Brisbane’s stability has gained the highest level of interest from investors, allowing it to emerge as the most popular market for investors actively seeking opportunities. Will the Queensland capital be able to sustain its steady growth moving forward?
Momentum Wealth found that a large percentage of investors still believe that it is a good time to invest in properties, with buyer confidence at its highest in Queensland, Victoria, Western Australia and South Australia.
Team leader of Momentum Wealth’s buyer’s agents Emma Everett said: “All of the capital cities which recorded a home preference in this year’s survey were either in the growth phases of their property cycle, or entering recovery with growth anticipated in the short to medium term, which likely contributed to the positive outlook in these respective states.”
Investor interest remained highest inand Brisbane, with 37 per cent and 26 per cent of over 400 respondents respectively choosing the capital cities as the best locations to invest in the next 12 months.
Ms Everett said that the relative affordability and growth opportunities in both Brisbane and Perth are likely to be the primary drivers of continued interest in their property markets.
“Brisbane’s property market has been recording steady growth for some time… Investors are also recognising the value for money these markets offer, especially in comparison to places like Sydney where prices remain significantly overvalued and affordability constraints are pushing buyers out of the capital city market in favour of regional or state alternatives.”
Domain’s Property Price Forecasts for February 2020 indicated that the Queensland capital city can expect to see some sustained value gains over the next two years – with home values jumping by 8 per cent and unit values increasing by 6 per cent in 2020 alone.
In 2021, a further 7 to 9 per cent and 4 to 6 per cent growth in home and unit values are expected, respectively.
Brisbane continues to display its stability and strength as a property market as it records a new median house price of $503,265 in February.
According to the CoreLogic Hedonic Home Value Index, property values across all areas of Greater Brisbane saw an increase of 0.6 per cent, in line with the national trend for positive property price growth since June last year.
Further, the Valuer-General’s 2020 Property Market Movement Report showed that the residential median land value also increased in Brisbane from $455,000 to $460,000 over the last 12 months. Increases were particularly notable in several inner northern suburbs including Kalinga and Wooloowin.
Brisbane’s upper quartile values are 2.2 per cent higher over the last 12 months compared with the lower quartile, up by 1.3 per cent.
According to Streamline Property Buyers’ managing director Melinda Jennison, the trend shows stronger performance across premium markets, which may be attributed to the dominance of owner-occupiers over investors during the last 12 months.
However, despite the growth in the Queensland capital, experts remind investors to be careful about jumping into its property market and ultimately do due diligence before making a financial commitment.
CoreLogic’s head of research Eliza Owen said that the narrative of oversupply and underperformance in Brisbane, particularly across the unit market, has dominated conversations around south-east Queensland property for almost five years.
Last month, Brisbane unit values remain 11.5 per cent below their 2010 peak to be at similar levels to 2007.
This trend, however, is “very much a unit-centric story”, according to Ms Owen. Houses across Brisbane continue to post strong capital growth in recent years, “except for a brief, cyclical downturn over part of 2019”.
“In the previous trough-to-trough cycle that lasted between 2012 and 2019, annual house value growth outperformed unit growth by an average of 290 basis points. This is larger than usual discrepancies and is above the series average difference of 130 basis points,” Ms Owen highlighted.
“In other words, the past cycle saw units significantly ‘underperform’ relative to housing stock in Brisbane. The rolling annual growth figure shows that unit values have largely declined since July 2016.”
During February, gross rental yields in Brisbane compressed slightly from 4.6 per cent to 4.5 per cent, according to data form CoreLogic.
Ms Jennison said that this current trend may be attributed to house values rising slightly more rapidly than rental rates, but it may also be due to seasonal factors.
Further, mortgage rates are trending lower with some three-year fixed rate loans now being offered to investors for as low as 3.14 per cent. Depending on an investor’s deposit amount and mortgage structure, there are still a lot of neutrally geared or positively geared property investment opportunities in Brisbane, she said.
