Regional housing market doubles capital city value growth
Australia’s regional housing market has far outpaced value growth across Australia’s capital cities in the last 12 months, rising 13.0% compared with a 6.4% gain in capital city values.
CoreLogic’s quarterly Regional Market Update, which looks at capital growth over the 12 months to April 2021 in Australia’s 25 largest non-capital city markets, saw Richmond-Tweed take top spot for capital gains across both house and unit markets, with 21.9% and 15.5% annual growth respectively. Bunbury was the worst performer across both house and unit markets, with 3% and -4.4% yearly growth respectively.
CoreLogic’s research director, Tim Lawless, says the faster pace of growth reflects stronger demand flowing into the regional areas of Australia through the COVID-period to date.
“This can partly be explained by the new popularity of remote and flexible working arrangements, but also increased demand for lifestyle oriented properties and holiday homes. No doubt the more affordable housing options across many of Australia’s regional markets is another incentive; in April there was a $247,400 difference between the median value of capital city dwellings and regional dwellings.
“Playing into the lifestyle trend, it’s no surprise to see the Richmond-Tweed area topping the list for capital gains over the past 12 months. This region includes high profile beachside destinations such as Byron Bay, Suffolk Park and Lennox Heads as well as popular hinterland villages such a Bangalow. The median house value across the Byron council area is now $1.4 million, which is higher than Greater Sydney’s median of $1.147 million,” says Mr Lawless.
Best & Worst Performing Regional House Markets – April 2021
Best & Worst Performing Regional Unit Markets – April 2021
“Looking forward, regional housing markets remain well placed to record higher than average levels of demand, especially those markets that are located close enough to capital cities to provide a commuting option, and those lifestyle markets that are popular with sea and tree changers.
“While surging values are probably good news for homeowners in these regions, for those that don’t own a home, affordability is being stretched. Particularly for long-time locals whose incomes are unlikely to be rising at anywhere near the pace of house price appreciation, they may be forced to seek out housing options further afield,” says Mr Lawless.
Article Source: www.corelogic.com.au
Labor housing policy a solid start
The social and affordable housing policy announced by Federal Labor is a solid start to giving people on low and modest incomes greater housing options as they grapple with a runaway housing boom, according to Everybody’s Home, the national campaign against homelessness.
Labor leader Anthony Albanese has committed to a $10 billion dollar fund from which the earnings would finance 20,000 social and 10,000 affordable homes over four years. Critically, the fund would exist in perpetuity, providing a sustainable funding base to give more Australians greater housing options.
“This is a very solid start,” said Kate Colvin, spokesperson for Everybody’s Home. “While this won’t meet the full housing needs of low and modest income Australians, it does lay down a sustainable foundation.
“Booming house and rent prices are driving many Australians to desperation, especially in regional communities. Expanding social and affordable housing means greater choice and relieves pressure.
“It is noteworthy that Federal Labor recognises the important role for the Commonwealth in social and affordable housing. The states simply can not solve the rising problem of housing stress and homelessness without the Commonwealth’s financial firepower.
“The commitment to devote one-fifth of these homes to women and children escaping violence also deserves recognition. Demand for such housing is simply not being met. Last year, one-third of the 54,000 women and children escaping family violence who came to homelessness services needing accommodation had to be turned away because no accommodation was available.
“Social and affordable housing need to be recognised as entirely legitimate housing options. All of us need a home to protect our health, look after families and aspire to stability and prosperity.
Article Source: Medianet
Run-down Brisbane workers’ cottages sell for almost $1 million at auction
Two shabby old workers’ cottages in two of Brisbane’s hottest locations have sold for close to $1 million each at auction, following fierce bidding battles worthy of a glamorous riverfront mansion.
The dated houses in East Brisbane and Mount Gravatt East attracted hordes of hungry buyers, with the first selling for $856,000 under the hammer, and the latter securing a jaw-dropping $945,000 and 40 registered bidders, topping off a thrilling weekend of auctions across Brisbane.
The pint-sized 62 Stafford Street, East Brisbane, secured 15 registered bidders on the day, with a far-north Queensland couple scoring the winning bid.
With its pink-and-green facade and Hills Hoist clothes line out the back, Ray White Brisbane City principal and auctioneer Dean Yesberg said he didn’t expect the home to get such a result, but put it down to a firing market, alongside the cottage’s prestigious location.
“It was the smallest house in the best street (of East Brisbane) and it’s a cute cottage. Also, the house next door is a magnificent heritage-listed old colonial and that added hugely to the appeal. It gives you confidence as a buyer,” Mr Yesberg said.
“The couple who got it had only seen the property on Friday, and they were coming down from Mission Beach. They wanted to buy something in the city and they’re planning to renovate it.”
Proving size is no guarantee of selling power, the two-bedroom cottage at 45 Gatton Street, Mount Gravatt East, enjoyed a rock-star reception from home hunters and developers alike, before selling for an incredible $95,000 above the reserve price to a developer.
Selling agent James Austin, of Ray White Mount Gravatt, said the block itself and the sheer development potential sparked soaring buyer interest.
“There’s nothing like it around this area, it has a dual street frontage and the potential to be split into two blocks of land. Most of the buyers there today were developers with that in mind,” Mr Austin said.
“The buyer was an experienced developer who has done a lot of projects in Queensland. He hadn’t seen it prior to that auction that we know of, he just turned up on the day and bid aggressively.”
It was the two humble homes that stole the auction limelight on Saturday, but agents from across Brisbane clocked top sales from mini-mansions through to acreage hideaways off the back of soaring local activity.
Place Bulimba agent Joanna Gianniotis sold 14 Grant Street, Camp Hill, under the hammer for $2.2 million, following what she said was a fast-growing upgrader trend.
“We identified the buyer early on in the piece and it was a family who had come through four or five times. They were moving in from outer Brisbane into the city so their older daughters would be closer to universities and they were looking for just over a year,” Ms Gianniotis said.
“And, they were so excited (to finally get their dream home).
“We’re certainly seeing a strong taste with buyers seeking that large family home where they can house adults. Children are staying home for a longer period and, because of covid, people are working from home, so it changes what you need.
“But, the market in general has been just crazy and there’s just not enough out there, and what there is the locals have been snapping them up.
“In fact, this weekend has been big, with sales to locals who are trying to finalise buying a property before next weekend (when the borders open).”
Although locals dominated the buying pool on Saturday, a sprawling mini-mansion at 170 Camelot Place, Bridgeman Downs, attracted bidders from across the country and around the world, passing in at $4 million.
Selling agent Sonya Treloar, of Ray White Bridgeman Downs agent said five registered bidders fought it out for the seven-bedroom abode, which she was expecting to sell quickly in post-auction negotiations.
“We also sold 34 Peppermint Drive in Cashmere and it was a fantastic result. We had six registered bidders and it was fierce up to $1.3 million, before being sold for $1.305 million to a gorgeous couple with two little boys and they are making it their family home,” Ms Treloar said.
“It would also have to be one of the highest prices achieved in Cashmere.
“Right now, we have multiple offers on every property and we were so busy last weekend, we signed six contracts. There are lots of buyers and sellers are achieving really good results.”
Across the prestige end Peter Florentzos, of LJ Hooker Sunnybank Hills, sold 7 Hibiscus Court, Stretton, for $1.626 million, with a local buyer securing the winning bid for the seven-bedroom, four-bathroom mansion.
“The market is very strong and, in my opinion, it will only get stronger next year. Confidence is back massively and interest rates are ridiculous, so it all falls into place,” Mr Florentzos said.
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