It’s the annual winter prestige property pilgrimage from the southern states to the Sunshine Coast that leading local agent Vicki Stewart has come to know so well.
“People from Sydney and Melbourne come up the first year and fall in love with the climate and the area,” says Ms Stewart, the director of Stewart Property. “They return the next year and don’t want to go home again, so start looking at places to buy.
“And by the third year, they come, and just never go home.”
She did exactly the same thing too, 34 years ago, on a visit from Sydney, and says that migration from daydreamer to new owner causes a dramatic spike this time every year in the market.
Real Estate Institute of Queensland chief executive Antonia Mercorella agrees. “Many travel for a holiday and fall in love with our world-class beaches, fine dining and luxury retail shopping precincts,” she says.
“The seeds are planted and while our prices are high compared with the rest of Queensland, when compared with Sydney or Melbourne prices they’re an absolute bargain.”
At the same time Noosa, at the top of the Sunshine Coast market, has been performing exceptionally well and in the 12 months to March 2019 has hit 8.7 per cent growth, making it Queensland’s strongest area, as against Brisbane’s one to 3 per cent, and the Gold Coast’s 2 to 3 per cent. Since 2014, Noosa prices have risen 44 per cent.
There have been some stellar sales too in the past 18 months, including the $15.2 million sale of tennis ace Pat Rafter’s mansion on Noosa’s Sunshine Beach, followed by the Sunshine Coast record-breaking $18 million purchase of a seven-bedroom trophy home nearby. “But as a general rule of thumb, what you’d buy in Sydney for $20 million will cost you just $8 million here,” says Ms Stewart.
Domestic tourism – of which this coastal region is “the Australian rock star” according to Visit Sunshine Coast chief executive Simon Latchford – always sparks the property market, while its “Hamptons-style cool” continues to drive it on and up.
“The market does leverage off tourism but, often, as soon as people arrive they realise its strengths,” Mr Latchford says. “There are two airports, lots of new infrastructure, a laid-back lifestyle, an extraordinary climate with no cyclones, crocs or box jellyfish, a community atmosphere in a place that hasn’t been allowed to develop too fast, and Brisbane is only an hour and a half away.
“If you want to savour life as it was back in the ’70s, then this place can offer that environment.”
The prestige market from $5 million to $12 million is particularly strong at the moment, with demand surging and stock so tight that one buyer bought a home at Noosa Heads in the past few weeks for $2.9 million over the phone, sight unseen.
“We now have a lot of buyers making multiple offers and there’s not much stock as people are making generational purchases; they’re planning to keep it long-term and hand it down to family rather than sell it,” says agent Nic Hunter from Tom Offermann Real Estate.
“Noosa has always been the pinnacle of that prestige end of the market, and people just love the relaxed lifestyle and village atmosphere.”
Four homes in the area
For sale by informal tender with a guide of more than $4 million, this five-bedroom home has a spectacular waterfront position, with beautiful mountain views and a peaceful position.
“As with all the best homes on the Sunshine Coast, you have to consider the cost of not buying now,” says agent Adrian Reed of Reed & Co.
With deepwater access and an upgraded pontoon to allow the owner to keep anything up to a 58-footer safely moored at home, this family house was designed by Frank Macchia to have a true north aspect.
The home has an in-ground pool and a steam-room, while a recently-installed solar system generates over 100kWh of power in summer and is fitted has battery storage.
It’s going to auction on July 14 through Loren Wimhurst of Next Property Group, with a guide of $4.5 million to $5.5 million.
Floor-to-ceiling windows in almost every room make sure that the stunning views are maximised and that this house is flooded in natural light.
The media room has its own cosy fireplace, there are electric shutters and blinds and an openable roof to control light and temperatures, and underfloor heating on the ground level and in the bathrooms that service the master bedroom.
The home is for sale with a guide of $3.3 million, with Joe Langley of Universal Property Sales.
Billed as a 6-star resort-style home, this home has great north-east ocean views and is just a short stroll to the beach, cafes and shops from its large 1,200sqm block.