Supply and demand
While the underperformance of the unit market remains notable, the latest data suggests that construction and population growth are driving a change in the story.
Ms Owen noted that both CoreLogic and ABS data showed that there’s been a convergence between the number of dwellings required and supplied since the beginning of 2018.
With approvals data suggesting a decline in construction and steady estimates of population growth, Queensland dwellings may fall into undersupply in the year ahead, she said.
As rental yields are also well above the capital city average, there could also soon be a turning point in investor demand.
“However, one unknown in this analysis would be projects that have stalled due to falling unit values in the past few years. If these recommence, added supply could once again weigh down growth,” according to Ms Owen.
“The turnaround in the supply-demand dynamic is already being seen in unit values. Since bottoming out in June 2019, CoreLogic indices show the Brisbane unit market has recovered 2.2 per cent. This fits in with a more broad-based recovery, as reductions in the cash rate have reduced the cost of servicing debt, and increased incentive to purchase property.”
CoreLogic’s Property Market Indicator summary for the week ending 16 February 2020 showed that 1,555 homes were taken to auction across all capital cities last week – returning a preliminary auction clearance rate of 78.6 per cent.
It’s a jump on results from a week prior, where 1,167 auctions were held, which returned a final clearance rate of just 67.7 per cent.
Melbourne and Sydney saw 717 and 578 auctions for the week, respectively – the highest across all of Australia’s capital cities. The capital cities recorded preliminary auction clearance rate of 79.2 per cent and 80.3 per cent.
Across the smaller auction markets, Brisbane had the largest auction volume, reporting 104 homes as having gone under the hammer and reaching a preliminary clearance rate of 61.5 per cent.
Adelaide, Canberra and Perth were up next, with 82, 48 and 19 auctions and clearance rates of 75 per cent, 90 per cent from 48 total auctions and 80 per cent, respectively.
Several factors are being monitored in relation to the future of the property market of Brisbane, particularly the movements of property values, according to Ms Jennison.
Broadly speaking, the primary factors supporting the steady price growth in Brisbane remain in place. These include the low cost of debt and improved borrowing capacity.
Additionally, Brisbane remains affordable with a median house price of $369,669 cheaper than in Sydney and $185,823 cheaper than in Melbourne so affordability pressures are less likely in our city.
Population growth is still 2.3 per cent greater than the decade average, while economic growth is up 21.2 per cent above the “normal” decade average level of output. Further, job growth is trending higher and unemployment is reducing with the lowest trend jobless rate in 10 months, according to the CommSec State of the States economic performance report.
However, there certainly may be supply chain issues for the construction industry, slowing down the delivery of an already lacklustre level of new housing supply due to falling construction commencements over the last 12 months.
Foreign investment has also plunged by 58 per cent year-on-year in the 2017/18 fiscal year to the lowest level in a decade.
There may also be some impact to properties associated with tourism and student accommodation in light of the coronavirus epidemic, although it’s too early to tell for sure, according to Ms Jennison.
“We can’t estimate the impact that it may have on consumer confidence or economic growth, but looking back on the SARS outbreak in 2003, there was a sharp slowing of output growth in China for a few months, before a sharp bounce back as the outbreak was controlled and economic stimulus measures were introduced,” she said.
Overall, while the country is entering a period of uncertainty, Brisbane is still poised to report robust growth based on the fundamentals outlined above.
“With continued signs of strength across many locations in Brisbane is it a great time to secure your next home or investment property in Brisbane,” Ms Jennison highlighted.
Ultimately, 2020 could be a much better year for the Queensland capital, mainly because of its affordable price points, according to Ms Owen.
Outside Brisbane, South East Queensland, particularly Gold Coast andCoast, are presenting good investment opportunities as “lifestyle markets” as redevelopment attracts commercial tenants and promotes jobs.
For those looking to buy properties in the $500,000 to $600,000 price point, she recommended looking into the Sunshine Coast or Gold Coast, which could be more expensive than Brisbane but definitely more attractive, both aesthetically and commercially.
