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Seaside suburbs the star performers of southeast Queensland property market

Seaside-suburbs-the-star-performers-of-southeast-Queensland-property-market

THE lure of affordability, lifestyle and world-class beaches made southeast Queensland’s coastal markets the stars of the property sector in 2017.

THE lure of affordability, lifestyle and world-class beaches made southeast Queensland’s coastal markets the stars of the property sector in 2017, fuelled by a fresh wave of interstate migration.

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.

Areas like Broadbeach Waters on the Gold Coast have experienced strong property price growth. Photo: Chris Bashall. Source: Supplied

Areas like Broadbeach Waters on the Gold Coast have experienced strong property price growth. Photo: Chris Bashall. Source: Supplied

 SQM Research managing director Louis Christopher expects both markets to outperform the state’s capital in 2018, writing in his latest Boom and Bust Report that the Gold Coast had a diversified economy and had benefited from the lead-up to the Commonwealth Games.

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.

This house at 80 Admiralty Dr, Surfers Paradise, is going to auction on January 28 through Ray White. Source: Supplied

This house at 80 Admiralty Dr, Surfers Paradise, is going to auction on January 28 through Ray White. Source: Supplied

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.

This property at 31 Pilot Court, Mermaid Waters, is for sale. Source: Supplied

This property at 31 Pilot Court, Mermaid Waters, is for sale. Source: Supplied

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.

The view from the home at 31 Pilot Court, Mermaid Waters. Source: Supplied

The view from the home at 31 Pilot Court, Mermaid Waters. Source: Supplied

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.

Main Beach at Noosa. Photo: Chantay Logan. Source: Supplied

Main Beach at Noosa. Photo: Chantay Logan. Source: Supplied

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.

This property at 29-31 Wyuna Dr, Noosaville, recently sold for about $11.9m. Source: Supplied

This property at 29-31 Wyuna Dr, Noosaville, recently sold for about $11.9m. Source: Supplied

“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

Gold Coast

The Regional Areas Popular for Interstate Migration

The Regional Areas Popular for Interstate Migration

Regional economies are continuing to strengthen their appeal, with the Gold Coast topping the list, as new analysis of Australian Bureau of Statistics data identifies the locations where populations across Australia are moving.

An increasing number of Australian residents preference satellite cities, known as tier-two cities on the outer-fringe of capital cities, and major regional cities, classed as tier-three cities, property market research firm Propertyology said.

The Gold Coast, located in south east Queensland is number one on the popularity list.

“The population of regional Australia increased by a further 89,132, to sit at a significant 8,424,137 as at 30 June 2018,” Propertyology head of research Simon Pressley said.

“More and more people are re-evaluating their need to remain in a capital city.”

The Gold Coast, which has a median house price that’s 60 per cent the cost of Sydney’s, attracted 7,441 new residents from other parts of Australia last year.

Pressley says Queensland’s interstate migration has continued its run with 28,668 adding to the state’s population growth for the year to June last year.

“One of the most obvious trends in the analysis was the migration of so many people away from capital cities to regional areas,” Pressley said.

Up to 6,370 Australians relocated to the Sunshine Coast last year, this number more than the 4,266 Australians who relocated to Melbourne.

The data shows Queensland, Hobart and parts of regional Victoria and New South Wales were popular locations of choice for Australian residents.

The Regional Areas Popular for Interstate Migration 1

Interstate vs overseas migration

Of Australia’s total population increase of 391,000 people during the year ending June 2018, overseas migration made the largest contribution (237,225 or 61 per cent).

Although Pressley says looking at just population growth as a lead indicator of property price pressure is “far too simplistic”.

“At the end of the day, buyer behaviour and not population growth is what determines fluctuations in real estate prices.

“Buyer behaviour is determined by where people want to live, what they can afford to buy, lifestyle preferences, where they can get suitable employment, and individual stages of their life.

“Other factors include local confidence, buyer incentives, and the pursuit of financial independence.”

The Regional Areas Popular for Interstate Migration 2

 

 

Source: theurbandeveloper.com

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Gold Coast

‘There’s not another home like it on the Gold Coast’: Unique Broadbeach Waters on the market

‘There’s not another home like it on the Gold Coast’ Unique Broadbeach Waters on the market

It’s a house that makes a statement. Dominated by unbroken, horizontal forms, and offering water frontage and city views, there’s a considerable 821 square metres of living space to kick back, relax and entertain in.

Now on the market for $7.495 million, the five-bedroom home at 15 Cleland Crescent, Broadbeach Waters is kitted out with  floor-to-ceiling windows, a 2000-bottle cellar, butler’s pantry, media room and spa.

The vendor bought the block in 2010 for just under $2.895 million, with the market at the time feeling the effects of the GFC.

