Wednesday 16 December 2020

Brisbane House Prices Hit Record High

Brisbane’s median house price has pushed past the $700,000 mark to reach a record-breaking $720,000, on the back of 4.4 per cent annual house price growth.

Brisbane’s residential market has recorded improved demand, with transactions higher than pre-pandemic figures, according to the latest Queensland Market Monitor published by the Real Estate Institute of Queensland.

The state’s peak industry housing body’s latest quarterly results says Brisbane’s median house price rose 1.4 per cent in the September quarter to $720,000 across 2751 transactions.

Annually, Brisbane’s median house price rose 4.4 per cent to reach $710,000 across 12,309 transactions.

REIA Brisbane West Zone chair Phil Bloom says analysis of quarterly and annual median price movements shows that Brisbane houses are in the “rising phase of the price cycle”, with a noticeable uptick in demand for space.

“There’s a flight towards large suburban houses, which makes logical sense. We’re working from home, so we all want a nice house to work from,” Bloom said.

“With interest rates so low homebuyers are taking advantage of their borrowing power.”

REIQ chief executive Antonia Mercorella says the sunshine state’s local affordability and lifestyle place it as the “most popular destination” for interstate migration.

“While Brisbane remains considerably more affordable than other States, Corelogic forecasts that one in ten houses sold in our capital will fetch more than $1 million within the next two years, offering some of the best prospects of long term capital growth.”

Brisbane House Prices

▲ Brisbane’s median house price increased 1.4% to $720,000, while house prices in every single local government area in the state held their value during the September quarter, REIQ says.

Sea change: Regional Queensland leads property price rise

Maintaining its position as the state’s most expensive housing market, the figures show Noosa is the best performer for median house price growth for a third consecutive quarter, recording 3.6 per cent growth to $895,000.

Noosa’s quarterly median unit price was also the state’s top performer for unit sector growth, rising 5 per cent to $705,000.

“Noosa has clearly seen the biggest market gains, when you consider its ushered in a median house price of $895,000 on the back of an incredible five-year growth of 53.6 per cent,” Mercorella said.

The remainder of the Sunshine Coast also posted strong results for the quarter, recording the second-highest median unit price growth to $445,000.

The Sunshine Coast’s median house price sits at $620,000 following quarterly growth of 1.8 per cent.

The Gold Coast’s annual house price rose 3.2 per cent for the year to September, to $640,000 across 6959 transactions.

Prices rose modestly over the September quarter, reflecting a 0.8 per cent rise to $650,000 across 6,959 transactions.

The Gold Coast’s unit and townhouse median price recorded a 0.5 per cent rise over the quarter, to $425,000, and for the year to September a 1.8 per cent rise to $420,000 across a total of 6260 sales.

“The Sunshine Coast property market continues to remain one of the prime spots in Australia, with quarterly growth of 1.8 per cent with a median house price now $620,000.”

Townsville took the title as the second-best performing region over the September quarter, posting 3.1 per cent growth and a median house price of $338,000.

Rockhampton and Mackay’s housing markets recorded 6.7 per cent and 6 per cent growth respectively, for the period.

REIQ figures show Rockhampton’s median house price is $275,000 and Mackay sits at $379,000.

Mercorella said first home buyers, in particular, have been quick to move on both new builds and vacant land during the year.


Article Source:

from Queensland Property Investor

Gurner Lodges Plans for Port Douglas Resort

Developer Tim Gurner is “beginning a new chapter” and branching out into hospitality, hotels and tourism with a new development application just north of Cairns.

Gurner is planning to pair 16 apartments with an 18-key boutique hotel in a $60 million project at 69-73 Murphy Street, Port Douglas.

There is already resurgence for developers and hoteliers in the region with Chiodo’s $300 million resort plans and Syrian billionaire Ghassan Aboud’s Crystalbrook super-yacht marina.

The 2,833sq m block behind the main strip of Port Douglas is located at the northern end of Four Mile Beach which is also home to the Sheraton Grand Mirage Resort.

The block of land was acquired off-market earlier this year and the plans were lodged to mark the residential developer’s move into the hotel and tourism space.

Gurner Lodges

▲ Gurners plans to move into hospitality and tourism at Port Douglas include a new restaurant, cocktail bar, spa and private landscaped areas.

Gurner said this project is the beginning of a new chapter for the developer as it significantly expands its portfolio across a number of sectors.

“We have been incredibly fortunate over the past seven years to have built a defining portfolio of luxury residential projects along the eastern seaboard of Australia,” Gurner said.

“Now we want to take this philosophy and evolve it into something that extends the lifestyle offering through boutique hotels .

“We are exploring a number of new asset classes across tourism, wellness, accommodation and food and beverage.

“These next few years will be all about pushing the boundaries of our portfolio and recreating the luxury experience we provide to our apartment residents, at a much larger scale.”

The plans include a five-storey apartment building with basement carpark set into the hillside, designed by Powell and Glenn architects in collaboration with Wolveridge Architects.

There is a previous development application on the site from 2016 for six residential dwellings which was objected to by a neighbour and went through the planning and environment court for approval.

Gurner Lodges

▲ The Gurner hotel and residences cut into the hillside overlooking Four Mile Beach in Port Douglas.

Gurner’s initial town planning designs were submitted to council in early December with construction earmarked to commence on the hotel and residences in mid-2021.

The hotel industry in the region was hard hit in the early stages of the pandemic however the sector has started taking advantage of domestic tourism.

The Queensland government implemented a “marketing blitz” to get a hold of the $53.8 million travellers would normally spend abroad.

Locally, the Douglas Shire Council has also unveiled plans to pour $465,000 into the early stages of developing a public splash pool to rival the iconic Cairns Esplanade Lagoon.


Article Source:

from Queensland Property Investor

Tuesday 15 December 2020

Home and hosed: Qld’s first-home buyer rush biggest in a decade

Outer suburbs and regional centres are leading a surge in first-home buyer activity as Queensland shows the way with a 39 per cent increase in the three months to October 31, according to the NAB.

The NAB said its own data showed first-ome buyers were back in the market at levels not seen in a decade. For the 12 months NAB’s lending to first-home buyers was up 21 per cent on the back of low interest rates and government grants such as the First Home Owners’ grant and HomeBuilder.

