WHETHER you are a first time entrant into the market, a family looking to expand or wanting to dip your toe into the luxury market, these are southeast Queensland’s top spots to buy this year.
Is the new year time for a new home? Whether you are a first time entrant into the market, a family looking to expand or wanting to dip your toe into the luxury market, we’ve asked the experts to nominate the top southeats Queensland suburbs to buy in 2018.
Tony Warland – Ray White Qld CEO
Damian Hackett – Place Estate Agents CEO
Brendan Whipps – Harcourts Qld CEO
Jon Iceton – Belle Property Head Qld
Paul Arthur – Qld Sotheby’s International CEO
FIRST HOME BUYERS (under $500,000)
Narangba: A long-time popular suburb for its affordable homes. TW
North Geebung: Growing in value, 20 minutes from CBD with access to motorway and renovated Chermside shopping centre. DH
Banyo: Great buying, emerging services and close to Nundah’s thriving scene. BW
Redcliffe: Affordable waterside suburbs, new rail link, very attractive to the first homebuyer. JI
Banyo: Close to the CBD, train and bus, and strong returns. This a great place. PA
Springfield: Technically southwest. Still close to the CBD, while still in Ipswich Council area. TW
Acacia Ridge: Next to thriving south-side suburbs, without the price tag. Large blocks. DH
Springfield Lakes: Great value for money and plenty of investment surrounding it. BW
Rochedale: An attractive alternative for the first homebuyer looking to enter the Brisbane market. JI
Rochedale South: New estates popping up. this is the best pick for in the south . PA
Alexandra Hills: Nice steady suburb for homebuyers and investors with good returns. TW
Tingalpa: Great opportunities only minutes away from premium locations like Bulimba and Hawthorne precincts. DH
Wakerley: Close to the Bayside and City, surrounded by big blocks . BW
Murarrie: Post-war weatherboard and chamferboard houses combined with more modern estates. JI
Alexandra Hills: Average home prices of under $500,000, but still less than 30 mins to CBD. PA
Ipswich: We expect price growth in 2018 as the market has caught up and is ready to go . TW
Forest Lake: New homes at affordable prices in smaller communities with great amenities. DH
Riverhills: Affordable one to watch with better access to the city now through Legacy Way. BW
Oxley: Quiet neighbourhoods with a strong sense of community. Streets are wide and leafy, and many big blocks of land. JI
Ferny Hills / Arana Hills: I can’t go past either for location, quality, and value for money. PA
Upper Coomera: Long been a favourite for commuters and for affordable stock in the high growth corridor. TW
Upper Coomera: Continuously evolving, with new homes and developments in safe communities at affordable prices. DH
Ashmore: Great value in low sets and good sized blocks. Pockets of opportunity. BW
Coomera / Hope Island: Within reach of the beaches and an easy commute to Brisbane, great opportunities for the entry level buyer. JI
Varsity Lakes: Smaller homes ideal for first home buyers close to Bond University and Robina Town Centre. PA
Sippy Downs: Set for more growth as it becomes more of an education hub. TW
Sippy Downs: It offers housing opportunities close to the Sunshine Coast University at very affordable prices. DH
Caloundra: Beaches, closest Sunny Coast location to Brisbane for work options and beautiful. BW
Caloundra: Plenty of development in the pipeline offering excellent opportunities for those wanting to enter the market. JI
Bli Bli: Increased infrastructure, new developments and regular capital gains.PA
FAMILIES ($500,000 to $1 million)
Bracken Ridge: Close to good arterials and shopping centres. A lot of people who sell in Bracken Ridge, buy in Bracken Ridge. TW
Wavell Heights: An attractive suburb close to the M1, with good, quality character homes and homes ready to renovate. DH
Wavell Heights : A hot spot in the inner-north. Beautiful leafy streets and big homes. BW
Wavell Heights: A quick commute to work. Families can capitalise on generous blocks close to the city. JI
Wooloowin / Kalinga: Close to the city, and many great prestigious schools, plus Kedron Brook. Still priced under the luxury market. PA
Rochedale South: This suburb stands out for its volume. This is family heartland. TW
Mount Gravatt East: Still offers value for money. Some of the South’s best school catchment areas, public transport and parks. DH
Daisy Hill: Home to some large, quality homes on large parcels of land. BW
Tarragindi: Easy commute to the CBD and a major motorway heading north and south.JI
Macgregor: Still a relatively undiscovered gem with some great bargains still to be had.PA
Carina: There’s been a solid five years of growth in Carina and it should continue. TW
Cannon Hill: Affordability for families on reasonable land, and an attractive lifestyle. DH
Camp Hill: It’s hard to beat the inner-east — so much to offer for everyone in the family. BW
Carindale: A lively entertainment and shopping culture, and quiet residential pockets and greenspaces. JI
