Tuesday 30 November 2021

Soaring prices drive call for huge investment in social housing

Think tanks, universities and the social services sector have warned Australia’s lowest income earners face a shortage of affordable housing for decades unless the federal and state governments work together on a multibillion-dollar investment in social housing.

Two separate reports from the Grattan Institute and the Australian Council of Social Service and University of NSW released on Monday said up to $20 billion needed to be sunk into low-cost housing to make up for a two-decade shortfall that is now being exacerbated by a huge increase in property prices.

House prices have climbed by almost 22 per cent over the past year with the median price in Sydney now beyond $1.3 million while in Melbourne it is approaching the $1 million mark.

Research by the ANZ and CoreLogic last week found saving a deposit for a home was now at record levels, with the average household requiring more than a decade to save a 20 per cent deposit.

The rental market is now being affected with increases across much of the country especially in regional areas, which have also recorded record lifts in median house prices.

The independent Grattan Institute said there were about 430,000 social housing properties – where the rent is capped at 25 per cent of an occupant’s income – with no change in the number over the past 20 years. Over that same period, Australia’s population has grown by a third.

It believes a $20 billion social housing fund, overseen by the Future Fund, could provide a revenue stream from its investment earnings that would provide the revenue to build an extra 3000 social housing units a year in perpetuity. The federal government could force states to match the contribution.

By the end of the decade, an extra 24,000 homes could be in place.

Grattan’s director of economic policy program, Brendan Coates, said whichever side of politics won next year’s federal election had to sharply lift investment in social housing without which the nation’s most vulnerable would face long-term financial pain.

“Australia has a housing crisis. Australians are spending more of their incomes on housing than in the past. Poorer people are feeling the pinch most,” he said.

“Many low-income renters are living in poverty, and many more are suffering financial stress. Inequality is increasing, and more Australians are becoming homeless.”

Separate research by the ACOSS/UNSW Poverty and Inequality Partnership found the Victorian, Queensland, Tasmanian and West Australian governments have promised 23,000 social and community housing units over the next few years.

But there are 155,000 households registered on social housing waiting lists across the country and even the state government promises were only for the short term, with no ongoing commitment to lift investment in the sector.

The research found rental stress was increasing and by August rents were growing at 8 per cent, their fastest rate since 2008 and almost four times the pace of wage growth.

The associate director of UNSW’s City Futures Research Centre, Professor Hal Pawson said the states alongside the federal government had to increase their investment across the sector.

“State governments generally responded well in their emergency actions to help homeless people and protect vulnerable renters during the worst of COVID. And to their credit, some have gone much further by pledging billions for short-term social housing investment,” he said.

“But there is little sign of any positive legacy on the systemic reforms and Commonwealth government re-engagement is fundamentally needed to fix our housing system.”

ACOSS chief executive officer Cassandra Goldie said pressure on low-income earners for housing was growing.

“Community organisations across the country are telling us about the growing levels of despair experienced by people trying and failing to find affordable accommodation for their families in both metropolitan and regional areas,” she said.


Article Source: www.brisbanetimes.com.au

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How the house price boom could threaten business start-ups

Whenever the topic of rapidly rising house prices is raised, there are always concerns about what the future will look like for younger generations when it is time for them to try and buy the roof over their head.

There are fears of financial insecurity, rising wealth inequality and, eventually, a group of people retiring with a rental bill hanging over their head or a mortgage yet to be paid off. For those unable to get onto the property ladder early enough, the outlook is bleak.

But during the federal government-introduced inquiry into housing affordability and supply in Australia this month another concerning outcome of rapidly rising prices was raised that doesn’t get talked about enough.

Independent economist Saul Eslake recently told a public hearing for the inquiry price booms and a market unfairly weighted towards property investors could soon affect the number of start-ups launched across the country.

“It’s very common for someone who starts a small business to have their house on the line in order to get the finance they require,” Eslake said.

“Indeed, among the longer term adverse consequences of the decline in homeownership rates in Australia is that it may be more difficult for people to start and operate small businesses because fewer of them will have homes that they can use as security for business loans.”

Could this be yet another unexpected and adverse outcome of the latest property market boom? Time will tell.

But there is some research suggesting that Eslake’s concerns that the dynamism of the small business sector is uniquely at risk from changing levels of homeownership is a fair analysis. A Reserve Bank research paper from 2015 by Ellis Connolly, Gianni La Cava and Matthew Read found households who own small businesses are more likely than employee households to owe residential-secured debt. This was typically second mortgages or property investor loans.

And for newer small businesses this was even more evident, with these households owning a young start-up less likely to owe business debt but just as likely to owe home debt or credit card debt.

“This could be consistent with these households finding it harder to raise business debt and instead relying on personal lending products to fund their young business,” the researchers said. In other words, it’s tricky to get lenders to put up the money at reasonable interest rates to launch a risky new venture.

And when founders look for other ways to fund their small business start up, the value built up in their home is often one of the more common sources they tap into. If you don’t have a home, this is not an option available to you. If you have taken on a bigger mortgage than you can afford to get onto the property ladder, this might also no longer be an option.

On the other hand, rising home values could actually spur on small business creation for those who own property already.

A 2013 European Central Bank paper from Stefano Corradin and Alexander Popov examined the relationship between entrepreneurialism, home prices and home equity in the United States where homeownership rates are relatively high. It’s arguable how much this would apply to Australia, but it’s possible these trends are similar here.

The research noted that those who might otherwise launch a business could be discouraged from becoming a founder if they have low levels of wealth or other borrowing constraints, but owning a property in a rising market was found to help provide the funds to become an entrepreneur.

“A 10 per cent increase in home equity increases the probability that a non-business owning household will switch to entrepreneurship in the future by up to 14 per cent,” the research says. Conversely, a fall in home values and a drop in equity could have the opposite effect.

As homeowners and home buyers know, the housing boom in Australia is still underway, but there is evidence of a slowdown on the horizon.

The Commonwealth Bank is forecasting national property prices to increase 7 per cent in 2022, followed by a 10 per cent decline in 2023 should interest rates rise.

But determining whether the double-digit property price rises seen this year have been good for the small business sector now and into the future is tricky.

While there is a risk those who have failed to get onto the property ladder will be unable to launch new start-ups, the price rises have helped some existing small businesses weather through the coronavirus-driven economic storm. The outlook was grim when the pandemic initially hit the world and economists were steeling for sky-high unemployment rates alongside a tidal wave of insolvencies that would leave the nation in a mess not seen since the Great Depression. Instead, there has been record levels of government support, the relatively rapid development of vaccines and a spending and hiring spree post-lockdowns.

We might need to thank house prices for some of that. The RBA’s October Financial Stability Review says small and medium businesses were provided significant amounts of government support to keep them afloat during the pandemic-induced recession, but it wasn’t the only source of protection.

“One potential mitigating factor from a financial stability perspective is that around 30 per cent of bank lending for small and medium enterprises (those with an annual turnover of less than $50 million) is secured by residential property, meaning that the recent increases in housing prices will likely help some businesses avoid insolvency,” the review says.

This benefit, at least, should not be understated.


Article Source: www.brisbanetimes.com.au

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Monday 29 November 2021

Pets make Brisbane’s first build-to-rent apartments a home

Brisbane’s first rental only apartment building, 36 Lambert Kangaroo Point, is fast becoming home to a thriving community of happy residents, including of the four-legged variety, since opening its doors in July.

