There is noted increase of sales in real estate for five years in a row. This constant progress is the result of various inclusive factors.
THE Sunshine Coast property market is in one of those rare windows where month by month it is significantly cheaper to buy than rent.
It is part of a significant shift in the landscape of real estate in the first two months of 2015.
The release of Real Estate Institute of Queensland statistics shows residential real estate sales in Queensland have hit a five-year high.
The data reveals Queensland recorded $51 billion worth of residential real estate transactions in 2014, the highest level since 2010.
REIQ chief executive officer Antonia Mercorella said sales volumes also hit a five-year high in 2014, with about 114,000 transactions recorded throughout the state.
“The value of transactions in Queensland in 2014 was below the peak of $73 billion recorded in 2007, but there’s a very encouraging upward trend, which is great news for homeowners,” she said.
“2003 still holds the record for the most number of transactions in a calendar year. However, sales volumes are clearly heading in the right direction.”
Yet on the Sunshine Coast zone chair Amber Werchon said many agencies called 2009 the year to beat and, after some tough years, it was exciting the region’s numbers were far exceeding those.
“Overall, it’s all very positive for most property types on the Coast,” Ms Werchon said.
“The Sunshine Coast has seen a great result for the December 2014 quarter with house sales up 14%.
“The median sale price is currently $482,000 which is a 1.8% rise for the December quarter.
“Unit and townhouse sales also rose 2% for the December quarter with the median sale price being $349,500.
“The over $1 million market has been a lot stronger since the latter part of 2014, with some great sales recorded such as land in Alexandra Headland selling for $1.95m.”
Ray White Group joint CEO Tony Warland said the Sunshine Coast was full of opportunity.
Speaking at a seminar at Maroochydore Mr Warland said agents should strive for something further rather than look back on the past.
“The Sunshine Coast has seen a rise from 8200 sales to 10,000. It’s a blue-sky market with plenty of opportunity.”
Noosa real estate principal Tom Offermann said the pick-up in activity was evident from just driving around the streets where there were plenty of sold signs, less properties for sale and most auctions selling.
“The low interest rates are making property attractive to domestic buyers,” Mr Offermann said.
“And the overseas and ex-pat buyers have returned due to the favourable exchange rates.
“In one day alone (this month) we had three ex-pat buyers walk into our Hastings St office.”
Mr Offermann said the top end of the market was active, with 22 sales above $3 million at Noosa Heads, Sunshine Beach and Noosaville.
The highest was the Sandpiper penthouse, a new three-bedroom apartment on Noosa’s main beach.
“In the first two months of 2015 there have already been eight sales over this level, the highest being a Hastings St unit that we just sold for $7.2m.
“Houses under $1 million, which are competitively priced, sell fast, especially if they are in the $500,000 range.
“Prices are mostly still well below 2007 levels but are definitely on the rise.”
Ray White’s Brett Graham, a co-principal in seven agencies, said 2015 had shown a significant shift in the landscape in real estate, particularly around the Maroochydore, Mooloolaba and Buderim areas.
As the landscape shifts continue to yield positive impacts, real estate sales would continue to rise up. Let’s keep an eye on what’s coming in the following years and how would these events affect real estate sales.
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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