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RP Data research: Where property sells for a profit

New figures reveal property sellers raked in $15.2 billion in profits during the last three months of 2013.

The market is continuing to claw back lost ground with the Brisbane Investor, Housing affordability, Home ownership, Property Management, Real Estate Brisbane, Mortgage Broker Brisbane, Brisbane property market, housing sales, Housing marketnumber of properties selling for a profit on the increase.

New figures from RP Data reveal the number of profit making resales of properties throughout the country improved during the December quarter.

The country’s best region for turning a profit was Victoria’s Loddon Shire region, followed by Sydney, Perth, Central Highlands in Victoria and the Darling Downs in Queensland.

Housing as affordable as a decade ago

Queensland’s far north was the worst performer with 28.8 per cent of all sales during the December quarter for less than the owners originally bought. More than a fifth of property sales during the quarter in regional Queensland were at a loss.

Regional Western Australia also performed poorly with almost a fifth of sales at a loss.

Demand remained strong for properties within capital cities with only 6.5 per cent of those at a loss — the lowest level since mid 2011.

In Sydney, Melbourne and Canberra the proportion of loss making sales was highest for homes resold between one and three years.

In Brisbane, Adelaide, Hobart and Darwin homes which resold between three and five years after purchase were most likely to sell at a loss.

In Perth, homes purchased between five years and seven years ago were the most likely to sell at a loss over the quarter.

There were 74,595 properties sold during the last quarter of 2013 with only 9.7 per cent of those selling for less than the owners originally paid for them.

Losses in the December quarter totalled $457.3 million, which was an improvement on the previous quarter when 11.1 per cent of sales were at a loss.

The vast majority, 90.3 per cent, of sales during the December quarter were at a profit worth a total of $15.2 billion.

About a third of these owners at least doubled their money when they sold, but the average gross profit per sale was $225,088.

The average time to own a property before selling for a profit was 9.9 years, but if you want to double your money you need to live there for about 16 years.

RP Data research analyst Cameron Kusher said the likelihood of making a gross profit or loss was quite different based on the length of time a property was owned.

Homes bought before the Global Financial Crisis (January 1, 2008) which sold in the December quarter generally sold at a profit.

But 17.6 per cent of properties bought after that date and sold in December were for less than originally paid.

Mr Kusher said the results reflected the broader housing market trends at the moment.

“We are seeing values increase pretty much in all capital cities and a lot of regional markets as well,’’ he said.

“It does tend to reflect what we are seeing broadly but still on a historical basis the proportion of loss making sales is certainly elevated when compared to ten years ago.’’

Mr Kusher said the market appeared to be heading in the right direction, but the lifestyle market was still struggling a little.

“The lifestyle markets definitely are areas where we have seen the highest proportion of loss making sales, but again in those regions like the Gold Coast, Sunshine Coast, far north Queensland, south west Western Australia, although the proportion of loss making sales is still quite high it is trending down quite rapidly in those areas as well. Again that mirrors what we are seeing across those housing markets were we are now seeing some low levels of capital growth coming in.’’

“It just reiterates the long-term nature of investing in the housing market,’’ Mr Kusher said.

“I think what we have seen more recently is reflective of the market going forward, so people need to take a long-term view of buying property.’’

Mr Kusher said there had been a deterioration in performance in mining towns.

“Two quarters ago they were recording the lowest proportion of loss making sales, now certainly we have seen some escalation of loss making sales in areas like the Pilbara region, the Kimberley region, those mining areas in Queensland, Mackay and those sort of areas as well.’’

The best performing council area within greater Brisbane was the Brisbane City Council area, where 90.7 per cent of sales were at a profit.

In Sydney, 100 per cent of sales in the Burwood and Hunters Hill council areas were at a profit.

In Melbourne both Banyule and Knox council areas were the best performers with 97.9 per cent of sales in each area at a profit.

In Adelaide every sale in Walkerville council region was at a profit during the December quarter, while in Perth the Gosnells council area was the best performer with 98.8 per cent of sales at a profit.

Hobart was the best performing council region within Hobart with 89.6 per cent of sales at a profit, in Darwin it was the Darwin council area with 92.4 per cent of sales at a profit, and in the Canberra council region 92.6 per cent of sales were at a profit.

WHERE THE PROFITS ARE

Regions with lowest proportion of loss making resales

LODDON (Vic) (2.1%)

SYDNEY (NSW) (3.6%)

PERTH (WA) (4.3%)

CENTRAL Highlands (Vic) (4.3%)

DARLING Downs (Qld) (4.8%)

BARWON (Vic) (4.9%)

WIMMERA (Vic) (6.0%)

Melbourne (Vic) (6.0%)

ILLAWARRA (NSW) (6.3%)

GIPPSLAND (Vic) (6.3%)

Source: RP Data

 

Original article published at www.news.com.au by Michelle Hele, News Limited Network 22/3/2014

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Ipswich

Are these Australia’s cheapest blocks of land?

