- Westpac predicts Brisbane’s house prices will grow 20 per cent over two years
- ANZ is even more upbeat forecasting a 16 per cent surge in Brisbane for 2021
- Six suburbs near city climbed above the $1million median threshold this year
- Metropole buyers’ agency recommending inner-Brisbane areas for investors
A city that is much more affordable than Sydney or Melbourne is tipped to conservatively enjoy 20 per cent house price growth during the next two years.
In Brisbane, $1million buys a very nice house, including a renovated Queenslander, near the city instead of an ordinary brick veneer home in western Sydney more than 30km from the central business district.
In the Queensland capital, $650,000 is still enough for a modest home near the CBD.
During the past year, six suburbs in Brisbane saw mid-point house prices climb into the seven figures, with values soaring by more than $250,000 in one year or by close to a third.
Brett Warren, a director of buyers’ agency Metropole, said upmarket and gentrifying, inner-city suburbs in Brisbane stood to see the strongest growth as skilled professionals sought out areas offering the best lifestyle.
As an investor, if you manage to buy the right property in the right location, you could be primed to supercharge growth,’ he said.
‘Let’s not forget that the ability to work, live and play all within 20 minutes’ reach is the new gold standard desirable lifestyle.
‘This ‘ultimate goal’ is now more important than ever thanks to our new ‘Covid normal’ world.’
The Westpac bank is tipping Brisbane’s median house price will grow by 10 per cent in 2021 and by another 10 per cent in 2022 – adding up to 20 per cent over two years.
ANZ is even more upbeat, predicting 16 per cent growth in 2021 alone for Brisbane, although this is more moderate than Sydney’s forecast growth pace of 19 per cent.
Brisbane’s upmarket suburbs near the city have enjoyed the strongest price growth during the past year with six of them this year joining the $1million median house price club, REA Group data showed based on realestate.com.au sales.
Yeronga, 8km south of the city, saw a massive 28 per cent surge in median house prices, taking the mid point to $1.085million from $847,500.
Prices climbed by $237,500 when February 2021 was compared with February 2020.
Balmoral, a similar distance north-east of the city, saw its median house price surge by 26 per cent to $1.2million from $952,500 – a gain of $247,500.
Norman Park, near the city, saw its median price climb by 21 per cent to $1,002,500 from $830,000 in a suburb which used to count former prime minister Kevin Rudd as a resident.
Ashgrove, another inner-city suburb, saw its mid-point house price rise by 17 per cent to $1,125,000 from $961,000.
Mr Warren said Ashgrove was an example of an inner-city suburb that appealed to professionals with children.
‘With a cosy neighbourhood feel, while only being four kilometres north-west of the city, Ashgrove is a convenient suburb for established professionals and families who want a little room to move without having to move too far away from the city centre,’ he said.
Metropole is also recommending other upmarket, inner-city suburbs including New Farm, Teneriffe, Ascot, Highgate Hill.
For those who can’t afford a million dollar house, Mr Sutton recommended other suburbs close to the city, including Stafford, Stafford Heights and Chermside in the north and Holland Park, Tarragindi and Cannon Hill on the south side.
Stafford Heights was cited as an example of an up-and-coming suburb with a more affordable median price of $652,000.
‘Just over the hill from big brother Stafford, this suburb has started to hit it off with families and investors alike,’ Mr Warren said.
‘With a number of retirees moving on and government housing hitting the open market, professional couples and families started to take over and put some money into the area, spending up big on their homes and transforming the neighbourhood to a more desirable one.’
Mr Warren said buying in areas near the city was a better investment than a distant outer suburb without the lifestyle amenities.
‘I don’t believe in hot spots or investing in an area just because it is expected to be the “next best thing”,’ he said.
‘Hot spots tend to become next year’s “not-spots” and I’m a long-term investor, meaning I take educated risks based on evidence and fundamentals, I don’t gamble.’
For that reason, Mr Warren said established, inner-city suburbs were ‘strong and stable suburbs’ and had ‘shown consistent historical growth and also have the right demographics to suggest future long-term growth’.
Australia’s major banks have released predictions showing a surge in capital city house prices in 2021 and 2022 as a result of record-low interest rates.
House values in March hit record highs in 61 of 88 sub markets in March, with median prices surging at the fastest pace since October 1988, CoreLogic revealed.
The boom is set to continue with three of Australia’s big four banks offering fixed mortgage rates of less than 2 per cent, with the Reserve Bank indicating it would leave the cash rate at a record low of 0.1 per cent until 2024.
Article Source: www.dailymail.co.uk
‘Stretching, pulling’ Perth Property expert calls for end to city’s sprawl at expense of CBD
A prominent Perth property identity has queried state spending on projects fringing the CBD while its centre goes begging, creating a sprawling city without a heart.
Multiplex WA managing director Chris Palandri told an industry gathering last week the city was being “stretched and pulled in every direction” as the state government continually favoured decentralised projects that “elongated” an already enormous city.