The bank’s home-ownership executive Andy Kerr said commute times were no longer a concern for many who work from home and this had led the push to outer suburbs and regions.

“A brief pullback in property prices also helped first-home buyers as the uncertainty of COVID-19 put many plans on ice with investor demand slowing noticeably,” Kerr said.

Ray White said November had been the strongest month of sales in 118 years of business with $6.68 billion in sales, up 34 per cent year-on-year based on 8000 transactions. CoreLogic also said demand was still strong in Brisbane.

In Queensland, the first-home buyer hotspots were more widespread than in any other state, with postcodes in Brisbane, Ipswich, the Gold Coast, Townsville and Mount Isa all making the list.

Kerr said first- home buyers were considering plenty of options within an hour of Brisbane’s CBD from Ipswich to the east, North Lakes in the north and Coomera on the Gold Coast to the south,” Kerr said.

“Cairns and areas just north of the Sunshine Coast just missed out but are also in demand, and are expected to remain that way as the sea change draws more converts.”

Mount Isa tops the list with 115 per cent growth in demand. Browns Plains had 106 per cent, North Lakes 99 per cent, Coomera 94 per cent, Greater Springfield 67 per cent, Ipswich 93 per cent, Karrabin 58 per cent. Hervey Bay and Bohle Plains (Townsville) had 64 per cent growth.

Kerr said the growth in demand from first home buyers was across the country, but particularly strong in Queensland. In metropolitan areas, lending to first home buyers grew by 17 per cent in in Ipswich and greater Brisbane.

“Flexible working arrangement implemented due to COVID-19 are encouraging many Australians to consider a tree or sea change as easy access to the CBD moves down the priority list.”

Low interest rates are expected to remain in place for the next three years and Kerr said the bank expected first-home buyers to remain active through next year.


Article Source:

from Queensland Property Investor

Holidaymakers and property buyers flood Queensland since border reopening

Queensland’s property and rental markets are set to soar from one of the biggest southern migrations in history with reports of interstate home hunters and holidaymakers heading north in their droves just days after the state border reopened.

With liveability, affordability and a balmy climate sparking the surge, property punters say the sunshine state and Brisbane, in particular, are on track for a record-breaking summer with holiday vacancy rates plummeting to zero amid a red-hot real estate market fuelled by interstate and ex-pat buyers.

Ray White New Farm principal Matt Lancashire said those hungry interstate home hunters had all but pounced on prestige homes mere hours after the border restrictions ended almost two weeks ago, revealing the strength of a new migration trend he said was only rising.

“I have got a list of 30 or 40 buyers who want to come to Brisbane … and one of the greatest things I have heard is that the first flight out of Melbourne on December 1 was a domestic (flight to Brisbane) and it was full,” Mr Lancashire said.

“I also had one guy who crossed the border on the first [of December] (he’d been waiting in Byron Bay), and I took him through six properties straight away.

Holidaymakers and property buyers

39 Ormuz Road, Yeronga sold for a record price last weekend, with a Melbourne couple splashing $2.8 million to secure the property. Photo: Ray White New Farm

“COVID has done wonders (for our market) … and we’ve had our biggest year (of sales) yet.

“We sold over $100 million in just half a year alone, and I reckon I’ll get $200 million by the end of the year. I’ve never done that before; my record is $130 million.”

Mr Lancashire said the level of interstate and overseas migration to Brisbane alone was unprecedented with the city set to topple Melbourne for liveability thanks to the affordability of homes and the laidback lifestyle on offer.

“And this trend is sustainable … It’s not necessarily that prices are going astronomically through the roof, it’s more that they are creeping up – but it’s also our days on market. Things are transacting incredibly quickly.”

He said the appetite for high-end homes had also sparked a domino effect into the prestige rental market, with some buyers forking out thousands per week in rent while they waited for the right home.

“High-end rentals and high-end sales – everything is just going bananas … I had eight auctions on Saturday, and I sold seven. The minimum amount of bidders was four, and I sold those seven for $27.5 million,” Mr Lancashire said.

Holidaymakers and property buyers

Matt Lancashire had a very successful auction event at the Calile Hotel in Fortitude Valley on the weekend, which he says is an indicator of the strength of Brisbane’s market right now. Photo: Tammy Law

“It’s unbelievable because in April we were rethinking our business strategy and how we’ll adapt and how we’ll support our people … and then May came, and we had a record month.”

While Queensland’s housing market has nothing short of boomed off the back of the global health crisis, it was a tougher climb back into the black for the state’s holiday rental sector, with thousands of homes sitting empty during June and July – causing millions in lost revenue from the tropics down to the Gold Coast.

But even before state borders opened to release the interstate holidaymaker flood, industry experts said the sector was all but saved by stir-crazy locals who splashed serious cash from September onwards to holiday in their own backyard.

Mark Beale, from Ray White Whitsunday, said while their holiday and property industry all but ground to a halt halfway through the year, both sales and holiday rentals had since soared with $2 million in properties sold sight-unseen last month alone, with the agency recently clocking a record week in holiday reservations.

“A lot of people are now booking their flights and coming up here because they are not travelling overseas … instead of spending $50,000 on that trip abroad they’re saying ‘let’s put that towards a holiday (on the Whitsundays),” Mr Beale said.

Holidaymakers and property buyers

Holidaymakers have rushed to book their summer vacations in the Whitsundays. Photo: Supplied

“During the pandemic, we had a lot of bookings in our holiday rentals, and pretty well everyone cancelled … we lost a lot. But as we got to August, they started to come back. Then four weeks ago we had really good bookings and last week we achieved double our personal best because people are booking their holidays for 2021.

“And there’s a lot of interstate interest, particularly from Sydney. So, while it was all south-east Queenslanders leading up to mid-November – when the borders looked like opening – it changed. And then three days before they opened it went crazy.

“On average they are paying $675 a night and the average time they are staying is now seven nights. Our sales are also double what they were last year. As for permanent rentals, we now have a 0.4 per cent vacancy rate.”

Emily Thomas, of LJ Hooker Peregian Beach, said while their Sunshine Coast holiday rentals also ground to a halt during the toughest quarantine months, it was locals from Brisbane who brought it back to life in September, with interstate families quick to take up the mantle – leading to a booked-out Christmas and January period.

“It’s almost back to normal now … and we have no properties available over Christmas,” Ms Thomas said.