Manly: Brilliant opportunity for families looking to take advantage of the coastal life while still in reach of the city. PA
Toowong: There’s such strong affinity to St Lucia in this education hub. TW
Kenmore:Large renovated Queenslanders on decent-sized allotments and a leafy lifestyle. DH
Chapel Hill: Leafy, quiet, well positioned and easy access to quality schools. BW
Kenmore: Changing demographic towards younger families, neighbourhood bars and eateries are eon the rise. JI
Bardon/Auchenflower: Close to the city, including Suncorp Stadium, with consistent growth, and great resale. PA
Helensvale: Helensvale is rocking. It keeps improving year on year. TW
Elanora: Affordable family homes on larger allotments with easy access to beaches. DH
Hope Island: Big homes with all the lifestyle and quick access to the M1 for commuters.BW
Palm Beach: A fabulous blend of community on the beach. Only minutes from the airport and heart of Surfers Paradise. JI
Parkwood: Larger blocks, many on the golf course. Excellent, central location with easy transport links. PA
Buderim: In a high ground area which has always been popular. TW
Coolum: Significant growth in infrastructure and new developments, making it a hotspot for families for affordable beachside living. DH
Buderim: Bustling community with funky cafes, stunning views and close to the beach. BW
Moffat Beach: Beachside neighbourhood which radiates summer. Moffat is becoming a favourite for family’s due to its easy lifestyle. JI
Buderim: Perfect for families. Warm, close-knit community, close to good schools and just over 60 mins to Brisbane CBD. PA
LUXURY – ($1 million plus)
Ascot: This is blue ribbon Brisbane’s classic heartland for fine luxury homes. TW
Teneriffe: Riverside hotspot offers one of Brisbane’s best lifestyles. Restaurant precincts and extensive amenities. DH
Clayfield: Stronger than ever, tree lined streets, stunning homes and some hidden value.BW
Hamilton: Picturesque river views, a perfect blend of community vibes, heritage aesthetics and entertainment culture. JI
Hendra: 2018 should see Hendra come into the light after reaching an average sales price above $1m for the first time last year. PA
West End: In the $1 million median club for its great schools and vibrant community. TW
Coorparoo: Strong development and growth, with new developments, like Coorparoo Square, adding to the appeal of the location. DH
Tarragindi: Emerging luxury, family orientated and great proximity to CBD. BW
Coorparoo: A balance of old and new, with character-rich homes and entertainment and lifestyle developments moving into the area. JI
Highgate Hill: It will rebound strongly in 2018, to join the group of suburbs with an average sales price above $1m. PA
East Brisbane: Strong connections to Kangaroo Point, Woolloongabba and Stones Corner. A lot of real estate opportunity. TW
M anly: A relaxed, seaside community lifestyle, perfect for families and boating enthusiasts. DH
Balmoral: Views, cafes, restaurants, stunning homes — always in high demand. BW
Hawthorne: Premium river side location with an enviable selection of refurbished homes and colonial Queenslanders. JI
Balmoral: Great city views, great community, great lifestyle. PA
St Lucia: A long held suburb where people buy and hold for many generations. TW
Chelmer: Plenty of opportunity for those who want to live in a renovated Queenslander in a leafy, riverside location. DH
Paddington: Character filled with opulence. so close to the city. BW
St Lucia: Prestigious, renovated Queenslander and federation homes. JI
Brookfield: Seclusion, privacy on generous acreage blocks, Brookfield is now home to Brisbane’s most stunning luxury properties. PA
Paradise Point: This has always been an affluent high end sought-after area. TW
Palm Beach: Huge growth in new homes on prime beachfront land along with the opening of trendy restaurants in the main strip. DH
Broadbeach: Say no more — you can have it with no shortage of luxurious choice. BW
Broadbeach: Towering high-rise and contemporary apartments dominate the picture-perfect coastline. JI
Broadbeach Waters: Luxurious, waterfront residences. Enviable lifestyle close to popular shops, cafes, beaches and schools. PA
A lexandra Headland: Had two years of growth and we don’t see it slowing anytime soon. TW
Noosa: An incomparable premium beach lifestyle with stunning luxury homes. DH
Noosa: Who doesn’t love Noosa, National Parks, beautiful beaches and relaxed coastal scene. BW
Sunrise: A relaxing beachside location, with pristine beaches and national parks. JI
Noosa: It’s hard to go past Noosa for location and luxury on the Sunshine Coast. It’s a crown that seems to never tarnish. PA
Originally published: brisbaneinvestor.com.au
Experts warn of ‘debt bomb’ as housing downturn worsens
That’s according to the sobering 60 Minutes segment Bricks and Slaughter which aired last night, revealing the country’s property downturn was just the tip of the iceberg.