His commentary follows WAtoday columnist Gareth Parker’s recent description of the city as full of disconnected, masterplanned precincts that left it “derelict and depressing” instead of enlivened.
The Property Council of Australia WA lunch on Friday focused on the $1.5 billion City Deal bonanza of federal funds to bring Edith Cowan University’s business and technology schools, plus its WA Academy of Performing Arts, into Perth city, representing 10,000 students.
This centrepiece of the deal, plus another 5000 students each from relocating certain schools from Curtin and Murdoch, is hoped to eventually deliver foot traffic, a so-called “night-time economy” and a population boost to the city centre, which is well behind the residential population density of Brisbane, Sydney and Melbourne.
In a discussion on whether this would be the transformative hit commentators have for years said Perth’s economy and atmosphere were sorely in need of, and diminish anti-social behaviour, homelessness and vacant storefronts currently dominating the city experience, Lord Mayor Basil Zempilas said it was the “start of our city boom”.
But Mr Palandri identified other another trend potentially stalling progress.
He said “alternative” land parcels being developed east of the city “cannibalised” population growth that might otherwise benefit core boroughs such as Elizabeth Quay.
Examples of redevelopments in East Perth include Claisebrook Village, the East Perth train station upgrade, East Perth Power Station, Optus Stadium, Belmont Park and Riverside, which includes the long-dormant Waterbank overlooking the Causeway in East Perth that has seen no construction start despite being in development for the past 10 years.
The government has played an instrumental hand in most of these, most controversially recently the East Perth Power Station.
“I don’t know why the state government is spending money at East Perth when we have all that land around Royal Perth Hospital,” Mr Palandri said.
“Perth is pretty much empty. Go to any suburban park mid-Sunday afternoon. The joint is empty. We can take another million people without really disturbing the place.”
Chris Palandri, Multiplex
“There are great heritage buildings there that could be repurposed and we could start creating an environment there that would be great for the city. The city and the state government are not connected.
“Where is the hero shot we have up on the wall that says, ‘this is the overall plan for Perth’?
“We need that document, something that developers and everyone can have a look at and go, ‘this is the plan, stick with the plan’ … make the city more liveable.
“They have the budget, they are just spending that budget in the wrong place.”
Mr Palandri said Perth was an extremely liveable city with a beautiful climate that had an opportunity to sell itself as a place to live and work, to ease skills shortages in many industries.
“Western Australia is suffering without enough people,” he said.
“Perth is pretty much empty. Go to any suburban park mid-Sunday afternoon. The joint is empty. We can take another million people without really disturbing the place,” he said.
“We need more people in WA, we want more people in the CBD. At the moment what we’re doing is to get them in the CBD we are cannibalising other areas.”
Mr Zempilas said the next fortnight would bring a gathering of stakeholders intending to progress such a plan for Perth’s centre.
He inadvertently revealed further government investment in East Perth, saying he was very confident a primary school would be announced within that area in the near future, though that was “not my announcement to make”.
Indigenous cultural centre must be ‘iconic’: Zempilas
Asked what Perth needed most as its next central city project, Mr Zempilas said the Indigenous cultural centre and museum.
He said it was hard to believe it had not yet been built.
“We have to do it better than just about any development has ever been done in this country,” he said.
“It should be, in my opinion, the second or third most iconic structure in this country, and if the Opera House and the Sydney Harbour Bridge are one and two, it needs to be true, it needs to be three.
“It needs to be that special, that significant image to represent the people that it needs to stand for.”
Mr Zempilas said the cultural centre and museum should also be able to be held up as a global tourism drawcard.
The Elizabeth Quay master plan provided for not just a cable car but for a nationally significant centre of indigenous culture, art and learning. This, however, did not form part of the first stage of the project and no funding was ever allocated for planning and construction.
The Property Council of WA-commissioned Big (and small) Ideas for Perth report named a “cultural anchor at Elizabeth Quay” as “essential” and said an Indigenous culture museum should be a priority for all levels of government.
Article Source: www.brisbanetimes.com.au
Brisbane apartment market in the spotlight: Media Hunt’s May update
The media veteran Steve Hunt has cast his eye over the Brisbane market and what’s happening in the Queensland capital
The Brisbane apartment market continue to show strength over May, posting 1.1 per cent gains, CoreLogic’s monthly Hedonic Home Value Index found.
The rolling quarterly apartment gains are now up to 3.2 per cent, with the median apartment price reaching $411,000.
The media veteran Steve Hunt, who founded the public relations and media strategy firm Media Hunt in 2005, has cast his eye over the Brisbane market and what’s happening in the Queensland capital.
Hunt mentioned The Fernery, which has been popular with local owner-occupiers
Urban recently spoke to Colliers residential director Andrew Scriven, who said most of the buyers have come from a couple of kilometre radius.
“There’s been overwhelming success since launch in April from the local market, looking to either downsize, invest or secure something for the children,” Scriven said.