One of the building’s biggest advocates is Pablo, a French Bulldog, who took up residence in the pet-friendly building in early July, with his owners Joan and Geoff Gardner, who were seeking a city-change.

For the couple, who downsized from a five-bedroom house in Springfield Lakes, having the option to bring a pet was the clincher in choosing the building, according to Mrs Gardner.

“Having a pet can really limit your rental options, so we had been looking for a suitable property for about three months, and given the sub-standard quality of many other places that did accept pets, we were really struggling to find a place before we came across 36 Lambert.

“We love the fact that there are other dogs in the building, and we are not frowned upon when we hop in the lift with Pablo. The other residents love him.

“There are heaps of people with dogs around here. We walk along the river every morning, which is spectacular, and visit the ‘dogs only’ part of the beach in Kangaroo Point, where they can safely run off-lead. It’s only a six-minute walk away, and all the dogs are so well behaved.

Mrs Gardner also appreciates 36 Lambert’s first-class amenities and location.

“The rooftop garden is amazing with the stunning views, and the facilities, such as the pool and dining room, are all brand new and perfectly maintained. We have absolutely no maintenance and you can even hang pictures on the walls, which you can’t do in a normal rental property.

“We wanted a more urban experience and to have everything on our doorstep, so we couldn’t be better located. I work from home a couple of days a week, and post-COVID, expect to resume regular interstate travel in my role as a Sales Director. The airport is only a 20-minute drive, so that’s perfect.

“Kangaroo Point is great for us as Geoff works at the Lytton Oil Refinery, which isn’t far away either. We’re even saving on tolls.

“I barely drive anywhere now as we often catch the ferry to Eagle Street Pier, which is literally across the water, to check out all the restaurants over there. Or we take Pablo with us to Howard Smith Wharves, which is a lovely 15-minute walk.

“If we ever need anything, 36 Lambert’s Resident Experience Team is fantastic, and nothing is a problem for them. They are really responsive and love dogs. Pablo always pulls into their office for a visit whenever we come home. It’s like having a hotel concierge service.

“The build-to-rent experience offers more than we could have imagined, and we would thoroughly recommend it over traditional renting,” added Mrs Gardner.

36 Lambert offers extensive amenities not usually found in traditional apartment buildings, where renters can have exclusive access to an infinity pool; 24-hour gym; rooftop terrace complete with BBQ, cabanas, spa and stunning views; sauna; dining room for 30 guests

complete with commercial-grade kitchen; television lounge/games room; indoor and outdoor yoga spaces; parcel lockers; bike storage; dog washing facilities and a children’s play area.

The building offers renters an amenity-rich lifestyle with a mix of one, two and three-bedroom apartments, penthouses, as well as two and three-bedroom split-level townhouses with house-like proportions, all available for lease on flexible lease terms.

The building is managed by a full-time on-site Resident Experience Team, who are available to assist with resident’s lifestyle needs.

The team is friendly and very responsive, according to Mr de Guzman, who recently relocated from the Gold Coast.

“It’s great having them onsite. They attend to the building and residents’ needs really well,” said Mr de Guzman, who lives with his daughter Akira, and their cavoodle ‘Miso Soup’.

Working from home as a Business and Strategy Consultant, Mr de Guzman says he wouldn’t choose to live anywhere else in Brisbane.

“We looked for a house to rent for about a month and then I decided to inspect 36 Lambert, and I was totally blown away by it. We love it here. The views are amazing, it’s nice and quiet and cruisy.

“There are quite a few regular rental apartments on the market, but this one really stood out. It’s so close to the water, is safe for my five-year-old daughter, and the general standard of the building is very high in every regard.

“We love taking Miso Soup for walks along the river and also take him on bike rides.

“He loves going to the pet events held on the roof by the Resident Experience Team, where he meets other dogs in the building. He’s made loads of friends and gets excited when he sees them in the lift or hallway.

“My close friend lives in another pet-friendly building, but the smell of the pets there is quite overwhelming. That’s not a problem here at all, as the other pet owners are very courteous and always clean up after their pets.”

Mr de Guzman is also a fan of the lifestyle offered at 36 Lambert.

“We make full use of all the facilities in the building, especially the kids’ playroom, which Akira loves,” he added.

“We love the French bakery nearby, the cafes and restaurants, particularly The Prawnster, where you eat seafood straight off the boats.

“We’re now big advocates of the build-to-rent model. Before we left the Gold Coast, we temporarily stayed in another apartment building and found owners rent their place out on Airbnb, making it quite disruptive. You can’t do that here, which is great.”

According to Marissa Davis, 36 Lambert’s General Manager, residents are experiencing a lifestyle never before seen in Brisbane.

“Build-to-rent generally offers tenants more facilities and services than they would have access to in ‘build-to-sell‘ projects and traditional rental accommodation. Residents enjoy unrivalled amenities within the building, and will soon have a long list of on-demand services available,” said Ms Davis.

36 Lambert’s management team is working with local businesses and services to provide residents with unrivalled convenience by offering a comprehensive range of optional services, such as a dog walker and groomer; car detailer; removalist; apartment sitter; dry-cleaning services; home cleaner; handyman; babysitter; beautician; personal trainer or masseuse, as well as vehicle hire.

“Our residents really appreciate being able to have their pets with them. It really makes the difference between living in a house or a home,” added Ms Davis.

“Being pet-friendly also encourages residents to connect with each other more easily. We all know the amazing ability dogs have in breaking the ice between people.”

All residences at 36 Lambert offer light-filled contemporary interiors with extensive views across the Brisbane River, CBD or leafy surrounds, and come with high quality fixtures and fittings, and a full suite of appliances, window coverings and kitchen amenities.

Weekly rents range from $470 for a one-bedroom apartment, from $595 for a two-bedroom apartment, from $990 for a three-bedroom apartment, from $795 for a townhouse, and from $1,695 for a three-bedroom penthouse.

The building is perfectly positioned just south of the CBD and the Brisbane River, with Kangaroo Point boasting a variety of parks, restaurants, cafes, recreational activities and walking paths.

The Main Street at Story Bridge East, Stop 6 bus interchange is a three-minute walk away.

For further information on 36 Lambert Kangaroo Point, please visit 36lambertkangaroopoint.com.


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Best market we’ve ever seen’ – QLD sales achieve record results

The Queensland market has been roaring throughout 2021, with median prices up around +20 per cent for the year across the state.

Where other areas in the country are now beginning to soften, vendors in the Sunshine State are still experiencing incredible selling conditions that are leading to standout results everywhere you look.

We spoke to top agents in Brisbane and the Sunshine Coast to explore some of their recent sales and just how strong the local market is.

Sunshine Coast homes attract record prices in clear seller’s market

“I can’t recall the amount of activity I’ve seen internationally and interstate coming to Pelican Waters and particularly the Sunshine Coast,” explains Linda Feltman of McGrath in Caloundra.

“Everything is selling well above expectations. It’s even surprising agents sometimes.”

Since the pandemic hit, the Sunshine Coast has been one of the most desirable parts of the country when it comes to property. With its ideal weather, minimal impacts from Covid shutdowns and overall lifestyle benefits, it’s easy to see why.

The sale of 26 Millennium Circuit in Pelican Waters, the lakeside suburb which sits on the southern tip of the Sunshine Coast region, is a great example of the success sellers in the area are experiencing.

