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
Property Prices Climb $50,000 Over Quarter
Runaway property prices have continued to surge at a breakneck pace, lifting by 6.7 per cent, or $50,000, in the June quarter.
According to the Australian Bureau of Statistics, property prices are now up 16.8 per cent year-on-year after being supercharged by ultra-low interest rates, government stimulus, forced household savings and elevated demand for bigger homes.
Australian Bureau of Statistics head of prices statistics Michelle Marquardt said prices had also been bolstered by low levels of stock on the market being met with strong demand and properties transacting at an increasingly rapid rate.
“With the exception of Hobart and Darwin, capital cities continued to see house price rises outpace those of attached dwellings such as apartments and units,” Marquardt said.
“Price growth for both property types is being driven by the upper segments of the market.”
Sydney median property prices grew faster than the national average again, up 8.1 per cent, or $81,000 in value, to now be 19.3 per cent higher than for the same period last year.
Property prices in Canberra lifted by 8.2 per cent across the quarter, followed by Melbourne, up 6.1 per cent; Brisbane, 5.7 per cent; and Hobart, 6.3 per cent.
Residential property prices
|City||Mar 21 to Jun 21 % change||June Qtr 20 to Jun Qtr 21 % change|
^Source: Australian Bureau of Statistics
Corelogic figures last week showed nationwide housing values continued to rise, up 1.5 per cent in August, but down from the record 2.8 per cent national gain in March.
CommSec chief economist Craig James said the total value of Australia’s 10.68 million dwellings was now $8924.6 billion after growing by $596.4 billion in the June quarter.
“Australia has almost 10.7 million homes [and] quite sensationally the average value of those homes has lifted to an average dwelling price of $835,700 in just three months,” James said.
“For those paying off their homes or who own them outright, that represents an amazing lift in wealth levels, thus underpinning increased spending on discretionary purchases.”
Commonwealth Bank estimated that the average number of people per home decreased from 2.42 people to 2.41 people in the recent quarter while the number of homes grew by 79,900 during the past two quarters despite Australia’s population growing by just 42,200.
The bank’s economists expect national dwelling prices to rise by 8 per cent across 2021 and 6 per cent in 2022, and a result “tilted towards stronger outcomes” was more likely.
The bank said that even if the Reserve Bank started taking its foot off some low interest rates, such as the benchmark three-year bond, that would still not dampen the booming prices.
The Reserve Bank’s cash rate, which steers the interest rate on mortgages offered by retail banks, remains at a record low interest rates of 0.1 per cent for what it predicts to be as long as four years.
RBA governor Phillip Lowe used a speech on Tuesday to push back against suggestions that rate hikes and tougher lending standards could be used to quell house prices.
“While it is true that higher interest rates would … see lower housing prices, they would also mean fewer jobs and lower wages growth,” Lowe said.
“This is a poor trade-off in the current circumstances.
“It is also relevant that broader measures of household wealth have increased recently.
“Housing prices are 19 per cent higher than they were before the pandemic and Australian equity prices are around 10 per cent higher.
“This lift in the net wealth of the household sector is one of the things that suggest that once the restrictions are eased, households will be well placed to start spending again.“
Household savings are also expected to hit at least $200 billion this year as lockdowns keep Australia’s two largest cities shuttered.
In the June quarter, the household savings ratio—the percentage of unspent disposal income—fell below 10 per cent for the first time in more than a year to be half of where it was the same time a year earlier.
While many households paid down debt in the early days of the pandemic, but $93 billion in largely housing-related debt has since been added.
“More broadly, society-wide concerns about the level of housing prices are not best addressed through increasing interest rates and curbs on lending,” Lowe said.
“While monetary policy is contributing to higher housing prices at the moment, the way to address these concerns is through the structural factors that influence the value of the land upon which our dwellings are built.”
Article Source: www.theurbandeveloper.com
Is this Brisbane’s best art deco home? Historic house draws buyers nationwide
Money can’t buy you love, but it can buy you Brisbane’s best art deco home with a back story so romantic it’s making buyers swoon.
Once the residence of award-winning Australian author David Malouf, the three-level abode at 19 Arran Avenue, Hamilton, hit the market just days ago for the first time in 15 years – and it’s offering more than just double brick and mortar, but the memories of a celebrated writer who penned his best works from within its walls.