Holidaymakers and property buyers

Peregian Beach on the Sunshine Coast is completely booked out over Christmas. Photo: Supplied

“During that tough period, more than 50 per cent of our holiday homes were sitting empty. We didn’t know what would happen and we normally have people from down south come up for three months in the winter period, and that didn’t happen.

“But then November – which is normally quiet – was really busy. The locals kept us alive.”

It was entirely thanks to those south-east Queenslanders that Ray White North Stradbroke agent Chris Ransley said his patch of island paradise stayed afloat, with the quiet holiday spot now undergoing a boom.

“The market on the island from both holiday rentals and sales is now really strong … it has gone from strength to strength since the island reopened,” Mr Ransley said.

“But when it was closed off for part-time owners and holidaymakers (from March to May), they were zero-dollar months – and that really tested the island. We did, unfortunately, lose some businesses – they just couldn’t afford to stay open.

“But then in June, July and August (three normally quiet months) it was huge.

“We are finding that usually, our generic customer who comes over to the island will be 80 per cent a return visitor and 20 per cent a ‘newbie’. But that’s completely changed. For June, July and August it was 80 per cent ‘newbies’, and they were people who normally go to Fiji or Bali – and instead they came here.

“And I think that strength is going to continue.”


Article Source:

from Queensland Property Investor

Gurner Lodges Plans for Port Douglas Resort

Developer Tim Gurner is “beginning a new chapter” and branching out into hospitality, hotels and tourism with a new development application just north of Cairns.

Gurner is planning to pair 16 apartments with an 18-key boutique hotel in a $60 million project at 69-73 Murphy Street, Port Douglas.

There is already resurgence for developers and hoteliers in the region with Chiodo’s $300 million resort plans and Syrian billionaire Ghassan Aboud’s Crystalbrook super-yacht marina.

The 2,833sq m block behind the main strip of Port Douglas is located at the northern end of Four Mile Beach which is also home to the Sheraton Grand Mirage Resort.

The block of land was acquired off-market earlier this year and the plans were lodged to mark the residential developer’s move into the hotel and tourism space.

Gurner Lodges

▲ Gurners plans to move into hospitality and tourism at Port Douglas include a new restaurant, cocktail bar, spa and private landscaped areas.

Gurner said this project is the beginning of a new chapter for the developer as it significantly expands its portfolio across a number of sectors.

“We have been incredibly fortunate over the past seven years to have built a defining portfolio of luxury residential projects along the eastern seaboard of Australia,” Gurner said.

“Now we want to take this philosophy and evolve it into something that extends the lifestyle offering through boutique hotels .

“We are exploring a number of new asset classes across tourism, wellness, accommodation and food and beverage.

“These next few years will be all about pushing the boundaries of our portfolio and recreating the luxury experience we provide to our apartment residents, at a much larger scale.”

The plans include a five-storey apartment building with basement carpark set into the hillside, designed by Powell and Glenn architects in collaboration with Wolveridge Architects.

There is a previous development application on the site from 2016 for six residential dwellings which was objected to by a neighbour and went through the planning and environment court for approval.

Gurner Lodges

▲ The Gurner hotel and residences cut into the hillside overlooking Four Mile Beach in Port Douglas.

Gurner’s initial town planning designs were submitted to council in early December with construction earmarked to commence on the hotel and residences in mid-2021.

The hotel industry in the region was hard hit in the early stages of the pandemic however the sector has started taking advantage of domestic tourism.

The Queensland government implemented a “marketing blitz” to get a hold of the $53.8 million travellers would normally spend abroad.

Locally, the Douglas Shire Council has also unveiled plans to pour $465,000 into the early stages of developing a public splash pool to rival the iconic Cairns Esplanade Lagoon.


Article Source:

from Queensland Property Investor

Monday 14 December 2020

City Policy to ‘Protect the Brisbane Backyard’ Is Failing

Urban consolidation policies to contain development within existing urban areas are creating poor development outcomes in Australian cities.

In Brisbane, our newly-published research shows the low-density housing character of the city is being retained at the expense of backyards.

Current land development regimes place urban planning outcomes in the hands of property owners and developers whose motives are tied to their financial interests rather than good planning.

In doing so, the system works counter to its intended aims, in that it favours “bad density” over meaningful place-making characterised by well-designed medium-density townhouses or low-rise apartments.

The ad hoc nature of redevelopment means consolidation is done in a piecemeal and patchy way. There is little uniformity to streetscapes and a poor mix of housing options.

What are the urban consolidation policies?

Our research, published in Australian Planner, focuses on the impacts of urban consolidation policy in central Brisbane. The Queensland government has set a target for Brisbane City of infill development—building within existing developed areas—to account for 94 per cent of all new dwellings by 2041.

The state government defines an urban boundary to contain most new development. The state also sets dwelling targets by local government area, of which Brisbane is the country’s most populous.

At the local level, Brisbane City Council has a smaller-scale strategy. It aims for densification to be achieved through up-zoning (changing the zoning to permit higher density), increasing building heights and reducing minimum lot sizes.

At the same time, the council uses various mechanisms to protect the “cultural identity” of the city. These include the so-called “townhouse ban” and Character Residential (Infill) zoning, which applies to many inner-city suburbs.

The Character Residential (infill) zone allows for higher density, but houses built prior to 1946 must be retained. Any new dwellings must be of a similar scale.

We analysed the rate of subdivision for house construction over a ten-year period. Focusing on the suburbs immediately south of the city centre, we compared subdivision for more houses to land assembly (merging two or more lots) for apartment construction.

We wanted to see how the physical layout of the city had changed so Brisbane could densify. How is this being achieved in a city that has banned townhouses, rowhouses and apartments of any size in more than 60 per cent of the city’s residential area, but at the same time has had a policy of consolidating growth for decades? Specifically, we wanted to see how existing residential land was densifying, rather than former industrial or undeveloped land.

What does the research show?

Our results indicate that current consolidation policies run counter to their intended aims of protecting green space. The practical outcome is that the low-density housing character of the city is being retained at the expense of backyards.

We found 52 per cent of redevelopments resulted from subdivision, compared with 30 per cent from land assembly and 18 per cent for all other reconfigurations.

In the past decade, the seven inner-city suburbs we studied lost over 21,000sq m of open space, usually backyards, to be replaced with more houses.