Are these Australia’s cheapest blocks of land

Just when we thought we had found the cheapest – a patch of dirt for $4.94 a square metre near the Queensland and NT border – we found another one.

And this “dirt cheap” vacant block is on the market for $2.08 a square metre – less than a 2L bottle of milk!

The fully fenced rural block of land has town water available and “power close by” but is only suitable for horses or recreation, hence the price.

Are these Australia’s cheapest blocks of land 1

It is listed with LJ Hooker Gayndah.

In Camooweal, yes that one near the border, a “drovers dream” is listed at 54 Cronin Street for $10,000.

With 2024sq m of vacant land that works out to be $4.94 a square metre — less than a beer at the local pub or a foot-long sub on discount day.

Are these Australia’s cheapest blocks of land 2

To help you wrap your head around that, that block of land would cost you over $1 million in Ipswich.

A recent report by property services group Oliver Hume found that Ipswich had the best value dirt in southeast Queensland, with land averaging $507 a square metre.

That is nearly half the price of vacant land in Brisbane, where buyers can expect to pay an average of $970 a square metre, so that block of land in Camooweal would set you back almost $2 million in the big smoke.

Bronwyn Finch of Jays Real Estate Mount Isa is marketing the Camooweal vacant block, which is located off the Barkly Highway.

Are these Australia’s cheapest blocks of land 3

Camooweal had a population of 208 at the time of the 2016 Census, with the average resident aged 36.

“It is walking distance to the local shop and garage, and you can wave at the tourists as they go past,” Ms Finch said.

“I sold another block about a year back, same deal for about $8000.”

Ms Finch said the cheap blocks were usually purchased by retirees looking for a spot to park their van between trips.

Are these Australia’s cheapest blocks of land 4

She noted it would be a tough ask to get a car park in Brisbane for the same price.

“It is quite close to the Gregory River, which is beautiful, and Adels Grove, our premiere tourist attraction out here, is about an hour away.

“That’s close for us. That’s a daily commute in the city.”

Are these Australia’s cheapest blocks of land 5

Meanwhile in Mungallala, a tiny outpost on the Warrego Highway west of Mitchell, is a 1012sq m vacant lot of land that is on the market for $6000, or the nearest offer.

That’s $5.92 a square metre – less than a cup of coffee in Ascot.

It is listed with Ray White Charleville agent Glenda Fill.

“There has been a new house built in the town in the last two years,” she said.

“It is very small town off the Warrego Highway and had a population of 136 in 2016.

“It is an hour and a quarter from here (Charleville) so it’s a bit closer to the coast than we are.”

And in Westwood, which is about half an hour from Rockhampton, the beef capital of Queensland, is an 1800sq m block for $9000.

There is also another 1174sq m lot for $8000, and the 962sq m lot, which was listed for $6000, has sold.

Are these Australia’s cheapest blocks of land 6

“Blocks are not serviced and would suit ‘off grid’ living,” the listing says.

“There is no town water in Westwood – households rely on tank or underground (bore) water.

“No town sewerage (septic or bio), Westwood has electricity – no current supply to this estate.”

Marketing agent John Neumann of Discover Real Estate said “it’s a bargain” with a “rural outlook”.

“There is a rail line nearby, a mining one,” he said. “I think there is a pub, a post office and a police officer there.

“It is only about 50km from Rockhamption and it is on the western highway to the mining belt.”

Mr Neumann said he had already had some interest in the lots, mostly from grey nomads looking for a base and people keen to “go off-grid”.

He said he had even had inquiries from uni students looking to get a leg – or toe – on the property ladder.

Westwood had a population of 174 during the 2016 census.

It was the first new town proclaimed in the Queensland Government Gazette, after the state became a separate colony back in 1859.

Are these Australia’s cheapest blocks of land 6

 

 

Source: www.qt.com.au

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Brisbane

‘The margin will never be this close again’: Brisbane’s waterfront secret where property is still affordable

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 3

Think “Brisbane waterfront” and Moreton Bay darlings Wynnum and Manly quickly spring to mind.

But only 30 kilometres northeast, on the other side of the airport and a similar distance to the CBD, another bay-front suburb, Sandgate, appears.

The photogenic village topped Domain’s best performing Brisbane suburb list in 2018 with 18.8 per cent median house price growth.

Despite this overall rise in housing value, data-savvy local agent Jacqui McKeering makes the case that Sandgate’s waterfront properties are still undervalued compared to southside bay designer homes.

Ms McKeering, of Jim McKeering Real Estate, says Sandgate waterfront still remains great value because family groups have to buy further back to get more features.

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 1

“When the price-to-rateable-land-value gap narrows, you are getting a bit of a bargain,” she says.

