Ipswich Proves Frontier In Affordable Housing - Queensland Property Investor
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Ipswich Proves Frontier In Affordable Housing

Ipswich Proves Frontier In Affordable Housing

 

The ripple effect of South East Queensland’s relentless growth and urban sprawl has Brisbane’s outer western corridor shaping up as the region’s ‘final frontier’ for affordable and well-connected housing.

A new Urbis report, The Future of South East Queensland Housing, forecasts the Ipswich Local Government Area (LGA) will reap the lion’s share of population, job and housing growth as jobs decentralise from the Brisbane CBD and housing demand shifts to more affordable locations.

Author Angus McLean said inner Brisbane’s physical constraints and lack of affordable housing were already driving investment and people to infrastructure and amenity-rich satellite cities such as Greater Springfield and North Lakes, which would soon funnel into the dynamic Ipswich region.

“South East Queensland is already seeing the beginning of this shift – a desire for housing that maximises quality of life and minimises the cost of living, offering competitively priced housing opportunities in well-located destinations with proximity to amenity and infrastructure,” he said.

Mr McLean said Ipswich was shaping as such a destination with its population set to more than double to 670,000 over the next 20 years, the biggest population growth in the South East corner.

“Increasing by more than 130 per cent over the next 20 years, the Ipswich LGA will play a vital role in satisfying the future population growth of South East Queensland,” he said.

This surge of new residents to Ipswich and its surrounds will generate SEQ’s highest level of housing demand with 6,600 new homes needed each year, while jobs growth is expected to more than double to 2.6 per cent per annum, far outstripping any other LGA in the region.

Mr McLean said while the median house price in the outer western corridor had grown a solid 2.8 per cent to $325,000 in the past year, it was still the most affordable housing stock in SEQ and compared very favourably with Brisbane LGA’s median of $620,000.

Urbane Homes Director Jon Rivera said his business was investing strongly in the Ipswich region, foreseeing growing demand for well-priced housing in such a critically low supplied region.

“The western corridor is one of the last remaining areas where you will find affordable homes this close to inner Brisbane,” he said.

“Five years ago SEQ residents had options in Brisbane, North Lakes, Springfield, Logan and Northern Gold Coast to purchase a new home under $400,000, but now the opportunities are few and far between and the western corridor is the last frontier to buy a new home under $400,000.

“Investors from Sydney are capitalising on this as NSW first home buyers are being forced to geographically invest for their first home, seeing how affordable our market is in comparison to their own.

“The Ipswich median house price is sitting at a low $325,000 while people in Parramatta are paying $960,000 to live in an equal distance from the CBD with terrible connection and infrastructure.”

Original article published at www.theurbandeveloper.com  by Staff Writer 24/10/16

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Brisbane

Plans Unveiled for $30m Kangaroo Point Residential Project

Plans Unveiled for $30m Kangaroo Point Residential Project

Melbourne-based developer Buildcap is facing down headwinds in Brisbane’s apartment market, unveiling plans for boutique apartment project in Brisbane’s Kangaroo Point.

The developer is confident of sales at the future seven-storey development at the 525sq m site at 75 Main Street, which is located on one of the few remaining slices of land to be developed in the riverside suburb, about 5 kilometres from the CBD.

The $30 million project, dubbed The Holman, will feature a range of 13, two and three-bedroom apartments, with views of the Brisbane skyline, Story Bridge and Captain Burke Park.

While sales have slowed across Brisbane — in keeping with a cooler market, Buildcap with a portfolio of $300 million currently under management, has continued to press forward with a diverse range of projects along Australia’s East Coast.

Buildcap director Stuart Biggs said he was confident of his new project given its lifestyle proposition within a highly desirable location.

“There is nothing of this calibre on the northern edge of the Kangaroo Point Peninsula,” Biggs said.

“This truly is the ideal spot for anyone looking for the perfect fusion of panoramic city vistas and thoughtful, meticulously designed opulence inside.”

Plans Unveiled for $30m Kangaroo Point Residential Project 2

The project is designed by Brisbane-based architecture firm WallaceBrice, which has designed a number of multi-residential developments.

The development will feature private balconies, patterned brickwork, premium furnishings and integrated landscaping, including a communal roof terrace with plunge pool.

“Multi-residential design is WallaceBrice’s forte, they have an exceptional understanding of how individuals live, work and play, and they exude design excellence,” Biggs said.

“The way The Holman responds to its local surrounds means this design will undoubtedly stand the test of time and for Kangaroo Point, it is a sleek but monumental design.”

Brisbane’s recovering apartment market

Brisbane’s apartment values, “an oversupply hangover”, are finally expected to recover in 2020 after a tough few years following the apartment construction glut.

Many industry professionals have noted that the units still available for sale in the city are gradually being absorbed according to the Real Estate Institute of Queensland — particularly in the investor sector.

The state budget’s investment in economic development was also predicted to boost house prices in regional areas in the year ahead.

The latest REIQ market monitor reveals that while unit prices have stabilised, they remain in the softening sector of the market cycle.

CoreLogic-Moody’s Analytics has mirrored the sentiment in its recent home value index, forecasting that Brisbane’s apartment values were predicted to recover in 2020 following the construction boom and excess supply between 2013 and 2016.