City Policy

▲ New house construction on subdivided lots on Taylor Street, Woolloongabba

This is explained by a combination of developers’ lack of interest in residential infill, the difficulty of boundary change, and the political unpalatability of “density”. Together, these factors work to create outcomes in conflict with consolidation policy.

Existing lot shapes and sizes largely determine redevelopment, as developers favour land that is easily transformed. In previous research, we found large-scale developers constructing high-rise apartments are often only really interested in brownfield land – previously developed but disused sites. These are usually large sites owned by one landholder.

It’s inherently difficult to co-ordinate redevelopment across multiple properties for high-quality, precinct-level infill. On the other hand, individual owners can reap financial benefit from lot-scale redevelopment, without the costs associated with larger developments.

As a result, backyard subdivision is pursued as a simple form of infill. Despite the city council’s policy to “protect the Brisbane backyard” and the state government’s goal of more diverse and affordable homes, more single-family homes are being crammed into less and less space.

How can we improve outcomes?

While low-density infill may balance consumer preference for detached houses with meeting infill targets, it in effect creates a “compressed suburbia”. The results fail to deliver on the core promises of consolidation policy, including greater housing diversity and affordability, and a halt to urban sprawl.

It also leads to a dichotomy of new dwellings: high-rise apartments or detached houses. We found very little development of medium-density dwellings.


City Policy

▲ Nothing in between: single-storey character houses and 15-storey high-rises in Brisbane’s West End. Rachel Gallagher, Author provided.

The market-based approach to urban consolidation leaves individuals seeking financial gain to determine the most important decision about our cities—their urban form.

If this continues, the lack of focus on high-quality infill will be a significant missed opportunity for our cities.


Article Source:


from Queensland Property Investor

The cost of buying waterfront or beachfront property in Australia booming

Waterfront property prices are booming, with new research showing that those wanting to snap up a home with uninterrupted views of an ocean or river could end up paying double the price for the privilege.

Australia’s waterfront properties are now worth 69 per cent more than those that are not perched on the water’s edge, property consultancy Knight Frank’s The Australian Waterfront Prime Index for the September quarter found.

This was a jump of almost 6 percentage points since the same time last year.


cost of buying waterfront Property


Knight Frank Head of Residential Research Michelle Ciesielski said premiums were rising as cashed-up buyers, stuck in Australia due to the coronavirus pandemic, looked to add waterfront property to their portfolios.

“When we’re talking about the ultra wealthy population, having a waterfront property provides options for people who would otherwise be agile around the world,” she said.

The index, which measures the rise in coastal, harbour, canal and riverfront property values in Australian capital cities, revealed, perhaps not surprisingly, that Sydneysiders would pay the biggest premium for an ocean view.

Buyers can expect to pay more than double – or a 104.7 per cent premium – for a beachfront abode. That rose by almost 10 percentage points since September 2019, the research showed.

While buyers expect to pay a premium for uninterrupted water views, the scarcity of stock and the finite nature of waterfront land often helped drive prices up, said Sydney Sotheby’s International Realty director Michael Pallier.

Mr Pallier said waterfront properties in the harbourside and eastern suburbs were very tightly held, with some people paying three times as much to be right next to the beach.

“There is strong demand but they rarely come up for sale,” Mr Pallier said. “They often sell if the owners have been living there for a long time – 20 or 30 or more years – and they’re getting older and want to be closer to the shops.

“They rarely sell … You have beautiful views and you can swim or even fish off the balcony. There’s just something about being close to the water.”

The relaxed lifestyle is one of the reasons Selina Corkill will be looking to stay close to Coogee after she sells her home in South Coogee at auction.


cost of buying waterfront Property

Selina Corkill’s home in South Coogee is up for sale.

The duplex, which she shared with late husband and architect Tony Corkill for more than 10 years, includes stunning views of Coogee Beach and is just metres from the ocean.

“It’s a very special place,” Ms Corkill said. “We often had people around to have lunch on the deck or for parties.

“I really want to stay around in Coogee and I think I’ll be looking around for a while. I might rent before I buy another home,” she said.

One of biggest jumps in waterfront property premiums was recorded in Perth, where river and beachfront property premiums were 61.1 per cent – up 7.5 percentage points since September last year.

The market in Margaret River had seen a number of homes selling in recent months, with some people paying double for a waterfront home than what they’d pay for a similar home one street back from the water.

Space Real Estate’s Paul Manners said like Sydney, waterfront properties in the area were very tightly held.

“The demand has increased a lot,” Mr Manners said. “The people who are looking are above the owner-occupier buyers and are lifestyle investors.”

Since more people were working from home, they were able to buy waterfront properties to live in longer term, he said. Many love the fact the Margaret River offered not only beautiful waterfront views, but also activities.

“There’s the beaches and the river but it’s also got great bike trails and you’re surrounded by nature with the forests,” Mr Manners said. “There’s amazing restaurants and it’s just a more laidback lifestyle.”

While Melbourne may not have the same great weather as Sydney, Perth or the Gold Coast, waterfront homes are still very sought after.

“It’s not just the same old aspect [view] every day,” Marshall White Stonnington director and auctioneer John Bongiorno said.

While he could not quantify how much more people paid for a waterfront home, there was a higher price to pay for the uninterrupted view.

“It’s just part of the Australian psyche to get close to the sea and get the changing views,” he said.


Article Source:

from Queensland Property Investor

Property prices: Best growth suburbs in Sydney, Melbourne, Adelaide, Brisbane and Perth

Property prices have surprisingly lifted even after the downward spiral to the economy this year. Here are the suburbs that have been given a boost.

House prices are rising across the board in all Australian capital cities at the same time, even though we are in a pandemic.

REA group chief economist Nerida Conisbee said the slight downturn in the pandemic that dragged the economy down for the better part of this year had given rise to property growth.

“The property market is bouncing back very quickly. It’s national whether you’re in a capital city or regional area,” she said.

“The downturn in pricing was very short-lived. In many places we didn’t see any downturn compared to prior to the pandemic.

“Buyer confidence has definitely returned.”

Property prices

There’s been property growth in capital cities and regional areas alike. Picture: iStock.Source:istock

Ms Conisbee said the boost in the property market is seen across the board on the back of low interest rates and government support during the pandemic.

