The key message for property investors right now is that there are many growth markets across Australia.
There’s a tendency in mainstream media to extrapolate the situations in Sydney and Melbourne to the whole nation. If the big cities are in decline, then Australian real estate is in decline, according to news media.
This is seldom true – and it’s certainly not the case right now. Some of our smaller capital cities are pumping strongly and, in particular, regional Australia has many growth markets.
Last week I made this comment: “Regional Queensland has achieved something that few jurisdictions across Australia have managed: it has maintained its previous high levels of well-performing markets in defiance of Covid-19.”
I wrote that I rated the Sunshine Coast one of the strongest economic and real estate stories in the nation and that it continues to produce solid results in its property markets.
The anecdotal evidence from people at the coalface of the Sunshine Coast property industry is that sales are happening, vacancies remain low and there’s no evidence of values falling.
The latest data on prices and vacancy rates confirms that – with evidence of notable growth pockets.
Most of the postcodes across the Sunshine Coast region, including Noosa (which is a separate local government area), have vacancy rates between 1% and 2%. While some of the capital city CBDs and tourism-dominated locations like Surfers Paradise have had big blowouts in their vacancies, the Sunshine Coast has resisted this trend.
Although tourism is an important industry to the Sunshine Coast, its economy is insulated by the ongoing massive spend on infrastructure, including the evolving medical precinct, the new CBD now under construction, the billion-dollar highway improvements, the upgrade of the local airport to international status and the subsea internet cable link to Asia – among other projects.
And this is bolstering the local property market.
The top end of the market in particular has been boosted, thanks in part of the influx of well-paid medical specialists working in the new medical precinct, based around the $2 billion university hospital.
The two most expensive suburbs in the region, Sunshine Beach and Minyama, have both experienced notable uplift in prices recently. The median house price for Sunshine Beach, just outside Noosa, has risen 16% in the latest quarter and 27% in annual terms, to reach $1.8 million. Minyama is up 7% in the most recent quarter and 23% annually – and typical houses are now above $1.1 million.
The median house price for Noosa Heads has risen 8% in the past year, including 1.4% in the most recent quarter.
Other locations throughout the Sunshine Coast region, including Mooloolaba, Maroochydore, Coolum and Pelican Waters, have recorded more moderate growth, but nevertheless have achieved price uplift in both the past 12 months and the most recent quarter – and a time when the big cities are feeling the negative impacts of Covid-19.
Keep that in mind the next time you hear one of our chattering economists telling us that “Australian property prices” are falling.
The Sunshine Coast is a standout example among many thriving regional markets.
This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.
Victorians flee Melbourne’s stage 4 lockdown using sneaky loophole
Thousands of fed-up Victorians are using a loophole to escape stage 4 lockdown and head north – and many will likely never return.
Thousands of Victorians are reportedly looking to flee the state for good, heading north to Queensland to escape stage 4 restrictions.
And people are so keen to escape to the Sunshine State, they’re snapping up million-dollar properties without even seeing them first.
According to online removalist platform Muval, 20,000 Victorians have looked at relocating since stage 4 lockdown was announced a week ago.
Brisbane was their top choice, with 21 per cent wanting to relocate there, Muval said. About 17 per cent wanted to go to Perth and 15 per cent to Sydney.
“A lot of the calls we take are from people who have either lost their job or have had a business close down and they’re looking to relocate,” Adam Coward, who runs the site, told Seven News.
According to Mr Coward, 65 per cent of inquiries on his website over the past fortnight had been people looking to move from Melbourne. “We’ve had 80,000 people view our blog on our website in the past few months,” he told Nine News.
Under stage 4 restrictions, removalists are still considered essential businesses and Victorians are permitted to move house, within curfew hours.
To get across the border, Victorians need to be able to prove they have a valid lease or residency in Queensland and will have to go through mandatory two-week hotel quarantine.
While Queensland was already the top destination for interstate relocations before COVID-19,
– particularly from major cities like Sydney and Melbourne – that demand has strengthened during the pandemic.
Real Estate Institute of Queensland (REIQ) chief executive Antonia Mercorella said the shift towards working from home had likely made moving interstate seem like more of an option – especially as people sought the affordability, liveability and lifestyle of the Sunshine State.
“Spending more time at home is seeing more people considering their options,” Ms Mercorella told news.com.au.
“There’s a strong surge in interest up and down the eastern coastline of Queensland, with interstate buyers actively searching for properties from the Gold Coast to the Sunshine Coast and further north to Airlie Beach.
“With buyers on the hunt for high quality homes with water or beach frontage as well as apartments with ocean views and healthy growth potential, we’ve recently seen a rise in ‘sight unseen’ property purchases in the $1 million-plus category, where interstate buyers have never even seen the property they’re purchasing.”
There’s also been interstate interest in renting in Queensland, despite vacancy figures showing a very tight market statewide.
