There are signs of a swing in the Brisbane real estate market as older properties find their mark and certain types of newer listings fly off the books faster than they can be set up for sale.
There are signs of a swing in the Brisbane real estate market as older listings find their mark and new properties fly off the books faster than they can be set up for sale.
SQM Research managing director Louis Christopher said it was “early days”, but there were signs of a lift.
“We did record 1.2 per cent rise in asking prices for houses and 0.3 per cent rise in unit prices, which shows a little bit more confidence by vendors. But it’s still early days. I don’t think we’re at that almost frenzied point that Sydney and Melbourne are getting to.”
He said the last time Brisbane had a housing boom was 2004 to 2008.
“There hasn’t been a boom effectively for 11 years now. Brisbane has since then had a pick-up in economy, the rental market has tightened, a number of the issues that were keeping the market down have eased off.
Overall SQM found the number of Brisbane properties listed for sale fell by 4.8 per cent in September over August, down 4.6 per cent year-on-year — pushed down by older stock selling, he said.
“In terms of new listings it was actually a very stable month compared to August. New listings pretty much stayed the same,” he said. “Stock that was over 180 days fell away fairly significantly … Stock 90 to 100 days that was biggest fall of all, 6737 to 5696. That’s quite a fall.”
CoreLogic figures show the 12-month change in new listings was down 17 per cent in Brisbane, while total listings shrank -2.7 per cent to 19,602 in the River City.
“Both new and total listings are tracking lower year on year across both Brisbane and Queensland state.”
Mr Christopher said the apartment stock oversupply 2014 to 2017 had “put brakes on the housing market and on top of that we had this period from 2010 to 2017 when the Brisbane economy was patchy as a result of the mining downturn”.
“All these things have eased, the economy is picking up, more and more people are moving to Brisbane as well based on occupancy data. We’ve become increasingly optimistic about the market. It should start seeing vendors a little more confident, the signs are all there.”
Certain types of property including homes with big blocks and those where approvals had already been sought for development or which were ripe for renovation were doing well.
Among those sold before auction was 150 Beelarong Street, Morningside, a three bedder that sold for $1.025m this year — almost double what the owner paid in 2003.
Even vacant blocks of land were doing well, including 50 Archer St, Toowong, a riverfront property that had been set to go to auction but which agents John and Josephine Johnston now have under contract.
“This property is a vacant piece of land with very clear development potential,” Mr Johnston said. “The aspect, the fact that it’s in a quiet street, looks out at two reaches of the river, it’s private, all those things combined, and the owner having succeeded in removing the existing house made it very desirable.”
He said new listings were tight at the start of Spring but now seeing “a very welcome resurgence in number”.
“On the high end of the market there’s been a marked resurgence of quality listings that have come on,” he said.
The swing is good news for Brisbane couple Christal and Chris Fysentzou of Zou Build who have made a living out of flipping properties after renovation.
They’ve just bought a Mansfield house that was on the market for about two months.
“For us, it’s not about trying to buy in areas that are already developed, we want to get into areas that are less established and have more room for improvement. It’s an upcoming suburb that is experiencing a lot of growth and house prices are on the rise,” Mrs Fysentzou said.
“The intention is to renovate in 14 to 16 weeks… and put it on the market in the new year when everyone’s back from holidays.”
Brisbane rents: Landlords in ‘rosier position’ as unit oversupply eases
Brisbane rents are creeping up and the proportion of vacant homes is inching down, as the city’s rental market recovers from years of oversupply, experts say.
Asking rents for units rose 1.3 per cent to a median $380 a week over the past year, the latest figures from the Domain Rental Report for the September quarter show.
House rents also edged up 1.3 per cent to a median $405 over the same time period, according to the report released on Thursday.
The combined vacancy rate fell 0.1 percentage points to 2.2 per cent during the September quarter.
It comes after a wave of new apartments were built in Brisbane’s inner city in recent years, with the extra supply keeping a lid on rents.
Domain research analyst Eliza Owen said the market was now in good health, despite appearing to be near-stagnant.
Median weekly asking rents for units
|REGION||SEP-19||JUN-19||SEP-18||QOQ % ∆||YOY % ∆|
|Brisbane – City wide||$380||$380||$375||0.0%||1.3%|
|Brisbane – East||$405||$405||$400||0.0%||1.3%|
|Brisbane – North||$370||$365||$363||1.4%||2.1%|
|Brisbane – South||$385||$380||$375||1.3%||2.7%|
|Brisbane – West||$400||$415||$390||-3.6%||2.6%|
|Brisbane Inner City||$420||$425||$410||-1.2%||2.4%|
|Moreton Bay – North||$315||$315||$310||0.0%||1.6%|
|Moreton Bay – South||$340||$335||$335||1.5%||1.5%|
For units, the stability was a positive story compared to oversupply-induced market weakness a few years back, Ms Owen said.
