TEMPERATURES may be dropping but real estate agents agree, the property market is starting to heat up.
As we now head into winter, RP Data statistics show 337 Queensland properties were scheduled to go under the hammer last week.
Australian Property Monitors preliminary Saturday auction results show 28 sales from 57 auctions, resulting in a clearance rate of 45 per cent. The official figures come out on Tuesday.
It was the second largest auction week this year, behind the 393 total for the week of March 18 but higher than the 309 for January 28 – which was influenced by a Ray White Auction Spectacular event.
Industry experts believe this winter will be a good selling season, citing increased buyer inquiry, greater numbers of inspections and improved market confidence.
Place CEO Damian Hackett said the market had been steady for 18 months and people recognised that the bottom had been reached.
“Looking back at the last four or five years, I think the dynamics are there to have the best winter season since 2007,” he said.
RE/MAX Australia managing director Michael Davoren said low stock levels and high buyer numbers would drive a strong market.
“Lack of confidence has held the property market back, even when affordability is attractive with lower interest rates and prices down,” he said.
“The market is now dealing with the pent-up demand and the reality is that people will be buying and selling without a thought to the season.”
Optimism has improved since last winter according to Ray White Queensland CEO Peter Camphin who said there was now “more buzz” in the market place.
He said stock levels were tight and advised people thinking of selling to list now – instead of waiting for the more popular spring season when there would be increased competition.
“I think it is going to be a strong trading period this winter,” Mr Camphin said.
“It’s not over-inflated optimism from a real estate person, we are seeing more people coming to open for inspections. It is a good time to sell.”
Belle Property agent Debora Sutton agreed that optimism had returned.
“We are still getting record numbers at open homes and multiple bidders at auction,” she said.
“People have been waiting for the right time to buy. If they see something they like, they are buying.”
LJ Hooker Toowong sales consultant Daniel Lee has noticed a high level of unseasonal interest in auction campaigns from would-be sellers.
“Spring is traditionally the strong auction season,” he said.
“But at the moment, the combination of historically low interest rates and encouraging market improvements has motivated buyers who have sat on their hands for the last few years.
“Winter is typically a quieter time for the auction market, but that notion is going to be tested this year because of where we’re positioned in the market cycle.”
Mr Lee said his office had conducted 61 inspections and multiple valuations during the auction campaign for a four-bedroom home in Murray St, Taringa.
A five-bedroom, two-bathroom contemporary home in Orcades Rd, Yeronga, was also popular, again attracting more than 60 inspections during a three-week open home campaign.
Marketing agent Tegan Zernike of Place Newmarket said the numbers were encouraging.
The property sold under the hammer on Saturday for $950,000.
“There is not a lot of stock at the moment so we are seeing better open home numbers and properties are selling faster,” she said.
“Buyers are not so spoilt for choice.
“There is competition for quality properties priced correctly.”
Original Article published www.Couriermail.com.au Paula Shearer 3/6/2013
Bid to Open Up Student Accommodation to Workers
Scape Australia plans to open up its student accommodation to essential workers and interstate travellers as it waits for international students to return to the country.
The group applied for a temporary change of use for its Atria South Brisbane property until the end of February 2023, providing accommodation for non-students in the 88 Ernest Street building.
This will “allow the applicant to effectively manage the impact Covid-19 has had on their Brisbane assets [six buildings in total]” according to the application.
“Prior to Covid-19 [December 2019], building occupancy in Brisbane was at 75 per cent currently the assets have an occupancy rate of 28 per cent as Scape’s primary market is international students,” the report stated.
“The proposed ‘other change’ will allow Scape to use the vacancies in its buildings to offer the Brisbane housing market an alternative to typical renting models [share houses and the like].
“Scape are hoping to host like-minded occupants within the building who are not students.
“Examples include interstate travellers who do not want to sign a six- or 12-month lease elsewhere but need to remain in Brisbane for three-plus months or hospital workers who are assisting in the nearby Mater with the Covid-19 response.”
This is the second time Scape has tried to change the use of the building—that proposal was rejected by the council in August last year due to parking and transport issues.
Overseas arrival numbers remain at record lows, according to the Australian Bureau of Statistics, which recorded a 99.1 per cent drop in visitor arrivals in February compared to the same period last year.
To shape a recovery for the industry, federal education minister Alan Tudge announced a 10-year, whole-of-sector international education.
In 2019 there were 750,000 international students studying in Australia, accounting for a third of university enrolments.
“In 2019, we started the year with around 480,000 continuing international students, while another 150,000 entered Australia to study in the first half of the year, and a further 130,000 in the second half,” Tudge said.
“Closing the borders, of course, had a significant disruption on the international student sector.
“That normal pattern was not possible last year. While some started online, many also deferred their studies, preferring to wait until travel is again possible.”
Despite a lack of international students in 2020, Scape continued to expand its Australian portfolio, purchasing 252 serviced apartments in the Aurora Melbourne Central building for $125 million in November.
The group also lodged plans for four student towers on each corner of an intersection in Kensington and Kingsford near the University of New South Wales.
Article Source: theurbandeveloper.com
The cost of renting in Brisbane reaches record levels, outstrips Melbourne prices
For the first time in years, it now costs more to rent a home in Brisbane than Melbourne, with mass migration and a near two-decade low vacancy rate shooting median asking prices to record heights.