According to reporter Tom Steinfort, the current slump is actually “more like falling off a cliff”, with a number of real estate and finance experts claiming houses could plummet in value by up to 40 per cent in the next 12 months.
If that happens, it would also cause an economic “catastrophe”.
Mr Steinfort spoke with data scientist Martin North from Digital Finance Analytics, who said Australia was uniquely vulnerable when it came to an economic crash tied to a property downturn.
“At the worst end of the spectrum, if everything turns against us we could see property prices 40-45 per cent down from their peaks, which is a huge deal,” he said.
“That’s higher than any other country in the Western world by a long way.
“There’s probably no country in the world more susceptible to the ramifications of a housing crash than Australia. We are uniquely exposed at the moment.”
Mr North said Australia was now in the same position as the US was back in 2006 and 2007 — a position which triggered an economic collapse.
“As a society, and as a government, and as a regulatory system, we’re all banking on the home price engine that just goes on giving and giving and giving. It’s not going to,” he said.
“We’ve got a debt bomb, we’ve got a debt crisis and at some point it’s going to explode in our face.”
He said foreclosures had also risen by 600 per cent in the region.
“The mortgage stress is definitely being felt especially in this area,” he said.
60 Minutes also spoke with several Aussie homeowners who gave harrowing details of the stress they faced trying to pay off their mortgages, including having their power turned off and being “hounded’ by their banks.
What does a million dollars buy in Aussie capital cities?
Market analyst Louis Christopher of SQM Research said the market had been “clearly overvalued”, labelling the downturn as the “correction we had to have” — at least in Sydney and Melbourne.
“On our numbers, Sydney was effectively over 40 per cent overvalued. And Melbourne was overvalued by about the same amount,” he said.
But property investor Bushy Martin said the blame lay squarely at the feet of buyers who “mortgaged themselves up to their eyeballs” in a bid to snap up dream homes before being able to afford them.
However, the segment has also sparked backlash online, with some claiming the situation had been exaggerated.
One Reddit user branded the report as an example of “alarmist journalism and scare tactics”, while another said it was “dramatic and cringe-worthy”.
Others also criticised the segment for making it seem like all homeowners would be affected, when the downturn was actually mainly focused in the NSW and Victorian capitals.
And some said it was unfair to blame the banks for the situation, and that homeowners needed to take responsibility for their own decisions.
That was in response to comments made by one homeowner on the program, who said the bank had “suddenly switched the mortgage to interest and principal”, raising his repayments by 57 per cent.
“The interest only part annoyed me the most. The bank didn’t ‘suddenly change’ your repayment from (interest only) to (Principal and interest) your IO term expired. You a) knew this would happen and b) assumed the bank would renew it when it expired. I hope this speculator gets burnt first,” one Reddit user said.
Related article: Experts warn of ‘debt bomb’ as housing downturn worsens
Australia’s best place to invest is here in Queensland
EXPERTS are hailing Queensland’s Sunshine Coast as the hottest place in the nation to invest in property right now.
A lack of housing, a tight rental market and a rapidly growing population mean supply is failing to keep up with demand in the region – creating perfect conditions for investors.
Leading real estate industry figure John McGrath said the Sunshine Coast presented one of the best opportunities for capital growth because of its liveability, affordability and future economic prospects.
“From an investment point of view, where in Australia right now can you invest your dollar and get better returns than the Sunshine Coast or southeast Queensland?” Mr McGrath said.
” I don’t think there is a location that’s going to offer better investment growth in the future.”
His views are echoed by prestige property agent Tom Offermann of Tom Offermann Real Estate, who claims the Sunshine Coast “is on the cusp of the highest growth period in its history”.
“This is being driven by a raft of infrastructure projects that are delivering exceptional lifestyles, which in the past required some compromises for people coming from big cities,” Mr Offermann said.
The region is in the midst of an infrastructure boom, with billions of dollars being invested in upgrading and creating new facilities.
Work is underway on a new runway at the local airport, which is set to become international by 2020, and a new hospital and health precinct has recently been established.
“These are game changers,” Mr Offermann said.
“Astute property investors who recognise what is happening, and take action to secure the best located property they can afford, will reap the rewards of their foresight.”
Local agents say the region is crying out for more investment properties to cater to the needs of the increasing population.
According to demographer Bernard Salt, the Sunshine Coast’s population of around 298,000 residents is set to rise to 550,000 in 23 years, which will require more than 100,000 new homes to be built.
