Southeast Queensland’s coastal property markets are leading the way in 2017, recording the strongest gains in the state, a new report shows.
The Gold and Sunshine Coasts are the stars of Queensland’s property market.
An influx of buyers from the southern states and Asia have put a drain on supply, which is driving up prices, local agents say.
The latest figures from the Domain Group’s rental and house price report show houses on the Gold Coast grew by 7.3 per cent overall last year — the best result of all major Queensland regional markets.
More than half of the top 20 property sales in Queensland were made on the Gold Coast last year; the top five alone, all located at Surfers Paradise and Mermaid Beach, totalled $76.2 million.
But it’s not just prestige property doing well on the Gold Coast. Local agent Ruth Fea says properties across all price points are in high demand.
“The driving factor behind the demand is a lack of supply in general. We’re doing more off-market deals than ever — not because we’re being secretive — but because properties are simply selling before we even have a chance to list them,” she says.
“Houses in the $600,000 to $800,000 price range are extremely popular in particular but we never have enough stock. I believe this demand will only increase throughout 2017.”
Ms Fea says though buyers from Sydney and Melbourne are thick on the ground, they’re often unrealistic about the current state of the market.
“They don’t seem to have grasped that the Gold Coast is doing very well right now,” she says.
“They all want to buy here, but they still think the Gold Coast property market is struggling so they are constantly missing out to Brisbane or Chinese buyers who have a better idea of what properties are worth here.
“They want a bargain but the fact is, they need to get the memo that prices have gone up here.”
The Sunshine Coast’s median house price, now $555,000, grew by 4.4 per cent in 2016.
“The Sunshine Coast’s healthy annual growth suggests that the coastal region will remain a popular destination for buyers in 2017,” says Domain Group chief economist, Dr Andrew Wilson.
Indeed, it’s been a busy summer holidays for real estate agents on the Sunshine Coast.
Ray White Caloundra agent Andrew Garland says he has never seen it so busy.
“I’ve been in real estate here 12 years and the last six months of 2016 was the best market I’ve ever operated in,” he says.
“In particular, the beach suburbs of Moffat, Shelly and Dicky (Beach) all experienced phenomenal results and demand.”
Mr Garland says Caloundra, beloved for its more laid-back and casual lifestyle, will only continue to rise, given the local planning laws.
“We’re not built-up here, there’s not the high density that you get in places like Mooloolaba,” he says.
“What we have here on the coastline is unique — a protected residential precinct — and that ensure demand and prices continue to go up.”
In and around Noosa, local agent Tom Offermann says houses up to $2 million and units up to $1 million are currently the most in demand.
“Inquiries and sales over the Christmas period and January have been solid, particularly from Sydney buyers,” he says.
The overall auction clearance rate for Mr Offermann’s agency in 2016 was 87 per cent, a trend he sees continuing throughout 2017.
He cited the recent sale of a golf course-fronting house at Noosa Springs as an example of how fast the market is moving. Located at The Ridge, it sold prior to auction, in the vicinity of $2.5 million.
Last weekend a house at 17 Elanda Street, Sunshine Beach, sold under the hammer for $1,600,000.
Originally Published: https://www.domain.com.au
Home in blue-chip street sells for $4.1 million
Queensland’s population hits 5 million people today
Queensland’s population has tipped the 5 million mark today, Premier Annastacia Palaszczuk has told State Parliament.
Ms Palaszczuk said several expectant families were on standby to welcome the state’s five-millionth resident.
“Somewhere today a brand new mum and dad will be eager to meet their new arrival,” she told the house.
“The whole family will want to know: is it a boy or is it a girl? And the doctor will say, ‘congratulations, it’s a Queenslander’.”
Ms Palaszczuk said the two main drivers of the increase were migration growth, particularly from New South Wales, and from 60,000 babies being born in the past year.
PHOTO: The state’s five-millionth resident was born today.(ABC North Queensland: Nathalie Fernbach)
“Overseas and interstate migration is up by 50,000 people in the past year, 19,000 came from interstate … more than 12,000, or 230 a week, move from New South Wales to Queensland,” she said.