Queensland market

26 Millennium Circuit, Pelican Waters provided a stunning outlook onto the lake and local golf course. Source: McGrath Caloundra 

The stunning lakeside home boasted four bedrooms plus a guest wing, huge open living and dining, a gold class cinema, a large pool and spa, and views of the internationally renowned Pelican Waters Golf Club.

“From the moment it went online, we had 66 enquiries within 24 hours,” Ms Feltman says.

The owners were hoping for any offers over $2m, and with the huge levels of buyer interest, they ended up securing a fantastic result at $2.2m, a record sale for the lake area.

8 Bond St was another big hit for the area. The modern, sun-drenched four-bedder was on the market for offers over $1.495m, and again expectations were exceeded when the deal was done at $1.8m.

Queensland market

8 Bond St, Pelican Waters achieved a result well beyond the seller’s expectations. Source: McGrath Caloundra 

“On average, at the moment we’re getting anywhere from 100 to 170 enquiries per property,” Ms Feltman explains.

“We’re also dealing with a minimum of three to four offers. One of my properties the other day had nine offers.

“We’ve got huge demand and we haven’t got enough listings, so the supply is low and the demand is high. So whenever you have those two factors—and it’s like that at the moment—obviously it’s a seller’s market, and there are a lot of families that need to purchase on the Sunshine Coast.”

Brisbane sellers in the ‘best market we’ve ever seen’

“If I was to describe the market quite simply I would describe it as an absolute seller’s market,” says Tony O’Doherty, principal at Belle Property Bulimba.

“It’s often hard to know what market you’re in, and it’s very rare that it’s such an extreme one-sided market,” he explains.

“There is no line in the sand… the market has been as good as it’s been in the Brisbane environment.”

The Queensland capital has, similarly to the Sunshine Coast, been experiencing a historic boom that’s led to some remarkable results for sellers.

30 Grosvenor St in Balmoral is what Mr O’Doherty calls a very good example as to how the market is performing.

Queensland market

The sale of 30 Grosvenor St, Balmoral brought the vendors a massive return on their investment. Source: Belle Property Bulimba 

The five-bed family home attracted a wide array of buyers including people from overseas and interstate.

“We had people from America, Byron Bay, Sydney, Melbourne, and a lot of Brisbanites,” he says, adding that despite the media attention on how many out-of-towners have been showing interest in Queensland real estate, “most of our transactions are people who already live in the suburb.”

The owners of the Balmoral house originally purchased the property for $1.3m in 2015. Since then it hasn’t undergone any significant renovations.

After debating when to sell, they felt the market conditions gave them the confidence to list. Fast forward to November 2021 and it sold for $2.15m, a staggering +66 per cent increase in just six years.

Mr O’Doherty also points to the recent sale of 22 Orchard St in nearby Hawthorne as a demonstration of the current power of the market.

Queensland market

In 2020, the owners of 22 Orchard St, Hawthorne couldn’t find a buyer. In 2021 they went well beyond their dream price. Source: Belle Property Bulimba 

Just last year the owners had the three-bedroom house on the market for an extended period and couldn’t achieve a $1m price. In the 2021 market, the property sold for $1.415m.

These kinds of results aren’t only being seen in a particular price bracket, either. “It’s right the way through the market. It’s the million-dollar product, it’s the seven million dollar product, and everything in between,” Mr O’Doherty says.

“If you are a seller and you want to transact your home, this is the best market we’ve ever seen.”

What’s next for Queensland property?

While there’s talk of the property boom reaching its peak in other key markets like Sydney and Melbourne, the near future still looks very bright in the Sunshine State.

Ms Feltman expects that, once the state’s borders open in mid-December, there may be a short lull in activity as families reunite.

“But after that, once mid-January comes along, I think it’s going to be extremely busy because people will be up here and they’re going to be ready to go into real estate mode and need to buy fairly quickly,” she says.

“I envisage the next six months on the Sunshine Coast will be phenomenal, and then after that, it will depend.

“I think people will start to travel again comfortably, I think that’s going to definitely play a part in the real estate industry.”

She also points out that the 2032 Olympics announcement has set off a wave of new investor interest, so the long-term growth prospects for the region are extremely strong too.

Mr O’Doherty notes that Brisbane has seen a huge amount of growth in a short period, to the point that it puts things in uncharted territory and makes the future difficult to predict.

“This is not a natural economy, you’ve got a lot of money circulating that wouldn’t be if it wasn’t for Covid,” he says.

“I believe we’re in such a heavily geared seller’s market, if you are a seller waiting to sell—what are you waiting for?

“If you’re looking to buy, if you buy the right block size in the right location, it’ll never go backwards. If you’re looking to sell, it’s an absolute seller’s market.”

Article Source: www.openagent.com.au

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$4.1 million off the plan apartment sale in The Priory, Indooroopilly by Pitman Properties

The Priory will have 12 luxurious apartments in the estate

An apartment in the new Indooroopilly project, The Priory has been sold for $4.1 million.

It was the highest advised apartment sale in Queensland last week secured by estate agent Jarrod Perry at Hutton & Hutton.

Completion is expected in early 2023.

Residence 8/100 Goldieslie Road has a total area of 172 sqm, plus 34 sqm in car spaces and storage of 19 sqm.

There are just 12 residences at The Priory, with floor plans from 196 sqm to 452 sqm of living space.

The communal space includes pool, spa, gym, steam room and fire pit.

The estate was once owned by the late Colonel J. F. G. Foxton, whose house was built around 1888.

Justin Foxton was a notable Queensland politician and soldier.

The Priory has been a work in progress since 2016 with the 4069 sqm site bought in 2015 at $4.385 million.

Pitman Properties, which has been constructing multi-unit residential projects, commercial buildings and motels for four decades, is headed by Paul Pitman.

The Priory sits at the end of a cul-de-sac on Goldieslie Road with its design by Wiltshire Stevens Architecture amid landscaping by LAUDink.

Another new architectural landmark is set to rise in Indooroopilly after receiving planning approval from Brisbane City Council.

Located at 97 Swann Road, Ethereal Residences by North is a cross-studio collaboration between Rothelowman, Carr Design and Form Landscape Architects and will deliver a collection of 46 two- bedroom, two-bedroom plus multi-purpose room, and three-bedroom apartments.

North managing director, Scott Ginnivan, said the vision for Ethereal Residences was to deliver an exceptional standard of architecture to Brisbane’s inner west that celebrates its elevated position.


Article Source: www.urban.com.au

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Descon appointed to construct $180 million South Brisbane apartment development, AKIN

Work is expected to take around two years, with completion expected for early 2024

The national construction firm Descon has been appointed to build Tallis Property Grouo’s $180 million South Brisbane apartment development, AKIN.

Construction will soon kick off on the 30-storey tower at 35 Merivale Street, with Descon working to the future forward design plans from architecture firm DBI, who has installed some of the most advanced technologies on the market, from number plate and face recognition, to pin code apartment access and home automation.

There will be 190 apartments across the building, with 80 per cent of the apartments on the low and mid-rise levels sold out. The upper floor sky homes will be launched to the market in January 2022.

Two of the levels in AKIN are reserved for residential amenity, which will include a health and wellness centre with heated pool, spa, gym, yoga studio, and steam and sauna rooms, and a business centre with hot desks, lounge and meeting rooms.