It’s a house that makes a statement. Dominated by unbroken, horizontal forms, and offering water frontage and city views, there’s a considerable 821 square metres of living space to kick back, relax and entertain in. Now on the market for $7.495 million, the five-bedroom home at 15 Cleland Crescent, Broadbeach Waters is kitted out with floor-to-ceiling windows, a 2000-bottle cellar, butler’s pantry, media room and spa. The vendor bought the block in 2010 for just under $2.895 million, with the market at the time feeling the effects of the GFC.

The resort-style residence itself is four years old. It was designed by Adam Beck from BDA Architects as a family home over 12 months, with a separate wing for their teenage offspring.

With the children now flying the nest, the time had come for the vendors to sell, said agent Jordan Williams from J.D. Prestige Agents.

“It’s in a really nice elevated position, due north,” Mr Williams said. “It’s got over 30 metres of water frontage, which is very hard to come by.”

‘There’s not another home like it on the Gold Coast’ Unique Broadbeach Waters on the market 2

“The design is very cool,  it has two wings and two sets of stairs,” he added, noting that to design and build the property today would take $2.5 million or so.

Mr Williams said they’d had good numbers through to look at the property already, and he thought it would appeal to a Sydney or a Melbourne buyer in particular with its industrial vibe, off-form concrete and large panelling.

“There’s not another home like it on the Gold Coast – it’s very unique,” he said.

‘There’s not another home like it on the Gold Coast’ Unique Broadbeach Waters on the market 2

Overall, he thought the Gold Coast market was picking up after the end of financial year, with the winter chill beginning to thaw.

“The steady numbers are coming back through – I think we’re in a very good position,” Mr Williams said.

The median house price in Broadbeach Waters sits at $1,137,500 for the year to May 2019, based on 164 sales – a 3.4 per cent increase on a year ago.

‘There’s not another home like it on the Gold Coast’ Unique Broadbeach Waters on the market 4

So far this year, records show the most expensive sale in the suburb was 24 Andrea Avenue, Broadbeach Waters, which scored $3 million via private treaty in January.

Meanwhile, in 2017 it was 201-205 Monaco Street that took top honours with a $9.5 million sale in February, while 77 Monaco Street changed hands for $9 million in March.

 

 

Source: www.domain.com.au

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Brisbane

Melbourne Top Investment Choice for Chinese Buyers

Melbourne Top Investment Choice for Chinese Buyers

Chinese buyer enquiries for residential property in Australia has recorded two consecutive quarters of year-on-year growth for the first time since 2016, with Melbourne still the most popularAustralian city.

Australia has been losing Chinese buyer interest to other parts of the world due to increased taxes and banking restrictions.

But Australia’s hefty state foreign buyer taxes have been counterbalanced by its weakening dollar according to the latest Juwai.com report, which has seen it drop around 11 per cent of its value against the Chinese Yuan since mid-2018.

Juwai.com CEO Carrie Law says she expects Chinese buying to remain flat in 2019, with forecasts it could start to grow again inline Australia’s property market recovery.

“Chinese buyers make 83 per cent more enquiries about acquiring Melbourne property than they do Sydney,” Law said.

Brisbane has the second fastest rate of Chinese buyer growth. Law said Brisbane recorded 30.8 per cent more Chinese buyer enquiries in 2018.

“Brisbane is becoming a real alternative for the two traditional gateway cities of Melbourne and Sydney.

“The fastest growing cities, in terms of Chinese buyer interest, are Hobart, Brisbane, and Canberra.”

Melbourne receives 43.8 per cent of Chinese buying enquiries in Australia, Sydney 23.9 per cent, Brisbane 10.1 per cent, Perth and Adelaide 6.1 per cent, the Gold Coast 3.7 per cent, Canberra 3.6 per cent, and Hobart 2.6 per cent.

Melbourne Top Investment Choice for Chinese Buyers 1

Weak Aussie dollar boosts buyer interest

Despite the tougher state foreign buyer taxes, Australian’s weakening dollar means it now costs less to secure real estate.

“A buyer holding Yuan today needs the equivalent of $88,800 less in funds compared to 2017 to purchase an $800,000 dwelling,” Law said.

“The plummeting Australian dollar, which has lost 11.1 per cent of its value against the Chinese Yuan since July 2018… [That] compares to the 8 per cent rate of the highest foreign buyer taxes, which are in New South Wales and Victoria.”

Law says Chinese demand is driven largely by growing wealth, a desire to store assets ‘safely’ overseas, education, travel, commercial ties, immigration and high-net-worth immigration, along with environment and lifestyle.

“Eighty-three per cent of Chinese consumers cite education as their reason for immigration, 69 per cent cite environment, 57 per cent cite food safety, and 28 per cent cite asset security.”

 

 

Source: theurbandeveloper.com

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