Brisbane is set to become a property investment hotspot next year, as demand for land continues to swell, according to the latest market update from Herron Todd White.
Increased demand for land is evident across markets in Brisbane. This strong interest helps support prices for land, particularly in the city’s growth corridors where properties sell out in a matter of weeks, said David Notley, director at HTW.
“As to whether this state of affairs will continue into the medium and long term is entirely dependent on an extension to the builder’s grant, interest-rate fluctuations and also availability of stock,” he said. “If these variables remain sound, then demand will remain strong.”
There are several factors that are influencing the confidence of potential buyers and investors in the city. In fact, a recent survey by the Property Investment Professionals of Australia showed that a third of investors believe Brisbane is poised to become the best capital city for investment over the next year.
Notley said a big contributor that continues to uplift sentiment in Brisbane is the strong interstate migration to Queensland prior to the COVID-19 pandemic. A report from the Australian Bureau of Statistics showed that Queensland had a net gain of 22,831 people within the country. This figure was almost double its 10-year average of 12,409.
“Of course, that number has plummeted since the boom gate came down on our hard borders, but selling agents are reporting a rise in enquiry from out-of-towners. There’s a sense of anticipation that we’ll see some serious improvement in interstate arrivals once folk can cross state lines more freely,” Notley said.
The low interest-rate environment is also a significant factor. The relatively cheap costs of borrowing money have provided an opportunity for many would-be buyers to break into the market, Notley said. The easier access to finance is supplemented by government grants, further boosting the capacity of many buyers.
“Brisbane and its surrounds offer a relatively inexpensive option for buyers — and that’s a key incentive at present. People are being very cautious with their money in the shadow of COVID. Brisbane provides buyers with the chance to own a new home within easy reach of a major CBD at substantially less than it would cost in Sydney or Melbourne,” Notley said.
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From crumbling hovel to multimillion-dollar mini-mansion
A former crumbling hovel in one of Brisbane’s hottest pockets has sparked an international buying frenzy after a year-long extreme makeover turned the “unloved” rotting Queenslander into a multimillion-dollar mini-mansion.
Once home to countless students on a two-minute-noodle budget, the now-lavish abode at 18 Thornbury Street, Spring Hill, is the stuff of caviar dreams after “cupboard-sized” bedrooms and “rotted floorboards” were swapped for luxury living spaces, a rooftop deck and a wine cellar – all on a rare 500-
Article Source: www.afr.com
Brisbane and QLD property market update – December 2020
If there is a defining theme for the Brisbane market over 2020 it has been it’s resilience in the face of a pandemic which has put a halt to interstate and international tourist arrivals for much of the year.
This has not stopped housing values in the city reaching new record highs, with property analysts agreeing that the city, as well as parts of south east Queensland, are on a trajectory of strong growth into 2021. This is against a backdrop of rising values across the major capitals, as the national home value index rose +1.0 per cent in December; the third consecutive month where dwelling values have grown.
Nationally the residential real estate market has proved remarkably resilient, despite a wobble between March and September when COVID protocols interrupted the market – but overall property prices have held steady.
This is largely due to three factors, including the relative success Australia has had controlling the virus, record low interest rates and the government stimulus that has supported businesses and individuals throughout much of the pandemic.
Now let’s take a look at the Brisbane market and how it has performed over December.
Brisbane dwellings continued their steady, determined progress advancing +1.1 per cent over December, for a median price of $521,686. This brings the Queensland capital up +2.1 per cent for the quarter and +3.6 per cent for the year. This places it in the middle of the pack for the major capitals, a position – characterised by a steady and less volatile growth trajectory.
CoreLogic data reports that houses continue to outperform units across the city, advancing +2.1 per cent over December. Property investor and commentator Michael Yardney identifies Queenslanders’ preference for houses over units as the main reasons for this trend.
CoreLogic data reports that houses continue to outperform units across the city, advancing +2.1 per cent over December
If you are looking for suburb specific highlights CoreLogic’s Best of the Best Report 2020 identified Teneriffe (inner city Brisbane) as the Queensland suburb with the highest median house value of $1,859,323.
Michael Yardney points out that, “…in recent months houses in Brisbane have enjoyed improved demand and the number of transactions in the Brisbane housing market are higher than they were pre-Coronavirus.”
He goes on to clarify that property markets within any city are inherently fragmented, and his data shows that, “…freestanding Brisbane houses within 5-7 km of the CBD or in good school catchment zones have grown in value strongly.”