“A simple calculation to illustrate this point shows the market value of Sandgate waterfront properties not that much greater than the rateable land value; on average 32 per cent greater.

“In fact one waterfront property sale, back in 2017, sold for 15 per cent less than the rateable land value, yet one block back and without bay view properties have a greater gap of 42 per cent.

“One particular [non-waterfront] property sold as high as 66 per cent greater than the rateable land value.

“The outtake here is there is plenty of money to be made on Sandgate waterfront properties.

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 2

“I do believe the margin between waterfront properties and the neighbouring streets will never be this close again.”

Flinders Parade, which runs along the foreshore of Sandgate and into Brighton, plus Eagle Crescent and Shorncliffe Parade, are the waterfront property strips in focus.

Ms McKeering says a lot of people have been buying these older houses and renovating and that at the moment there is some choice in “real cheapies” from about $900,000 to about $1.35 million.

“I know someone who bought for $1.4 million in 2017 with a $1.8 million renovation budget,” she says.

“When you see that sort of money coming into an area, it tells me people are seeing long-term capital value in this area.”

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 3

Fellow Sandgate agent Tamara Wecker of RE/MAX agrees suburb 4017’s waterfront properties are priced and selling considerably under their comparable Brisbane market values.

“When compared to Wynnum and Manly,” Ms Wecker says, “absolutely; I mean you can live in the Taj Mahal in Sandgate for about $1.5 million.”

She is seeing buyer migration from Sydney and “a little bit from Perth” because of affordability, and thinks Sandgate’s strict rules, which prohibit multi-unit developments on its waterfront, is a further drawcard.

“People tend to think of Wynnum and Manly but here you can have a premium home and lifestyle only 30 minutes from the city,” Ms Wecker says.

“To be honest, it has been a bit of a secret because we are off the highway so you have to have a reason to come here, but that is changing in the past 18 months.

“We are getting more inquiries from people, even from Brisbane, who just did not know about us.”

Mark Crew has been selling Sandgate housing since 1990 and thinks people have woken up to how great a suburb it is in the past 18 months.

The Professionals’ agent has reported strong interest from Sydney buyers “looking for a better family lifestyle”.

He estimates 25 to 30 per cent of Sandgate buyers this year have come from the neighbouring suburbs of Shorncliffe, Deagon and Brighton; people who want to upgrade but stay in “the village”.

“It is 31 minutes to the CBD and you can be walking on the waterfront with your kids after work and we’ve got excellent schools too,” Mr Crew says.

Regarding Sandgate’s waterfront property market and its value, he says three factors should be considered.

“There are few waterfront properties for sale, land is scarce and over the past 20 years there has been a lot of change to the houses themselves, a lot of renovation and/or raising older three-bedroom cottages and transforming them into often substantial five-bedroom luxury houses,” he says.

“So these houses on their waterfront blocks are, quite rightly, going to fetch more in sale prices when they do one day return to the market; and that is showing.”

 

 

Source: www.domain.com.au

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Brisbane

Cheap Units In Brisbane Suburbs

Cheap Units In Brisbane Suburbs

Twelve suburbs in Brisbane have a median unit price of just under $400,000, according to Domain’s June House Price Report.

Ten out of these 12 suburbs are in the inner city, the report said.

Bowen Hills, Fortitude Valley, Albion, and Spring Hills are all within three kilometres of the Brisbane CBD. The median unit prices in these suburbs are below $400,000, the figures showed.

East Brisbane, Coorparoo, Clayfield, Nundah, Taringa, and Kedron also offer some of Brisbane’s cheapest unit values, according to the report.

Bowen Hills is the cheapest suburb to buy a unit, with prices falling 13.7% in the past 12 months, the figures showed.

Here are Brisbane’s cheapest suburbs to buy units by median price, according to Domain:

SuburbMedian priceYoY % growth5-year % growth
Bowen Hills$362,500-13.70%-18.80%
Runcorn$368,2504.80%-11.60%
Richlands$370,000-2.00%9.50%
Clayfield$375,0004.20%-2.10%
East Brisbane$378,000-7.40%-5.50%
Coorparoo$382,000-7.70%-2.30%
Nundah$385,000-6.70%-6.10%
Taringa$385,000-14.40%-4.90%
Kedron$387,000-3.30%6.30%
Fortitude Valley$392,000-6.80%-8.90%
Albion$397,500-10.00%-10.70%
Spring Hill$398,000-8.50%-2.70%

In Greater Brisbane, the median unit price fell 8.6% over the year to June, according to the report.

The capital city’s unit prices are “sitting at 2013 levels”—down from their peak in 2015, according to Domain research analyst Eliza Owen.

However, prices are expected to bottom out this year, with the end of the downturn in the unit segment in sight, Owen said.

“Unit listings are also moderating, which should reduce downward pressure on prices,” she said.

 

 

Source: www.yourinvestmentpropertymag.com.au

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