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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

House Prices Keep on Ticking Despite Crisis

House Prices Keep on Ticking Despite Crisis

Australia’s median house price has continued to rise, if only at a nominal rate, lifting 1.7 per cent over the quarter according to the latest data from property listing portal Domain.

Nationally, house and unit prices increased over the first quarter of 2020, however economists have warned growth will be likely short-lived.

Australia’s property market has traditionally fared relatively well during global economic shocks, with the market experiencing six falls over the past three decades.

Despite this, market activity is likely to deteriorate in the coming months as economic uncertainty and job security fears heighten, with the extent of the impact on prices remaining a little less certain.

Domain senior analyst Nicola Powell pointed to the four weeks leading to mid-April, where hesitant sellers began to withdraw listings causing a 20 per cent drop in new listings across capital cities.

“Despite homes selling quicker than last year, sellers are adjusting expectations, and auction prices have slipped,” Powell said.

“The slowdown aligns to the shutdown of non-essential services, the temporary ban on onsite auction gatherings and open inspections.”


Median house prices

CityMar-20QoQYoY
Sydney$1,168,806▲ 2.6%▲ 13.1%
Melbourne$918,350▲ 2.0%▲ 12.6%
Brisbane$584,778▲ 0.6%▲ 2.1%
Adeliade$542,4180.0%▲ 1.3%
Perth$527,3220.0%▼ -1.0%
Hobart$514,097▲ 2.2%▲ 9.3%
Canberra$779,050▲ 0.3%▲ 4.4%
Darwin$494,281▲ 1.2%▼ -3.9%
Combined$819,860▲ 1.7%▲ 8.9%

Sydney, which has seen the strongest annual growth since mid-2017, saw houses prices life by 13.1 per cent and units 8.5 per cent over the year thanks in part to low mortgage rates and improved borrowing capacity fuelling buyer demand.

Worryingly, quarterly house price growth has slowed to less than half, and unit price growth one-third lower than the previous quarter.

“Early signs suggest that the rate of price growth had peaked before the coronavirus pandemic hit,” Powell said.

“A combination of weak wages growth and rising prices had once again stretched affordability for some buyers, while a rise in new listings early in the year had helped to service demand.”

New listings also began to fall from mid-March, along with 14 per cent of listings have had prices revised in March, up from 5 per cent in late 2019.

In Melbourne house prices have now risen for four consecutive quarters, pushing annual gains to double-digits for the first time since 2017.

Unit prices, which hadn’t seen double-digit annual growth in almost a decade, surged by 13.8 per cent over the year.

Despite this, new listings also dropped about 11 per cent over mid-March through to mid-April, suggesting few forced sales.

Powell noted that the rapid cautionary response from sellers will be counterbalanced against a drop in buyer demand and in turn result in property prices faring better than transactions over the coming months.


Median unit prices

CityMar-20QoQYoY
Sydney$744,672▲ 2.7%▲ 8.5%
Melbourne$554,306▼ -0.4%▲ 13.8%
Brisbane$374,846▼ -4.2%▼ -4.6%
Adelaide$323,846▲ 4.2%▲ 1.1%
Perth$348,535▲ 1.6%▲ 2.3%
Hobart$431,8420.0%▲ 9.8%
Canberra$441,055▼ -5.2%▼ -4.3%
Darwin$262,562▼ -8.1%▼ -16.2%
Combined$570,229▲ 0.9%▲ 7.4%

^ Source: Domain

Brisbane saw house prices nudging up 0.6 per cent over the first quarter to a record $584,778 and lifting 2.1 per cent higher than last year.

However, the city’s unit prices recorded the steepest annual fall in almost two decades, down 4.6 per cent and 9.8 per cent below the 2016 peak.

Despite South Australia holding the highest unemployment rate in the nation, Adelaide was one of only three capital cities to record stable or rising prices for houses and units, along with Sydney and Hobart.

The modest 1.3 per cent annual growth pushed house prices to a new high of $542,418 while unit prices jumped 4.2 per cent over the quarter.

Hobart, which remains heavily exposed to the economic shock of the coronavirus pandemic due to its heady reliance on tourism, saw house prices rise to a new record high over the first quarter of 2020, up 2.2 per cent with unit prices holding.

House prices flatlined over the quarter in Perth with values sitting 14.4 per cent below the late-2014 peak.

“The slow recovery of Perth’s housing market over the past six months could be stalled by the economic fallout from the coronavirus pandemic,” Powell said.

“The ability to pause mortgages will be a lifeline to some homeowners, reducing the number of distressed sales.

“Perth will also benefit from WA’s two biggest exports, with iron ore exports expected to hit a high this year and gold prices at an all-time high.”

In the nation’s capital, values lifted slightly by 0.3 per cent over the quarter while unit’s dropped by 5.2 per cent.

Powell said Canberra would remain somewhat insulated to the economic shock due to its high proportion of government works, where job losses have been minimal to date.

 

 

 

 

This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.

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Residential

Karl and Jasmine Stefanovic buy Sunshine Beach holiday home

Karl and Jasmine Stefanovic buy Sunshine Beach holiday home (1)
Karl Stefanovic and his wife, Jasmine have bought their first home together… and it’s in Queensland.
The expectant couple have spent $3.6 million at Sunshine Beach on the Sunshine Coast.
Their purchase is just 200 metres from the water.
Karl and Jasmine Stefanovic buy Sunshine Beach holiday home (4)
It was on the market for 420 days before the couple made their whisper quiet purchase last month.

