Ipswich house prices on the rise - Queensland Property Investor
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Ipswich house prices on the rise

This is according to the latest analysis by RiskWise Property Research which found despite below-average property price growth over the past three months, Ipswich is an attractive destination to home buyers and investors who seek affordable housing. Over the medium to long-term the region is projected to deliver solid returns.

The research house CEO, Doron Peleg, said this would be driven by very affordable dwelling options and ongoing population growth, in particular, by high levels of interstate migration from Sydney and Melbourne.

The $5 billion contract for 211 high-tech armoured vehicles will result in a new multimillion-dollar Centre of Excellence at Redbank and defence jobs for 40 years.

Ipswich Mayor Andrew Antoniolli said the contract would create more than 330 permanent jobs from the outset, build significant opportunities for local businesses and provide associated work with ongoing delivery and maintenance of the vehicles.

“Defence directly contributed to more than 7000 jobs and almost $800 million to the Ipswich economy in 2016-17. But this contract will mean jobs for the next 30 to 40 years, for the life of the contract,” Cr Antoniolli said.

Mr Peleg said with the Queensland Government also allocating $868 million towards infrastructure and road projects in July last year, it was likely to trigger a construction boom which would grow local employment and hence demand for housing.

He said the Ipswich area, which was just 40km west of the Brisbane metropolitan area, enjoyed a stable property market offering both affordability, with a median house price of $371,000, and excellent access to the growing local business areas.

“The Ipswich area did deliver a slightly below average price growth relative to the Greater Brisbane and Australian benchmarks over the past five years,” Mr Peleg said.

“This is likely a result of its geographic distance from central Brisbane and the coastline, where most of the housing demand is centred.

“But that bodes well for those looking for affordability and the area has a house price-to-income ratio of 5.2 which is well below that of Brisbane and the rest of Australia.

“Also, lending restrictions and the potential recommendations of the Banking Royal Commission that are likely to result in lower borrowing capacity, are likely to increase the demand for Ipswich property.”

Mr Peleg said the region had a high median rental return of 5.2 per cent for houses and 5.8 for units which surpassed both the Greater Brisbane and Australian medians and could be attributed to the “very low” median property price combined with the ongoing demand for rental properties across Ipswich.

He expected them to remain at a consistent level over the short to medium-term.

“However, it is worth noting that units, with an extremely affordable median price of $280,000, do carry a higher level of risk, particularly in the short-term due to high additional supply levels,” he said.

“The Ipswich area delivered lower capital growth for units than for houses over the past five years. We believe given the high supply levels expected over the next 24 months, it is likely the area will continue its poor price growth trajectory.”

Another 2,683 new units will be added to the local property market over the next 24 months which is an increase of 39.1 per cent to the existing supply and sits well above the number for Greater Brisbane.

Mr Peleg said this level of supply should be treated with “high caution” and was likely to slow the market for units over the short to medium term.

Visit www.riskwiseproperty.com.au

RiskWise Property Research was formed in 2016 with the goal of providing property risk advise and research services to help its clients make informed purchasing decisions.

Its goal is to provide private investors, home buyers, property professionals and institutional clients with detailed risk information to support smarter decision making. Its vision is to be a global leader in property risk rating and research helping its clients to achieve deeper risk insights so they can make smarter property investment decisions.

Source: www.miragenews.com

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Gold Coast

‘There’s not another home like it on the Gold Coast’: Unique Broadbeach Waters on the market

‘There’s not another home like it on the Gold Coast’ Unique Broadbeach Waters on the market

It’s a house that makes a statement. Dominated by unbroken, horizontal forms, and offering water frontage and city views, there’s a considerable 821 square metres of living space to kick back, relax and entertain in.

Now on the market for $7.495 million, the five-bedroom home at 15 Cleland Crescent, Broadbeach Waters is kitted out with  floor-to-ceiling windows, a 2000-bottle cellar, butler’s pantry, media room and spa.

The vendor bought the block in 2010 for just under $2.895 million, with the market at the time feeling the effects of the GFC.

