THE lure of affordability, lifestyle and world-class beaches made southeast Queensland’s coastal markets the stars of the property sector in 2017.
While home values grew just 2.4 percent in Brisbane over the past 12 months, they jumped nearly 7 percent on the Gold Coast, while houses climbed in value by more than 7 percent on the Sunshine Coast, according to the latest data from property analytics firm CoreLogic.
Half of the top 10 property sales in Queensland last year were made on the Gold Coast; totalling $48.9 million.
And some agents say the markets are set to strengthen further in 2018 as Sydney and Melbourne homeowners cash out of their million-dollar homes in favour of a more laid-back, affordable lifestyle in the tropical north.
The REIQ’s latest Queensland Market Monitor shows the median house price in the Sunshine Coast statistical division jumped from $557,500 in June to $570,000 in September, while the Gold Coast achieved a new house price record of $606,000.
The Queensland government recently declared the number of interstaters migrating to the state was at its highest level in eight years, with 15,716 people moving here in the year to March 2017 — most coming from New South Wales.
CoreLogic senior research analyst Cameron Kusher said both the Gold Coast and Sunshine Coast property markets had benefited from that boost in interstate migration more than Brisbane.
Ray White Surfers Paradise holds its major auction event of the year later this month to coincide with the January holiday period when many interstate and overseas visitors flock to the Gold Coast.
More than 100 properties will go under the hammer at its annual ‘The Event’ on January 28, with many holiday homes and investment properties set to sell to interstate and local investors.
Ray White Surfers Paradise chief executive Andrew Bell said the region had recorded solid sales figures in 2017 thanks to economic stability, job creation and steady population growth.
Mr Bell said the property market at the northern end of the Gold Coast had strengthened considerably because of new medium and high rise development in areas like Southport and Hope Island.
“That’s where all the new development is and it’s given people a lot more opportunity,” he said.
Mr Bell said suburbs like Coomera and Pimpama were had also become “powerhouses” for house-and-land developments, attracting demand from interstate.
“It’s not just people buying holiday homes,” he said.
“It’s just getting so difficult to live in Sydney with the cost of living and the traffic.
“People are saying ‘it’s time to move!’ and I think they’re seeing the Gold Coast as being the best it’s ever looked.”
And with vacancy rates of less than 1 per cent on the Gold Coast, Mr Bell said an increase in home construction was more than welcome.
“We can have 20 plus people turn up to an open home, so we desperately need more investors to buy some stock to help with this huge demand from tenants,” he said.
Kollosche Prestige Agents managing director Jordan Williams said the Gold Coast property market experienced periods of strength and weakness in 2017, but he predicted a bigger year in 2018.
“I know for a fact that for the last half of last year a lot of buyers were sitting on their hands reading the negative articles that said the market was going to crash,” Mr Williams said. “They’ve bought off me since then and realised its actually going to continue to improve.
“I think it’s going to be an exciting year.”
Mr Williams also said the majority of homes he sold were cash contracts, unlike the pre-GFC days.
“We have very affluent local and interstate buyers who are fourth, fifth and sixth generation wealthy,” he said.
“Our vendors who own these homes are also affluent, successful people and they don’t muck around with finance and building and pest inspections.”
Kristian and Haley Hughes are selling their five-bedroom waterfront home at 31 Pilot Court, Mermaid Waters through Kollosche Prestige Agents.
They’ve lived there for nearly three years, but have decided to sell and rent in the area so they can use the capital to fund Mrs Hughes’ new make-up venture.
Mrs Hughes, who runs The Institute of Makeup beauty school, said Mermaid Waters had benefited from the growth in popularity of nearby Burleigh Heads.
“I feel it’s becoming the new central location — nestled between Burleigh and Broadbeach,” she said.
The Hughes are hopeful they’ll benefit from the growth in the market over the past 12 months, with the median house price in Mermaid Waters increasing by more than 17 per cent.
Their family home is decked out with floor-to-ceiling glass, which captures spectacular 180 degree views.
“For someone who wants to make it their forever home, they’ll never run out of room,” she said.
“It was hard finding a place to put an offer on even then, because (homes) were selling before they even went to market.”
