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Stars of the Queensland property market

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40 Grace Crescent, Narangba Heights, Narangba.

40 Grace Crescent, Narangba Heights, Narangba. Photo: Real Estate Photos Australia Pty

As markets in Sydney and Melbourne wane, pockets of Queensland have proven to be strong growth markets.

Queensland boasted half of Australia’s top ten growth stars, according to the Price Predictor Index: Winter 2016 report. The report examined sales activity, rather than prices, to determine the best and worst local government areas for property market growth.

The Gold Coast, Moreton Bay and Logan claimed the top three spots, and Cairns and the Sunshine Coast also making the top ten.

The Logan market is the third best in the country. 28 Burnett Drive, Holmview, is currently for sale.

The Logan market is the third best in the country. 28 Burnett Drive, Holmview, is currently for sale.

The Gold Coast is the nation’s top performer, with the highest number of growth suburbs.

While it came in at number two behind the Gold Coast, the report singled out Moreton Bay in particular from other Queensland markets as a ‘five star growth market’ thanks to its more affordable suburbs and a high turnover of sales.

Investors are looking for areas that are more affordable and have higher rental yields.Terry Ryder

The Moreton Bay market has been particularly strong, overtaking Logan for growth in the Brisbane region.

Mr Ryder said houses like thsi one at 8 Drumbeat Place, Coomera Waters, are the safer investment in the Gold Coast market.

Mr Ryder said houses like thsi one at 8 Drumbeat Place, Coomera Waters, are the safer investment in the Gold Coast market.

Hotspotting.com.au managing director Terry Ryder said Moreton Bay earned its five star rating because sales levels were rising there more than any other part of the Brisbane market.

“Moreton Bay really started to come to the fore late last year, early this year,” he said.

“Previously Logan was Brisbane’s greatest growth market; they have a lot in common.”

Properties like this one at 22 Tulipwood Circuit, Boyne Island, are for sale in Gladstone.

Properties like this one at 22 Tulipwood Circuit, Boyne Island, are for sale in Gladstone.

Both regions are on the periphery of Brisbane, but also have good transport, infrastructure and job prospects. The affordability of suburbs in these areas however are the main drawcard.

“Investors are looking for areas that are more affordable and have higher rental yields.”

Andrew Campbell, co-director of Ray White Redcliffe, said activity over the last six months has been good, with an increase in both listings and sales numbers.

“Stock numbers have risen; we’d been consistently sitting around 35 listings for the office and we’re now sitting around 55, but the turnover is still there,” he said.

“We’re consistently selling higher numbers rather than having peaks and troughs, and buyer inquiry hasn’t dropped off either.”

He said buyer interest was mostly from inner city or interstate investors, drawn by an uptick in infrastructure projects that are expected to continue the area’s improvement.

“Infrastructure is the big main driver. There was a bit of a slowdown in the lead up to the election [and the] three first three weeks of June were quiet, but the last week of June more than made up for it.”

Though the Gold Coast came out on top of the country’s growth markets, Mr Ryder cautioned investors to focus on the house market instead of apartments.

“The previous oversupply of apartments took five or six years to recover and we’re seeing an oversupply of apartments build again,” he said.

“They’re primarily targeted to interstate and Asian investors, but if you look at long term growth figures hi rise apartments have shown little or no growth, while housing markets have done OK.”

Queensland might have taken out five of the ten top spots for market growth in the country, but it also took out five of the “dirty dozen” spots in the report for markets in decline.

Mr Ryder said a combination of factors in the mining areas of Gladstone, Moranbah, Mount Isa and Wandoan made the markets suffer.

“They were previously boom towns and developers targeted them for that and built far too many new dwellings. They didn’t have an awareness of the fact the resources workers weren’t going to be renting or buying, but would be staying in camps,” he said.

“So that, coupled with developers building too much and the downturn, was a triple whammy. They’ve got to work through the high vacancies and wait for some new projects to start, and maybe they’ll start to recover.”

Original article published at www.domain.com.au by Rachel Cluntwitter 6/7/16

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Home in blue-chip street sells for $4.1 million

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Home in blue-chip street sells for $4.1 million

Home in blue-chip street sells for $4.1 million
Home in blue-chip street sells for $4.1 million
Home in blue-chip street sells for $4.1 million
Home in blue-chip street sells for $4.1 million

Home in blue-chip street sells for $4.1 million

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The canal-front home at 59 Witta Circle, Noosa Heads, sold on April 30 for $4.1 million through Tom Offerman Real Estate.

Source: www.sunshinecoastdaily.com.au

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Queensland’s population hits 5 million people today

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Queensland's population hits 5 million people today
PHOTO: Is this Queensland’s 5 millionth person? Cordy Kerr-Kennedy was born yesterday in Townsville. (ABC News: Mark Jeffery)

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.

Queensland's population hits 5 million people today
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.

 Queensland's population hits 5 million people today
PHOTO: The ABS estimated Queensland’s population was growing 1.7 per cent a year. (AAP: Dan Peled)

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.”

Source: brisbaneinvestor.com.au

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APRA to end cap on property investor loan growth

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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.”

Source: brisbaneinvestor.com.au

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