Akin South Brisbane

Akin South Brisbane 35-39 Merivale Street, South Brisbane QLD 4101 

The rooftop features private dining rooms and outdoor barbecue and dining spaces, commercial kitchen, wine cellar and cinema.

Work is expected to take around two years, with completion expected for early 2024.

Tallis Group CEO, Angus Gao, said so far demand has been from owner-occupiers.

“The majority of purchasers at AKIN are owner-occupiers which speaks volumes about its location and design credentials, and the impressive integration of complementary lifestyle and security technologies throughout the building,” Gao said.

“The momentum we’ve achieved from the formal launch in May, through to construction commencing in November, is remarkable and we look forward to carrying this into the New Year when we release the sky home collection.”

MOTIV Group CEO, Carly Cottam, who is marketing the apartments, said the ability for purchasers to amalgamate and customise their apartments has been fundamental to the sales success of the project.

“It is rare for an inner-city building to have such a high percentage of owner-occupiers; however this is a testament to the vision for AKIN and the relationship Tallis Property Group has with its buyers,” Cottam said.

“The ability for purchasers to customise their apartments has provided greater diversity in the building, with a selection of five and six-bedroom apartments complementing the existing mix of two, three and four-bedroom apartments and sub penthouses.

“It’s the embodiment of intuitive, future-focused home design.”

There’s a number of the two-bedroom apartments remaining, starting from $696,900.

About Tallis Property Group

Tallis Property Group is a privately-owned property development and investment group headquartered in Brisbane.

Their current portfolio includes Akin (South Brisbane), Vision on Norton (Upper Mt Gravatt), Oppo (Indooroopilly) and ILMONDO (Kangaroo Point).


Article Source: www.urban.com.au

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The AU set to launch 14 luxury oceanview sky home apartments Surfers Paradise

The idea was to set a new bar for luxury living on the Gold Coast and to create a truly boutique offering

The Esplanade is one of the Gold Coast’s most sought-after strips of beachfront real estate, stretching over 1.5 kilometres across the beachfront, from the entry to Main Beach to the north, to the south where it becomes North​cliffe Terrace.

There’s been little in the way of apartment development in recent years. There’s Soul, one of the area’s most well-known apartment buildings which is approaching 10 years built, and Merit​on’s 400 plus apartments at Ocean, currently under construction.

But now the dress circle street is set for something completely different to what has been seen in decades.

The AU, a collection of just 12 exclusive full-floor oceanview sky homes and two opulent three-level penthouses, is set to launch, giving the strip an incomparable offering.

The AU Surfers Paradise

The AU Surfers Paradise 52A The Esplanade, Surfers Paradise QLD 4217 

The idea was to capture that next level of luxury, and create a truly boutique product.

“We wanted to elevate beachfront living on the Gold Coast with a modern classic and timeless design,” ASF Group Marketing Director Daniel Fang says.

“Its central location and opulent design draws parallels to that of the Opera Residences in Sydney’s Circular Quay, just with the beach on your doorstep rather than Sydney Harbour,” Fang added.

There was a conscious effort from the team not to replicate the creamy sandy vibe that the Gold Coast apartment style is typically known for.

ASF enlisted the expertise of the Sydney-based interior design legend Greg Natale to craft the interiors, something no other Gold Coast apartment development can boast.

The apartments will have the finest finishes, with natural stone bench tops, and gold fixtures and finishes throughout.

Archidiom put the plans together for the 19-storey tower, with a facade made almost entirely of golden glass.  It allows each apartment to have clear panoramic views of the Surfers Paradise beach.

Each full-floor apartment will offer three bedrooms and a multi-purpose room, or four bedrooms, each with ensuites, studies, stone kitchens, and an open plan living and dining area. Furthermore, each sky home will have a 16m frontage directly facing the Pacific Ocean and beach

The resident amenity is located on podium level, with a gym and residents’ lounge space, which sit beside the infinity pool that looks out across the sand and ocean.

The podium level also features a barbecue and dining facilities, along with a sauna, ideal for unwinding after a few laps in the pool.

The display suite is up and ready for viewing for prospective buyers, with the interiors created in the style of the actual residences. That’s located in the Soul Boardwalk, just a few minutes away from the actual site of The AU.


Article Source: www.urban.com.au

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Construction Firms Fold as Pressure Builds

The competing pressures of a hot property market and rising construction supply costs are claiming victims as builders are pushed to the brink.

The Morrison government is adamant that the nation will build its way out of the pandemic, pouring $2.5 billion into the Homebuilder support package to support the construction sector.

More than 121,000 Australians applied for the grant, which is expected to support around $30 billion of residential construction projects.

But with 53,980 (42 per cent) more residential home builds under way than a year ago, some suggest the market has been overstimulated, putting intense pressure on builders to deliver, with one builder saying: “The problem is that the industry can’t build that many houses.”

Across the nation, building firms are showing signs of stress after trying to keep their head above water amid a frenzied market.

Aside from labour shortages, the industry is battling a range of issues, including the building materials shortage due to disrupted supply chains. One insider says that build prices have risen by around $30,000 since the start of the pandemic.

Metricon denies handing back contracts

The situation has become so dire that the industry is rife with speculation that at least one or two of the larger building firms have been handing back contracts that could no longer be fulfilled due to rising building costs making it untenable to complete projects.

One of the builders rumoured to be handing back contracts is Metricon.

But Metricon chief executive Mario Biasin dismissed the current “malicious” rumours circulating about the firm’s capacity to service its customers.


▲ High-profile builder Metricon says rumours it is handing back contracts are “are false and baseless”. 

“The rumours suggest that Metricon has been cancelling customer contracts due to price escalations, or an inability to build due to product shortages,” he says.

“These rumours are false and baseless. Metricon is in a very strong position to complete all work it has, and is continuing to accept and support a high number of new customer builds.

“Rarely would Metricon wade into such innuendo. In this instance, however, given the current market conditions due to Covid and some competitors going into liquidation or maybe illegally increasing prices, we feel we must quash these rumours.

“Metricon is not cancelling contracts, and is in a very strong position to complete all works now and in the future.”

Firms falling over

But the cracks are showing elsewhere, with 25 per cent of all insolvencies nationally happening in the construction sector.

Last week, Privium and other companies in the group were placed into voluntary administration, with debts of more than $28 million. The firm operates in Queensland, NSW and Victoria.

Named the 11th largest builder in Queensland by the HIA this year after completing more than 600 projects worth $180 million, the firm is blaming surging construction costs.

Melbourne’s ABD Group also appears to be on the verge of collapse, ceasing work on three high-profile contracts, with two contracts torn up. The collapse would leave between $50 million and $80 million in outstanding debt, sources say.

The fall-out is hitting construction businesses too. Safa Scaffolding, on the Gold Coast, went into voluntary administration in June.

Builders are in short supply across the country, with many booked a year or more in advance.

Whether the higher costs will remain is unknown. A small developer in Melbourne claimed to be “ticking along normally”, but has heard that builders are struggling to make projects stack up.

“There’s a debate in the office about whether the inflationary prices we’re seeing are transitionary or whether they’re permanent. Right now, higher costs have changed the feasibilities of the building industry,” he says.

Record low interest rates, incentives over-stimulate market

Some developers blame too many government incentives, which have over-stimulated and artificially inflated the new residential home sector. Another developer has heard of wholesale cancellations.

“The HomeBuilder boost was supposed to support our property and construction industry, but all it’s done is bring forward more than 40,000 new home builds, putting pressure on the industry,” one developer said.