“They’re such beautiful parts of the country. The thing that has been missing is commercial focus, but that’s starting to change as there’s sort of a wider gentrification and modernisation of these environments,” she said.
Moving forward, investors are advised to be strategic in their property selection.
Right Property Group’s Victor Kumar said: “In more affordable places like Brisbane, there is the potential for growth over the short and medium term. However, you must also be strategic in your property selection.”
“Like I always say, successful property investment can happen in any market cycle and at any time of the year. The success stories are the people who recognise this – and invest wherever necessary when the timing is also right for them.”
Latest insights from OpenAgent.com.au found that suburbs near the Brisbane city centre boast rental yields over 5.6 per cent.
The Logan suburbs with the highest rental yields for houses are Logan Central (6.49 per cent),(6.19 per cent) and Woodridge (6.16 per cent).
Kingston and Woodridge are under a half-hour drive to Brisbane, whileand Beenleigh are just over a half-hour drive to the Gold Coast.
According to OpenAgent’s data analyst Carson Teh, the Logan region is expected to grow significantly this 2020, driven by the increase in population as well as several enhancement projects.
“The Queensland government expects the population in Logan to grow from 326,615 people in 2018 to 432,000 by 2031,” said Mr Teh.
“The Logan Enhancement Project has been backed by the Queensland government, making Logan a more attractive place for businesses to set up headquarters, and leading to a strengthened economy and increased population.”
Due to its yield potential, Damian Piotto, real estate agent from Ray White in Marsden, believes that Logan is ideal for investors, particularly those from interstate.
“Rental returns are always going to be strong with the area located right in the middle of Brisbane and the Gold Coast, great public and private schooling, and the blue-collar industry within a 10-minute drive of these areas,” Mr Piotto highlighted.
“With the local and state government continuing to improve amenities, new water parks, Logan Metro Sports Centre and the Logan Entertainment Centre, it’s easy to see why families get a lot of bang for their buck so to speak.”
Some of the high-yield suburbs across Brisbane include:
|Suburb||Median house price||Median asking rent||Rental yield||Vacancy rate|
Inner-east Brisbane suburbs are also prime for investment in 2020, according to OpenAgent.com.au.
Both housing and unit markets in inner-east Brisbane present strong investment opportunities this near year, according to new insights from OpenAgent.com.au.
Murarrie, Cannon Hill and Morningside saw the highest rental yields for units at 5.90 per cent, 5.68 per cent and 5.28 per cent, respectively.
For houses, the highest rental yields were found in Murarrie, Morningside and Cannon Hill, with 4.38 per cent, 4.05 per cent and 4.01 per cent, respectively.
Class Real Estate’s agent John Kubatov explained: “The postcode 4170 has lots of infrastructure like train lines, good main roads, good bus services, close to shopping centres.”
Over the past 12 months, the houses of Cannon Hill, units ofand units of Bulimba saw the largest increases in weekly rent prices at +8.16 per cent, +5.14 per cent and +4.17 per cent, respectively.
Meanwhile, low vacancy rates can be found in Murarrie (1.90 per cent), Cannon Hill (2.50 per cent) and Morningside (2.50 per cent).
For those looking specifically for affordable properties near the CBD, OpenAgent.com.au found that the southern Brisbane suburbs with some of the fastest public transport commutes to the CBD are(25 minutes), Tarragindi (27 minutes) and Holland Park (30 minutes).
Meanwhile, short drives into the city can be found in Tarragindi (10 to 22 minutes) and Holland Park West (10 to 24 minutes). Times can vary dramatically depending on peak hours.
Property prices across these areas range from $367,500 to $791,250.
According to Mr Teh, a short commute into the CBD is a highly desirable feature for buyers.
“Those looking to sell property in these areas should emphasise the fast commute, a feature that will undoubtedly attract working professionals, young families and investors,” he said.
