This is an opinion piece by Peter Hyland, Urbis Regional director.
THE State Government is focused and very serious about scrutinising its needs as both a property owner and tenant.
Tuesday’s unveiling of Premier Campbell Newman’s vision for the revitalisation of the George and William streets government office precinct clearly signals to the broader industry it’s serious about setting an agenda of cultural change in Queensland starting directly with its own centres of control and influence.
The announcement, coupled with last week’s scrapping of the Bowen Hills office precinct project where Queensland Health was previously committed as a tenant, decisively heralds Premier Newman’s needs and expectations of the Government property portfolio.
The new precinct is a shot in the arm for Brisbane’s CBD, with the potential to transform a key city tract, and it should be welcomed as both visionary and confidence-building.
The transition of the Urban Land Development Authority’s power back to local authorities is another example of the State Government moving quickly to walk its talk. The Premier has taken a sensible and measured approach to make good on his election promise.
The ULDA, created to cut through red tape and speed up the approval process to bring affordable product to market, taught important lessons that fast and effective outcomes were possible. However, just as it was appropriate to create the ULDA, with a job well done it’s now also appropriate to transition some of its powers back to local authorities.
While Queensland waits for the outcome of the audit of government finances to discover the state’s true capacity, the property industry eagerly awaits guidance on four key areas of consideration for the Government’s policy makers. These decisions will shape and impact every aspect of the industry for the next decade.
Firstly transport infrastructure, particularly around rail capacity, remains a pressing issue while understanding the new Government’s property requirements as an owner and tenant will influence projects in Brisbane and our major regional centres.
We also urgently need to come to grips with the associated planning issues around the resource boom to ensure the best outcomes for our state’s regions and towns. Finally housing affordability, and its associated ripple effect, will be central to creating the momentum and confidence needed to revitalise Queensland’s property market.
To date the moves have been big and bold but the State Government is not acting impetuously, it is simply seeking to make immediate change.
The property industry expected hard decisions, which would inevitably impact some businesses, but were prepared to accept those with the pay-off of good economic growth and development a key fundamental that underpins a healthy Queensland property sector.
With a string of strong and confident decisions the Queensland Government’s ship has set its course and it would appear there is indeed a captain at the helm.
Originally published on couriermail.com.au on June 1, 2012.
Experts identify best cities to buy property
Property hunters after the best value should eye up properties in Brisbane and Melbourne, according to a recent survey.
Finder spoke to experts and economists and asked them which city they would buy a property in if they were to invest today.
Nearly a quarter of them picked Brisbane and Melbourne, while 13 per cent would search for property in Canberra or Sydney.
Nine per cent saw potential in Hobart. But Perth and Adelaide did not rate high, with only 4 per cent of experts enticed to invest there.
“While Melbourne and Brisbane are strong candidates for the most promising property market in Australia, it is a bit stunning to see Sydney perform relatively poorly,” Finder insights manager Graham Cooke said.
The results illustrate that it is essential to consider property in other parts of the country, he said.
“The state you live [in] doesn’t need to be the state where you buy. With many Sydneysiders grappling with housing affordability, rentvesting could be the way to go.”
Although the majority of experts and economists were able to put their finger on a city they would invest, 13 per cent did not think it was the right time to buy a property.
Brisbane tipped as Australia’s newest investor hotspot
Properties within a 10km radius of the Brisbane CBD are tipped to boom as oversupply issues that have plagued the market disappear, industry experts have suggested.
During a recent taping of the Smart Property Investment webcast, CoreLogic head of research Tim Lawless predicted properties just outside the Brisbane capital as the next hotspot.
When asked to give his tips on where to invest based on suburbs, Mr Lawless said Brisbane, which has previously been plagued by oversupply, is the big winner in the property market.
“I’d be buying… My first option would be buying a detached house within Brisbane, an established home within 10 kilometers of the CBD, at least 607 square meters of land, that’s your classic 24 perch block there,” Mr Lawless said.