It was the first time the house had been sold since built.

“Perched on an elevated block overlooking Sunshine Beach, it’s hard to go past this luxurious abode,” the marketing suggested.

Karl and Jasmine Stefanovic buy Sunshine Beach holiday home (3)

The television presenter last owned in Queensland 15 years ago when he sold his two bedroom home, to make the move south from Paddington, the trendy Brisbane suburb, to Sydney.
Stefanovic and his then wife, Cassandra Thornburn pocketed $371,500, in 2005 around the time he took over on the Today Show from veteran presenter Steve Liebmann.
The couple recently moved their Sydney abode, from inland Momsan to rent on Sydney Harbour.

The 2009-built bedroom Sunshine Beach home is on the same street where the tennis champion Pat Rafter previously owned.

The Stefanovic’s join the increasing gang of Sydneysiders who have seek the sun up north for their holidays.

The Vaucluse-based Real Housewife Krissy Marsh bought in Noosa recently paying $9.8 million for a luxury home on Noosa Waters (below).

Karl and Jasmine Stefanovic buy Sunshine Beach holiday home (2)

It is not far from the Dover Heights accountant Anthony Bell, who paid a record $10.31 million in 2017 for the waterfront with Kelly Landry as their retreat.

Hollywood start Dan MacPherson also owns at Sunshine Beach, where he has a two-level timber bolthole with ocean views that cost $2.15 million in 2010.

Sunshine Beach currently has $1.95 million median price for four bedroom homes, according to realestate.com.au, reflecting an annual rental yield of 2.3 percent for rental holiday homes.

It is one of the hottest property markets in the country, as based on five years of sales, Sunshine Beach has seen a stellar compound growth rate of 11 percent.

This article was first published in the Daily Telegraph.

 

 

This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.

 

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Brisbane

Rental Values On The Up As Investment Properties Throughout The Previous Property Upswing Absorbed

Rental Values On The Up As Investment Properties Throughout The Previous Property Upswing Absorbed (1)

A quarterly review of national rents by CoreLogic showed that rents surged 0.5% higher over the month to January 2020 to record a current median rental value of $440/week. According to Eliza Owen who heads up the company’s residential research division, this was the highest monthly growth rate in the national rental index since January 2018.

Eliza Owen said, “It is clear that the rental market is starting to gain momentum again as the investment properties from the previous upswing are absorbed, and new development levels have moderated. This means tenants can expect higher rents in most capital cities.”

“Hobart presents a continued crisis in the rental market, with the strongest growth in rents, a tight level of vacancy, and a growing short term rental accommodation market crowding out long-term tenants.”

The CoreLogic hedonic rental index has been in an upswing since September 2019. It follows the start of the rise in purchase prices in June 2019, and a decline of new dwelling construction in most capital cities.

Across the combined capital cities, rental rates were 0.5% higher over the month, with a weekly median rental value of $467. This is now $82 higher than the combined regional markets, where the median rental value sits at $385/week.

The difference between capital city and combined regional rents narrowed against high levels of new supply in capital city regions, which slowed rental growth. Now that the lack of supply is starting to tighten rental markets in capital cities once more, this dynamic may change over 2020.

The analysis showed over the month, Sydney, Canberra and Hobart saw the fastest rental increases (each rising 0.7%), followed by Adelaide (0.6%), Perth (0.5%) and Melbourne and Darwin (0.4%).  Brisbane experienced the slowest rental growth over the month, at 0.3%. Despite the relatively low growth in the dwelling rental index in Brisbane over the month, this is the highest monthly result for the Brisbane in a year.

Sydney is the most expensive city for rentals with a median dwelling rental value in January 2020 of $574/week. This is despite downward pressure on rents from high levels of property investment during the 2012-17 upswing. Year-on-year, Sydney rent values have fallen, but the rate of decline is shrinking. Median rents across Canberra came in only $18 lower than Sydney, making it the second most expensive market to rent a dwelling across the nation.

Rent Review Highlights:

  • National rents increased 0.5% over the month of January, and increased 0.7% on a quarterly basis to be 1.3% higher over the year.
  • Capital city rents are 0.7% higher over the quarter and 0.8% higher year-on-year while regional market rents are 0.8% higher over the quarter to be 2.8% higher over the past 12 months.
  • Each of the capital city dwelling markets experienced a month-on-month increase in rent values, led by Sydney, Hobart and the Canberra where rent values were up 0.7% in January. However, Sydney was one of two capital city markets to still have lower rent values year-on-year.
  • In January 2020, Sydney remained the most expensive rental market, with a current median rental value of $574/week. The differential between Sydney and the second most expensive rental market, Canberra, has trended down over time. As Canberra rents increased to $556/week over January, the difference between the two was just $18.
  • Darwin was the only capital city to see declines over the three months to January (-0.3%), and saw the largest rental value decrease over the year (-1.9%).
  • Gross rental yields are currently recorded at 3.79% nationally compared to 3.81% at the end of the previous month, and 4.01% a year ago.
  • Rental yields were higher over the year in Hobart, Perth and Adelaide, but declined in the rest of the capital city markets.

Combined regional markets saw a slight increase in rental yields over the year, compared with a 15 basis point decline across the combined capital city markets.

Rental Values On The Up As Investment Properties Throughout The Previous Property Upswing Absorbed (2)

 

 

 

This article is republished from www.corelogic.com.au under a Creative Commons license. Read the original article.

 

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