Mr Malouf, whose father commissioned the exquisite three-level property back in 1947, wrote the semi-autobiographical novel Johnno before writing the prize-winning epic The Great World in 1990. He penned several other novels at his beloved Hamilton home before engraving his signature into one of the cabinets.
It’s a tantalising tale that has mesmerised dozens of home-hunters from across the country ahead of the September 8 auction, selling agent and Place Estate Agents Ascot director Drew Davies said, with the rooftop terrace, bespoke features and an exquisite renovation further igniting appetite for the house that’s being dubbed an architectural marvel.
“It’s hard not to get wrapped up in the romance of that story,” Mr Davies said.
“But buyers also love the fact that it retains all the characteristics of a true art deco home … and it’s had more interest from Melbourne and Sydney people than any other home I’ve listed.”
With art deco brick homes as rare as hens’ teeth in Brisbane, Mr Davies said, savvy home hunters could fully appreciate the incredible opportunity – an opportunity he said was enhanced by the home’s high-end renovation that in today’s market was worth a small fortune.
“Any time you’re dealing with a renovation for a brick house, the price can skyrocket. This renovation by architect Philip Horwood has been done to the highest level – from the bespoke kitchen, the feature skylights in … and the rooftop terrace that has glass panelling – it’s just stunning, and it’s hard for me not to fall in love with it,” Mr Davies said.
“You would need to be having very serious chats with the bank to build something like that today.”
The art deco dream abode is bound to fetch a pretty penny at auction amid a property boom that’s catapulting prices in high-end homes across the city, ensuring a tidy profit for the current owner who snapped it up for just $950,000 back in July 2006.
And considering the home’s list of features, there’s no doubt the next custodian will feel it was money well spent.
Perched on a hill, the secluded property boasts gun barrel views of the Brisbane River – best seen from that full-floor rooftop terrace that’s accessed via a spiral staircase.
Then there are the leadlight windows, double terrace doors and a stunning kitchen styled by Darren James that features rosewood cabinetry and Brazilian granite benchtops.
Defying the struggles of many a light-challenged brick abode, Mr Davies said the home was luminescent thanks to the eight skylights, with additional features including an opulent main suite with a dual shower, inset spa and a bidet.
“[At 637 square metres] it’s a big chunk of land, too, and it’s an extremely private location as well … that’s been a big drawcard,” Mr Davies said.
With buyer interest from couples and downsizers growing by the day, he said it was tough to say just how many bidders would throw up their hands next Wednesday, however with soaring interstate interest, there was a good chance the home’s next owner could hail from one of the nation’s two biggest cities.
“I continue to see a massive shift towards interstate buyers. Since Friday last week, I have transacted three sight unseen sales to interstate buyers alone,” Mr Davies said.
“The market couldn’t be hotter.”
The auction of 19 Arran Avenue will be held at a special Place Estate Agents in-room event at the Revival Art and Design Gallery at 3/17 Greg Chappell Street, Albion, at 6pm.
Article Source: www.domain.com.au
$5 million New Farm, Brisbane apartment sale tops weekend auction results
Ray White’s auction secured a $5.025m for a Moray St, New Farm apartment
A $5.025m New Farm apartment sale topped weekend apartment results.
It was a dress circle Moray St, New Farm apartment.
The 339sqm four bedroom, two bathroom apartment at 4/29 Moray Street, New Farm sold through Ray White New Farm agents Matt Lancashire and Patrick Goldsworthy.
Its view spans the length of the Story Bridge, from Kangaroo Point to Fortitude Valley.
It was one of five tightly held whole floor apartments in the 2004 L’stage complex which won the HIA’s apartment complex of the year.
The agency also put another New Farm, Brisbane apartment but failed to find a buyer.
The bidding stopped at just over $7m when auctioned through Ray White on Friday.
The two-storey Brisbane penthouse at 11/170 Bowen Tce was passed in at $7.25m, well below advised expectations of a $10m sale.
It cost $3.6m off-the-plan in 2013.
CoreLogic calculated there were 359 apartment and townhouse auction listings over the weekend.
There was a national 61 percent auction clearance rate from the 279 results.
Just on 100 had been sold before auction given lockdown circumstances in the major capitals.
Sydney was the strongest market with 83 percent success rate with Brisbane at 43 percent and Melbourne on 30 percent.
Article Source: www.urban.com.au
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