It’s a house that makes a statement. Dominated by unbroken, horizontal forms, and offering water frontage and city views, there’s a considerable 821 square metres of living space to kick back, relax and entertain in. Now on the market for $7.495 million, the five-bedroom home at 15 Cleland Crescent, Broadbeach Waters is kitted out with floor-to-ceiling windows, a 2000-bottle cellar, butler’s pantry, media room and spa. The vendor bought the block in 2010 for just under $2.895 million, with the market at the time feeling the effects of the GFC.

The resort-style residence itself is four years old. It was designed by Adam Beck from BDA Architects as a family home over 12 months, with a separate wing for their teenage offspring.

With the children now flying the nest, the time had come for the vendors to sell, said agent Jordan Williams from J.D. Prestige Agents.

“It’s in a really nice elevated position, due north,” Mr Williams said. “It’s got over 30 metres of water frontage, which is very hard to come by.”

‘There’s not another home like it on the Gold Coast’ Unique Broadbeach Waters on the market 2

“The design is very cool,  it has two wings and two sets of stairs,” he added, noting that to design and build the property today would take $2.5 million or so.

Mr Williams said they’d had good numbers through to look at the property already, and he thought it would appeal to a Sydney or a Melbourne buyer in particular with its industrial vibe, off-form concrete and large panelling.

“There’s not another home like it on the Gold Coast – it’s very unique,” he said.

‘There’s not another home like it on the Gold Coast’ Unique Broadbeach Waters on the market 2

Overall, he thought the Gold Coast market was picking up after the end of financial year, with the winter chill beginning to thaw.

“The steady numbers are coming back through – I think we’re in a very good position,” Mr Williams said.

The median house price in Broadbeach Waters sits at $1,137,500 for the year to May 2019, based on 164 sales – a 3.4 per cent increase on a year ago.

‘There’s not another home like it on the Gold Coast’ Unique Broadbeach Waters on the market 4

So far this year, records show the most expensive sale in the suburb was 24 Andrea Avenue, Broadbeach Waters, which scored $3 million via private treaty in January.

Meanwhile, in 2017 it was 201-205 Monaco Street that took top honours with a $9.5 million sale in February, while 77 Monaco Street changed hands for $9 million in March.

 

 

Source: www.domain.com.au

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Brisbane

Melbourne Top Investment Choice for Chinese Buyers

Melbourne Top Investment Choice for Chinese Buyers

Chinese buyer enquiries for residential property in Australia has recorded two consecutive quarters of year-on-year growth for the first time since 2016, with Melbourne still the most popularAustralian city.

Australia has been losing Chinese buyer interest to other parts of the world due to increased taxes and banking restrictions.

But Australia’s hefty state foreign buyer taxes have been counterbalanced by its weakening dollar according to the latest Juwai.com report, which has seen it drop around 11 per cent of its value against the Chinese Yuan since mid-2018.

Juwai.com CEO Carrie Law says she expects Chinese buying to remain flat in 2019, with forecasts it could start to grow again inline Australia’s property market recovery.

“Chinese buyers make 83 per cent more enquiries about acquiring Melbourne property than they do Sydney,” Law said.

Brisbane has the second fastest rate of Chinese buyer growth. Law said Brisbane recorded 30.8 per cent more Chinese buyer enquiries in 2018.

“Brisbane is becoming a real alternative for the two traditional gateway cities of Melbourne and Sydney.

“The fastest growing cities, in terms of Chinese buyer interest, are Hobart, Brisbane, and Canberra.”

Melbourne receives 43.8 per cent of Chinese buying enquiries in Australia, Sydney 23.9 per cent, Brisbane 10.1 per cent, Perth and Adelaide 6.1 per cent, the Gold Coast 3.7 per cent, Canberra 3.6 per cent, and Hobart 2.6 per cent.

Melbourne Top Investment Choice for Chinese Buyers 1

Weak Aussie dollar boosts buyer interest

Despite the tougher state foreign buyer taxes, Australian’s weakening dollar means it now costs less to secure real estate.

“A buyer holding Yuan today needs the equivalent of $88,800 less in funds compared to 2017 to purchase an $800,000 dwelling,” Law said.

“The plummeting Australian dollar, which has lost 11.1 per cent of its value against the Chinese Yuan since July 2018… [That] compares to the 8 per cent rate of the highest foreign buyer taxes, which are in New South Wales and Victoria.”