Land prices have also been surging since the start of the pandemic. You can expect to pay $42,000 more in Melbourne for an average block of land.

Investorist founder Jon Ellis believes past government incentives have pushed the industry into unprofitable territory, with a number of builders now heading to collapse and home buyers disadvantaged by artificially inflated prices.

“Before the HomeBuilder grant, we saw a strong house and land market. It has been strong for the past few years, and price growth has been consistent.

“But since the launch of the grant, we have seen house and land packages in some corridors go up by $100,000 in less than 12 months.

For example, a townhouse project in Melbourne’s south-east listed on Investorist went up by $50,000 in three months, which for some homes was the same as a 10 per cent increase.

“Builders and land developers have been so focused on meeting the demand that has been brought forward by the grant, that they have largely ignored their new business pipeline.

“I believe by mid-next year, at least, we will see the industry scrambling to try and find buyers,” Ellis says.


Article Source: www.theurbandeveloper.com

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Where to find Australia’s most affordable and liveable suburbs: PRD report

Middle-ring suburbs across the country’s capital cities are the best bet for house hunters seeking both affordability and liveability, a new report has found

Rapidly rising property prices in Australia have seen premiums climb for desirable pockets, but liveable suburbs are not completely out of reach for those on more of a budget, the latest PRD Affordable and Liveable Property Guide shows.

The report identified suburbs to watch within a 20-kilometre radius of the Sydney, Melbourne and Brisbane central business districts, and within 10 kilometres of the Hobart city centre.

Suburbs had to have relatively affordable median prices, decent rental yields and a high estimated value of future project and infrastructure development – to ensure the suburbs showed signs of sustainable economic growth. They also had to have low crime rates, an unemployment rate on par with, or lower than, the state average, and proximity to amenities like schools, public transport, shopping centres, green spaces and health services.

“It’s not just about living in the cheapest suburb,” PRD chief economist Diaswati Mardiasmo said of the report. “But also about being able to live in a suburb that is well serviced by public transport, amenities and everything you need [for the most affordable price point].”

Finding suburbs that met the criteria had become increasingly challenging in the current market, Dr Mardiasmo said, with the number of such suburbs in Sydney, Melbourne and Brisbane halving over the past six months. However, there were still some pockets where good liveability cost less of a premium.

Here’s where buyers should cast their gaze in each of the included cities.

Suburb Median price Rental yield Future projects
Sydney Cromer $812,500 3.4% $3.0M
Peakhurst $751,000 3.9%  $31.5M
Mortdale $657,250 4.3% $4.5M
Melbourne Truganina $446,000 3.9% $1.9B
Greenvale $590,000 5.8% $9.5M
Hadfield $600,000 3.5% $8.9M
Brisbane McDowall $423,000 5.4% $33.9M
Gordon Park $440,000 5.6% $3.0M
Kedron $449,000 5.6% $11.7M
Hobart Oakdowns $550,000 5.3% $6.0M
Moonah $480,000 5.3% $1.8M
Glenorchy $410,000 5.3% $10.6M
Source: PRD Affordable and Liveable Property Guides 2nd Half 2021.

Brisbane had the largest proportion of houses available for buyers with lower to middle budgets, with more than a quarter of sales within the metro region this year below $700,000. However, Brisbane buyers need to spend more of a premium to purchase in a liveable suburb.

While Brisbane, along with Hobart, was typically thought of as a more affordable capital city, many of the lower-priced suburbs failed to satisfy other criteria such as liveability, investment return and future project development, the report noted.

The top selections were largely to the city’s north, with the exceptions of Birkdale and Oxley.

Australia’s most affordable and liveable suburbs

Gordon Park was among the Brisbane picks for apartment buyers. Photo: Tammy Law 

“Many people think that when they need to go to an affordable place, they need to go to the northern part of the city … but Oxley is in the southwest and Birkdale is in the east,” Dr Mardiasmo said, adding that more established areas were often overlooked for newer suburbs where buyers knew prices would be lower. 

Both Birkdale ($720,000) and Oxley ($695,000) were more expensive than Bracken Ridge ($624,000) in the north, which was the third pick for house hunters.

The north is also where those after an apartment should look, with McDowall, Gordon Park and Kedron making the list. Each had a median unit price below $450,000 – a price tag that 45 per cent of Brisbane metro apartments sold below this year.


The cost of liveability, particularly for house hunters, remains the highest in Hobart, where residents need to pay the largest premium for liveable suburbs. Low supply meant many of Hobart’s liveable suburbs were priced above the city’s median, meaning they failed the affordability test, the report noted, while more affordable suburbs did not pass the liveability criteria.

“The perception of Hobart being the most affordable place have changed, we’re seeing record-breaking sales and a lot of it is to do with little supply, ” Dr Mardiasmo said. 

Australia’s most affordable and liveable suburbs

Berriedale in Hobart has a median unit price of $480,000, according to PRD figures. 

Oakdowns, about a 20-minute drive from the CBD, made the top picks for both house and units, with medians of $595,000 for houses and $550,000 for units.

Howrah ($705,000) and Berriedale ($480,000) were also among the picks for house-hunters, while Moonah ($480,000) and Glenorchy ($410,000) were selected for apartment buyers.


Article Source: www.domain.com.au

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Friday 26 November 2021

Aniko push on with further Hope Island apartment development

The two-building development will adjoin their Athena Residences, which recently secured approval from the Gold Coast City Council.

The prominent Hope Island developer, Aniko Group, has laid out further residential apartment plans for the ever-growing island precinct.

Aniko, led by George Mastrocostas, has sought approval for a further 185 apartments on the 9,279 sqm site at 10-12 Sickle Avenue that was acquired earlier this year.

The two-building development will adjoin their Athena Residences apartment development at 6-8 Sickle, which recently secured approval from the Gold Coast City Council.

Aniko has had their go-to architecture firm, the local Archidiom, created plans for the two mid-rise buildings, focused around a central recreation area feature a pool, gym, theatre, residents lounge and outdoor seating and lawns.

Tower A will have 98 apartments, a mix of 86 two-bedroom units and 16 three-bedroom apartments. Tower B will home 87 two-bedroom apartments.


The proposed apartments at 10 Sickle Avenue. Image credit: Archidiom 

Town planner Zone Planning Group said the proposal is expected to act as a catalyst for the establishment of further higher density development within Hope Island and will assist in ensuring that a portion of the planned density lost to the nearby lower density developments is achieved.

At the time of purchase, Mastrocostas said the site would be suited to a high-density apartment precinct, comparing it to their nearby $140 million 1 Grant Avenue project, which is all sold out.

“We’re delighted to have put a foothold on another premium waterfront site in Hope Island and we are looking forward to adding a spectacular project to support the demand for apartment living in the area,” Mastrocostas said.

“The site is very large and offers unfettered access to the Hope Island Canal and The Broadwater and we believe it would be suited to a luxury apartment project to complement what we have already created at Hope Island.”

The development is Aniko’s fifth on Hope Island.


Article Source: www.urban.com.au


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Indooroopilly to welcome luxury apartment development, Ethereal Residences

North Managing Director, Scott Ginnivan, said the vision for Ethereal Residences is to deliver an exceptional standard of architecture to Brisbane’s inner west that celebrates its elevated position

A new architectural landmark is set to rise above Swann Road in Indooroopilly after receiving planning approval from Brisbane City Council.

