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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

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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Brisbane

Tom Dooley secures New Farm, Brisbane riverfront development site

Tom Dooley secures New Farm, Brisbane riverfront development site

A Brisbane riverfront development site, which has been earmarked for a multi-million dollar exclusive luxury apartment project, has been secured by local developer and builder Tom Dooley.

The deal to secure the 2333 square metre block across three blocks on Maxwell St, New Farm, is now unconditional and is expected to settle on December 2.

Dooley is believed to have paid around $23 million for the site which currently homes an original three level Tudor style property which is currently split in to eight units (pictured below).

Dooley said the 1930s building will be retained and its original architecture brought back to life.

“This in itself will be a special project”, Dooley said. There had been an application refused in 2012 to demolish the building.

Tom Dooley secures New Farm, Brisbane riverfront development site

Dooley, who runs Tom Dooley Developments, said he couldn’t pass up the opportunity to buy the site as it was the “best parcel of land he had ever seen in New Farm”.

“It is the largest privately owned single-line land holding with medium density residential zoning and views to the Story Bridge and city,” Dooley told the local paper.

“I have been on the lookout for something of this calibre in New Farm since we finished our Pietra development in Moray Street in 2012.

Tom Dooley Developments have completed five riverfront developments in this area.

“Compromising on location and views was not something we would consider.”

Dooley said demand for large riverfront apartments was on the rise and this project would meet those needs.

“We are just finalising details but each of the apartments will have three to four bedrooms, plus multi-purpose rooms and studies. The smallest will be 201 square metres while the largest will be a massive 785 square metres.

“For the type of product, we build – large luxury apartments with high end finishes – it is absolutely essential we get the right site and now we have.

“The land is in a prime position with views of the Story Bridge, the reinvigorated Howard Smith Wharves, the city, and Kangaroo Point and south towards Woolloongabba.”

The property has direct riverfront access with its own pontoon and is close to the River Walk, providing easy access to the Brisbane CBD.

“Combine the perfect location with the right design and a quality build, which we achieve by building for ourselves, and you end up with a fantastic result.”

The property, which had more than 20 metres of frontage to the Brisbane River, came with a development approval in place for a total of 18 units, although Dooley says he will seek to make some changes to the approval.

“I’ve engaged Brisbane architect, Shane Plazibat, who has designed all of our previous riverfront developments to carry out the redesign and introduce the design elements our projects are known for.

“What we are proposing is 15 apartments over seven levels stepping up the riverbank with a river house on the lowest level taking full advantage of the riverfront aspect, and at the top, an exquisite penthouse offering the ultimate luxury Queensland lifestyle.

Each of the apartments will have riverfront views.

Pricing has not been finalised yet, but is expected to range between $2.9 million and $12 million.

Completion is expected in 2021.

 

 

Source: www.propertyobserver.com.au

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Brisbane

Brisbane Apartment Sales Fell 31pc Last Quarter

Brisbane Apartment Sales Fell 31pc Last Quarter

Brisbane’s subdued apartment market, which led the country in and out of the cycle, is showing signs of renewed optimism, with apartment values and rents continuing to stabilise despite low levels of new supply.

While Brisbane suffered the largest decline in new apartments, with its pipeline slumping to nearly 28,000 from about 44,900 a year, many believe the market has reached a turning point.

While the Brisbane’s apartment development market hasn’t completely turned a corner, the pace of decline in apartment prices is slowing, resilient vacancy rates suggested new supply is being absorbed and rents are forecast to stabilise.

There were 146 new apartments sold in the September quarter, according to property consultants Urbis latest Apartment Essentials report, down from 212 sales in the previous quarter.

Urbis director Paul Riga said that though down from the previous quarter, sales remained in line with the four quarter average of 152 sales a quarter.

“The strength of inner Brisbane’s rental market is expected to be an appealing driver in attracting investors back to the new apartment market,” Riga said.

“With currents levels of population and employment growth combined with a declining level of apartments being completed the rental price growth trend is expected to continue over the coming 12 months.”

The average sales price decreased over the quarter by $8,000 to $748,829, driven by Brisbane’s inner-south which saw fifty-two percent of sales.

The inner south precinct is set to grab the largest share of new apartment completions, expected to hit 31 per cent across 2020 and 61 per cent across 2021.

The inner Brisbane rental market has continued to strengthen throughout the year, recording tightening vacancy rates and increasing prices.

Urbis’ analysis of the new apartment rental market reports an indicative vacancy rate of 0.6 per cent for new apartments.

“New apartment buildings are in high demand, and based on our discussions, building managers are seeing a high level of lease renewals and new tenants moving in,” Riga said.

“The inner Brisbane new apartment market continues to tick along, albeit at a subdued level.

“We aren’t seeing any major changes, with little movement in demand, and low levels of new supply being added.”

The quarter saw three apartment projects launched equating to 89 new apartments, down from the 467 apartments released through five new projects last quarter.

Two-bedroom, two-bathroom apartments were once again the most popular product type accounting for 47 per cent of total sales.

Over the quarter there were 22 per cent of sales in three-bedroom plus sized apartments, compared to only 13 per cent two years ago.

“Product is now being delivered to suit this market—recently built riverfront apartments are almost 100 per cent geared towards owner occupiers, whilst higher quality non-riverfront apartments are 50 per cent to 80 per cent occupied by owners.”

Recent research from Moody’s Analytics also points to a potential soft recovery, forecasting apartment prices to perform better than house prices in the medium term.

 

 

Source: theurbandeveloper.com

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