About 9.2 per cent of Brisbane homes were sold by their owners at a loss in the first three months of the year, the worst result in almost two years, a new report reveals.
The capital was middle-of-the-rung compared to other states — Sydney and Melbourne were again the best performers.
South-east areas with highest sale loss:
- Lockyer Valley 23.9 per cent
- Somerset 11.9 per cent
- Ipswich 10.5 per cent
CoreLogic has released its Pain and Gain report for the March quarter, which compares the most recent sale price to the previous one.
Across the country, 9.6 per cent of dwellings sold for less, a worse result compared to the 8.8 per cent in the previous quarter.
It is still a case of safe as houses when it comes to investment in Brisbane.
Lowest rate of resale loss:
- Toowoomba 6.8 per cent
- Redland 7.6 per cent
- Sunshine Coast 8 per cent
Loss making sales were driven by the unit market, whereas houses were actually trending slightly lower.
Almost a quarter of units, with thousands being built in the south-east in recent years, went for less than was originally paid.
The units were more than six times more likely to go for a loss compared to houses, which saw only 3.8 per cent lose money.
For all Brisbane dwellings, 9.2 per cent were sold at a loss, which was slightly higher than the previous quarter.
The Gold Coast and Sunshine Coast markets did well, recording 9.9 per cent and 8 per cent of sale losses.
Regions west of Brisbane did not fare well, with the Lockyer Valley and Somerset performing poorly in Queensland’s south-east.
Over the quarter, houses across Australia which resold at a loss had typically been owned for 6.3 years, while units resold at a loss has been owned for 6.9 years.
Of those that sold for a profit, they were owned for 9.1 years compared to 7.6 years for units.
Owner-occupiers did better in general than investors, who were 2.5 per cent more likely to resell at a loss in Brisbane.
That is still below the 9.3 per cent average for all the capitals combined.
Mackay worst preforming for resale
In regional Queensland, 16.6 per cent of houses were sold at a loss, compared to 21.2 per cent for units.
“Areas linked to mining and resources sectors continue to be some of the weakest housing markets across the country,” the report said.
A massive 53 per cent of units and houses in Mackay were sold at a loss in the March quarter, the highest level of loss making in Australia.
Townsville came in at 44.7 per cent.
There were signs that in some of the weakest markets that conditions were improving from poor resale rates.
Mackay had peaked at 61.8 per cent in previous quarters and Townsville 47.3 per cent.
“Although there has been a moderate improvement in a number of these regions, it is anticipated that the instances of resales at a loss will remain elevated,” the report said.
Originally Published: http://www.abc.net.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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