Located at 97 Swann Road, Ethereal Residences by North is a cross-studio collaboration between Rothelowman, Carr Design and Form Landscape Architects and will deliver a collection of 46 two- bedroom, two-bedroom plus multi-purpose room, and three-bedroom apartments.

The low-rise building forms are terraced down the hillside to maximise outlook, orientation and privacy, with direct street frontage to Swann Road, Burns Street and Rennie Street.

North Managing Director, Scott Ginnivan, said the vision for Ethereal Residences is to deliver an exceptional standard of architecture to Brisbane’s inner west that celebrates its elevated position.

Ethereal Residences

Ethereal Residences 97 Swann Road, Indooroopilly QLD 4068 

“For Ethereal Residences, we have brought together three highly respected design houses to create a concept worthy of its premium inner west location,” Ginnivan said.

“The site is surrounded by low density zoning and a beautiful, quintessentially Brisbane landscape and it was important to us that final design outcome was of a scale and design that complemented the area.

“The draped, scalloped balustrades are a key architectural feature that amplifies the sense of panorama, curating views to both the Brisbane CBD and across established, leafy suburbs towards to the Border Ranges and Mount Barney.

“Here, large balconies provide a sense of generosity and space that feels more like a verandah on a house and enables the building to ‘breathe’.”

Ginnivan said Brisbane’s suburban property market has matured significantly in recent years and with this has come high expectations for design and value.

“Good architecture is all about authenticity and creating places where people want to live,” he said.

“The market’s expectations are high and there’s a maturity and appreciation for design that wasn’t here five years ago.

“Ethereal Residences delivers a premium collection of residences for owner-occupiers and downsizers, with the advantages of highly considered and curated design throughout.”

Ethereal Residences is located 2.8 kilometres from the University of Queensland, 1.4 kilometres from Indooroopilly Shopping Centre and 7.5 kilometres from the Brisbane CBD. It is also located only minutes from Ironside State School, St Peters Lutheran College, Brisbane Boys College, and Brigidine College.

Private resident amenities include a plunge pool, barbecue area and extensive landscaping.

Ethereal  will be formally launched to the market by Colliers International in early 2022.


Article Source: www.urban.com.au

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Gurner, Qualitas Raise $1.2bn Build-to-Rent War Chest

Developer Gurner and capital investment partner Qualitas have successfully closed off a capital-raising campaign with almost $1.2 billion in the can for their joint build-to-rent platform.

The group aimed to raise $1 billion, which was cornerstoned by an unnamed global institutional investor alongside co-investment from Qualitas and Gurner.

The $1.2-billion war chest will be used to fast-track the construction of 1700 apartments and fund the acquisition of further build-to-rent assets in Sydney, Melbourne and Brisbane.

The group aims to build more than 5000 apartments during the next few years.

The first build-to-rent project under the joint platform will be the recently announced $450 million Parramatta project, a 385-apartment 61-storey tower on a 2049sq m site.

Gurner founder Tim Gurner said it had been “humbling” to witness strong support for the capital raise campaign.

“The capital markets for build-to-rent right now are extremely competitive, and being able to secure this funding against such competition to launch our platform is very exciting,” Gurner said.

“With majority of the capital now allocated we will soon be commencing another round of capital raising in the coming months as we look to aggressively grow the size of the fund, and as we prepare to commence construction across various projects in the next 12 months.

“We have an ambitious plan for what we want to achieve in the build-to-rent space, and look forward to focusing on delivering a product that will provide a genuine point of difference to the sector.”

Gurner said their build-to-rent assets would be targeting buyers who wanted the “service and amenity of a five-star hotel” in a luxury home setting.

“We are now heavily focused on the Sydney market in particular for further sites to build the portfolio. With market penetration across the eastern seaboard we can create the largest and most sought-after platform in Australia, which is certainly our ambition.”

Qualitas global head of real estate Mark Fischer said the overwhelming response to the capital raising had signalled a strong belief in the future of the build-to-rent sector.

“Across Australia we are anticipating strong and growing demand for high-quality build-to-rent assets as population growth and declining home ownership drive the need for quality rental stock,” Fischer said.

“The scale of our debut capital raising in the build-to-rent sector and its support from blue-chip institutions is vindication of our decision to pursue a fully vertically integrated model for build-to-rent.”

Fischer said the group had quickly put the capital work on current projects and would look to carry out a second fund raising early next year. He said the asset class provided “defensive and resilient cashflows”, which was attractive to global institutional investors.

The group’s first build-to-rent project, on the site of the former Parramatta PCYC at 12 Hassall Street, was acquired for about $70 million, taking over from Toplace and building on the developer’s 2017 plans for the site.

In September 2021, they teamed up with Newmark Capital to turn Melbourne’s Jam Factory into a $1.5-billion mixed-use precinct.


Article Source: www.theurbandeveloper.com

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Brisbane Prices Predicted to Catch Up with Sydney, Melbourne

Brisbane property prices will start to catch up to Melbourne and Sydney’s regardless of what happens with inflation and interest rates rises.

An upsurge for prices in the Queensland capital is tipped as an outcome of four 2022 scenarios released by SQM Research in Christopher’s Housing Boom and Bust Report.

The forecasting showed property prices would slow next year, agreeing with the big four banks’ predictions, however, some cities would fare better than others.

Brisbane would record the largest dwelling price rises during 2022, supported by expected strong interstate migration flows and relatively good housing affordability.

The price falls would be led by “overvalued” houses in Sydney and Melbourne, as they were sensitive to even minor intervention by the banking regulator, the Australian Prudential Regulatory Authority.

The scenarios

Scenario 1: the cash rate would remain unchanged, quantitative easing would scale back, headline inflation at 3 to 5 per cent and further APRA action would happen by June 2022.

Scenario 2: second half year cash rate rises 0.25 to 0.50 per cent, quantitative easing would scale back, headline inflation at 4 to 6 per cent and further APRA action would happen by June 2022.

Scenario 3: the cash rate would remain unchanged, quantitative easing would scale back, headline inflation at 3 to 5 per cent and there would be no APRA action.

Scenario 4: cash rate rises 0.25 to 0.50 per cent in the first half of the year, quantitative easing would scale back, headline inflation at 4 to 6 per cent and further APRA action would happen by March 2022.

Capital city dwelling price change forecasts

City Scenario 1 Scenario 2 Scenario 3 Scenario 4
Perth +3 to +7% +2 to +6% +5 to +10% +1 to +6%
Brisbane +8 to +14% +8 to +14% +9 to +16% +3 to +6%
Darwin -4 to +1% -5 to 0% -2 to +4% -6 to +1%
Melbourne -4 to +1% -5 to 0% -2 to +4% -6 to +1%
Sydney -2 to +4 % -3 to +3% +3 to +8% -7 to -2%
Adelaide +4 to +8% +4 to +8% +6 to +11% +1 to +6%
Hobart -3 to +2% -4 to +1% +2 to +7% -5 to 0%
Canberra +5 to +9% +5 to +9% +7 to +12% +1 to +6%
Capital cities weighted average 0 to 5% -1 to +4% +3 to +8% -4 to +1%

^Source: SQM Research

The modelling also predicted home prices in regional Australia would correct, particularly for inland communities, as people returned to the capital cities.

Meanwhile, rent would rise in all capital cities over and above the consumer price index.