Unit rental yields have also remained steady over recent months across Greater Brisbane, ranging from 4.3 per cent to 6.5 per cent.

 

 

Source: theurbandeveloper.com

 

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Residential

Brisbane DA Lodged for ‘Record Sale’ Site in New Farm

Brisbane DA Lodged for 'Record Sale' Site in New Farm

One of Brisbane’s best parcels of land is now the site of one of the city’s most ambitious houses, according to a development application lodged with Brisbane City Council.

The vacant clifftop block, located at 31-33 Moray Street, New Farm recently sold to local businessman Jamie Pherous and his family for a suburb record of $11.3 million.

The 1,103sq m lot was sold by Jane Gibson, the widow of celebrated Brisbane architect Robin Gibson, who acquired the site in 1986 for just $200,000.

Designed by Tim Stewart Architects, the proposal includes a four-storey house with a basement level of car parking and recreational facilities.

Located on land zoned medium density residential, the impact assessable application is currently in front of Brisbane City Council, according to CityShape’s new DA Tracker.

Brisbane DA Lodged for 'Record Sale'

The proposal includes a lower level of basement car parking, games room and gymnasium that leads out to a clifftop pool and pool deck.

The upper ground level will comprise a media room, office, study, laundry and combined living, dining and kitchen terrace at the rear.

Level one will include a master suite with expansive dressing room, ensuite and storage room and is accompanied by five bedrooms each with an individual ensuite.

And on the uppermost level, the proposal includes an entertainment room with kitchenette, roof terrace and pool and guests quarters.

Brisbane DA Lodged for 'Record Sale' Site

Jamie Pherous is the founder and managing director of Corporate Travel Management, one of the largest travel management companies in Australia.

He started the company in 1994 and later floated it on the Australian Securities Exchange (ASX) in 2010.

The proposal comes amid growing confidence in the Brisbane residential market with BIS Oxford Economics predicting Brisbane will lead the Australian capitals with 13 per cent property price growth predicted by 2021.

The average price of a block of land in New Farm is $2.6 million and the previous record for a vacant lot in the suburb was a $5.5 million sale to a developer.

 

Source: theurbandeveloper.com

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Residential

South Brisbane emerges from unit glut with some of the fastest rising rents in the city

South Brisbane emerges from unit glut with some of the fastest rising rents in the city

The epicentre of Brisbane’s unit oversupply is reaching equilibrium, as renters flock to thousands of new apartments in amenity-rich areas.

But less-developed inner-city suburbs that lack amenities continue to languish.

South Brisbane saw significant levels of development over the past few years, with 1225 units listed for rent in the three months to the end of December, according to the latest Domain Rental Report for the December quarter.

But the supply is starting to be absorbed and the median asking rent for units has risen 5.4 per cent to $485 over the last year, the fourth-sharpest jump in the city.

This compared to even steeper jumps in Holland Park, Clontarf and Bardon, with rises of 12.1, 6.9 and 5.6 per cent respectively.

unit glut with some of the fastest rising rents

Source: Domain Rental Report, December quarter 2018

Those in the industry say the South Brisbane market has made a remarkable turnaround in the past year.

“We may have escaped that ridiculous glut we had,” Space Property principal Nick Penklis said.

Renters were haggling on price less frequently and landlords were becoming less likely to hand out incentives, he said.

“Sometimes those incentives were there for apartments not quite at the market level,” Mr Penklis said. “Some would be there to keep a rental guarantee, so it’s an inflated market.

“Perhaps we’re on a more even keel.”

South Brisbane emerges from unit glut

Aria Living’s general manager Zeyad Iman said the developments he managed were not immune to the consequences of over-development, but their premium offering insulated Aria from issues facing low-end properties.

“We’re a bit more expensive but people can justify those costs,” he said.

South Brisbane’s relative amenity was the suburb’s big drawcard, and was why the suburb was outperforming neighbours like Highgate Hill, Mr Iman said. “You’ve only got the view and the location, there’s none of the amenity there.”

Highgate Hill’s rental prices fell the fifth-fastest in the city for both houses and units, down 5.7 and 6.7 per cent in the past 12 months respectively.

But other inner-city neighbourhoods continue to see prices drop.

Brisbane CBD, separated from South Brisbane by the river, was the 10th-worst performing suburb for units, with a fall of 4 per cent to $480 over the past year.

“There’s a stark contrast in the five-year performance in these areas,” Domain senior research analyst Nicola Powell said. “What we have seen is a much greater level of development in the Brisbane CBD than we have in South Brisbane.”

Dr Powell said this could indicate the two side-by-side suburbs could be settling to similar levels, although conditions appeared tougher in the CBD.

“There’s been a lot more rental stock come onto the market relative to the demand in the CBD.”

Brisbane emerges from unit glut

The detached housing market has not seen the same wave of new supply, with sought-after suburbs recording double-digit rental growth.

Manly, Ascot and South Brisbane had the highest rental rises for detached houses, recording 14.5 per cent, 14.2 per cent and 13.7 per cent rises respectively.

“There would be that desirability factor,” Dr Powell said. “There is an increase of interstate migration from NSW and we can assume that is Sydney.”

All three are established locations with access to good schools, she said.

“So it could be families looking to rent to test the waters in certain suburbs.”

 

Source: domain.com.au

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