“Interest rates are incredibly low and that’s allowing people to borrow more. Rules to accessing credit is changing so it’s easier to get loans,” she explained.

November marked a turning point because of the announcement of several vaccines as well as a new APAC trade agreement and opening up of domestic borders, Ms Conisbee said.


A surprising trend is the growth in regional areas which is rivalling capital city growth on the back of our changing work and lifestyle conditions.

The biggest lift is in coastal areas, with beach haven Byron Bay the strongest growth area in Australia for 2020.

Ms Conisbee said buyers are looking for properties outside of the CBD as more people move out of bustling cities, possibly because of shifting work arrangements.

She added this shift has also impacted rental markets in the capital cities.

“There’s been a definite shift to regional areas as people are working differently and don’t need to be close to the city,” she said.

“The big trend at the moment is the growth in regional, particularly areas that offer a very nice lifestyle.

“At the top of the list is Pearl Beach on the Central Coast, offering a nice beachside lifestyle. Byron Bay and Sunshine Beach are up there as well.”


Property prices

There’s been a shift towards regional and coastal homes as well as people buying holiday homes. Picture: iStockSource:istock

Ms Conisbee added that while Aussies have been stuck at home without the prospect of international travel this year, more people are looking to put their money into a holiday home.

“There’s growth in people looking at second homes and holiday homes because people can’t travel and don’t know when we will be able to travel again,” she said.

Ms Conisbee added that if you’re looking in a high-growth area, such as Byron Bay, don’t expect it to grow much more.

“If you’re hoping to see growth in a high-growth area in the next 12 months, it’s not likely,” she said. “They’ve hit their maximum level.”


Property prices

There’s been growth across the board in Australia. Picture: iStockSource:News Regional Media


Out of all the capital cities, it’s no surprise that Sydney properties are at the top of the property price growth in Australia, which also dominated the top property sales of 2019.

The market in Perth is strong as well as Canberra and Hobart.

“Conditions in Perth are improving rapidly,” she said. “Perth is doing well as is Sydney and Melbourne which is unusual, it’s usually one or the other.”

Melbourne is experiencing “surprising” growth despite the prolonged lockdown this year, with particular growth in the unit market.

“Rental market conditions remain weak in the aftermath of the coronavirus crisis, so it is surprising to see fairly strong unit price growth across capital cities,” Ms Conisbee said.

There are promising signs for NSW buyers with the removal of stamp duty in the state which is set to come in mid-2021.

Ms Conisbee indicated the change might slow the market down until the new policy comes into action.

“First homebuyers got the stamp duty concessions anyway but come June when the stamp duty changes are made in NSW they will also get a $25,000 bonus,” she added.

Suburbs recording largest year-on-year increase in median sale price over the past 12 months:


St Lucia – 37.5 per cent

Sandgate – 22.9 per cent

Virginia – 22 per cent

Highgate Hill – 20 per cent

Samford Valley – 19.4 per cent


Pearl Beach – 45.5 per cent

North Willoughby – 43.8 per cent

Glenorie – 40.5 per cent

North Avoca – 38.6 per cent

Bayview – 34.1 per cent


Tyabb – 43.6 per cent

Aberfeldie – 24.4 per cent

Collingwood – 23.4 per cent

South Melbourne – 22.9 per cent

Coburg – 20.5 per cent


Dodges Ferry – 29.4 per cent

Primrose Sands – 26.4 per cent

Carlton – 19.4 per cent

Rokeby – 18.1 per cent

Berriedale – 17.2 per cent


Millswood – 34.6 per cent

Hove – 33 per cent

Seacliff – 21.3 per cent

Blackwood – 21.1 per cent

Craigburn Farm – 20.7 per cent


Coodanup – 29.1 per cent

Kelmscott – 26.6 per cent

Medina – 20.3 per cent

Mount Nasura – 20 per cent

Madora Bay – 18.4 per cent


Article Source:

from Queensland Property Investor

Friday 11 December 2020

5 good reasons why now is the right time to invest in Brisbane

Are you considering investing in the Brisbane property market?

I know Brisbane has been in the headlines recently as the best place to invest over the next few years.

But how many times have we heard that before?

What makes this time different and why would you invest in Brisbane anyway?

Having been investing and buying for our clients for close to 15 years, I wanted to share with you my insights on “why Brisbane?”

And I’d like to explain why this time is different and why the numbers are starting to make sense.

I also want to highlight what we see at ground level, to give you a greater level of comfort if you are looking to buy an investment property in Brisbane.

To be frank, overall the last decade has not delivered the same returns for many Brisbane property  investors that they could have achieved elsewhere, but the next decade is looking very positive.

Here are my thoughts;


Define Brisbane

I have heard Brisbane described as the area anywhere from Gold Coast to the Sunshine Coast and out to Toowoomba.

While that is certainly South-East Queensland, it is not Brisbane.

As an investor you must firstly understand an important concept – Brisbane does not have the urban sprawl or the maturity of a Sydney or Melbourne market.

The guide we use is an imaginary ring 10-12km from the Brisbane CBD.

Some suggest the outer areas of south-east Queensland are up to 40 years behind our bigger, more advanced capital cities.

So, there will be growth…… eventually, but can you afford to wait that long?

However The inner 10 – 12km ring around the Brisbane CBD is likely only two decades behind.

This means, buying in the right pockets of Brisbane now, could potentially be the equivalent of buying in a similar suburb in Sydney or Melbourne 20 years ago.

If only we could have that opportunity all over again – buying in those capital cities in the year 2000.

1. One City Council

One of the major benefits of investing in Brisbane is that fact that you are bound by only one city council.

This means, many processes are efficient and transparent, without all the hold ups and indecision that take place from multiple decision makers.

I believe this has allowed Brisbane to be proactive in many aspects, especially from an infrastructure perspective.

Take for example our tunnel networks across the city.

Initially, there were questions raised about these projects being premature, but now it is viewed as a more positive outcome.

In Sydney and Melbourne, they are only just building tunnel networks more recently, which has been a more reactive measure.

Moving forward, it is the bigger infrastructure projects that will lead the way for Brisbane and create a huge amount of jobs in the process.

The two big ticket items in the pipeline are the Cross-River Rail project and Brisbane Metro.

Cross-River rail is an exciting subway style piece of infrastructure linking a number of inner-city southside suburbs and precincts to the CBD and beyond and now under construction.

the right time to invest in Brisbane


Brisbane Metro links the inner city to our middle ring southern suburbs by a dedicated bus system.

