MORE Queensland homeowners are now millionaires, with new research revealing a near 50 per cent jump in the number of million dollar suburbs in the past decade.
By the end of 2017, the state had 38 suburbs with a median home value of $1 million or higher — 15 more than the year before, according to property research firm, CoreLogic.
While traditional blue-chip pockets such as Ascot, Hamilton and New Farm have stood the test of time — making the million dollar club every year since 2007 — it’s the new kids on the block that may come as a surprise.
The little known Queensland suburbs of Willawong, Mount Samson and Kalinga have all cracked the million-dollar value ceiling in the past year.
And for the first time, Wilston, West End, Paddington, Hendra, Highgate Hill, Ashgrove and Auchenflower have burst through the $1 million median home value barrier.
On the Gold Coast, Surfers Paradise has made the million dollar club nine out of the past 10 years, while Bundall is a newcomer.
Further north on the Sunshine Coast, Shelly Beach in Caloundra made the list for the first time ever in 2017, joining the usual suspects of Noosa Heads and Sunshine Beach.
In the state’s north, Castle Hill in Townsville is the only suburb to achieve million-dollar status, while in central Queensland, the holiday resort town of 1770 has made the list several times over the past decade.
Even the Logan suburb of Park Ridge joined the club briefly for a year in 2010.
The number of suburbs in Queensland with a median home value of $1 million or more grew by 48 per cent in the past ten years.
CoreLogic research analyst Cameron Kusher said he expected that growth to continue in 2018, although perhaps not at the same rate as in the past 12 months.
“What we’re seeing in southeast Queensland at the moment is migration is picking up,” Mr Kusher said.
“I think Queensland might see more million dollar suburbs over the next 12 to 24 months as that level of migration continues to picks up.
“But I wouldn’t be surprised if the jump (in values) is not as substantial in 2018 as it was in 2017.”
Mr Kusher said it would only be a matter of time before home values in more of Brisbane’s inner ring suburbs pushed through the $1 million barrier, as well as more suburbs on the Gold and Sunshine Coasts.
“That inner ring has been quite strong for houses over the past 12 months or so and clearly lack of supply in the detached housing market and strong demand is pushing up values, which is what you’d expect,” he said.
Robert Evans saw the potential in the north Brisbane suburb of Hendra a few years ago when he bought a block of land and built a four-bedroom, two-bathroom house at 18 Harding Street.
Mr Evans has used the architecturally designed home as an investment property and enjoyed healthy rental returns, but is taking it to auction later this month.
“There’s no other house like it in Hendra,” Mr Evans said.
Hendra is only 6km from Brisbane’s CBD and the median house value in the suburb is now$1.00784 million.
“It’s a good area, it’s quiet, close to the airport and offers good yields,” Mr Evans said.
“That’s why we built there.”
Marketing agent Leigh Kortlang of Ray White Ascot has been selling real estate in Hendra for nearly 15 years and has seen home values rise considerably in that time.
“When I moved to Hendra 18 years ago, people said ‘what are you doing crossing the train tracks’,” she said.
“People started moving in to the area because it was a bit cheaper than surrounding suburbs (like Ascot, Hamilton and Clayfield), but now it’s on everyone’s shopping list because they actually want to live in Hendra.”
Ms Kortlang said the suburb was considered “a bit more laid-back”, with quiet, wide streets lined with Poinsiana trees and bigger blocks of land.
Between 2012 and 2017 — when the Sydney and Melbourne housing markets entered an upswing — the number of $1 million suburbs nationally increased by a whopping 243 per cent.
And by the end of last year, almost 1000 suburbs across the country hit the million dollar median value mark.
But Mr Kusher said he did not expect the surge in home values in Sydney and Melbourne to continue this year.
“With the national housing market slowing over the final quarter of 2017, we may actually see fewer suburbs with a million dollar price tag at the end of 2018,” Mr Kusher said.
“In fact, the current data points to the fact that the housing slowdown, particularly in Sydney and Melbourne, is being led by the higher value end of the market.
“As a result, this may lead to a number of $1 million suburbs slipping out of the list in the two largest housing markets over the coming year.”
QUEENSLAND’S NEW MILLION DOLLAR CLUB
Suburb House/unit Median value
Ascot House $1,639,995
Ashgrove House $1,009,882
Auchenflower House $1,106,010
Broadbeach Waters House $1,134,991
Brookfield House $1,022,382
Bulimba House $1,199,385
Bundall House $1,070,066
Burbank House $1,113,467
Castaways Beach House $1,057,405
Castaways Beach Unit $1,241,197
Chandler House $1,336,866
Chelmer House $1,183,319
Clayfield House $1,140,050
Clear Island Waters House $1,151,038
Fig Tree Pocket House $1,028,710
Fortitude Valley House $1,018,262
Hamilton House $1,417,327
Hawthorne House $1,196,229
Hendra House $1,007,840
Highgate Hill House $1,062,097
Kalinga House $1,133,852
Main Beach House $1,674,362
Mermaid Beach House $1,399,733
Minyama House $1,057,460
Mount Samson House $1,038,904
New Farm House $1,407,876
Noosa Heads House $1,004,007
Paddington House $1,077,237
Pullenvale House $1,088,506
Shelly Beach House $1,002,906
St Lucia House $1,197,301
Sunshine Beach House $1,363,637
Surfers Paradise House $1,332,778
Teneriffe House $1,589,892
Tennyson Unit $1,104,751
West End House $1,002,369
Willawong House $1,224,624
Wilston House $1,064,768
(Source: CoreLogic, data current to end of 2017)
Originally published: brisbaneinvestor.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.”
- Infrastructure4 months ago
Fast Rail from Brisbane to Sunshine Coast Could Become a Reality
- Developments4 months ago
Construction to begin today on near sold-out housing project
- Market Place4 months ago
Queensland’s property flipping hotspots rise as profits roll in
- Opinion3 months ago
Millennials driving new-found optimism in housing market
- Opinion4 months ago
A COLOSSAL RISK: Huge danger sign for housing in Australia
- Opinion4 months ago
Noel Whittaker says don’t get beached by dream purchase
- Market Place7 months ago
The Sunshine Coast’s biggest hotspots – and none of them are Noosa
- Opinion4 months ago
New Gold Coast high-rise boom fuels fears of another crash