OPENING up more land for urban development can only be justified if the State Government identifies a reversal in the declining interstate migration rate, an increase in wages and the return of a strong stock market.
That’s the view of Local Government of Queensland chief executive Greg Hallam.
Mr Hallam was commenting on the findings of the LGAQ-commissioned Econometric Analysis of SEQ Dwelling Prices report by the AEC Group, which has identified the unique set of factors that drive demand and property prices in key local government areas.
He said, if anything, the current oversupply of land was suppressing prices.
The Sunshine Coast, which has the most concentrated broad acre ownership in South-East Queensland, provides an example of how developers restrain the release of new lots until they see the rise.
“The rate of release is determined by price,” Mr Hallam said.
“What we hear often is that there is a land shortage. That may be true for small to medium developers, but that’s not to say there is not enough land.
“There is enough but 70% is held by two or three major national companies.”
He said Premier Annastacia Palaszczuk and Planning Minister Jackie Trad should only expand the SEQ Regional Plan urban footprint if they foresee major changes in interstate migration to Queensland, wages and the share market.
“If not we are well supplied, or over supplied,” Mr Hallam said.
The report’s principal author, economist Simon Smith of the AEC Group Ltd, said its key message was that different markets were influenced by different factors.
“You can’t draw conclusions about the market in general based on what is happening in Brisbane or Sydney,” he said.
The fluctuating nature of the Sunshine Coast economy with its dependence on the construction industry affects entry and upgrade level purchasing decisions in the stand-alone home market which is more sensitive to the unemployment rate than it is to price.
The unit market, however, is most influenced by the state of the All Ordinaries Index and real interest rates as people make decisions about alternative investments.
“The response of real prices of two and three bedroom units on the Sunshine Coast are consistently significant to movements in the All Ordinaries index (inelastic),” the report found.
“The price decrease is estimated at around 4% as result of a 1% increase in the index.
“This response is closest to that of Gold Coast two bedroom units.
“Similar to the case of houses, the unemployment rate has a consistent and significant effect on prices of 0.86% and 1% for two and three bedroom units, respectively.
“The real loan rate has a small but significant effect on two-bedroom units (0.04% decrease).
“The effect is twice as large as that found for two-bedroom units in Brisbane.
“Real land prices per sqm in the Sunshine Coast respond significantly to changes in the All Ordinaries index, the real loan rate and the unemployment rate.
“In all cases these are negative.
“The response to a 1% increase in the All Ordinaries index is 0.54%; it is 0.04% to a 1% increase in the real loan rate and 1% to an increase of 1% in the unemployment rate.
“These results are closer to those found for the Gold Coast.”
Originally published on: http://www.sunshinecoastdaily.com.au/
Gateway to $3 billion, 4800 home new Coast city opens
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.
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/
Housing shortage: 150 home inspections to jag a rental
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/
Sunshine Beach property breaks real estate record
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
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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