“There’s been a lot of fear about over-development but in the building space there’s been tightening of dwelling completions,” she said. “They’ve come down sharply and are returning to long-run average levels.”
Rents were now trending up and vacancy rates down, she said.
“The picture for south-east Queensland in terms of rental returns is pretty good, it’s also one of the most affordable rental markets for houses.”
Ms Owen said interstate migration, mostly from Sydney, was a major factor in keeping the rental market balanced.
“The tightening of the rental market is off the back of strong population growth and a very affordable lifestyle, and this is reflected in the rental vacancy rate which is down to 2.2 per cent from 2.6 in the previous year,” she said.
Investec Lists Fortitude Valley Office Tower
The newly-listed Investec Australia Property Fund will divest its 11-storey Fortitude Valley office building with an expected price north of $90 million as it moves to recycle capital.
Fresh off the heels of its fully underwritten institutional placement and purchase of three industrial properties in the Northern Territory, Western Australia and South Australia for $84 million last month, Investec has motioned to sell its Brisbane, 757 Ann Street, tower.
Investec purchasted the Nettleton Tribe-designed tower for 68.5 million after it was completed in 2014.
Comprising 9,422sq m of office space with a weighted average lease expiry of approximately five years, the A-grade building, anchored by technology company Asea Brown Boveri, is 100 per cent leased.
Cushman & Wakefield’s Mike Walsh and Peter Court are managing the international expression of interest campaign, to kick off mid-October, with expectations it will generate strong interest from domestic and off-shore institutions, funds and syndication groups.
“The entire commercial component of the asset is structured on a net lease basis, providing smooth, predictable cash flow for investors,” Court said.
Sales over the first half of the year surpassed the total volume of sales over 2018—reaching $1.2 billion, according to Colliers research, with Australian institutional investors dominating the lion share of transactions.
Commercial assets currently on the market include Perth-based investor RG Property’s 410 Queen Street in Brisbane’s ‘golden triangle’.
Recent Brisbane assets changing hands include the sale of the Jubilee Place Office development at nearby 470 St Pauls Terrace to a real estate fund managed by Credit Suisse, Malaysian-backed HCK’s 116 Adelaide street for $30 million, and QIC’s Q&A Centre at 141 Queen Street and 140 Elizabeth Street which sold to Taiwanese developer Shayher Group.
As for development plans in the Fortitude Valley precinct, Sydney fund manager Millinium Capital in August announced plans for a new university campus and 30-storey tower that would comprise student accomodation, co-living and co-working space at 240 Brunswick Street and 11 Overells Lane.
Australian property management startup raises $3.5 million, expands to Brisbane
Australian proptech startup :Different has announced it raised $3.5 million in its latest funding round to continue its national expansion.
The fund raising coincides with the company’s launch into Brisbane today.
:Different is a full-service property management startup where property owners pay a fixed fee of $100 per month instead of a percentage based on the rental price of the property.
The appeal of :Different is their tech base which automates the everyday tasks of a property manager.
:Different’s owner app provides 24/7 access to documents like lease agreements, statements, and maintenance requests, while the tenant app helps streamline requests and fast track communications.
Over the last 12 months, :Different’s customer base has grown five folds with more than $700 million worth of properties now under management across New South Wales and Victoria, while its team has quadrupled to 32.
The latest funding round supports :Different’s ambitions to expand into new markets, further enhance its tech platform and continue to build its team of expert property managers, said Mina Radhakrishnan, Co-Founder at :Different.
“We’ve already had huge success since launching in Sydney and Melbourne, and we’re thrilled to offer the same great offering to Queenslanders,” Radhakrishnan said.
“We have big growth ambitions for :Different. This latest funding round will help us continue to rebuild property management in Australia and beyond.”
- Property Management4 years ago
7 Common GST Mistakes On Property
- Residential3 years ago
Ipswich Proves Frontier In Affordable Housing
- Infrastructure2 years ago
Decision on horizon for key marina section of huge North Harbour development at Burpengary
- Developments2 years ago
Brisbane and interstate investors drawn to up-and-coming King Street precinct
- Market Place2 years ago
How to make $1 million ‘flipping’ houses
- Infrastructure3 years ago
Ikea looking for 250 staff to fill roles at new North Lakes store
- Market Place2 years ago
Seaside suburbs the star performers of southeast Queensland property market
- Opinion3 years ago
Are we headed for a housing crash — or not?