SQM Research managing director Louis Christopher said the housing market was already showing signs of passing its peak.

“If the Australian housing market does not slowdown by mid-2022, APRA will likely keep intervening in home lending until the market does slowdown,” Christopher said.

“We cannot afford another year of 20-per-cent-plus gains across the national housing market.

“And so, to ensure a soft landing for the market, it is best we see additional intervention sooner rather than later to rein in property valuations.”

The Reserve Bank of Australia has said interest rates were likely to hold in 2022 but APRA intervention could occur as early as next month.


Article Source: www.theurbandeveloper.com

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Thursday 25 November 2021

Gold Coast new apartment sales hit all time high: Urbis

The weighted average sale price in the third quarter eased to $883,478, slightly down from the recent $1 million-plus

New apartment sales on the Gold Coast have hit an all-time high, officially making 2021 the hottest market since property consultancy Urbis began monitoring the sector.

The number of apartment sales for the September quarter surged to 690, bringing the total of new apartments sold on the Gold Coast in the first nine months of this year to 1,882.

Owner-occupiers continue to account for the majority of sales, totalling 61 per cent in the September quarter.

This figure has already eclipsed the previous full-year record of 1,556 sales in 2016.

La Mer

La Mer 3580 Main Beach Parade, Main Beach QLD 4217 

The Urbis Apartment Essentials report noted based on the September sales rate, only 2.2 months’ supply of new apartments remain available on the market should no new projects be released.

“This is the lowest supply level ever recorded by Urbis for the Gold Coast and is down from 4.2 months’ supply recorded in the June quarter,” said Urbis senior consultant Lynda Campbell.

“Record high demand is meeting record low supply, which has led to the most acute shortage of new apartments ever experienced on the Gold Coast.”

Just 517 apartments remained for sale at the end of September, down from 624 at the end of June.


Mirador, Chevron Island 8 Mawarra Street, Surfers Paradise QLD 4221 

These figures compare to 2,594 at the end of June 2018.

More than half of these, 335, were located in the Gold Coast Central precinct, comprising Labrador, Southport, Main Beach, Surfers Paradise and Broadbeach. However, the Southern Beaches from Mermaid Beach to Tweed Heads had the lowest supply with just 45 apartments.

“All Gold Coast precincts are in major undersupply, and some areas will remain so despite a number of big projects in the wings expected to be launched over the next three to nine months.”

According to Urbis, nine new projects comprising 774 apartments were launched in the September quarter, with two of these selling out within the three months. They were among 16 projects that sold out during the quarter.

Aperture Broadbeach 20 Mary Avenue, Broadbeach QLD 4218 

Urbis is now monitoring 59 new developments across the Gold Coast, down from a high of 84 in the fourth quarter of 2019.

The weighted average sale price in the third quarter eased to $883,478, slightly down from the $1 million-plus figures of the first two quarters of this year as sales increased in the more affordable precincts of Coastal Fringe and North Shore.


Article Source: www.urban.com.au

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Australian housing market set to peak in early 2022 before prices fall

Australia’s white-hot property market is set to reach its zenith by early 2022, according to a new report.

SQM Research’s Christopher’s Housing Boom and Bust Report 2022, released on Thursday, forecasts that dwelling prices across the nation will then drop in the second half of next year, most likely as a result of further intervention by the Australian Prudential Regulation Authority (APRA) banking regulator, which could happen as soon as December this year.

“Our expectation is that the serviceability buffer rate will go from three per cent, maybe up to 3.5 per cent,” said Louis Christopher, managing director of SQM Research. “And/or APRA will announce some specific actions specifically targeted towards investors, because at the moment it’s the investor market which is largely driving prices up.”

The report said the biggest price shrinkages would be felt in the Sydney and Melbourne property markets, which Mr Christopher believed were the most overvalued and, historically, the most susceptible to home lending restrictions.

Australian housing market

Brisbane is tipped to be the biggest winner in Australia’s real estate market in 2022. Photo: iStock/Yongyuan Dai 

While Australia’s first and second-most populous cities will witness the greatest cooling and regression in prices, it is Brisbane that is forecast to dominate dwelling value growth in 2022. The city is tipped to increase by eight to 14 per cent.

Mr Christopher said Brisbane would also be affected by APRA intervention, but to a lesser degree.

“There still will be a slowdown, but Brisbane is roaring ahead at the moment with 22 per cent growth at this point in time,” he said. “So Brisbane will be impacted by APRA intervention, but not to the extent that Sydney and Melbourne houses will be.

“And the reason why we say that is for two specific factors: firstly, Brisbane house prices, while being overvalued by our measurements, are nowhere near as extremely overvalued as Sydney and Melbourne at this point; and secondly, we’re expecting ongoing migration outflows from Victoria and, to a lesser extent, New South Wales, into Queensland all through next year, and that will create an increase in underlying demand.”

While interstate migration away from Sydney and Melbourne could impact its real estate sectors well into next year, Mr Christopher said, it could be slightly offset by overseas migration.

“While there will be negligible increases in underlying demand in Victoria and New South Wales, there will be a pick-up from an increase in net overseas migration, which typically goes to Sydney and Melbourne first,” Mr Christopher said.

The return of international migration, coupled with relative affordability and supply compared to houses, would translate to more significant price growth of units and apartments in Sydney and Melbourne, he said.

Interest rates are also predicted to remain unchanged until at least until the end of 2022, which is in line with the recent decision by the Reserve Bank of Australia (RBA) to keep the cash rate at 0.1 per cent, and a recent statement that the RBA’s board “will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range”.

But Mr Christopher was quick to point out that any serious increase in inflation next year could result in the RBA lifting interest rates sooner than expected.

“We’re very confident inflation is going to rise next year,” he said. “If the headline inflation rate stays within three to five per cent, perhaps the RBA will try and hold, but if it heads towards six per cent, I think the RBA will be forced to move.”


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Apartment price growth could outperform house price growth in 2022: SQM

SQM Research’s base case forecast is for property prices to rapidly slow from the current annual 20%-plus growth rates

The national housing market is starting to show signs of a peak, according to the SQM Housing Boom and Bust Report 2022.

But 2022 should see a turnaround in the unit rental markets and unit price growth could outperform that of houses.

“With houses being overvalued, apartments are relatively affordable and are expected to be in greater demand from an expected rise in net migration from interstate and overseas with Australia’s border now open,” Louis Christopher, managing director of SQM Research said.

“As 2021 draws to a close, the national housing market is starting to show signs of a peak.

“Auction clearance rates have fallen from their highs amid record listings.

“However, we may also be recording some seasonality and pent-up selling after vendors held off listings during the lockdown.

“Nevertheless, we expect the market to peak in 2022, with further expected intervention by APRA, which could come as early as next month, halting the price momentum.”

SQM Research’s base case forecast is for property prices to rapidly slow from the current annual 20%-plus growth rates.

The research house expects a slower rate of price rises over the first quarter of 2022, followed by price falls as early as mid-2022.

The price falls will be led by Sydney and Melbourne houses, given a significant overvaluation.

“These cities are the most are sensitive to even minor intervention by the banking regulator, the Australian Prudential Regulatory Authority (APRA) in home lending,” SQM boss Louis Christopher said.

SQM Research forecasts Brisbane will record the largest dwelling price rises over 2022, with prices predicted to rise between 8% to 14%, with prices supported by expected strong interstate migration flows given relatively good housing affordability compared to Sydney and Melbourne.