Comparing the most recent census to the one before, the population has grown in all the southern Brisbane suburbs within a 35-minute commute, suggesting there is an increasing demand for affordable property that still offers easy access to the city.
Beenleigh-based real estate agent Sarah Schultz said that people who needed access to the CBD moved to areas like Holland Park after inner-city suburbs started becoming more expensive.
“It’s close to the city, has had good growth over the last 10 years and has become a thriving, sought-out suburb,” she said.
“After everything in the city started becoming more unaffordable, places like Holland Park started going up in price.”
Out of the seven suburbs, the lowest median house prices can be found in Upper Mount Gravatt ($600,000),($605,000) and Mount Gravatt ($642,500).
For more affordable options, investors may choose to invest in apartments.
Median unit prices go lowest in Upper Mount Gravatt ($367,500), Salisbury ($398,500), Holland Park West ($400,000) and Macgregor ($400,000).
|Suburb||Public transport||Car||Median house price||Median unit price|
|Macgregor||25 mins||14-35 mins||$730,500||$400,000|
|Tarragindi||27 mins||10-22 mins||$791,250||$489,000|
|Holland Park||30 mins||12-28 mins||$722,500||$410,000|
|Upper Mount Gravatt||32 mins||12-28 mins||$600,000||$367,500|
|Holland Park West||34 mins||10-24 mins||$707,000||$400,000|
|Mount Gravatt||34 mins||12-28 mins||$642,500||$450,100|
|Salisbury||35 mins||14-30 mins||$605,500||$398,500|
Bridgeman Downs, an under-the-radar suburb 13 kilometres north of the CBD, has also been tipped to be the next hotspot for property investors, an analysis by ASPIRE property advisory network reveals.
The suburb has evolved from home buyer hub of rural residential to a solid investor option.
Founding and managing director of ASPIRE Richard Crabb believes it follows all the fundamentals, which should see prices rise.
“Increasing rents, falling vacancies, rising population and affordable property options are the gold standard when it comes to selecting promising investment locations, and Bridgeman Downs ticks all those boxes.”
According to SQM Research, Bridgeman Downs rental vacancy rate has progressively dropped from its peak figure of 4.5 per cent in November 2016 to 3.2 per cent in November 2019.
In addition, the research showed that asking rents are up by 4.0 per cent for units.
“A combination of rising rents and tightening vacancies is a key indicator of investment income growth potential,” Mr Crabb said.
The population of Bridgeman Downs has also grown around 13.4 per cent over the past five years and is set to continue, driven by the suburb’s family lifestyle, combined with excellent access to services, facilities, schooling and transport routes.
“In addition, much of the suburb’s developable land has been exhausted, so supply is tightening,” he said.
Price rises had already begun in the suburb, with Domain data revealing Bridgeman Downs was among Brisbane’s top 10 suburbs for median house price growth reflecting 7.2 per cent to December 2019.
Investors may also find opportunities in the new Brisbane luxury apartment project and master-planned community, which is currently on stage two and is nearing completion.
Located just six kilometres from the CBD,Residential Properties’ luxury project Gallery House – a part of the Northshore community and urban renewal project – has started welcoming residents in its second stage of development.
Planned to take future growth into account, Gallery House contains premium resident-only facilities, such as a rooftop sanctuary with an infinity pool, lounge and barbecue areas, among its other offerings.
According to Brookfield Residential Properties’ managing director, Lee Butterworth, the master plan was “meticulously designed to offer some of the best living opportunities in Queensland”.
Stage two of the development is already 90 per cent sold, with sale prices ranging from $575,000 to $2.795 million across the 315 apartments.
“The three and four-bedroom apartments and penthouses in Gallery House are bigger than many homes, so buyers don’t feel like they are compromising on space. Instead, they are upgrading to a brand-new apartment with all the modern luxuries and lifestyle amenities at their doorstep,” he said.
Gallery House forms part of a greater $5 billion Northshore Hamilton precinct. The precinct is one of the largest urban renewal projects in Queensland – at 304 hectares.