“And you’re going to be renting it out for 650 to 750 bucks a week, so classic 5.5 per cent yield. Really good value there. Values haven’t really moved too much in that bracket, and you got inherent scarcity there as well,” he continued.
While highlighting that Brisbane’s apartment construction peaked four year ago, Mr Lawless said he still believes certain parts of the capital are better buys than others.
“If I was buying in Brisbane though, I’d really be trying to target, well, first of all the best suburbs around the inner city. So looking at areas like, South Brisbane, New Farm, Teneriffe, , those sort of areas,” Mr Lawless said.
Pure Property’s Paul Glossop offered a similar sentiment, noting the real value showing up in Brisbane is in the freestanding established housing market.
“If I was in Brisbane, I’d be wanting to live in Brisbane or looking to downsize or buy my first home, I’d like it as that option. Still probably question whether four to 500 grand in that particular property in that market is the best place for my money at the stage.”
However, Mr Lawless acknowledged he has been waiting for the Brisbane market to peak for a number of years now.
“I’ve probably done my fair share of suggesting Brisbane would show a much better performance, to be honest. So, I need to be careful what I say. But, once again, I think it’s probably one of the best options to be buying into around Australia at the moment. It’s incredibly affordable,” he said.
“Look at the last 10 years, values have risen less than incomes. They drop like 1.5, 2 per cent per annum, mixed with some subtle rises, some subtle falls. So it’s a very affordable market, Australia’s third-largest city, very strong population growth,” Mr Lawless concluded.
5 important things investors must know before investing in Brisbane
It looks like it’s finally Brisbane property’s time in the sun.
Many commentators agree that the Brisbane property market will be one of the strongest performing residential market over the next few years.
But if history repeats itself, and it most likely will, many investors won’t maximise their upside, or protect their downside when investing in Brisbane.
And many interstate investors will plain get it wrong.
Watch as Brett Warren, director of Metropole Properties Brisbane and I discuss…
5 important things investors must know about investing in the Brisbane property market
You’ll hear us discuss:
- Urban Sprawl
- Brisbane is not as expansive or wide ranging like Sydney and Melbourne
- Key Drivers of growth are lost once you get past 10-12km ring
- Employment hubs, wages growth, public transport and infrastructure
- Larger supply of land around the 10 – 15km ring
- Lack of superior school catchments
- Brisbane property transactions are more Buyer Friendly
- Less final and cut throat than other states
- You can often insert Building & Pest, Finance or Due Diligence clauses in contracts
- Fewer Auctions and more “Multiple Offer” scenarios
- Around 50% less Auctions in Brisbane
- Lack of Auction culture
- Multi offer scenarios are most common – where you put your best and final offer in
- Everything is negotiable
- Could be $500 apart or $5,000 apart?
- Flooding and Stormwater
- If you didn’t already know, Brisbane is prone to flooding
- One side of the street vs the other
- A lot of lower lying areas receive water on a regular basis with lots of storms
- Brisbane is undulating and run off form stormwater can create havoc in certain properties
- Always check flood and stormwater maps provided by Brisbane City Council
- Very different Indoor / outdoor living
- Warm and sunny all year round
- Properties that have an indoor / outdoor living combination sell and rent for a premium
- Open plan flow and living spaces that bring the outdoor in
- Easy way to add value is by adding a deck or reconfiguring living spaces
- Property Management4 years ago
7 Common GST Mistakes On Property
- Residential3 years ago
Ipswich Proves Frontier In Affordable Housing
- Infrastructure2 years ago
Decision on horizon for key marina section of huge North Harbour development at Burpengary
- Developments2 years ago
Brisbane and interstate investors drawn to up-and-coming King Street precinct
- Market Place2 years ago
How to make $1 million ‘flipping’ houses
- Infrastructure4 years ago
Ikea looking for 250 staff to fill roles at new North Lakes store
- Market Place2 years ago
Seaside suburbs the star performers of southeast Queensland property market
- Developments3 years ago
Caboolture West could be Australia’s next major regional centre