Further north, Noosa was the standout performer in 2017.
REIQ figures show Noosa was the state’s top performing market in the three months to September, recording annual house price growth of nearly 10 per cent.
Over the past five years, Noosa’s median house price has jumped by more than 40 per cent.
Tom Offermann Real Estate principal Tom Offermann said the company ended 2017 with eight sales averaging $5.9 million each.
The agency sold a sprawling waterfront home with a drive-through boatshed, two jetties and a boat ramp at 29-31 Wyuna Dr, Noosaville, for close to $11.9 million late in 2017 — setting a new record for the area.
“It’s not just the prestige properties that buyers are targeting,” Mr Offermann told The Courier-Mail.
“There are good opportunities for buyers at all levels who want to invest or live here.”
Another driving factor behind demand for the Gold Coast and Sunshine Coast markets is a lack of stock, but BIS Oxford Economics expects rising supply over the next three years to slow forecast price growth.
Another coastal market in Queensland that performed better than expected in 2017 was Cairns.
BIS Oxford Economics noted Cairns had benefited from improved tourism and a deficiency of dwellings, which was estimated to have pushed the median house price up by 20 per cent in the past five years.
It expects home prices to grow another five per cent until 2020.
Originally published: www.goldcoastinvestor.com.au
The property markets that are thriving because of Covid-19
The coronavirus crisis has ground Australia’s economy into a standstill, stifling property prices along the way – except for some particular regions that are, against all odds, doing better because of the pandemic.
According to hotspotting.com.au founder and Ryder Property managing director Terry Ryder, there are multiple influencing factors behind why a property market might perform strongly – and some property markets have three or more of these tailwinds behind them.
“Some locations have local economies well set up to withstand the negative forces of the virus shutdown period. They’re places where most of their jobs are provided by sectors which are more likely to be hiring than firing during this period,” Ryder said.
“And they’re places which are spending big on new infrastructure.
“Some of them are in our smaller capital cities and others are in key regional centres.”
Australia’s top locations for property buyers seeking capital growth are littered all around the country. According to Ryder, here’s where the top five are:
Sunshine Coast, Queensland
- Median house price: $400,000 to $850,000
In early 2020, Sunshine Coast was Queensland’s strongest property market and it remains well-positioned to withstand Covid-19 thanks to its strengthening economy and infrastructure spend.
Infrastructure spending boosts property prices by generating jobs, economic activity and improving amenities for locals, according to Ryder. Around 20,000 new jobs have been created in the last five years in this city, and the trend is set to continue.
“With a robust economy that has averaged growth of 4 per cent per year over the last 15 years, well above the national rate, opportunities to invest wisely continue to present themselves.”
The Sunshine Coast benefits from three strongly-performing sectors: tourism, retail, and construction. Enquiry levels into the Sunny Coast come from Victoria, NSW and Brisbane from those wanting a lifestyle change and looking to take advantage of remote work.
Marion, South Australia
- Median house price: $350,000–$600,000
This city 10km away from Adelaide’s CBD now boasts 30 research, tech and science start-ups, businesses, institutions, a new teaching hospital and a university campus, making it a precinct tipped to emerge strongly from the pandemic.
“The creation of jobs is driving the demand for property, making the City of Marion a strong leader in the Adelaide market, which we regard as the most under-rated in capital city Australia,” said Ryder.
Major transport projects are also improving connectivity and creating further opportunities for businesses.
“The City of Marion offers affordable properties, with many of its markets being priced in the $400,000s, as well as low vacancies (most postcodes are below 1 per cent).
“South Australia is one of the most consistent property markets in Australia, given the steady demand, solid local economy, and housing affordability.”
- Median house price: $300,000–$500,000
Bendigo attracts property buyers from Melbourne, Sydney and Canberra and has also been named by RMIT University as one of Australia’s most liveable regional cities.
Not only that, but PRDnationwide has named it as one of the nation’s most resilient property markets, and its unemployment rate is below the national average.
“The standout features of the Bendigo property market are affordability (houses typically priced below $400,000), good price growth across many suburbs, strong yields (4.5 per cent to 5.5 per cent is common) and some of the lowest vacancy rates in the nation (many postcodes are below 1 per cent).”
