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Sunshine State property market snapshot

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In last week’s column I took a look at the local factors influencing the market in Sydney. This week, let’s look north to the Sunshine State for a snapshot on what’s happening on the ground in Brisbane, the Gold Coast, the Sunshine Coast and surrounding regions.

Overall, South-East Queensland has shown stability this year with consistent sales activity, however price growth did slow to just 4% along the Brisbane to Gold Coast corridor for the financial year. The reasons behind this include the lowest net interstate migration in more than two decades; a weak state economy; comparatively high unemployment; and the change of government. At a macro level, there’s obviously been challenges.

Drilling down though, some areas are experiencing exciting activity. Low interest rates are encouraging upgraders in the $1 million-plus bracket in premium areas such as Ascot, Hawthorne, New Farm, Bulimba and Paddington. Many are choosing to keep their existing homes in the $500,000 to $1 million bracket for investment.

First home buyers are also back, buying in affordable suburbs like Mansfield, Salisbury and Belmont where homes are selling faster than anywhere else in Brisbane, according to CoreLogic RP Data.

Solid demand and a shortage of homes for sale in some areas pushed Brisbane’s auction clearance rate to its highest level on record (since 2009) at 50% for the year to August. By comparison, over the same period of the year, Brisbane recorded 46% in 2014, 40% in 2013, 33% in 2012 and 24% in 2011.

Apartments are a different story, with a rising oversupply in inner city areas like West End, Fortitude Valley, Newstead and Hamilton. Buyers are very discerning and only competing for properties with unique features. Downsizers are snapping up three bedroom properties but the smaller non-descript options are sitting on the shelf.

Typically, an increasing house price gap between Brisbane and Sydney is pivotal in creating new market energy. By August 2015, the gap was $431,500 – the largest gap in dollar terms on record with Sydney house prices 88% higher than Brisbane, according to CoreLogicRP Data.

As a result, we are now seeing a steady flow of Sydney and Melbourne buyers heading north. Southern investors are chasing capital growth and the highest yields of the major capital cities, while young families are seeking affordability and lifestyle.

Owner-occupiers are purchasing Queenslander-style family homes in blue chip areas where they are paying half what they would in Sydney for an equivalent home. Many are leasing these properties for decent yields while they look to secure work before moving here permanently.

On the Gold Coast, the sub-$1 million market has been buzzing with a mix of local upgraders and southern investors and seachangers. It has also been an excellent year for prestige property with the entry level of the region’s Top 50 Home Sales (Gold Coast Bulletin) in FY15 rising to $2.5 million from $1.323 million in FY14.

The China Factor – a key element in Sydney and Melbourne’s booms, is increasingly at play in Queensland and especially on the Gold Coast. The juwai.com property portal reports purchasing intent up by 1,120% YOY, which is not surprising as more Chinese developers build locally and market their projects directly back home.

Construction on the long-awaited $1 billion Jewel hotel and apartment project at Broadbeach by its Chinese owners began in March and the first non-stop flights from the Gold Coast to China have now commenced.

On the Sunshine Coast, the market is bullish especially above $1 million. Locals who have been waiting out the post-GFC downturn are upgrading now and we are seeing a significant influx of southern seachangers. Buderim is among the favourites due to its schools; and lifestyle homes are popular in Noosa, Mooloolaba and Sunshine Beach.

I remain very optimistic about South-East Queensland. The weakening dollar will boost tourism, there are a slew of new infrastructure projects underway and the economy appears to be responding to new political management.

While the Gold Coast has always had a good international reputation, Brisbane is increasingly asserting itself as a sophisticated global city, particularly following the G20 in 2014. The ‘big country town’ stigma of old has been eroded by a continuing undercurrent of social, economic and cultural change.

Once state economic conditions improve and Sydney slows further, the South-East Queensland property market will be ready to roar.

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Residential

Gateway to $3 billion, 4800 home new Coast city opens

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23

THE gateway to Palmview’s $3b master-planned community of Harmony will become a reality on Monday.

AVID Property Group and Sunshine Coast Council’s Cr Rick Baberowski will officially open Peter Crosby Way, the northern access into the 378ha project to the south of Sippy Downs.

During the next 15 to 20 years Harmony will deliver more than 4800 homes for 12,000 future residents, all enhanced by 100ha of open space.

Harmony is also slated for the future delivery of a town centre offering 15,250sq m gross floor area.

AVID Property Group general manager Bruce Harper said the event would be a landmark day for development at Palmview.

“This is an exciting construction milestone as we officially open Peter Crosby Way – the gateway to Harmony,” Mr Harper said.

“The road’s name pays homage to the site’s Crosby family history and will service 12,000 future Harmony residents, as well as those in neighbouring communities.”

Sunshine Coast farmer Peter Crosby has been a land-owner since 1964 and has strong roots in the area.

Crosby Hill Road at Buderim is named after the family.

Mr Crosby has been operating a cattle farm on the land, and a cane farm in previous decades.

The road opening coincides with the start of construction on individual houses at the estate.

Work on display homes in the Harmony Display World is already well advanced with the 43 homes from a team of 25 national and local builder partners expected to open in the second half of this year.

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Harmony’s first home buyer Daniel Clark said he was looking forward to construction commencing on his new home.