“This gain will nevertheless represent a slowdown compared to 2021 increases,” he said.

“If the Australian housing market does not slowdown by mid-2022, APRA will likely keep intervening in home lending until the market does slowdown.

“We cannot afford another year of 20%-plus gains across the national housing market.

“And so, to ensure a soft landing for the market, it is best we see additional intervention sooner rather than later to reign in property valuations.”


Article Source: www.urban.com.au

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Inside Pearl, Main Beach apartments, designed to take in extensive views

Apartments, and the extensive amenity, all have floor-to-ceiling windows, to take in views either of the beach and the Gold Coast Skyline, or back to the hinterland

Pearl Main Beach is set to soar 31 levels in to the sky from its prime Main Beach Parade location when it is completed in mid-2022.

The apartment tower of just 80 residences, which has two and three-bedroom apartments which start from 95 sqm, was designed with a nod to its position just across the road from the beach.

Apartments, and the extensive amenity, all have floor-to-ceiling windows, to take in views either of the beach and the Gold Coast Skyline, or back to the hinterland.

Pearl Main Beach

Pearl Main Beach 3550-3552 Main Beach Parade, Main Beach QLD 4217 

The brief was to create a statement entry, starting the luxury resident journey as early as possible.

An American design firm, who specialises in six-star international residences, created the luxury lobby, with a brief to set the scene of the luxury that Pearl will bring residents.

There’s soothing pearl hues, accented by high-end finishes, as well as opalescent accent walls and a true hotel-style concierge desk.

Every apartment has a balcony to capture the views. They act as an extension of the open plan kitchen, living and dining area, which acts as the hub of the apartments.

The kitchen is the heart of the apartment. Designed with a crisp white palette, the kitchen’s are fitted with stone benchtops and Miele appliances, and offer the ultimate open plan space, with an island bench with sink facing the living area.

Bedrooms are set away from the living space, but also feature full-height glass for sunrise and sunset.

The considered internal design includes well-appointed ensuites and walk-in robes.

Residents will have high-end amenity throughout the tower, the most impressive the rooftop swimming pool and recreational facilities with skyline views.

On the same level is a dining area with wine cellar, available for private bookings.


Article Source: www.urban.com.au

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Games a decade away, but Gabba cashing in as best for investment

The home of the 2032 Olympics, Woolloongabba, has been named as Australia’s top suburb for real estate investment, beating Burleigh Heads and some far more glamorous Gold Coast suburbs.

A report from BoQ subsidiary ME Bank has found the top 20 suburbs in Australia for investment, a list that is dominated by Sydney but topped by Queensland.

The key factors were how new transport infrastructure would re-shape the investment landscape across the range of suburbs; average rental yields; recent population growth; median house prices, and average rental prices together with lifestyle appeal measurables such as the availability of coffee shops and cafes.

Mermaid Beach came in at 17th, Miami 18th and Fairfield at 20th.

ME’s consulting demographer Chris McNeill, from Ethos Urban, said a common theme that stood out was the huge impact that new transport infrastructure was having on creating investment opportunities in a suburb.

“Add to this the exciting atmosphere in Logan Road, its rapid population growth and steady house price growth, it really does offer a unique opportunity for those looking to invest in the residential property market,” said McNeill.

ME general manager John Powell said the list would provide quality information to help investors narrow their property search and find the ideal investment.

“In addition to the coveted title of ‘Australia’s best place to invest’, Queensland is home to a quarter of the suburbs in the top 20,’’ Powell said..

“Queensland’s investment in both Woolloongabba and the Gold Coast has been key,” McNeill said.

“The new Cross City Rail and the Burleigh Heads Light Rail will turbocharge value along the picturesque coast line of the Gold Coast, adding to its already valuable apartment living and growing retail focus, creating greater connectivity to both the Coolangatta (including Airport) and Surfers Paradise for the three Gold Coast suburbs of Burleigh Heads, Mermaid Beach and Miami.”


Article Source: inqld.com.au

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Wednesday 24 November 2021

Woollongabba apartment precinct pinpointed as Australia’s best investment spot: ME Bank

New research from ME Bank suggests investing in suburbs with new or upgraded transport links

ME’s list of the top 20 places to invest is dominated by apartment and townhouse focused buying in capital cities across the country.

The new research from ME Bank suggests landlords are best off investing in suburbs with new or upgraded transport links – with Woollongabba topping the list.

Analysis of the best places to invest found NSW dominated the top 20 rankings, claiming nine spots, followed by Victoria and WA, with three suburbs each and Queensland with two.

Woolloongabba is located in Brisbane’s thriving inner east.

Silk Lane

Silk Lane 8-12 Trafalgar Street, Woolloongabba QLD 4102 

Woolloongabba is serviced by two train stations and the new Cross City Rail Project will provide a new line running directly under the suburb.

The report noted an exciting atmosphere in Logan Street.

Australia’s top 20 best places to invest are:

1 Woolloongabba QLD Apartment
2 Burleigh Heads QLD Apartment
3 Five Dock NSW House
4 North Melbourne VIC Apartment
5 Rozelle NSW Townhouse
6 Ellenbrook WA House
7 Parramatta NSW Apartment
8 Crows Nest NSW Apartment
9 Preston VIC House
10 South Melbourne VIC Apartment
11 Yanchep WA House
12 Waterloo NSW Apartment
13 Coffs Harbour NSW House
14 North Sydney NSW Apartment
15 Pyrmont NSW Apartment
16 Claremont WA House
17 Mermaid Beach QLD Apartment
18 Miami QLD Apartment
19 Concord NSW House
20 Fairfield QLD House

ME commissioned the new research from Ethos Urban, a national planning and urban economics consultancy, using qualitative and quantitative criteria.

The best investment prospect factors included how new transport infrastructure would re-shape the investment landscape across the range of suburbs; average rental yields; recent population growth; median prices; and average rental prices together with lifestyle appeal measurables such as the availability of coffee shops and cafes.

New South Wales’s nine spots inclued Five Dock (#3), Rozelle (#5), Parramatta (#7) and Crows Nest (#8).

“Key transport infrastructure projects like the Sydney Metro South West Project will enhance connectivity to the CBD from areas including North Sydney and Crows Nest, bolstering the already well-established apartment market and coffee scene,” the report said.

“Five Dock, Rozelle, Parramatta, Pyrmont (#15) and Concord (#19) will significantly benefit from the high-speed, high-frequency metro line connecting them to the Sydney CBD.

Victoria claims three spots in the top 10 with North Melbourne boasting fourth position as the North Melbourne underground will connect with Melbourne Central, Melbourne University and Flinders Street, while incorporating in the Arden Street Precinct Structure Plan.

Preston (#9) just pipped South Melbourne (#10) with its connectivity to Albert Park, good investment returns and capital growth, and lively coffee culture.

There were three Gold Coast suburbs on the list including Burleigh Heads (#2), Mermaid Beach (#17) and Miami (#18).”

Sea 96 The Esplanade, Burleigh Heads QLD 4220 

WA secured three top 20 spots including the new growth area of Ellenbrook (#6), with its wineries and masterplan estate, then Yanchep (#11) and Claremont (#16) in Perth’s leafy western suburbs which will benefit from the Claremont station upgrade, “making it for a perfect residential apartment investment opportunity,” the report noted.


Article Source: www.urban.com.au

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