June data from the REIQ showed Mount Isa, Rockhampton, Toowoomba, Mackay and Bundaberg had a rental vacancy rate of less than one per cent – even tighter than the Gold Coast and Brisbane.
“The reasons for the current level of rental demand shows that more people are reconsidering their living options – not just those renters within the state but those looking to migrate to Queensland too,” Ms Mercorella said.
Former Melburnian Ben De Heed, who now lives in Greenslopes, Brisbane, told Nine News he packed up and left after two years just as lockdowns kicked in.
“It just went crazy. I was living in Preston, which is in central Melbourne and they are in full lockdown,” he said. “I am relieved I am here.”
Gold Coast buyers agent Tony Coughran, meanwhile, told Seven News he had received three phone calls in one day from people in Melbourne wanting to move.
“They just have had enough,” he said.
RUSH NORTH AS BORDER DEADLINE LOOMS
Meanwhile, long queues of motorists are forming at the NSW-Queensland border and extra flights will be dispatched up north today with hours to go before the state line is shut.
From 1am on Saturday, Queensland will declare NSW and the ACT virus hotspots, which means travellers from those areas will be unable to enter the Sunshine State, and returning residents have to quarantine for 14 days at their expense.
The border change means NSW and the ACT joins Victoria on Queensland’s virus blacklist. Queensland had already deemed Greater Sydney a virus hotspot.
Hundreds of Queenslanders in other parts of NSW and the ACT have been rushing home before the 1am deadline to avoid mandatory quarantine.
About 60 extra flights to Queensland have already arrived since the border change was announced on Wednesday.
“If you are a returning Queensland resident, you are encouraged to come home immediately,”
Queensland Chief Superintendent Mark Wheeler said.
“For people who do not fit into any of those categories, the message is: Do not come to Queensland.
“We will be stopping individual vehicles; this is going to cause significant delays.”
Motorists have been told to brace for delays of an hour or more.
There will be exemptions for residents in the Tweed and Gold Coast communities who have to cross the border for work and other essential reasons.
Those residents will need to apply for an “X-pass” on the Queensland Government website.
Queensland Premier Annastacia Palaszczuk said the hard border with NSW and the ACT were necessary as both jurisdictions presented a “concerning situation”.
“In NSW, we are continuing to see cases each day, and this is of great concern to Queensland,” she said on Wednesday.
“I can now confirm that our chief health officer is declaring NSW and the ACT a hotspot. This will take immediate effect from Saturday.
“This is the right thing to do. I know it’s going to be tough on Queenslanders. But your health comes first.”
This article is republished from www.news.com.au under a Creative Commons license. Read the original article.
Delay in billion-dollar City Deal a ‘cruel blow’ to Queensland recovery
The COVID-19 pandemic has put a plan to direct billions of dollars towards south-east Queensland projects over the next 20 years on hold.
The plan would commit local, state and federal governments to fund specific areas to cater to a population that will grow by 1.9 million people in the next two decades.
The Property Council of Queensland and the Committee for Brisbane described the delay to 2021 as “a cruel blow” for south-east Queensland, where citizens “deserved better”.
Queensland Property Council executive director Chris Mountford questioned the wisdom of delaying the funding plan.
“To be fair, we would have expected a few months’ delay on the basis that COVID-19 has had an impact, but to simply kick the can into next year seems too much of a delay,” Mr Mountford said.
He said other states were doing a better job of locking in private-sector investment as part of their economic recovery plans.
“Queensland is really slow out of the gate on this front. We are not seeing much of the critical role that private investment will need to play in that,” he said.
“I think if they were still negotiating the Western Sydney City Deal, I am fairly confident the NSW government would not be tolerating a pause.
“They would more likely be saying, ‘we want the investment faster because we want that investment sooner’.”
Queensland Treasurer Cameron Dick rejected suggestions Queensland’s economic recovery was lagging behind other states.
“The Queensland economy is actually thrashing New South Wales,” Mr Dick said.
“We were the only state to record a decline in our unemployment rate last month, and recent transaction data from the Commonwealth Bank shows Queensland private-sector spending has recovered faster and higher than any other state.”
Mr Dick said Queensland was able to attract the $2 billion Forest Wind renewable power project in Wide Bay, the $2.1 billion Dexus redevelopment of Brisbane’s Eagle Street, and the $1.5 billion Valeria coal mine.
“The reality is that the SEQ City Deal would do nothing to improve these numbers in the COVID environment because it’s about projects that only deliver years away,” Mr Dick said.
“This includes things like the 2032 Olympics, a process which is currently on hold given the IOC has delayed the 2020 Olympics.”
Cities Minister Alan Tudge signed a statement of intent in Brisbane on March 15, 2019, with Queensland’s then-treasurer, Jackie Trad, and former Brisbane lord mayor Graham Quirk, who was chair of the South East Queensland Council of Mayors at the time.