The city’s strongest feature is its “steady local economy,” close proximity to Melbourne as well as strong transport links to the Victorian capital. Its strongest economic sectors are retail; financial institutions; the manufacturing and mining sector; as well as agriculture, tourism and education.
Badgery’s Creek Precinct, NSW
- Median house price: $580,000–$760,000
This Western Sydney hub is already well-known for being the site of the Western Sydney Airport, and is already slated to become an “economic powerhouse”. The NSW government has already given the green light on two major construction projects on top of four already underway that will create a combined 16,052 new jobs.
The region will also feature an international university and education precinct, a wellness and healthcare centre, a Westfield shopping centre, and a hi-tech logistics hub, said Ryder.
This article is republished from au.finance.yahoo.com under a Creative Commons license. Read the original article.
‘We love it’: Inside Rudd’s new $17 million mansion
Former Prime Minister Kevin Rudd and his wife Therese Rein have been revealed as the mystery buyers of former tennis player Pat Rafter’s home, which they purchased for a whopping $17 million back in May.
The beachfront Sunshine Coast property boasts seven bedrooms, and was snapped up by Betty’s Burgers & Concrete Co founders David Hales and wife Louise in 2018 for $15.2 million.
The pair reportedly hoped to get $20 million for the property at Sunshine Beach, but settled for the $17 million sale to Rudd, the AFR reported.
The house is H-shaped, and was designed by architect John Burgess. It boasts a 12-metre pool, a three-car garage, a home theatre room and a climate-controlled cellar.
Rudd’s wife Rein said the purchase was in a bid to invest back into Australia.
“We’ve made a conscious decision to bring our investments home to Australia,” Rein said.
“While Kevin was in office, we had to invest overseas to avoid conflicts of interest. We’ve now mostly brought those investments back home to Australia.”
Rudd, who is currently the president of New York-based think tank Asia Society, said he was pleased with the purchase.
“It’s our community and we love it,” he said.
“It’s where I grew up and it has a really bright future.”
This article is republished from au.finance.yahoo.com under a Creative Commons license. Read the original article.
Covid-19 Creates Unique Opportunities for Buyers
The top suburbs tipped for future performance in Brisbane, Sydney and Melbourne have been revealed—with the coronavirus shifting the landscape for both rental and sales markets, new research shows.
According to PRD’s latest affordable and liveable property guide Covid-19 made its mark on rental markets in particular over the first half of 2020.
The pandemic also led to market cooling in some capital cities and there was a reduced percentage of homes available in the lowest price range bracket below $500,000.
The exception to this was Brisbane, where homes under this price were more readily available, and Hobart, where properties under $350,000 could be found.
PRD researchers looked at property trends, investment potential, affordability, project development and liveability factors to generate the list.
Top suburbs to buy homes
|House location||Median Price (,000)||Rental Yield||Unit location||Median Price (,000)||Rental Yield|
|Everton Park||$615||3.7%||Arana Hills||$395||5.6%|
|Oakleigh South||$923||2.8%||Brunswick East||$525||4.7%|
PRD chief economist Diaswati Mardiasmo said this data captured Covid-19 conditions and how that affected the market, with Sydney suburbs ranking the highest.
“Sydney metro market has recovered from the significant price-drop in mid-2019,” Mardiasmo said.
“However, thanks to Covid-19, the median house price only increased by 1.3 per cent over the past 15 months, which creates unique opportunities for both buyers and sellers.
“Brisbane continues to be a haven for first home buyers, with 45 per cent available for under $500,000.
“In comparison, only 5 per cent of Melbourne is available under $500,000, and zero per cent of Sydney .
“Melbourne presents an opportune time for first home buyers, as there has been a -11.1 per cent softening in median house price over the past 15 months.
“Buyers with a budget of under $800,000 can now access 46.3 per cent of the market; 18 months ago buyers with the same budget could only access 23.1 per cent of the market.”
The market was also changing in Hobart, where only 37.5 per cent of homes were available for under $500,000 in the second half of 2019, and this dropped to 34.6 per cent in the first half of 2020.
This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.
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