No longer will commuters be stuck in general traffic, but have the luxury of a modern, air-conditioned fleet of vehicles that run regularly and on time.


the right time to invest in Brisbane

2. Affordability/Opportunity

The price gap between our biggest capitals and Brisbane are now at an all-time high.

So much so, that if you sold your home in Sydney at the median, you could probably afford to buy two properties for the same price or buy one home and be potentially debt free, plus change!

At some point in time this significant price gap – the difference in affordability has to be seen as an opportunity by many south of the border.

For the cost of an average home in Brisbane you can buy within 10km of the Brisbane CBD, while in Sydney and Melbourne you would be looking 30km to 40km away for a house.

The cost of living is also becoming a major issue in our larger capitals.

The ability to potentially earn an extra $100k in a bigger city soon loses its appeal once you are forced to either stump up double for a house or consider living much further out.

This will lead to next generation Brisbane-ites staying put and may also be too big of an attraction for young professionals around the country.

Remember for the next generation of home buyers it is all about instant gratification and they tend to prefer to live closer to where the action is – jobs, lifestyle and amenities.

In the old Brisbane, these jobs may not have been on offer due to floods and downturns, but those opportunities are starting to present themselves.

Adding to that, Brisbane seems like the place to be after recent lockdowns and the working from afar phenomenon ramping up.

The planets are starting to align.

3. Lifestyle

The days of Brisbane being a big country town will become a thing of the past as we head into the new decade.

The energy in the city and the lifestyle on offer is rapidly changing.

This will be headlined by the completion of the Queens Wharf Precinct which will alone see a net increase of 11,500 jobs.


the right time to invest in Brisbane


It will see 5 new hotels, 50 restaurants, bars and cafes and there will also be 3 residential towers linked to a world class Casino.

It will also include a pedestrian bridge across to South Brisbane and beyond.

It has already triggered a domino effect of new precincts around the CBD from the Howard Smith wharves underneath the iconic Story Bridge, to the redevelopment of Eagle Street Pier.

With a buzz around the city and easy access to these lifestyle precincts, Brisbane will see a new lease of life and change forever.

This will draw new arrivals from interstate and visitors from overseas who may just be tempted to stay for a while longer to be part of this new world city.

4. Proximity to Asia

Is Brisbane about to become the playground for China?

I posed this question in a previous blog as a result of the opening of the second runway at Brisbane Airport.

There is a huge amount of interest and support from regions like China and Taiwan in Brisbane, with up to six local airlines committing to the new runway.

These are airlines that have never previously flown to Brisbane.

This is important for several reasons but predominantly for business, tourism and education opportunities which will all contribute to the local economy.

Now residents in these huge Asian countries will have the ability to do business, travel and be educated in Brisbane, something not previously on offer.

Incredibly exciting, considering we are the closest capital out of the big three to our Asian neighbours.

Brisbane can only benefit from more business and tourism and certainly our universities and tertiary institutions will be vying for a slice of the international student pie form Sydney and Melbourne.

We find these students often stay put on working Visas once they are suitably qualified to contribute to the local community and economy.

Asia will play a huge role in shaping Brisbane moving forward.

5. Undersupplied

A number of these points may push the “its time” factor but what does the data suggest?

Probably the most important aspect of any investment is to understand the basics of Supply and Demand.

At our Seminar earlier in the year, Dr Andrew Wilson provided a snapshot of the Brisbane property market.


the right time to invest in Brisbane


Dr Wilson suggests that we are undersupplied by around 80 properties per week and projected household completions continuing a downward trajectory.

the right time to invest in Brisbane

While fewer homes are being built, demand is continuing to rise as bigger projects like the Brisbane Airport Precinct, Queens Wharf precinct and a host of infrastructure projects create jobs.

This mismatch between Supply and Demand will certainly play out in the early part of this decade and to some extent we are already seeing the shift.

In Conclusion

Brisbane is really starting to transition and emerge as a new world city, following a decade of floods and downturns and a sever lack of jobs growth.

A proactive and beneficial local council has provided more efficiency and certainty for residents and business with positive infrastructure projects.

The gap between Brisbane property prices and the bigger capitals is at all-time highs and the affordability factor will start to play on people’s minds.

With more working flexibility and a new lease of life, Brisbane will start to shake off the country town feel.

Asia will also be a key part of Brisbane’s future.

Being the closest major capital city will be a huge bonus for the river city with access to more business, tourism and education opportunities not previously on offer.

Attraction from interstate and eventually overseas will continue to provide strong demand for housing at a time when we are not building enough of the right type of properties.

While there certainly are enough reasons to suggest it is time, the numbers are finally starting to back it up.

The opportunity to invest in a Sydney or a Melbourne equivalent 20 years ago may have just presented itself again.

This is why you should consider Brisbane for your next investment.


Article Source:

from Queensland Property Investor

Zagame Lodges Plans for Fortitude Valley Office

Melbourne’s Zagame family is moving ahead with plans for a $25 million commercial project in Brisbane’s fast-growing Fortitude Valley precinct.

The Zagame Corporation, led by the sons of family patriarch Victor Zagame—Robert and Victor junior—have submitted a development application for a 6-storey A-grade office building at 72 James Street.

The 4,000sq m office building, which is set to straddle the corner of James and Harcourt Streets, will sit atop a 1,460sq m site which the developer has pieced together over the last two years.

The development, which will eventually become home to eight tenants, will also offer secure bicycle parking, end-of-trip facilities, 32 car parks across the single basement level and a shared roof top event terrace.

Zagame Corporation property director Peter Runting told The Urban Developer the project would add to the developer’s long-standing commitment to the region and in particular the James Street precinct.

“Robert and Victor are delighted to continue their 20 year investment history in Queensland,” Runting said.

“They are keenly invested in the continued success of James Street and this new development will help transform and enhance the precinct’s uniqueness and character.

The Melbourne-based property group, which has been active for nearly 50 years, has interests spanning pubs, malls, warehouses and a number of hotels.

“A commercial development was chosen for the site as we identified a gap in the market for this type of office and retail centric precinct.

“We see the market being local business and potentially city-based business looking for fringe hub space and looking to employ talented staff who live locally.”


