“Get in early” the founder and publisher of The Urban Developer said.
With an unprecedented amount of infrastructure projects currently underway, including Queen’s Wharf, Howard Smith Wharves and the Brisbane Airport duplication, Di Marco called upon the industry to look beyond the traditional media headlines and think about the longer-term prospects for the region.
“Invest for your children and grandchildren,” Adam told Sky News hosts, former Queensland Premiers Peter Beattie and Campbell Newman.
“You need to look at the scale of infrastructure projects currently underway and think about how these will impact the city and your investment.”
He cited a recent survey, undertaken by The Urban Developer, that captured the sentiment of the industry as evidence that the underlying attitudes towards development in the city were vastly different from what was reported in the traditional press.
With over 1,000 respondents, industry confidence was tracking at or above long-term averages.
“We have over two-thirds of the residential development sector reporting that they are either very optimistic or optimistic about the outlook for the sector.”
“For retail and commercial, the numbers are fairly similar” he said.
The prospects for the residential property market were also likely to be impacted by the scale of construction activity required to deliver these major projects.
“During construction alone, Echo’s Queen’s Wharf development will generate 2,000 jobs. After the project is completed in 2022, an additional 8,000 employees will be required to run the operation.”
According to Di Marco, these projects are unprecedented for the Queensland capital and will create a new wave of economic activity, tourism and investment.
“We’re on the cusp of something big.”
Originally Published: www.theurbandeveloper.com
Land developers call bottom of property market
Land developers AV Jennings and Villa World have called the bottom of the property cycle after a year of slumping sales and consumer caution blew a hole in their profits.
AV Jennings said the current property cycle has “bottomed” and that it will deliver a stronger result next financial year, after its profits were cut in half to $16.4 million by wary homebuyers steering clear of big commitments.
“General market sentiment is clearly beginning to improve … a modest uptick in visitor numbers to sales offices and online is evident and is expected to be sustained during FY20,” AV Jennings said.
Villa World chief executive Craig Treasure said soft consumer sentiment, tight credit conditions and the uncertainty caused by the federal election had created “difficult headwinds”.
“We are seeing that sales enquiries have started to improve across Villa World’s projects, however buyers remain cautious,” he said.
Villa World’s profit after tax of $23 million was also shredded compared to the previous year when it earned $43.6 million.
“This result is consistent with commentary disclosed to the market since December 2018 and reflects the decline in the Australian residential housing market and softer consumer sentiment,” Mr Treasure said.
Villa World’s land projects are concentrated in Queensland and Victoria.
All metrics for the group suffered: earnings per share were down 48 per cent to 18.2c, total revenue fell 11 per cent to $391.6 million, and sales numbers slumped to 870, down from 1788 the previous year.
The property pain was similar at AVJennings where turnover fell 20.3 per cent to $296.5 million and profits crashed by 48 per cent.
“The lower profit reflects softer market conditions, particularly in Melbourne and Sydney,” the company said.
It paid an interim dividend of 1c on 22 March and will pay another 1.5c dividend on 20 September this year.
Villa World has agreed to a takeover by AVID Property group for $2.345 per share. It will declare a fully franked dividend of 31c, as a portion of the total takeover price if it goes ahead.
Brisbane Prices Could Be Headed For Recovery
Brisbane prices are at their lowest level in the cycle, according to the latest national property clock from Herron Todd White (HTW).
The house values in Brisbane, Bundaberg, Ipswich, Rockhampton, and Toowoomba were at the bottom, according HTW.
Meanwhile, prices in Cairns, Gladstone, Mackay, Townsville, and the Whitsundays are starting to recover, the data showed.
There was momentum for the price growth in Brisbane, given that the capital city had been “bouncing along the bottom for some time now”, HTW Brisbane managing director Gavin Hulcombe told The Courier-Mail.
“I think it will be (a) steady rise, but my suspicion is in a couple of years’ time we might look back and think it (now) probably wasn’t a bad time to buy. Some areas are likely to perform better than others,” he said.
Brisbane units are also at the bottom of the price cycle, along with Bundaberg, Ipswich, Mackay, Rockhampton, Toowoomba, and the Whitsundays, according to HTW.
Apartment prices in Cairns, Emerald, Gladstone, and Townsville are already rising, the figures showed.
Index warns council unit ban will impact boomer downsizers
A new housing index has warned that Brisbane will face a flood of ageing baby boomers with nowhere suitable to live unless it embraces greater density in suburbs where houses dominate.
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