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Queensland Budget 2018: What it Means for the Property Industry

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Queensland Budget 2018: What it Means for the Property Industry
Queensland Treasurer Jackie Trad handed down the Queensland State Budget on Tuesday, delivering a surprise $1.5 billion surplus and putting an extra $200 million into people’s pockets.

This year’s budget focused on infrastructure, tourism and mining funding.

Property investors will also be met with a 0.5 per cent increase in the land tax rate for aggregated holdings above $10 million, as well as an increase in the additional foreign acquirer duty from 3 per cent to 7 per cent.

The government also announced it will cut back the first home owners’ grant.

So what does the state budget mean for the property industry?

Here is what you need to know.

Additional Foreign Acquirer Duty

Aligning with states nationwide, the Queensland government announced an increased rate for additional foreign acquirer duty.

The AFAD is an additional tax on relevant transactions that are liable for transfer duty, landholder duty or corporate trustee duty which involve a foreign person directly or indirectly acquiring certain types of residential land in Queensland by foreign persons.

The duty will rise from 3 per cent to 7 per cent and is forecasted to result in an increased revenue of $33 million per annum.

Infrastructure Improvements

The state government will dedicate $4.217 billion to transport and roads.

The Sunshine State’s long-awaited duplication of the Sunshine Coast rail line received $161 million.

The Toowoomba Second Range Crossing project received $543.3 million, a route to the north of Toowoomba from Helidon to the Gore Highway.

Brisbane’s Cross River Rail received $733 million to go toward the $5.4 billion project. The federal government failed to pledge any assistance towards the Cross River Rail project earlier this year leaving the state government to foot the bill.

There’s also $487 million over four years for upgrades to the M1 on Brisbane’s south and on the Gold Coast.

Queensland Budget 2018: What it Means for the Property Industry

Proposed Exhibition station on Cross River Rail. Artist’s Impression.Image: Cross River Rail Authority

First Home Buyers Grant Slashed

First home buyers have come to expect a $20,000 starter grant since 2016 will now see it cut to $15,000 if they buy a house from July onwards.

The $5,000 boost had been added to the grant in 2016 by former Treasurer Curtis Pitt, with the measure supposed to be in place for just one year.

It was extended twice in six-months until the end of 2017 and then to June of this year.

Land Tax Increase

Under the new taxes introduced in Tuesday’s budget, foreign landowners with more than $10 million worth of landholdings will now be in line for a 0.5 per cent increased rate of land tax.

Individuals with properties worth more than $10 million will now incur an additional rate of 2.25 per cent (or 2.5% for trusts or companies) for every dollar of taxable value over $10 million.

This is expected to bring in $71 million in revenue in its first year, with a projected 11 per cent increase in 2018-19 land tax revenue.

Source: brisbaneinvestor.com.au

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The southeast Queensland suburbs where vendors are discounting their sale prices

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The southeast Queensland suburbs where vendors are discounting their sale prices

The southeast Queensland suburbs where vendors are discounting their sale price by the largest percentages have been revealed.

New data analysis by Domain looked at the average rate of vendor discounting on properties in suburbs throughout Brisbane, the Gold Coast and the Sunshine Coast over the six months to March this year and found some areas were discounting by as much as 12 per cent.

Houses at Carindale, Clontarf, Redcliffe and Rochedale South topped out the list of Greater Brisbane suburbs with the highest percentage of vendors discounting their asking price, while Chermside, New Farm, Redcliffe and South Brisbane had the highest rate of discounting for units.

On the Gold Coast, houses at Broadbeach Waters and Hope Island both recorded double-digit average vendor discounting, while units at Main Beach and Southport had the highest rate of discounting.

The southeast Queensland suburbs where vendors are discounting their sale prices 2

Maroochydore and Tewantin headed up the Sunshine Coast houses that were being the discounted by the highest percentage.

Domain economist Trent Wiltshire said the rate of discounting was another market indicator that could help assess conditions in certain suburbs.

The data was compiled using a minimum of 30 observations and did not include properties that sold via auction or without a listed price.

“This can be a bit more timely than price data,” he said. “But it is only an average figure and, while the average or median is the simplest way to look at a suburb, it doesn’t tell the full story.”

Will Torres of Torres Property said overall the housing market in Carindale was performing well but that the average discounting rate was likely brought down by a specific price point.

The southeast Queensland suburbs where vendors are discounting their sale prices 1

Carindale’s median house price is $879,750, a rise of 1.1 per cent over the year to March.