The formal South-East Queensland City Deal was expected to be signed in mid-2020, before the COVID-19 pandemic struck.
However, a decision to delay planning was agreed by all three levels of government, according to a joint statement released on Tuesday.
“The Australian Government, Queensland Government and Council of Mayors (SEQ) have agreed to extend the negotiation of the SEQ City Deal into 2021 while we focus on recovery from the COVID-19 pandemic,” the statement reads.
“As governments focus on the COVID-19 impacts it will be important to assess new priorities in the context of the recovery at a later date.
“This will ensure all levels of government have greater clarity of the impacts on the SEQ region and that new and emerging priorities are considered to ensure we have a solid foundation for our future SEQ vision.”
The email was signed by Mr Tudge, Queensland Treasurer Cameron Dick and Brisbane lord mayor Adrian Schrinner, chair of the Council of Mayors (SEQ).
Mr Mountford said the effect of the coronavirus pandemic on the state’s economy “should provide added impetus to a City Deal, now”.
He and Committee for Brisbane chief executive Barton Green said in a joint statement an SEQ City Deal should be the centrepiece of recovery.
“The decision to postpone all the hard work done to date is confusing and disappointing.”
There are seven signed City Deals in place throughout Australia: Townsville, Launceston, western Sydney, Darwin, Hobart, Geelong and Adelaide.
The statement from the Property Council of Queensland and Committee for Brisbane asked governments to reconsider this decision.
“Deliver on the promises made to south-east Queensland residents to fund and prioritise City Deal projects that will support our growth and our economy.”
This article is republished from www.brisbanetimes.com.au under a Creative Commons license. Read the original article.
‘Broken’ housing system pushes gentrification from city to suburbs
Gentrification has moved from the CBD to the suburbs of Australia’s three largest cities, in a trend researchers say shows the country’s housing system is “broken”.
A University of Queensland team mapped urban renewal and population demographics from 2006 to 2016 to see how the process had spread through Brisbane, Sydney and Melbourne.
Broadly, gentrification is the process of wealthier people moving into previously poorer areas, pushing out people who already live there as the price of rent, housing and other cost-of-living measures rises.
UQ urban planning expert Dr Dorina Pojani, one of the authors of the research, said the data showed gentrification stabilised in the CBDs some years ago, with suburbs as far as 15 kilometres from the city centre now going through the process.
“This was quite surprising to us, because the conventional wisdom is that you get high levels of gentrification in the centre of cities and less the further out you go,” Dr Pojani said.
“Instead we found the inner cities are actually pretty stable. They’ve seen a little bit of change but not nearly enough to call it gentrification.”
In particular a ring of suburbs from about five kilometres to 15 kilometres outside the CBD seemed to be either fully gentrified or rapidly gentrifying.
Dr Pojani said the phenomenon was relatively uniform across all three cities and showed what she believed to be the result of Australia’s focus on housing as investment and not necessity.
“The fact that there is any gentrification is an indication of a broken housing system,” she said.
“We need to fix the housing system so this phenomenon is removed from geography and urban planning.
“We need to instil in our policy makers the concept that a house is a place for living. It’s not a place to store or showcase wealth.”
She said viewed through that lens, resistance to gentrification in the inner ring of the three major capitals suggested more of a drive to preserve the “character” of suburbs for wealthier residents, rather than a concern for poorer residents.
“Some of it is pure NIMBYism, people who don’t want new development no matter what, they want to keep their property prices high and one of the ways to do that is keep supply low,” Dr Pojani said.
“Gentrification has moved out from the CBDs steadily, so there might be people who want to live closer in but they just can’t afford it.”
She and the other researchers suggested stronger planning approvals across the country, rather than trying to “patch” gentrifying pockets on an ad hoc basis.
In Brisbane, suburbs such as Fairfield, Moorooka, and Sunnybank, which have had historically high immigrant populations, are now seeing more affluent groups move in, while Wooloongabba is seeing rapid change due to its proximity to the CBD.
While Brisbane has an almost perfect ring of suburbs rapidly gentrifying, Sydney’s gentrifying suburbs are mostly in a large southern strip, the research found, while the northern suburb of Ryde had been the target of infill development policies.
Melbourne has two main gentrification clusters located five-to-15 kilometres to the north and west of the CBD, typified by suburbs such as Footscray and Sunshine. Much like in Brisbane, the historically migrant populations of those areas are being replaced by more affluent residents.
The researchers used common metrics for measuring gentrification, including increasing household incomes, educational attainment, home ownership and white collar occupations as well as decreasing age and growing population density.
This data was sourced from the Australian Census as well as local council data and Google Maps.
The research has been published in the journal Australian Planner.
This article is republished from www.brisbanetimes.com.au under a Creative Commons license. Read the original article.
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