REAL estate investors priced out of southern capitals have begun house-hunting where prices are about half that of Sydney and Melbourne.
The Brisbane-Gold Coast corridor of southeast Queensland is on the cusp of a boom, according to buyers agency Oasis Property chief executive Gavin McPherson, with double-digit growth forecast.
Affordability was a massive driver for buyers, as was good rental returns and strong long-term growth prospects, he said.
“In southeast Queensland, house prices are up to 55 per cent cheaper than Sydney. I’m not suggesting it will get anywhere near Sydney, but we’re anticipating a 30 per cent rise.”
Good pickings in southeast Queensland had driven a “really substantial” surge in interest from Sydney buyers, property investment firm Binvested’s Nathan Birch said.
“I pick up between 50-100 properties in a month. In the past, 80 per cent of the stock was in Sydney. Now 80 per cent is in Brisbane and the Gold Coast. People are priced out of Sydney, where the market is becoming unaffordable.”
He said that in southeast Queensland you could still pick up a three-bedroom townhouse in the mid-$300,000s and have positive cashflow.
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“I think there’s very, very unvalued property up there,” Mr Birch said.
“I’ve been getting thousands upon thousands of emails a week about Brisbane and the Gold Coast. The boom has started, and by 2016-17 will be in full swing.
“It reminds me of the Sydney market three to four years ago. Prices have started to move and there is not much stock out there.”
The latest Place Advisory Investor Sentiment Survey 2015 found apartments made up a third of investor interest in Brisbane, with available stock now down to just five months’ supply — less than half normal market conditions.
In comparison, investor interest in detached houses plunged to just 37 per cent, said report author Lachlan Walker — a major shift given detached houses made up 53 per cent of investor preferences last year.
He said demand was highest for stock in the $350,000 to $550,000 range, which in Sydney and Melbourne meant an inner-city studio apartment, while in Brisbane it was a luxury one-bedroom or lower-end two-bedroom unit within 5km of the CBD.
“Whatever comes on the market is quickly sold,” Mr Walker said.
“We are in a market where, yes, there is a lot of stock, but there is also a high demand for stock.”
One in five people sinking their funds into the hot Brisbane market were bullish, expecting 8 per cent growth, while two in five expected between 4 and 6 per cent, the survey found.
Audiologist and university sports coach David da Silva chose Brisbane’s growing apartment market for his next investment, buying into the 38 High Street, Toowong development which is currently under construction. It was expected to open for tenancy mid next year.
“I (bought off the plan) a while ago,” he said.
“Mine has views of river and university for approximately $500,000. The potential to grow is why I bought it. Toowong’s an affluent area, with good access to the CityCat, trains, buses and university. I did really well out of my last one so I’m happy to get one closer to the city now.”
Originally published as What’s behind southeast’s next boom
October Real Estate Market Round Up by Allie Coutts
October Real Estate Market Update. Hello everyone, my name is Allie Coutts from Madeleine Hicks Real Estate and I’m doing the October roundup for sales that settled in October for our 4053 postcodes.
We’ll start with McDowall, there were just four properties that settled in McDowall in October and the highest of which was the one in Gielgud Street for $747,000.
For Stafford Heights, there were 7 properties that settled on October, 24 available. The highest of which was $631, 500 and that was the one in Caratel Street and $620, 000 for that property in a Mott Street. In Stafford also 7 properties settled in October, 51 available and ranged from the high $860, 000 Gamelin Circuit, round to the low was $200 for though the units have settled and for Everton Park that wins the competition, 11 properties settled in October, 92 available. The most impressive one is that large plot of land in Pullen Road which settled $1,200,000 and I learn a lot of properties in the mid-fives up to 600, 000 thousand that settled in Everton Park. So that’s our market roundup for October. I hope to speak to you next month.
For more information or to arrange an inspection please call 07 3355 6845 or visit: www.madeleinehicks.com.au
Homesellers come out on top in 4213 as market surges ahead
HOUSE sellers in the 4213 postcode — which includes Mudgeeraba and Tallai — are reaping big profits, thanks to a surging property market.
According to CoreLogic’s Most Profitable report, 100 per cent of properties sold in Tallai and 97 per cent in Mudgeeraba made money compared to their last sale price.
In Tallai, the average gain was $264,167 while in Mudgeeraba it was $122,222. Neighbouring 4213 suburbs Bonogin and Worongary also appeared in the top 10 list.
The couple, who have three children, put their home on Hinterland Drive on the market after renovations, including a new kitchen, bedroom and open-plan living area.
“It was time to get a bigger house for the kids,” Mr King said. “The profit was enough to get that bigger house.”
Mr King said the house was on the market for a few weeks before selling, attracting eight offers before a deal was nailed down.
Mudgeeraba was popular because of its “country feel” while being close to the business hub of Robina.
“It’s a country town in the city,” he said. “People want to move to the country but still want the city close by.”
He said Mudgeeraba State School, which his children attended, was within walking distance while Robina Town Centre and Robina Hospital were a short drive away.
First National Mudgeeraba principal Murray Duthie, who is vice-president of the Mudgeeraba Chamber of Commerce, said proximity to Robina and the “unique” character of the area was fuelling demand for property.
