coast hinterland (Houses)|
|4.||Surfers Paradise||Ipswich inner||Noosa (Units)|
Meanwhile major gains have been made in national vacancy rates to pre-Covid levels with outer suburbs also showing the most improvements.
Residential property prices dropped by 1.8 per cent in the latest quarter according to the Australian Bureau of Statistics.
In Perth, Mundaring houses and Wanneroo units topped the list, Canberra’s Weston Creek was listed for houses and Gungahlin for units. Litchfield, Darwin topped the list in the Northern Territory for both houses and units.
Hobart was the only other city to record a fall in activity over the four week period to 6 September, along with Melbourne, where the most demand was seen for Sorrell-Dodges Ferry and Hobart.
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