ABS data also revealed the fastest and largest-growing area in Queensland in 2016-17 was Pimpama on the Gold Coast, which grew by 3,000 people.
Large growth also occurred in Jimboomba on Brisbane’s south side and in North Lakes — a suburb north of the city — which both increased by 2,100 people.
Coomera on the Gold Coast and Springfield Lakes in Ipswich also experienced large growth up 1,400 people.
The State Government’s population counter gives a “synthetic estimate” of the number of current Queenslanders, assuming a total population increase of one person every 6 minutes and 22 seconds.
Earlier this year the Australian Bureau of Statistics (ABS) said Queensland’s population was growing at 1.7 per cent and was projected to tick over to 5 million in May.
ABS data released in March also revealed Brisbane was one of the country’s fastest-growing cities and had increased by 48,000 in 2017, hitting 2.4 million people.
ABS demography director Anthony Grubb said the state’s population had “come a long way” in the last century.
“In 1901 the population was half a million; a tenth of what it is today… it took 37 years to hit the 1 million milestone in 1938 and another 36 years to reach 2 million in 1974,” he said.
But Mr Grubb said population growth “picked up the pace” after that, taking just 18 years to reach 3 million then only another 14 years to hit 4 million in 2006.
Queensland could be leading growth state in future
Population demographer Dr Elin Charles-Edwards said although Queensland is not currently the fastest growing state, it is possible it could top the leader board later down the track.
‘Not in the short-term, but Queensland is coming up off a relatively subdued growth so perhaps we might be entering an era of more rapid growth,” she said.
Dr Charles-Edwards said the challenges that generally come with increased population could be managed in Queensland.
“As long as we keep up and don’t take our eye off the ball we can continue to absorb quite high levels of growth… but really it’s keeping up with the infrastructure that’s the key challenge,” she said.
Dr Charles-Edwards said it was important to note some parts of the state, particularly in western Queensland, were experiencing population decline.
“While the south-east corner is growing and also many Indigenous communities are growing, other parts of the state are shrinking,” she said.
“Perhaps we could do more to encourage people to move outside the south-east corner.
“If we were able to work out some way to decentralise our population, growth a little bit further up into the northern regional centres, I think that would benefit the growth of south-east Queensland.”
APRA to end cap on property investor loan growth
APRA is removing the 10 per cent ‘speed limit’ on investor loan growth.
Photo: Louise Kennerley
The banking regulator is axing a 10 per cent speed limit on bank lending to property investors, saying the cap has served its purpose and improved credit standards.
With Sydney house prices falling and credit growth slowing, the Australian Prudential Regulation Authority on Thursday said it would remove the cap for bank boards that could prove they had been following its guidelines on prudent lending.
In late 2014, amid a surge in borrowing by property investors and rapid house price growth, APRA took the rare step of setting a 10 per cent limit on the annual growth in banks’ housing investor loan portfolios.
The measure has rocked the mortgage market in recent years, prompting banks to jack up interest rates for housing investors, and demand borrowers stump up bigger deposits.
But on Thursday, APRA chairman Wayne Byres said it was prepared to remove the measure because there had been an improvement in lending standards and a slowdown in credit growth.
“The temporary benchmark on investor loan growth has served its purpose. Lending growth has moderated, standards have been lifted and oversight has improved,” Mr Byres
Even so, the regulator will retain a separate 2017 policy that requires banks to limit their new interest-only lending to less than 30 per cent of all new home loan approvals.
APRA also said there was “more to do” in improving other aspects of banks’ lending, including how they assessed borrowers’ expenses, their existing debts, and the approval of loans that fell outside of banks’ formal lending policies.
APRA said it expected banks to introduce limits on the proportion of new lending that could be done at “very high” debt-to-income levels.
“In the current environment, APRA supervisors will continue to closely monitor any changes in lending standards,” Mr Byres said.
“The benchmark on interest-only lending will also continue to apply. APRA will consider the need for further changes to its approach as conditions evolve, in consultation with the other members of the Council of Financial Regulators.”
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