There’s an internal lift to each floor, a grand entry foyer, a sound-proofed cinema, in-ground pool and pool room, with landscaped gardens.
It’s for sale with a guide of $3.3 million, through agent Craig Porter of Next Property Group.
Australian property prices continue to break records despite lockdowns: Core Logic
Brisbane house prices hit another record high, rise 13 per cent
Brisbane’s compelling real estate story is on the cusp of its most exciting chapter yet after house prices climbed by double digits over the past year to record heights.
The latest Domain House Price Report, released on Thursday, revealed median prices jumped by 13 per cent over the 12 months until June – the largest rise in 13 years.
Over the past 12 months, the median house price has gone up by almost $78,000, which is around the average Queensland annual salary. Property experts claim this moment in Brisbane property history is just the beginning, with the city’s successful success Olympics bid tipped to fuel further growth.
According to the report, house prices rose by 5 per cent over the June quarter alone, pushing the median to $678,236. Unit prices remained almost flat in the city’s ongoing tale of two markets, with prices rising 2.1 per cent over the past year to $394,287.
Brisbane median house price reached a record $678,236 in the June quarter.
For anyone who has been trying to buy a house in Brisbane’s frenzied market over the past year, the figures will come as no surprise. In Brisbane’s inner-city ring, house prices have jumped a massive 30 per cent, while prices in Brisbane’s north are up 19.8 per cent. They’re up 18.9 per cent in the western suburbs and 17.5 per cent in the south.
The rises come amid record house price growth across the nation: Sydney’s median is now at $1.41 million, while Melbourne and Canberra’s medians have both cracked $1 million.
Domain chief of research and economics Nicola Powell said the Queensland capital was perfectly poised for a property coming of age with close to record-high interstate and expat migration largely feeding the latest growth.
“What’s interesting around hosting the Olympics is that the impact on housing values isn’t going to be during the Olympics of 2032; it’s going to be far more stretched than that because in the lead up it’s such a significant event for Australia and Brisbane so we’ll see significant investment,” Dr Powell said.
“It will grow the infrastructure and the associated job creation, and with that, it will bring economic prosperity … and what we could see is a bit of a turnaround in unit growth as well.
“I think this is something that sets Brisbane apart from our other capital cities because, until 2032, there’s a long period of time, which means there’s lots of time for purchases on big-ticket items in terms of infrastructure.”
Dr Powell added that the capital’s continued affordability compared to Sydney and Melbourne was throwing more fuel into the price cycle.
Ray White New Farm principal Haesley Cush said Brisbane’s gripping property tale was only just unfolding.
“The market is extraordinarily unique. In March 2020, Brisbane was finally waking up after 10 years of a relatively flat period, and that’s quite a long time for a capital city to not have real capital growth,” Mr Cush said.
“So, we were due for an upward swing, but to (further) drive that up was COVID and the [planned] infrastructure.
“COVID had this unpredicted benefit to property prices, and there’s no sign of [price growth] slowing. And then on top of that, you have the Olympics, and so that, by definition, adds more capital growth, and the final thing people look for is some comfort that prices won’t go down and we’re still 10 years away from the Olympics.
“So, you can see that we have this insurance policy of the Olympics counteracting any downward trend, and Brisbane is going to be on the map, and people are going to notice the city more than ever before.
“Then looking at the infrastructure coming, it’s an unbelievable story for Brisbane … in 10 years’ time, Brisbane is actually going to be improved quite dramatically.”
The sunny outlook comes hot on the heels of record price growth in the city, with Mr Cush citing the first quarter of the year as their greatest three months of sales in history.
“This quarter was probably continuing on par, but some of our markets have continued to roar … it’s probably the most exciting market I’ve worked in,” Mr Cush said.
Joint managing director and lead agent at Place Estate Agents Bulimba, Sarah Hackett, said while the greater city had undergone strong growth as a whole, that million-dollar price point had skyrocketed by 30 per cent in some cases.