“Locals have really embraced the project. They haven’t really had that offering ever.”
The project by the Townsville-based Honeycombes, in partnership with their financier MaxCap, will comprise the 82 apartment block The Fernery, as well as a 12,000 sqm retail centre set next to the Ferny Grove train station.
Article Source: www.urban.com.au
Multimillion-dollar deals fuel record auction day in Brisbane
A record-setting $43 million in real estate sold under the hammer across Brisbane on Saturday in an incredible feat of strength that has revealed the city’s soaring market is showing no signs of slowing.
From the 71 auctions reported 63 transacted to achieve a 89 per cent clearance rate, compared with 65 per cent last week and a meagre 33 per cent this time last year.
It’s also the highest amount fetched in a single day of Saturday auctions in more than six months, with several multimillion-dollar properties sold amid reports of fierce bidding wars.
Although one of the top sales included a sophisticated Queenslander at 92 Elfreda Street in Enoggera, which collected $2.301 million through Place Estate Agents Newmarket, it was a laid-back family suburb on the outskirts of the city that stole the show after hundreds of buyers and onlookers flooded three separate auctions, resulting in milliondollar-plus sales.
Wishart, which is 14 kilometres from the city and has a median house price of just over $800,000, could have been mistaken for an inner-city borough after the three homes collected a combined $3.644 million. Property punters said house prices in the increasingly popular patch have risen by as much as 25 per cent in a year.
Ray White Annerley principal Geoff Sellars sold a dated, low-set brick abode on a 646-square-metre block at 106 Delavan Street to two first-home buyers for $1.067 million on Saturday, and said the price and number of bidders told more than just a tale of the city’s soaring market, but also of a suburb where demand was skyrocketing.
The young buyers were forced to compete against 35 registered bidders for the modest four-bedroom house, forking out $217,000 over the reserve price in front of a crowd of more than 150.
“Wishart has always been fairly popular as well as the Mansfield area, there are people who just buy there to be in the Mansfield High School catchment, but not in the like of what we’re seeing at the moment,” Mr Sellars said.
“There’s an enormous amount of confidence in the market and it becomes a snowball effect. Interest rates are low and people have just prioritised buying property over things like travel and I think the bank of mum of dad is the fifth biggest bank in Australia right now so a large majority of buyers are first home buyers. The confidence over the past 12 months has driven them to that point but a lot of their parents are fronting up money (to help them get their deposit over the line) as well.
“And, in Wishart, I would have thought 106 Delavan would be lucky to be a mid-$700,000s property so there has been a 25 per cent price increase here in some parts.
“At its worst, I think this is the new normal and we have set new average prices for a lot of suburbs. I don’t think we’ll go down from here and there’s definitely the potential for things to strengthen.”
LJ Hooker Sunnybank Hills agents Rob Senic and Kosma Comino sold the other two Wishart homes under the hammer on Saturday, collecting $1.45 million for a contemporary abode at 44 Craig Street and $1.127 million for the slightly rundown four-bedroom house at 22 Cotswold Place.
It was the Cotswold Place property that Mr Comino said attracted an almost rockstar turnout, leading to a 45-minute auction, about 50 bids and a sale price that was $127,000 above the reserve.
“While I knew it would be a good auction because that part always does well, we were thinking it would sell for a maximum of $1,030,000 but then, during the auction, we had a lot of people rock up late and we had a total of 15 registered bidders,” he said.
“From the 15 registered, we had six of them really fighting for it – they were a very mixed group. The bidding opened at $800,000, and it was really rapid then on the fifth bid we hit the reserve.
“A family ultimately won the auction and it’s funny because they had actually missed out on the last two auctions with me in that pocket.”
Mr Comino said first-home buyers and young families looking to upgrade into their second home were making up a large portion of the buyer demographic, with that enticing school catchment attracting half of the buyers, and the suburb’s location being the “X-factor” for the rest.
“You’re also close to the motorway and then you’re close to Westfield Garden City – in fact, if you drive through there now, it’s busier than the city centre. It’s gotten crazy there now.”
Elsewhere, Ray White Carina agent Jose Peralta sold a striking four-bedroom family oasis at 22 Faraday Street in Camp Hill for $1.401 million, and next door in Norman Park, Paula Pearce, of Place Estate Agents Bulimba, sold a modern Queenslander at 64 Morehead Avenue for $1.675 million under the hammer.
In Northgate, Ray White Aspley agent Dwight Colbert transacted the meticulous four-bedroom abode at 26 Mann Avenue for $1.07 million in an auction he said attracted nine registered bidders before fetching $120,000 above the reserve price.
“They were all local buyers and many with young families but in the end it was a retired couple who bought the place as they have six grandchildren. My sellers are upsizing and have bought at Nudgee Beach as they have three children and want some more room,” Mr Colbert said.
“There’s still a lot of desperation for good stock, and it feels like a shortage of listings which I know is helping with competition.”
Article Source: www.domain.com.au
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