Zagame Lodges

▲ External render of the proposal for 72-76 James Street and 232 Harcourt Street in Fortitude Valley.

Cavill Architects director Andrew D’Occhio said Zagame’s ambition was to draw the climate, lifestyle and vibrancy of James Street into the building.

“In approaching this development, the design team recognised James Street’s success as an iconic precinct and memorable place.

“This is largely due to the collective creation of a vibrant public realm that extends into, through and between the street’s private land holdings and independent developments.

“The proposal continues this pattern through a significant expansion of the James Street public realm and by re-evaluating how a low-rise office building can participate, and even amplify [James Street’s] culture of shared public-private space.”

The building will offer ground floor retail and hospitality spaces while reclaiming and incorporating the existing heritage building on site.

D’Occhio said each floor plate will pivot around a “city room”, affording each tenant its own open-air address to the high street as well as a dedicated outdoor breakout space and small garden.

If approved, Zagame expects the development will take two years to complete.

Zagame is also sitting on another James Street site which it picked up from the managing director of Australian fashion brand Kookai, Robert Cromb for $6 million in 2018.

The site, at 49 James Street, located on a prominent corner adjacent to the Malouf brother’s Calile Hotel, currently houses a heritage-listed 19th century building, four retail and three commercial tenancies.

In April 2019 the Zagame family moved to divest a $300 million portfolio including six hotels in Melbourne, Ballarat and Vanuatu.

Zagame has since turned its attention to commercial opportunities, picking up an office building in Hawthorn for $55 million late last year.

The group also snapped up the former premises of the Victorian branch of the Australian Education Union, 4-storey building, located at 112 Trenerry Crescent in Abbotsford for $21 million.


Article Source:

from Queensland Property Investor

Thursday 10 December 2020

Corelogic National Housing Market Update [video] | December 2020

Australia’s housing market continued along a recovery trend through November, with our national home value index recording a second consecutive monthly rise.

With dwelling values up 0.8% over the month, the new recovery trend follows a 2.1% drop in Australian home values between April and September.

At this rate of appreciation, we are likely to see CoreLogic’s national home value index surpass pre-COVID levels in early 2021.

Although housing values look set to surpass their pre-COVID highs early next year, both Sydney and Melbourne home values remain at levels similar to those seen in early 2017.

While rising, Perth values are similar to levels in 2006, and Darwin values are in line with 2007 levels.

At the other end of the spectrum, housing values moved to new record highs in Brisbane, in Adelaide, Hobart, and Canberra through November.

House and unit values have diverged over recent months.


Corelogic National Housing Market


the resilience in Melbourne unit values is surprising given the high supply levels across inner-city areas and the sharp decline in rental conditions.

We suspect the stronger trend in Melbourne unit values relative to houses could be short-lived unless overseas migration turns around sooner than expected which would help to shore up rental tenancy demand.

The stronger performance across the regional areas of Australia continued in November, with CoreLogic’s combined regionals index recording a monthly growth rate double that of the combined capitals.

Corelogic National Housing Market


Regional home values were up by 1.4% in November compared with a 0.7% rise in capital city values.

Regional Queensland has led the rise in values over the past three months, posting a 3.2% lift, followed be regional NSW where values are 3.1% higher.

Regional housing demand is being supported by a range of factors including the normalization of more flexible working arrangements across some occupations, as well as lifestyle factors, lower housing prices, and improved transport options.


Corelogic National Housing Market


With many employers now embarking on a ‘return to office’ program and the price gap between the capitals and regional markets narrowing, this trend could gradually start to lose momentum, but we are expecting the regional lifestyle markets to remain in high demand for some time yet.

The lift in housing values comes as a range of other indicators points to further improvement.

Inventory levels remain low across Australia at a time when demand is rising, leading to a market that is favoring sellers over buyers.


Corelogic National Housing Market


The number of properties advertised for sale remains 20% lower than this time last year, and 24% below the five-year average.

Total listing numbers are low despite a sharp rise in fresh being added to the market.

The spring period saw a 42% rise in the number of new listings added to the marketplace nationally, while the total number of listings dipped 0.6%.


Corelogic National Housing Market


This reflects a strong rate of absorption as prospective buyers continue to outnumber newly advertised supply additions.

The number of settled sales has held reasonably firm since July, with rising sales activity outside of Victoria offsetting the sharp drop in Victorian home sales caused by the recent lockdown period.

Nationally, CoreLogic’s settled sales estimates over the past three months were about 1% higher than the same period last year.


Corelogic National Housing Market


This is partially due to the stronger demand across regional areas where buyer activity has seen a more significant lift than their capital city counterparts.

Auction markets have strengthened as well, with November clearance rates holding around the 70% mark, that’s well above the decade average of 61%.


Corelogic National Housing Market


The strength in the auction clearance rate comes as the number of auctions rises into the first half of December.

Higher auction volumes will provide a timely test of the market depth prior to the seasonal slowdown through late December and January.


Corelogic National Housing Market


Private treaty measures are also tightening.

The median selling time reduced from 57 days in June to 42 days in November and discounting rates have reduced from 3.9% in April to 2.8% in November.


Corelogic National Housing Market

Corelogic National Housing Market



Article Source:

from Queensland Property Investor

Keylin Lodges Plans for Spring Hill Twin Towers

Keylin Group has plans to build a residential and hotel development at the former Energex headquarters site in Brisbane.

A proposal for the 15-storey, dual towers are being assessed by council to be built alongside the future Victoria Park Precinct at 447 Gregory Terrace, Spring Hill.

The art deco-style towers feature 113 apartments and 120 hotel-rooms designed by architects DBI Design as an “extension” of the parkland with expansive vertical gardens on the façade.

Shared communal spaces are also planned for the 57 metre high development including lounge areas, a gym, seating areas, a pool and 235 car spaces.

Energex currently owns the 3,372sq m site and commercial building, and listed it for sale in 2017 and again in 2018.

Keylin Lodges

▲The Keylin towers feature climbing greenery across the façades, planter boxes on balconies and a landscaped rooftop terrace.

Keylin senior development manager Ian de Kretser said the as-yet unnamed twin buildings will take a contemporary approach to the historic, art deco style of Spring Hill .

“We’re anticipating strong interest from those who work in the nearby Royal Brisbane and Women’s Hospital precinct and have children attending the nearby St Joseph’s College, Brisbane Grammar and Brisbane Girls’ Grammar School campuses,” de Krester said.