Brookfield Residential Properties reported that it had already delivered six apartment buildings as part of its Portside Wharf retail and residential precinct.
The Hamilton Recreation Reserve has also recently reopened after a $10 million face lift, “which boasts green space for cricket and football, an amphitheatre, picnic areas, a dog park and water play facilities” Mr Butterworth said.
This article is republished from www.smartpropertyinvestment.com.au under a Creative Commons license. Read the original article.
Coronavirus pandemic to slug Queensland’s property prices, industry figures say
For Queensland mortgage broker and property consultant Carolyn Walshe, it is not a matter of if, or when, the coronavirus will hit property prices, but by how much and for how long.
“You’d have to expect that they’re going to fall,” Ms Walshe said.
“The question is going to be just exactly how much — I think the smartest thing that people can do right now is just to hold back and wait and see what happens over the next few months.”
The latest figures show Queensland reached record median house prices for Brisbane, Noosa and other parts of the state in the last quarter of 2019.
Real Estate Institute of Queensland (REIQ) chief executive Antonia Mercorella agreed that COVID-19 would put a dent in that.
“Inevitably we will see the property market impacted by the coronavirus — I think it would be incredibly naive to think otherwise,” Ms Mercorella said.
“We know that a large volume of people will lose their jobs during this time.
“We know that it will completely erode confidence and those things — security and confidence — are very much key to the property market.”
Last night, Prime Minister Scott Morrison included the property sector in the latest moves to limit social interaction.
“Real estate auctions and open house inspections, in particular open house inspections — that cannot continue,” Mr Morrison said.
He said that from midnight tonight they would not be allowed.
Lenders, investors cannot foresee what’s to come
Ms Walshe, who also advised clients through the global financial crisis — suggested the forced shutdowns of parts of the economy, the restrictions on travel and the massive queues for Centrelink all added to the uncertainty.
“The list of instructions that people have to live under is breathtaking, so until we see some endpoint to all of that, it’s going to be very, very difficult to see exactly where the other side is,” Ms Walshe said.
Ms Walshe said the fact the Federal Government had moved the budget from May to October showed neither it nor investors, could foresee what was to come with any certainty.
“I don’t think anyone can have a lot of confidence at the moment until we see things that are far less alarming,” Ms Walshe said.
“Therefore, less property sales will complete until we have some confidence returned to the market and people are back at whatever semblance of normal work is.”
She said banks would be reluctant to lend, as people’s ability to repay loans also looked uncertain.
“Lenders are now going to be seriously looking at [the] possibility of there being lower numbers of borrowers who are in occupations where their income can be absolutely guaranteed,” Ms Walshe said.
Ms Mercorella said while some investors would be reluctant, others might pounce.
“We will see some investors perhaps getting cold feet and making a decision to suspend that,” Ms Mercorella said.
“But similarly, we will see some prospective investors being quite bullish about it and actually looking at this as an opportunity and probably pouncing on what’s available to try and secure a property at a better price, at a lower price.”
Renters and landlords also to come under strain
Ms Mercorella said the REIQ’s immediate concern was tenants facing eviction for not being able to make their rent.
“Around 35 per cent of the Queensland population rents,” she said.
“The vast majority of that supply comes via the private investor, so given the predicted job losses, we are concerned about the impact that will have on a tenants ability to make their rent obligations.
“We don’t want to see renters being evicted on account of non-payment.”
She said the REIQ welcomed any support governments could give to tenants.
“Equally, what we need to be cognisant of is that the vast majority of that rental supply is coming from private investors — mum and dad investors — and they will have their own obligations at the other end to the bank.” Ms Mercorella said.
“So the challenge will be how we protect tenants in this in this environment, but also supporting owners who ultimately — if they don’t meet those obligations — will end up defaulting on mortgages, and ultimately having to sell those properties and losing those properties, which will mean that we all lose.”
Ms Mercorella said there was hope the property market would recover relatively quickly.