The latest Real Estate Institute of Queensland figures show the rental vacancy rate on the Sunshine Coast is just 1 per cent, with Caloundra having the tightest vacancy rate in the state at just 0.5 per cent.
It’s good news for investors, who are currently achieving healthy rental returns of around 5 per cent.
In its recent report, Herron Todd White noted an increase in investor activity in the Sunshine Coast market, with the sub $350,000 unit and townhouse sector particularly popular.
“It’s not uncommon to see townhouses selling for $220,000 attracting a rental of $280 per week – over 6.5 per cent gross return,” the report said.
For investors looking to capitalise on the growth in the region, McGrath Real Estate founder John McGrath said now was the time to get into the market.
“I think there is a great opportunity, in particular right now, because we’ve seen Sydney and Melbourne have shown unprecedented growth over the last five or six years,” he said.
“Now those markets have come to a plateau and a lot of people are going to be saying; ‘Do we take our profits and reinvest them, or, in fact, do we move up north and get better value for money?’
“So, I think right now there’s a terrific window of opportunity where people can capitalise on the immense growth we’ve seen in the southern states.”
Reed & Co director Adrian Reed the increased international access the new airport would provide would likely change the profile of buyers in the Noosa region.
“We’re currently seeing an increase in Australian expats buying back into the market, but if accessibility becomes easier, we’re expecting a more aggressive upward trend in high-end premium property,” Mr Reed said.
He said that lending restrictions and the impact of the banking royal commission had had little impact on the region’s prestige market.
“The vast majority of deals I’m doing at the top end of the market are cash,” he said.
“They’re self funded retirees who’ve already sold their principal place of residence.”
Owner/builder Paul Saunderson, who is selling his home in Noosa Heads through Peter TeWhata of Tom Offermann Real Estate, said the local market was “out of control at the moment”.
“There are houses getting knocked down and new dwellings being built everywhere,” Mr Saunderson said.
He said the contemporary, four-bedroom, three-bathroom property at 20 Sanctuary Ave, Noosa Heads, which he lived in with his wife and two children, was attracting strong interest from interstate and overseas investors.
“It’s a good investment opportunity because it’s been valued as holiday letting, which is anywhere from $6000 to $10,000 a week during peak season,” Mr Saunderson said.
Jamie Smith of Century 21 On Duporth in Maroochydore said he’d never seen so much activity in the Sunshine Coast property market, with strong interest from both local and interstate investors.
Mr Smith said many investors were looking to buy in the less expensive suburbs, where new housing developments were popping up, such as Caloundra, Sippy Downs, Birtinya and Mountain Creek.
“It’s definitely unprecedented in terms of what we’re seeing on the Coast,” he said.
But Mr Smith said investors who were not already in the market needed to act fast.
“If you were here three years ago, you could have bought between $400,000 and $500,000,” he said.
“Now you’re looking at anywhere from $600,000 plus, so it’s definitely changed a little bit.”
SUNSHINE COAST SUBURBS FOR BEST CAPITAL GROWTH
Suburb Property type Median price 12 month change in price
Minyama House $1.31m 45.8%
Kenilworth House $399,000 40%
Yandina Creek House $820,000 32.3%
Beerwah Unit $375,000 25%
Mount Coolum House $676,200 23.2%
Mapleton House $543,250 21.3%
Mudjimba House $739,500 20.7%
Peregian Springs Unit $475,200 18.8%
Battery Hill House $579,500 18.4%
Montville House $707,500 17.9%
Queensland is the next property hotspot, experts say
As New South Wales and Victoria continue to experience weakness. Queensland is expected to take the lead, a National Australia Bank (NAB) poll of property professionals revealed.
According to the survey, industry experts project house prices in Queensland to increase by 0.7% next year and 1.3% in two years.
Some areas seen to perform strongly over the next year include Brisbane, Cairns, the Gold Coast, and the Sunshine Coast. Out of the suburbs, Coomera and New Farm are expected to realize robust gains.
Meanwhile, Queensland’s rental market is also poised to enjoy an upward boost, growing by 1.3% next year and 1.9% in two years. This is despite the stricter rules on housing investment.
The respondents of the survey also expect Queensland to retain foreign buyer interest. In fact, the share of foreign sales hit a four-year high of 22.8% over the previous quarter.
The results of the survey go against NAB’s own projection of the market. For instance, the bank expects house prices to remain flat in Brisbane over the next three years. Unit prices, on the other hand, is seen to fall by 4.5% over the next year.
NAB chief economist Alan Oster said Brisbane’s housing market seemed to be going sideways and its unit market still creates concern.
“It hasn’t peaked yet, so that’s good. We’re seeing quite strong economic activity in Queensland, so that always helps,” Oster said, as quoted by The Courier-Mail.
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