“Atop the building is three penthouses, which each boast their own private rooftop terrace, in addition to a communal terrace on level 14 which includes a floating lounge, two fire pits, kitchen, outdoor dining and a playscape.”

The Brisbane-based developer said the twin buildings are part of a greater transformation in the area.

“The front row seat to what will become Brisbane’s version of Central Park makes this project absolutely iconic, and we have answered this with a design that provides a true entry statement to Spring Hill and the parklands,” de Krester said.

There are a number of major developments on the cards for Brisbane including RNA Showgrounds, Brisbane Live precinct, Royal Brisbane and Women’s Hospital, QUT and Herston Quarter.

Earlier this year Keylin entered into a joint-venture with Kinstone Developments to create a $650 million masterplanned development on the Gold Coast.


Article Source:

from Queensland Property Investor

Wednesday 9 December 2020

Australia’s residential property prices keep on climbing, hit new total value record

The total value of Australia’s homes has hit a record and prices are expected to keep ticking higher as economic conditions improve.

Australia’s residential property prices keep on climbing, with the mean price of putting a roof over your head now approaching $700,000.

Australian Bureau of Statistics figures released on Tuesday show dwelling prices rose 0.8 per cent in the September quarter in all capital cities apart from Melbourne, where prices slipped 0.3 per cent due to the impact of COVID-19 restrictions.

Brisbane led the increases, up 1.5 per cent, followed by Sydney, up 1 per cent.

“New lending commitments to households, auction clearance rates and sales transactions all improved during the September quarter,” ABS head of prices statistics Andrew Tomadini said.

“Substantial (transaction) increases were observed in Sydney and Brisbane.”

Over the 12 months to the September quarter, residential property prices lifted 4.5 per cent, with increases in all capital cities except Darwin.

The biggest jump over the year was Hobart, up 6 per cent.

The ABS figures show total value of Australia’s 10.6 million residential dwellings rose by $87.8bn to a record $7,283.3bn, with the mean price of residential dwellings now $689,500.

And according to CoreLogic data, housing values moved to new record highs in Brisbane, Adelaide, Hobart and Canberra through November.

“Super-low interest rates and an improving job market should keep home prices ticking higher,” CommSec chief economist Craig James said.

“The number of homes is growing at a slightly higher annual rate than Australia’s population.

“The interest point over the next year will be whether the average household size increases or decreases.”

CommSec estimates that the number of people per home eased from around 2.443 in the June quarter to 2.439 in the September quarter.

“Younger Aussies may take advantage of first-home owner grants and low interest rates and build homes,” Mr James said.

“But other families may opt for greater cohabitation.”

Australia’s residential property

The mean price of residential dwellings in Australia is now $689,500.Source:istock

The CoreLogic data shows total dwelling values around Australia in November was up 0.8 per cent over the month.

“The national home value index is still seven-tenths of a per cent below the level recorded in March, but if housing values continue to rise at the current pace, we could see a recovery from the COVID downturn as early as January or February next year,” head of research Tim Lawless said.

“The recovery in Melbourne, where home values remain 5 per cent below their recent peak, will take longer.”

CoreLogic said both Sydney and Melbourne home values remained at levels similar to those seen in early 2017.


Australia’s residential property

Dwelling prices reached new record highs in Brisbane, Adelaide, Hobart and Canberra. Picture: NCA NewsWire/Jenny EvansSource:News Corp Australia

While rising, Perth values are similar to mid-2006 levels, while Darwin values are in line with 2007 levels.

At the end of last month, the cheapest median dwelling price was Darwin at $405,857, while Sydney was the most expensive at $860,967.

CoreLogic data also shows every capital city recorded a rise in residential rent prices last month – the first time since January.

The top performing rental market was Perth, where rents leapt 8.2 per cent in the year to November but were still 11.7 per cent lower than the peak in 2013.


Article Source:

from Queensland Property Investor

Tuesday 8 December 2020

Shotgun marriage: Gold Coast gets a new $3.2 billion city on its doorstep

A massive bushland plot best known locally for being patrolled with an axe and a gun by renowned millionaire recluse “Spiney Bob” will become a new mini city on the Gold Coast.

After a decade of negotiations, the development application for the $3.2 billion Pacific View Estate project covering 334 hectares will get the green light from the Gold Coast City Council.

As the Gold Coast continues its high-speed growth trajectory, the new mini city will accommodate up to 10,000 residents.

The estate, to the west of the motorway between Nerang and Mudgeeraba, will be built in stages. The first stage includes a village precinct, 35 detached housing lots, retail and education facilities centred on a private school.

All up, the estate is expected to have 3500 dwellings, ranging from houses to apartment buildings up to eight storeys high.

The go-ahead for the estate, after more than 10 years of planning, comes as housing in the southeast is under population-growth and affordability pressure.

Growth on the Gold Coast has been supercharged by the pandemic-induced southerner influx due to the global disruption of workplaces that has made working remotely and choosing lifestyle over proximity to the office a reality.

The Gold Coast, along with other Queensland coastal lifestyle hotspots such as the Sunshine Coast, are the targets of the southern migration following the opening of borders and the adoption of new widespread work-from-home measures.

The impact is being seen across the state, with Brisbane also experiencing sharp rises in interstate migrant flows pushing house values up 3.2 per cent to record highs, while regional Queensland housing values were up 6 per cent, according to the latest CoreLogic report.

The Pacific View Estate was first planned after Perth-based Perron Group bought the parcel of vacant land that belonged World War II veteran Robert “Spiney Bob” Anthes.

Anthes, who died in 2004, was known for his hermit lifestyle and run-ins with him while he was patrolling his land wielding an axe and a gun became Hinterland folklore. Anthes had inherited the land in 1972 from his father, John.

After years of stalemate, the project was called in by the State Government in 2015 and given preliminary approval.

Construction on the project is expected to add as many as 2700 jobs in a sector which has already seen significant recovery in the third quarter of the year on the Gold Coast, with activity up 11.7 per cent on the same time last year, according to a council development activity report.


Article Source:

from Queensland Property Investor

QLD island property listed for less than house in parts of Logan

This spectacular island property off Far North Queensland has two houses, a beach hut and views to rival the Maldives. But this one w...