Amid tales of tenant bidding wars and rejected applicants reduced to tears, the latest Domain Rent Report, released Thursday, revealed the average weekly asking price for a house in the Queensland capital soared by almost 8 per cent to an unprecedented $440 per week over the past 12 months – and by 3.5 per cent over the past quarter alone.
The price hike means the average Brisbane tenant is now paying $10 more a week than their Melbourne counterpart for a house, and $25 more a week for a unit after prices for the latter rose by a slightly more modest 3.9 per cent over the year to a record-breaking $400 per week.
Domain senior research analyst Nicola Powell said the report marked a sharp turnaround for the city, with houses, in particular, marking the steepest annual increase in rent prices since 2008 following three strong consecutive quarters of rent gains.
“Melbourne house rents have been higher than Brisbane’s since about 2016 so what we’ve really seen in Brisbane since mid-2020 is an acceleration in asking rents and this really goes against what was happening in the lead up [to the pandemic],” Dr Powell said.
“They had relatively flatlined since 2013.”
Dr Powell said while Queensland had always been a hot destination for interstate migrants, the pandemic and the possibility of remote working had fuelled the trend with the annual number of Australians moving to the state hitting its highest level since 2006.
“Tenants will find less choice, with the pool of available rentals shrinking by one-third compared to last year, pushing Brisbane’s vacancy rate to a multi-year low,” she said.
“House and unit rents held steady or increased in all regions across Greater Brisbane over the March quarter, apart from unit rents in Ipswich sliding a mere $5 a week. Annually, the biggest jump in asking rent was recorded for houses in Brisbane’s north and Moreton Bay North, the steepest annual increase since 2008, up 6.8 per cent and 6.7 per cent annually.”
While rent prices indeed soared across most parts of the city it was the capital’s family-friendly pockets in the middle and even outer rings that shone brightest, with houses in Bald Hills and Everton Park enjoying the biggest annual price rise after surging 10.6 per cent to $520 per week.
Hot on their heels were Kenmore, Brookfield and Moggill, where median asking prices for houses shot up by 8.2 per cent over the same period to an unprecedented $595 per week – a rental price equal only to houses in the inner-city west region.
It’s a rare rental boom that Aurora Realty Brisbane leasing manager Abi Harrington said was reaching eye-watering levels – with their agency currently managing 100,000 tenants actively seeking a home.
“We’ve gone from houses taking three weeks to rent out, to three days and even down to three hours [in the past quarter],” Ms Harrington said.
“You wouldn’t believe the gifts I have received (from desperate tenants) from gin, to flowers to cheesecake and even a bottle of champagne.
“We used to have the policy that a tenant mustn’t apply before they’ve seen the property but now we say apply first if you like the photos … and if you get approved we’ll arrange a private inspection after [because rentals are being snapped up so quickly].”
As for the soaring rents in Everton Park and Bald Hills, Ms Harrington put the increase down to tenants being simply priced out of Brisbane’s more expensive inner pockets, with houses in quiet suburbs boasting a good school catchment the number one lure.
“I’ve just listed a property in Everton Park … and in less than 24 hours I have five inspections booked in … but sometimes we get up to 15 people in the first few hours,” she said.
“This is the height of it and it’s absolute chaos. On average tenants are offering $20 to $30 dollars over the asking price but some people are surpassing that. People from Sydney and Melbourne are cashed up and headed this way because buying a house is far cheaper here and Queensland is the obvious choice as the office doesn’t exist anymore.”
Ms Harrington said soaring interstate migration was a major contributor to rising rent prices, with some southern home hunters willing to fork out $90 per week more in a move that was causing much anxiety among Brisbane residents.
“Locals feel like they’re being pushed out … and I see this getting worse. And it’s not fair on locals living here struggling to meet that price range … and we don’t encourage [bidding wars] because we’re trying to manage expectations,” she said.
Ray White Metro West property manager Stephanie Budrodeen said with rental wars now a common occurrence in hot spots such as Chapel Hill and Kenmore, median prices, in reality, had soared beyond eight per cent to as high as 30, creating a scene more akin to an auction, with the charge being led by Melbourne families particularly desperate to bag a house in a top school catchment.
She said the pandemonium was further fuelled by the “nuts” sales market with some tenants pushed out by owners desperate to sell in a booming market, while others were forced to rent purely because there was nothing to buy.
“Two weeks ago, we just had one property [a two-bedroom unit] left on our rental roll … and that’s never happened before. But the downfall to all of this is owners think their properties are worth more than they are and this is going to make problems for the future when prices are no longer inflated,” Ms Budrodeen said.
“Tenants are in panic mode right now … and in my opinion this a ripple effect from the housing market.”
Article Source: www.domain.com.au
[+] Developer Ramps Up Hunt for Springfield CBD Investment Partner
Introducing The Urban Developer Plus (TUD+),
our premium membership for property professionals.
In this TUD+ Briefing, Springfield City Group’s Bob Sharpless discusses its global search for a partner to help deliver its $15-billion Knowledge Precinct that will complete the Springfield CBD.
The group has now put out a tender for a development partner to help deliver a new 120ha precinct, approved for more than 1.2-million sq m of commercial space and more than 5000 apartments.
This TUD+ Briefing covers:
—the mixed-use development opportunity for the partner
—education, health and technology uses across the site
—preferred partnership models and developer credentials
—the appointment of Moelis Australia to lead the search
—the impacts of Covid-19 on the global tender
—the timeline and projected announcement date.
Article Source: theurbandeveloper.com
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