She said the Queensland market was robust and recovered well from the global financial crisis.
“Again, we bounced back from the GFC rather well, but I but I do expect that this will be far more severe than that,” she said.
“It will also depend on how long we’re in the situation for, so it really is crystal ball gazing at this stage.”
This article is republished from www.abc.net.au under a Creative Commons license. Read the original article.
Brisbane auction buyers still keen amid COVID-19 fears
As social-distancing measures ramp up in response to COVID-19, public auctions present an interesting challenge for real estate agents. Despite this, a bumper 94 auctions went ahead across Brisbane at the weekend, with a clearance rate of 39 per cent.
“Buyers were cautious walking in,” said Nick Penklis, director of Space Property Paddington, of his auction of the two-bedroom, one-bathroom house at 20 Atthow Avenue, Ashgrove.
“[People] kept their distance. But, having it in the backyard certainly helped a lot, because it can provide private space.”
About 30 people gathered for 15 minutes to watch the auction, with five registered bidders attempting to walk away with the keys. Bidding opened at $700,000, and quickly jumped to $750,000.
Things slowed somewhat after this as bids of $5000 and $10,000 edged the price higher. Eventually, the hammer was dropped, and the house was sold for $885,000.
Despite the need for social distancing and hand sanitiser, buyers were still keen, Mr Penklis said.
“The buyers were there to buy, not to view,” he said. “It wasn’t like ‘Oh, we’ll just see what happens’. That was a strong sign for our market. The only thing we can’t do is shake hands. But, there were smiles all around, within distance.”
The vendors have owned the house since 1997, and have used it as a family home and an investment property. Meanwhile, the buyers are looking to get a foothold in the area.
Auctions in Sydney and Melbourne are under a cloud from next weekend with premiers in those states flagging shutdowns of non-essential activities. No such plans for Queensland have yet been flagged, though it remains to be seen whether coronavirus may bite into Brisbane’s much smaller auction scene.
“We’re not expecting to see an impact on the values of homes but we will see the number of sales fall as people wait and see what is going to happen,” said Real Estate Institute of Australia president Adrian Kelly. “Estate agents are pretty good at adapting in these circumstances.”
Elsewhere, Kosma Comino, of LJ Hooker Sunnybank Hills, sold the five-bedroom, two-bathroom house at 10 Mansfield Place, Mansfield, in Brisbane’s south-east before auction. He said COVID-19 was having an impact on people’s willingness to sell in the short term, but several sellers were still keen to get things moving in the coming months.
“I’ve got a lot [of auction campaigns] launching after Easter, but I think a lot of the sellers are up in the air with what’s going on with the coronavirus,” he said. “At the moment, what we’re seeing is a lot of increase in buyer inquiry, I think there’s a lot of panic buying at the moment.”
On the other side of the city in Brisbane’s inner north, the four-bedroom, one-bathroom house on a spacious 810-square-metre block at 295 Days Road, Grange, sold under the hammer.
Just one party attended the auction, making one registered bidder and an audience of two people. Despite this, the house sold over reserve.
The single registered bidder was a developer, who opened with a strong offer and, after about 20 minutes of private negotiation, the hammer was dropped and the house was sold.
The vendors were two sisters who inherited the house after a death in the family. It was particularly process for them because the house had been in the family since the 1980s.
Selling agent Georgie Haug, of Belle Property Samford, said the successful result was thanks to an incredibly smooth process, as well as the vendor’s willingness to trust her advice.
“I sold the seller’s property in Ferny Grove a couple of years ago for a record,” she said. “So, just the trust and the communication. I took [this] job in a heartbeat because they had so much trust in me to do the right job and get the result. It was just a really beautiful process.”
Closer to the city, the two-bedroom, one-bathroom house at 16 Skinner Street, West End, sold in an incredibly fast auction. About 20 people gathered to watch as two registered bidders battled it out for under five minutes.