“It is very exciting to get out on site and see the construction progressing at Harmony,” Mr Clark said.

“Having downsized to a smaller sized block will mean less time spent on maintenance and more time for the important things in life.

“Harmony is the perfect location for me – right in the heart of the Sunshine Coast but also a short drive to Brisbane, meaning I can be close to both my daughters and grandchildren at Noosa and Albany Creek.

“I love that my block is so private and there will be lots of green, open spaces in the community.

“I was happy to learn that the development has become the first six leaf EnviroDevelopment masterplanned community in the South East.”

Queensland home builders, Stylemaster Homes, is set to deliver Mr Clark’s new four-bedroom, open plan home.

Originally Published: https://www.chinchillanews.com.au/

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Residential

Housing shortage: 150 home inspections to jag a rental

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JOHN Hunt thought he would be sleeping on the streets this week.

Mr Hunt has spent the past two months searching for a rental property after being told he would not be able to renew the lease at his Currimundi home.

As if finding an affordable rental on the Sunshine Coast is not hard enough, his house hunt was made even more difficult because he needs a residence that is wheelchair accessible and can accommodate his two companion dogs.

On the eve of eviction this week, he got a phone call that changed his Christmas.

“I got a house – that’s Christmas taken care of for me,” he said.

Mr Hunt will move this weekend to a rental at Beerwah which he can make wheelchair-friendly through the use of portable ramps.

He had been forced to look for somewhere else to live because his landlord required his current house for use by a relative.

He said he was fortunate that his letting agent, aware of his predicament, had allowed him enough leeway on vacating the property by the due date of Tuesday.

“I would have been out on the street,” he said.

On a disability pension, Mr Hunt is part of a group of people finding it increasingly difficult to rent on the Coast because their fixed incomes have not risen at the same rate as rents.

Mr Hunt estimated he looked at 150 houses over two months, of which about 20 were suitable.

He was critical of home owners and letting agents who seemed oblivious to the requirements of disabled potential tenants such as himself.

“It’s not the housing crisis, it’s people with no common sense – people sending me out to houses with stairs and houses I can’t fit into in a wheelchair, bathrooms I can’t fit into,” he said.

His house hunting gave him an insight into the shortage of affordable housing on the Sunshine Coast.

“It’s just so scary. Some of the people I talked to were living in their cars. Something needs to be done. People need to know about it, I think,” he said.

 

Originally Published: http://m.sunshinecoastdaily.com.au/

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Residential

Sunshine Beach property breaks real estate record

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The property overlooks Sunshine Beach, as the backyard lawn meets the sand.

The property overlooks Sunshine Beach, as the backyard lawn meets the sand.

A SUNSHINE Beach mansion sold for a cool $9.3 million has smashed a Queensland real estate record.

The sale of the Webb Rd beachfront beauty now claims the highest property sale in the state outside of Brisbane.

Noosa real estate agency Tom Offermann oversaw the multi-million dollar exchange and principal Tom Offerman said the 1460m2 property is worth every penny.

“It’s a record price, but I think it’s worth every dollar when you consider it’s a once only payment for enjoyment in perpetuity, and the value will only escalate over time,” Mr Offermann said.

“It really only hits you how wonderful the property is when standing on the lawn overlooking the surf.

“It’s the highest Queensland sale of its type outside Brisbane and sets a new benchmark for lifestyle property.”

The five bedroom, four bathroom property overlooks a panaromic ocean view of Sunshine Beach, with a lush tropical backyard garden fringing a lagoon-style pool and a lawn that seamlessly meets the white sand.

The home boasts “party-sized” balconies and terraces, open spacious interiors, and is a two-minute stroll to a shopping village and 4km to chic Hastings St.

Webb Rd is a short cul-de-sac and contains just four beachfront houses in total

The property overlooks Sunshine Beach, as the backyard lawn meets the sand.

Mr Offermann said the previous owners lived there since 1984, and have “downsized” from the property to another house in the same area.

Mr Offermann would not comment on the buyer’s identity or intentions for the property, however did make note of the number of celebrities that often make Sunshine Beach their home.

“One of the real joys of our business is the people we have the privilege to meet. It’s amazing who can walk into our offices: rock stars, movies stars, sports stars, corporate captains, celebrities, billionaires, you name it,” he said.

“I remember one day we met the Incredible Hulk, Bill Bixby, in our office, and then bumped into Rod Stewart getting a sandwich next door.

“While Noosa’s drawcard is its natural environment, amenable climate, and lifestyle, I hear a lot of people saying they love it because all the people seem so relaxed and pleasant.”

Tom Offermann handles most of the prestigious sales in Noosa and currently has seven of the eight available beachfront houses listed, starting at $5.95 million.

Mr Offermann said he remembers overseeing the first million dollar sale for a Sunshine Beach property in the late 1980s.

“I recall negotiating the first million dollar sale for a Sunshine Beach house in 1987 when a lot of people considered it a ridiculous price,” Mr Offermann said.

“Demonstrating how the value of prime location, we sold it again a couple of years ago for over $7 million.

“Records will continue to be smashed because they are just not making any more of it and people, who can afford it, will want it.”

Original article published at www.theurbandeveloper.com  by Staff Writer 21/9/16

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