“Demand is outstripping supply,” he said.
“Buyers are still mindful of price but the old adage of location, location, location tells the story.”
Mr Duthie said the chamber worked hard to promote the character of the area through heritage-style signs and other aspects of “Australiana”.
“We have always marketed Mudgeeraba as the most unique part of the Gold Coast not associated with water,” he said.
REIQ Gold Coast zone chair John Newlands said improving infrastructure and proximity to growing business hubs was driving the popularity of these suburbs.
“You can be in Robina Town Centre and within five minutes be in Mudgeeraba,” he said. “There is a number of major schools out there and shopping centres.”
Mr Newlands said the suburbs were not as remote as they once were.
“I lived in Mudgeeraba and Tallai and going into town was quite a trek,” he said. “The distance has not changed but the roads are better.”
Tallebudgera had the highest financial gain in the report, with sellers making on average $267,773 and 92 per cent of sales profitable. The report tracked resales over three months to August.
According to CoreLogic figures, the median sale price in Mudgeeraba rose 5.4 per cent for the 12 months to December to $525,000 while in Tallai it jumped 5.7 per cent to $697,500.
TOP 5 SUBURBS
SUBURB — AVERAGE GAIN:
— Tallai — $264,167
— Mudgeeraba — $122,222
— Highland Park — $137,710
— Burleigh Waters — $239,476
— Palm Beach — $183,089
Source: CoreLogic Most Profitable report, three months to August, 2015
Italian palace on The Sovereign Islands tops list of highest property sales in 2015
AN ITALIAN palace and two of the city’s most prestigious penthouses were among the year’s top property sales with Chinese buyers leading the charge.
The highest price paid was for the Palazzo di Venezia villa at The Sovereign Islands, which sold in January for $8.6 million to Chinese national Wei Zhang.
The ornate and opulent mansion is modelled on the centuries-old Venetian stately home, Villa Rotunda, and boasts an 8m copper dome, which is part of the terracotta roof, as well as arches, columns and curves.
In the same month former AFL player Tony Smith sold his beachfront home at Surf St, Mermaid Beach for $8.42 million to Brisbane entrepreneur Michael Dempsey.
It has 30m of frontage to the beach as well as five bedrooms, a lap pool and barbecue gazebo.
1-5 Surf St, Mermaid Beach sold for $8.42 million.
That was followed three months later by Melbournians Nabil and Roula Grege shelling out $8.4 million for a beachfront house down the road from Surf St at Albatross Ave, which was created through merging two villas into one.
The exclusive property has seven ensuited bedrooms, a home theatre, a gym, a 25m lap pool, an internal lift, and a plunge pool and spa on the rooftop entertaining terrace.
107 Albatross Ave, Mermaid Beach sold for $8.4 million
Two penthouses, one in Broadbeach and the other in Surfers Paradise, round out the top five sales of the year.
In March Hong Kong billionaire Tony Fung snapped up Soul’s penthouse for $7 million after an unusual marketing campaign by John Natoli and James Ledgerwood of McGrath Estate Agents.
The pair had the four-level apartment, which was the subject of a legal dispute over a 2006 $16.85 million sale contract, stripped back to a shell to present buyers as a blank canvas.
Mr Fung’s purchase marked his first foray into the residential market, after he bought mining magnate Nathan Tinkler’s Patinack Farm holdings at Canungra for $20.8 million.
The Soul penthouse in Surfers Paradise was stripped back to a shell for its sale.
In August Chinese buyer Yue Bai bought Oracle Tower One’s two-level penthouse in Broadbeach for $8 million, after it had spent years on and off the market.
The 1117sq m skyhome features four bedrooms, media room, study, and rooftop pool, spa and steam room as well as expansive views including the coastline, ocean and Hinterland.
The Oracle beachfront tower penthouse sold for $8 million.
Leading Gold Coast agents are pointing towards a better year for prestige in 2016 with the market recovery expected to boost all parts of the property sector.
Ray White Broadbeach principal Larry Malan said now that the bottom of the market had moved, many prestige buyers were getting into the market.
Mr Malan said he expected improving values at the lower end to feed into the luxury property market.
“We’ve had a really good December quarter based on the fact those big ticket items are moving,” he said.
“Those buyers have been more cautious … because they were waiting for other parts of the market to go up.”
Ray White Runaway Bay principal Ali Mian said a shortage of land at The Sovereign Islands was behind a spike in sales for established homes at the elite enclave.
“Prestige will hold up quite well next year,” he said.
“The Sovereign Islands because of a lack of land. We’re seeing premium prices because of that with lots of sales in excess of $4 million.” – New glossy property guide starts on Saturday.
TOP 5 SALES:
1) 38-40 Knightsbridge Pde East, The Sovereign Islands
Sale Price: $8.6 million
2) 1-5 Surf St, Mermaid Beach
Sale Price: $8.42 million
3) 107 Albatross Ave, Mermaid Beach
Sale Price: $8.4 million
4) 5001/1 Oracle Blvd, Broadbeach (Oracle penthouse)
Sale Price: $8 million
5) 7001/4-14 The Esplanade, Surfers Paradise (Soul penthouse)
Sale Price: $7 million
Source: CoreLogic, house and unit sales in 2015
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