CoreLogic data appears to confirm this, with dwellings in the upper quartile up +1.25 per cent over December. Yardney cautions against investing in certain segments of the Brisbane market which have underperformed, including high-rise apartments, new and off the plan apartments and new housing estates in blue-collar areas.
Like many other regional markets, high demand for property in specific Queensland hotspots like the Sunshine Coast has driven the market up +6.9 per cent over 2020. Contrast this with Brisbane metro’s growth of +3.6 per cent over the same timeframe for some perspective.
Houses dominate sales in most regional markets, and they are posting solid growth here, up +1.5 per cent over December, while units grew a respectable +1.0 per cent over the month.
Sunshine Beach on the Sunshine Coast recorded the highest growth for houses up +27.6 per cent over the year. For units, Noosa Heads has the highest median values at $898,838, while Currumbin on the Gold Coast posted the highest growth over the year advancing +24.0 per cent.
According to property forecasters Hotspotting other regional postcodes showing promise for the 2021, include Mackay, Rockhampton, Gladstone and Townsville – with a recovery in resources behind some of these locations. Toowoomba is also showing promise as new infrastructure projects stimulate the local economy.
Sunshine Beach on the Sunshine Coast recorded the highest growth for houses up +27.6 per cent over the year
Queensland rental market update
Overall Brisbane house rentals have held steady, with a drop in asking rents mainly impacting the inner-city apartment market. According to the SQM, Brisbane’s gross rental yield for houses is currently around 4.0 per cent and for units is around 5.2 per cent.
CoreLogic data indicates that West Gladstone is the Queensland postcode with the biggest change in rents over the year, up +17.4 per cent; while Mackay/Isaac/Whitsundays has the best rental yield of +14.6 per cent.
CoreLogic data indicates that West Gladstone is the Queensland postcode with the biggest change in rents over the year, up +17.4 per cent
The holiday rental market in many regional locations has been impacted by the COVID flight from cities, with rental vacancy rates in some coastal locations close to zero. CoreLogic data shows that the Gold Coast had a vacancy rate of 1.9 per cent in December ‘19, which dropped to 0.2 per cent in December ‘20. It is a similar story on the Sunshine Coast (1.9 per cent vs 0.1 per cent) and Noosa (1.8 per cent vs 0.2 per cent) over the same timeframe.
The outlook for 2021
Overall the medium/long term outlook is positive for Brisbane, with Westpac forecasting that property values could increase +20 per cent in 2022-23.
Realestate.com.au Chief Economist Nerida Conisbee believes that if low interest rates, government incentives for buyers and the Australian economy continues to reopen, ‘prospects for home sellers in 2021 are positive.’
Michael Yardney believes that property markets will perform strongly in 2021 and 2022 based on the removal of overly restrictive lending rules, the job-friendly Federal budget, and the prospect of no interest rate rises for at least 3 years.
CoreLogic’s Tim Lawless sounds a word of caution, warning that any fresh COVID outbreaks, ‘…would set back the economic recovery and have a negative, although temporary impact on housing markets.’
Article Source: www.openagent.com.au
New apartment developments pop up in prime locations in Brisbane, Gold Coast, Sunshine Coast
Located in the new CBD in Maroochydore, this Sunshine Coast development will offer 146 apartments in two towers.
Buyers will have the choice of two and three-bedroom configurations, along with a limited selection of penthouses, each offering sought-after views of the coastline and picturesque hinterland.
The development also encompasses six small office terraces, as well as retail and dining.
Embedded within the brand new City Centre precinct, the project is set to enjoy all the perks and amenity of the budding development hub, affording it a 90/100 walk score.
It is situated directly opposite the new town square and a two-hectare park, part of a sizeable chunk of the CBD site earmarked for open space.
Designed with investors and developers in mind, the mixed-use precinct will feature smart technology throughout, including technology-assisted parking, real-time public transport and community updates, wifi hotspots, safety systems and electric car charging stations.
Some 40 per cent of the 53-hectare site will be kept as open space, and waterways will be integrated throughout.
Market Lane itself will offer 450 square metres of ground floor retail and dining, along with a rooftop terrace on one of the towers, replete with an entertaining area and private dining room.
Other amenities available to residents will include a 25-metre resort-style pool and barbecue leisure space in the centre of the development.
The towers will also feature secure access, lifts, an above-ground car park, CCTV, and an on-site facilities manager.
Article Source: www.domain.com.au
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