“I’d say the market that is being affected at the moment is that mid-$1 million price range,” he said.

“Rewind to six months ago I was selling houses in this price range in three weeks — now I’m struggling to get numbers in the door. That’s where the discounting will be, around that $1.5 million range and that’s why the Carindale percentage is that high.

“Anything under that price point is still performing really well and selling well. Days on market have stretched but the buyers and the demand is overall still there.”

Broadbeach Waters recorded the highest rate of vendor discounting, by up to 12 per cent. Jordan Williams of JW Prestige said that figure had likely been increased by houses in the $2 million to $3 million range, which were sometimes overpriced.

“If you’re 10 per cent over the odds you won’t get a result, you won’t get a deal — that’s why you’re seeing that average discount for Broadbeach Waters,” he said.

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“So this figure doesn’t mean the market has dropped here, it means some properties were overpriced. I sold a house for $4.5 million where the owners originally were asking $4.7 million. That’s a massive discount.

“But it started out that high because the owners said they wanted to give it a go, test the waters. There’s a million different scenarios for why people discount their properties.”

At Hope Island, where the average vendor discount is 10.3 per cent, agent Warren Hickey is selling a four-bedroom, two-bathroom contemporary home on Virginia Avenue, which is listed for offers over $995,000 and advertised as a huge price reduction.

However, he said the listing was not representative of the local market.

“On average we’d sell a property a week in Hope Island. I would say if you look back at everything we’ve sold in the past few years, we’ve probably only advertised one as having a price reduction and this is it. It’s the exception,” he said.

On the Sunshine Coast, where Maroochydore recorded an average discount on houses of 7.5 per cent, local Century 21 agent Damien Said said a lot of the properties in higher demand were now auctioned.

The southeast Queensland suburbs where vendors are discounting their sale prices 4

“That needs to be noted — those properties are automatically excluded from the data,” he said.

“If anyone in Maroochydore is discounting, I’d say it’s more of a reflection of a few properties that came on the market with unrealistic expectations.

“Generally, we’re finding that when properties do come on the market, as long as the price is realistic, our days on market are reducing. The coast market is still quite active.”

Source: brisbaneinvestor.com.au

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The booming property hotspots which have defied the housing downturn – and it’s good news for homeowners living in Queensland

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The booming property hotspots which have defied the housing downturn - and it's good news for homeowners living in Queensland

Coastal and regional hotspots are bucking the housing market downturn with property prices at record highs. 

As the market in Sydney and Melbourne continues to weaken, it’s a different story in regions such as Hobart, Canberra and Queensland’s Gold and Sunshine coasts.

The regions dominate in the 11 suburbs across Australia identified as the most resilient areas, according to CoreLogic data.

New figures released this month revealed national housing values have plummeted 7.2 per cent, the largest annual fall since the 12 months ending February 2009 during the global financial crisis.

But Core Logic head of research Tim Lawless says homeowners in weak markets are unlocking significant equity, helping to boost prices in coastal areas.

‘Baby boomers are retiring, having gone through a number of property cycles and have the equity to fund a lifestyle purchase,’ he told The Australian.

‘The money goes further in these markets than in Sydney and Melbourne.’

So, where are Australia’s most resilient areas? 

The Sunshine Coast, Queensland

The latest figures are good news for those looking to sell on Queensland’s Sunshine Coast.

The median housing price in Sunshine Beach have soared 5.3 per cent in the last 12 months to almost $1.16million and up 26.6 per cent in the last five years.

The suburb was followed closely by Noosa Heads ($1.11 million) with a 2.9 per cent rise, where prices have jumped 29.5 per cent in five years.

In nearby Diddillibah-Rosemount, prices have jumped 16 per cent in the last five years to $747,812, 1.8 per cent rise in the last 12 months.

Renowned as a popular tourist mecca and for its laidback lifestyle, the Sunshine Coast is a growing region which attracts more than 3.2 million visitors a year and is Queensland’s third most populated area.

Further south of the Sunshine Coast, the median price in the Brisbane suburb of Windsor rose by 6.04 per cent to $902,000 while on the Gold Coast, the coastal suburb of Palm Beach now stands at $872,400, up 2.8 per cent and 42.8 per cent over five years.

The booming property hotspots which have defied the housing downturn - and it's good news for homeowners living in Queensland 1

Canberra 

Many parts of the nation’s capital are also bucking the downturn trend, according to CoreLogic.

Experts have hailed Canberra the strongest real estate economy out of all of the capital cities.

