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
Luxury residential property prices on the rise
Australasia has been identified as the strongest performing region in the world in terms of luxury residential property price growth, according to the results of a global study.
The Knight Frank Prime Global Cities Index tracks the movement of residential prices across 45 cities around the world. In the year to Q2 2020, five Australian cities – the Gold Coast, Sydney, Perth, Brisbane and Melbourne – made it into the top 24 for luxury residential market performance over the past 12 months.
The Gold Coast was the highest ranked city within Australia, claiming number 10 on the list and posting 3.4% annual growth.
“Knight Frank’s analysis by world region shows prime prices in Australasia and North America were the most resilient in the second quarter of 2020, with Australasia the strongest performing world region,” said Michelle Ciesielski, Knight Frank’s head of residential research Australia.
“The relatively strong performance of Australian cities was a result of the shallow number of listings, keeping property prices firm. By global comparison, we have largely escaped the major impact of COVID-19.”
Even with the pandemic, over the June quarter, 67% of global cities registered flat or positive prime annual price growth.
In terms of Australian placements, the Gold Coast was followed by Sydney, ranked 11 and Perth which came in at 12 – both of which recorded annual growth of 3%.
Brisbane was ranked 16 with 2.5% growth and Melbourne sat at 24 with 1.2% annual growth.
Knight Frank national head of residential Shayne Harris expects demand for luxury property in Australia to not only hold steady, but perhaps even grow.
“In cities such as Sydney, we are seeing more demand for higher-value properties such as large detached homes or generously-sized apartments, which is supporting prime residential values,” he said.
“During the pandemic, we’ve seen the ultra-wealthy make their next residential property purchase decisions based on liveability, so places like southeast Queensland will become more attractive in a post-COVID world.”
Given the tighter lending criteria, limited supply of dwellings, low interest rates and both governmental and bank-driven aid, Harris does not foresee significant volumes of distressed prime sales as were evidenced in 2008 during the global financial crisis.
Manila was the top performing city in the index, with annual luxury residential price growth of 14.4%, followed by Tokyo (8.6%) and Stockholm (4.4%).
This article is republished from www.brokernews.com.au under a Creative Commons license. Read the original article.
Gentrification Growing Beyond CBDs
A ring of suburbs within a 15-kilometre radius of Brisbane is experiencing the highest levels of gentrification, research has found.
The University of Queensland research shows suburbs in these three cities seem to be either gentrified or rapidly gentrifying, while the inner-city suburbs of Sydney, Melbourne and Brisbane—now typically affluent areas—are not seeing a change.
Largely, gentrification is the changing character of a neighbourhood through the influx of wealthier residents and businesses into once lower-income areas.
It is one of the significant changes to occur in Australian cities—and across the world— where property values are pushed up in inner and middle-ring suburbs.
UQ senior lecturer in urban planning Dr Dorina Pojani says the findings are surprising, contradicting earlier urban geography theories placing gentrification as an “inner-city phenomenon”.
“Instead, the highest levels of urban renewal are occurring within a band located five-to-15 kilometres from the cities’ central business districts,” Pojani said.
Gentrification in Brisbane suburbs
Pojani says the findings challenge anti-gentrification sentiments which in all three cities originate from inner-city suburbs.
“It’s clear that community backlash has not stemmed from poor and vulnerable groups fearing displacement,” she said.
“Rather, it may be considered as a manifestation of the NIMBY— Not In My Back Yard—syndrome, promulgated by local homeowners [who were] once themselves gentrifiers.
“It may be the case that inner-city communities react to more visible developments in the urban core, which take the form of high-rise, luxury housing and commerce,” Pojani said.
“Resistance to inner-city redevelopment may also be a reaction to Australia’s liberal approaches to city planning, which have enabled private developers to build with minimal community participation.”
The research included demographic metrics such as increasing household incomes, education, home-ownership and white-collar occupations as well as decreasing age and growing population density from 2006 to 2016.
The information was then combined with data from the Australian census, Google Maps and local council data repositories.
This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.
Broadbeach Waters waterfront trophy home sold for $5.7 million
An architect designed home nestled on a 1,608sqm block in Gold Coast’s Broadbeach Waters has been sold for $5.7 million.
The 853 sqm house at 327 Monago Street comprises 7 bedrooms, 7.5 bathrooms, designer kitchen and multiple indoor and outdoor living and entertaining areas.
The light-filled living and dining zone comes with wood-burning fireplace, custom-built cabinetry and electronic blinds.
There is an executive office with library, plus separate office or boardroom with separate entrance.
The home also features rumpus room, water frontage, outdoor dining pavilion, pool, and water features.
It is situated close to Albert Part, Star Casino and golden beaches.
Michael Kollosche and Ryan Ward from Kollosche Broadbeach sold the property.
It was last sold in 2015 for $3.15 million.
This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.
- Property Management5 years ago
7 Common GST Mistakes On Property
- Residential4 years ago
Ipswich Proves Frontier In Affordable Housing
- Infrastructure3 years ago
Decision on horizon for key marina section of huge North Harbour development at Burpengary
- Market Place3 years ago
How to make $1 million ‘flipping’ houses
- Developments2 years ago
Brisbane and interstate investors drawn to up-and-coming King Street precinct
- Market Place2 years ago
Moreton Bay makes top 10 list of places to invest in property
- Developments4 years ago
Caboolture West could be Australia’s next major regional centre
- Brisbane1 year ago
Queensland leads the way in market recovery