Law says Chinese demand is driven largely by growing wealth, a desire to store assets ‘safely’ overseas, education, travel, commercial ties, immigration and high-net-worth immigration, along with environment and lifestyle.

“Eighty-three per cent of Chinese consumers cite education as their reason for immigration, 69 per cent cite environment, 57 per cent cite food safety, and 28 per cent cite asset security.”

 

 

Source: theurbandeveloper.com

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Brisbane

Australia’s Most Expensive Capital City to Rent a House Might Surprise You

Australia’s Most Expensive Capital City to Rent a House Might Surprise You

When it comes to the nation’s most expensive capital city to rent a house, Sydney takes second place in what may come as a surprise to some, with Canberra crowned as Australia’s most expensive capital.

While Domain’s rental report shows Canberra remains as the nation’s most expensive capital to rent a house, it also shows it’s more expensive to rent a house in Hobart than Melbourne.

The latest report, which covers the median rental price for houses and units across the country, shows Melbourne house rents remained unchanged over the year at $430 per week, while unit rents increased 2.4 per cent over the year.

Taking in the unit market, despite Sydney’s price falls of almost 5 per cent over the year the harbour city is still the most expensive capital city to rent a unit.

Australia’s Most Expensive Capital City to Rent a House Might Surprise You 1

Strong construction of new housing has weighed on rents in Sydney, and also contributed to the vacancy rate increasing to 3.2 per cent in June, up from 2.4 per cent one year ago, Domain’s Economist Trent Wiltshere says.

House rents fell by 3.6 per cent over the year to $530 per week.

While unit rents dropped by 0.9 per cent in the quarter and 4.5 per cent over the year.

“Rents held up the best on the Central Coast and on Sydney’s north shore, but fell in other Sydney regions,” the Domain report notes.

While largely thanks to the significant property price falls over the past few years, Sydney’s rental yields have risen slightly.

Australia’s Most Expensive Capital City to Rent a House Might Surprise You 2

Melbourne’s strong population growth since 2013, averaging an annual 2.6 per cent, has seen ongoing rental demand.

House rents grew fastest in the Mornington Peninsula and in Melbourne’s inner-south, but were unchanged in Melbourne’s eastern suburb, for the past year.

Melbourne’s unit rents have increased by 2.4 per cent over the year.

While rent on a typical unit has increased 14 per cent over the past five years to $420, despite the city’s apartment construction boom during this time.

Melbourne’s house rents have also increased 13 per cent during this period.

Australia’s Most Expensive Capital City to Rent a House Might Surprise You 3

Domain says unit rentals have held steady in recent years, despite the large supply of new Brisbane apartments.

“House rents were steady in most parts of Brisbane over the past 12-months, but unit rents increased 6 per cent in the inner city.”

Unit rents also increased by 2 per cent on the Gold Coast and the Sunshine Coast.

And while rental prices for houses across Greater Brisbanerecorded falls in the June quarter, rental prices have remained unchanged year-on-year.

Brisbane’s rental vacancy rate fell from 2.6 per cent to 2.2 per cent over the past year, a sign of a strengthening rental market, Wiltshere says.

Australia’s Most Expensive Capital City to Rent a House Might Surprise You 4

House rents in Adelaide dropped 1 per cent in the June quarter, but have recorded an increase of 2.7 per cent over the year.

Adelaide’s unit rentals have increased by 1.7 per cent over the year, with the typical unit renting for around $305 a week, this makes Adelaide the cheapest across all capitals.

Hobart remains the fourth most expensive city to rent a house behind Canberra and Sydney, according to Domain’s report.

Canberra house rents dropped 3.5 per cent in the June quarter, but are unchanged over the year at $550 per week. Unit rents increased by 4.4 per cent over the year, sitting at $470.

Canberra unit rents have increased a staggering 18 per cent over the past three years, despite an apartment construction boom.

And Darwin rents for houses have now dropped from the 2014 highs of $700 a week to $490. Darwin units have dropped over the past five years from $570 to $385, reflecting declining demand as the city’s population decreases.

Perth remains the most affordable capital city to rent a house in Australia at $365 a week. Rental prices for both Perth houses (up 4.3 per cent) and units (up 3.3 per cent) have increased over the past year.

 

 

Source: theurbandeveloper.com

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