“We’ve never seen this before in Brisbane. The numbers through the opens [are incredible]. We’ve got about 20 per cent more going through than in 2019, and we’ll always have someone from Hong Kong and the UK,” Ms Hackett said.
“Buyers aren’t mucking around … and on average, we have seven registered bidders per auction, and it’s all cash buyers.
“Over the last quarter Place Bulimba was up 62 per cent from 2019, and that was working out to be one of our best years.
“I can honestly say this is all I’ve ever done for 24 years; it’s the best market I’ve ever seen.”
While Ms Hackett agreed that homes in the city’s blue-chip inner fringe were going nothing short of gangbusters, she said opportunities still abounded in the prestige sector where prices hadn’t surged with the same ferocity.
“It’s an incredibly good time to upgrade because the houses worth $1.2 million have gone up substantially.”
But with thousands of expats projected to fly home in the coming year and storm the market, it’s a window she felt could start to close.
“There’s still plenty of opportunity for growth, and there’s going to be a lot more migration.”
Article Source: www.domain.com.au
Mortgage Stability Attracting New Buyers
Taking on a new mortgage is becoming an increasingly attractive option for Australians as mortgage stability hits a near-record high.
Around 3 million people were expected to buy a new home in the next six months, while more than 256,000 refinanced, according to a number of reports.
Australia’s ability to keep up with these mortgage repayments was continuing to improve despite property prices skyrocketing.
One-in-six mortgagors said they were considered at risk of mortgage stress in the three months to May, compared to nearly one-in-five at the same time last year.
The data from Roy Morgan revealed low community transmission and increased full-time employment were contributing to improved conditions.
Meanwhile, property prices nationally have increased by more than 10 per cent in the first half of the year, according to the Reserve Bank of Australia, who decided to maintain the cash rate this week.
“Demand over the preceding year had been led by owner-occupiers, although investors had become more active in recent months,” the board said.
“As had been the case for some time, the flow of new listings for sale remained similar to pre-pandemic levels but total listings were much lower, implying that dwellings were being sold at a rapid pace.”
Low interest rates and new buyers could further boost the property prices with three million people looking to buy in the next six months, according to Finder.
The research revealed 7 per cent of Australians were looking to buy as an investment, while 7 per cent plan to live in the home they buy.
A further 10 per cent of people would buy a property in the next six months if they could afford to do so.
However, rents were also on the rise increasing between 8.9 and 21.6 per cent across Australia with the exception of Melbourne and Sydney where there was little change.
Mortgage stress hits near record low
Roy Morgan chief executive Michele Levine said support from the government and banks was helping people continue to service their mortgages.
“Many years of research into mortgage stress has shown that the biggest driver of increased mortgage stress is the reduction in income caused by the loss of a job which causes an immediate jump into a ‘risk’ category,” Levine said.
“Over two-in-three mortgages rely on more than one income and our analysis shows losing even the lower of these two incomes causes an immediate four-fold increase in the likelihood of those mortgage holders becoming ‘at risk’ or ‘extremely at risk’.”
Refinancing is also on the up with more than 256,000 refinance settlements occurring across the 2020-21 financial year, according to PEXA.
PEXA senior research manager Mike Gill said mortgage holders were taking advantage of the low interest rates.
“We witnessed a significant spike in refinances in June 2020 following the Reserve Bank of Australia’s rare double rate cut in March of that year,” Gill said.
“We have seen elevated levels of refinancing activity since then across all eastern states.
“The recent records set in June 2021 within NSW and Queensland coincide with public commentary of a potential interest rate rise sooner than previously forecast by the Reserve Bank.”
The report found refinance activity in NSW had the steepest rise, up 15 per cent year-on-year to over 101,000, while Queensland volumes also increased by 12 per cent year-on-year, with more than 48,000 refinances settled.
Victoria recorded the most refinances of any other state with more than 106,000, just surpassing its northern neighbour, however witnessed lower year-on-year growth, under 4 per cent.
Article Source: www.theurbandeveloper.com
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