Bidding opened at $700,000 and moved quickly to $800,000. Bids continued in increments of $20,000 then $10,000 until the house was sold for $970,000.
Selling agent Keryn Osgerby, of Sold Property Group, said 33 groups inspected the property over the five-week campaign, with the vast majority of interest coming from families.
“It was overwhelmingly young families who wanted to be in the area of lifestyle reasons,” she said. “Second to that would be the schooling benefit, but most of it was all about the West End vibes and lifestyle.”
The buyers fit this bill exactly and will be moving in with their young family very soon. Meanwhile, the vendors live overseas and were using the property as an investment. They sold because of a change in circumstances.
This article is republished from www.domain.com.au under a Creative Commons license. Read the original article.
Brisbane’s real estate sector holds steady: Herron Todd White
Brisbane’s residential real estate sector performs relatively steadily throughout its price cycle, avoiding dramatic dips, swings, peaks and fluctuations, according to the latest report from valuation firm Herron Todd White.
“Long-term property owners tend to do fairly well as long as their asset selection is on the mark,” the March report found.
“There is also a fairly typical range of buyer types. Our first home owners are motivated by affordability and getting the most bang for their buck. Their tick list will obviously be driven by location, but they’re also keen to find decent size allotments, potential for renovation, proximity to amenities and easy access to the CBD or a wellestablished lifestyle hub,” the report continued.
“While many of our first home buyers would no doubt like to buy within the five-kilometre radius, their price point usually means a balance between location and property type and quality. As such, there are those able to cope with a second-hand unit in a prime near-city position, while others will seek a newer home on a larger lot in a suburb a bit further out.”
“Both options could appeal to first home buyers at a similar price point Of note also is that first home buyers are becoming more prominent in our market.”
“The $15,000 state government first home buyer grant (which is limited to new property) and federal government deposit scheme are helping to boost their numbers. Add to that low interest rates as a motivation to getting first timers on the property ladder.”
Conversely, upgraders in Brisbane are looking to draw on increased value in their existing homes to secure better-quality accommodation in their location of choice.
“Their desired suburb will probably be dictated by their households needs. Young professional couples might look to move out of units and head towards a detached home with some renovation potential so there’s opportunity to build fast equity.”
Upgraders are mostly looking for the advantage of more space or larger yards and hopefully improved location compared to their first home – While upgraders will reside anywhere from outer suburbs through to near CBD depending on the budget, many find themselves in mid-range suburbs with easy access to the city.
“Family buyers could almost be considered an advanced subset of upgraders. These buyers are typically driven to certain properties by school catchments, proximity to public transport, parks, amenities and lifestyle amenities.”
“While many family buyers might want to look for renovation potential, there are plenty who are motivated to acquire something ready to live in so as not to tie up their weekends doing upgrade work.”
Brisbane downsizers and empty nesters are looking for low-maintenance homes with lock-and-leave potential to allow for trips out of town – a smaller detached dwelling of good quality and with a low maintenance yard, the report found.
“We are also seeing ever increasing numbers seeking accommodation in high-end units of minimum two (even three) bedrooms. They like the security while still having space for the kids and grandkids to stay. Downsizer locations vary from the CBD through to the bayside suburbs.”
Downsizers are also drawn to large apartments in suburban nodes within close proximity of shopping centres, amenities and hospitals.
The final buyer group highlighted in the report is the business professional – These buyers want to be close to the CBD or suburban nodes so their commute is short.
“Again, low maintenance is a priority as is public transport and lifestyle facilities. It’s suspected that these buyer numbers may well increase from the interstate migrant cohort coming to Brisbane chasing a better lifestyle than in Sydney or Melbourne,” the report found.
“The above list is, of course, not exhaustive. We are seeing a societal demographic shift with the rise of single-person households, multi-generational homes, single-parent families and share ownership among friends.”
“It’s envisaged that these varying household makeups will spur innovative and thoughtful design changes that will become more common over the next few years,” the report concluded.
This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.
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