The median price in Garran has skyrocketed by 10.7 per cent to just over $1million in the last 12 months and 41.9 per cent over five years.

There were even higher rises in Lyons (14.1 per cent to $769,518) and Cook (17.4 per cent to $749,743).

A town not far from Canberra that also made the list was Yass in the NSW southern tablelands, where the median property price jumped by 4.8 per cent to $760,000, where prices have soared by a third within five years.

The booming property hotspots which have defied the housing downturn - and it's good news for homeowners living in Queensland 2

Hobart, Tasmania and West Beach, South Australia

2018 was a record year for real estate sales in the Apple Aisle, known for its relaxed lifestyle, affordability and cooler climate.

There were 11,400 property transactions worth a record $4 billion last year, according to Real Estate Institute of Tasmania data.

In Hobart, the average property price has risen 6.5 per cent to $809,300, a 39.3 per cent within five years.

Also in Australia’s southern states bucking the trend is Adelaide seaside suburb of West Beach, where the average price is now over $800,000 after a 4.4 per cent rise and 27.3 per cent change over five years. 

The booming property hotspots which have defied the housing downturn - and it's good news for homeowners living in Queensland 3

At the other end of the scale, 17 of the 20 biggest price drops for the year were in Sydney’s mid-priced suburbs such as Epping, where prices have plummeted by almost a third in the last 12 months, The Australian reported.

Mr Lawless said there are signs that the worst of the housing market conditions are now over.

‘Values are still broadly declining, however the pace of decline has moderated since December last year and there are some tentative signs that credit flows have improved, albeit from a low base,’ he said earlier this month.

‘The prospect for lower interest rates is another factor that could support an improvement in housing market activity later this year.’

The booming property hotspots which have defied the housing downturn - and it's good news for homeowners living in Queensland 4

Source: www.dailymail.co.uk

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Hot property: Dated dress circle Noosa home sells at auction

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Hot property Dated dress circle Noosa home sells at auction

A WATERFRONT home in need of an upgrade in one of Noosa’s most prestigious streets has sold under-the-hammer for $5.67m.

A WATERFRONT home in need of an upgrade in one of Noosa’s most prestigious streets has sold under-the-hammer for $5.67 million, with agents claiming the coastal hot spot is proving immune to the pre-election uncertainty plaguing the property market.

The four-bedroom house at 49 Witta Circle was sold at auction after a bidding war between four parties.

Hot property Dated dress circle Noosa home sells at auction 3

The result shows the Noosa prestige market is “rock solid”, according to marketing agent Eric Seetoo of Tom Offermann Real Estate.


“The … home was an oldie, but it occupies one of the most desirable locations on the waterfront near Hastings Street,” Mr Seetoo said.

Hot property Dated dress circle Noosa home sells at auction 1

“We found four bidders, three of whom were present, and another was on the phone from overseas, each with well over $5 million to spend.

“As you can imagine, I am busy finding properties for the underbidders.”

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Agency principal Tom Offermann said he believed it was the highest Queensland house sale under-the-hammer so far in 2019.

“Witta Circle is one of those ‘can’t go wrong locations’,” Mr Offermann said.

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“It’s on the water, picturesque, and an easy walk from Hastings Street and the beach.

“The capital growth has been over 15 per cent on average for the past 40 years — hard to beat.”

Hot property Dated dress circle Noosa home sells at auction 6

Mr Offermann said he was still finding demand strong, especially at the luxury end, where there was a critical shortage of stock.

Tom Offermann Real Estate recently sold a waterfront house at 55 Wyuna Drive, Noosaville, for $4.75 million and 27 Mossman Ct, Noosa Heads, for $5.75 million.

And an apartment in the La Mer complex on Hastings Street changed hands last month for a whopping $6.1 million.

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“Property markets usually slow down during an election, but not this time in Noosa,” he said.

“The traditional slowdown isn’t apparent this time, with most clients adopting a wait and see attitude.

“Some are even predicting a post election rush into investment property before any negative gearing or capital gains tax changes are introduced.”

Adrian Reed of Reed & Co has just listed a five-bedroom, five-bathroom mansion at 54 Noosa Parade with a price guide in the late $7 million to early $8 million range.

Given the property’s location, river views and proximity to Hastings Street, Mr Reed is expecting it to be one of the most significant sales of the year.

Hot property Dated dress circle Noosa home sells at auction 2

Originally published as Dated Noosa home fetches big $

Source: www.news.com.au

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