The interstate developers lighting up the Gold Coast apartment market

Everyone has wanted a piece of the Gold Coast in 2021, both developers and buyers, interstate and local

Everyone has wanted a piece of the Gold Coast in 2021, both developers and buyers, interstate and local.

GV Property Group agent Luke Reaby, who sells amalgamated sites to developers across the whole of the Gold Coast, says the number of interstate developers interested in apartment sites went through a noticeable shift in 2021.

“Around half of our sales over the year went to interstate developers,” Reaby said.

“Most, if not all of the developers we’ve spoken to who secured a site in 2021 have already secured a second or even third site, or are otherwise still on the hunt for another given the pent up demand for new apartments. However, given the lack of sites availble in desired locations such as Broadbeach, Mermaid Beach, Burleigh Heads, Palm Beach and Coolangatta, most are struggling to find prime land.

“Their belief is that the Gold Coast apartment market will thrive for years to come which is partly due to the interstate migration, affordability, proximity to the beach and of course the lifestyle.”

We’ve taken a look at the Sydney and Melbourne-based developers who have made their mark on the Gold Coast.

Hirsch & Faigen

It was a stellar debut 2021 on the Gold Coast for the Melbourne-based developer Hirsch & Faigen.

Their first project, Hemingway at Palm Beach, sold out all of its 78 apartments in a matter of months earlier this year.

They’ve sold over 60 per cent of their luxury Kirra Beach apartment development, Emerson, a collection of just 27 apartments on Musgrave Street.

Emerson Kirra
100 Musgrave Street, Coolangatta QLD 4225 

Now the team, led by Daniel Faigen and Richard Hirsch, has launched Yves, a rare development in the sleepy Mermaid Beach.

Yves, again designed by Rothelowman, who has handled each of Hirsch & Faigen’s Gold Coast developments, will comprise three 25-level towers. They will home a total of 145 apartments.

Yves 7-9 Mermaid Avenue, Mermaid Beach QLD 4218 

The building’s are crowned with outdoor rooftop seating, with the residential amenity located in the shared lobby, which Rothelowman designed as a greenhouse to create a suburban feel.

There will be a north-facing swimming pool as the centrepiece, as well as a pool and yoga deck, a gym, sauna, recreation lounge and barbecue seating.

The design is also a nod to the history of coastal masonry walk ups.

Faigen said Mermaid is still the best suburb on the Gold Coast, with the millionaire’s row Hedges Avenue fronting the beach. He said the apartment towers of this size fit the location better than the sites of their previous two developments.

Macquarie York

The Sydney-based developer Macquarie York aren’t new to the Gold Coast, but have really put their stamp in 2021.

Having nearly sold out their first Gold Coast project, Allure on Chevron Island, Macquarie York, led by managing director Roy Skaf, has two projects currently in market which they’ll be selling in to 2022.

One is another on Chevron Island. Niña, less than 200 metres from Allure, will home 73 apartments in a 22-level building designed by Plus Architecture.

Nina, Chevron Island 8-10 Parneno Street, Surfers Paradise QLD 4217

Plus Architecture, led locally by Danny Juric, cleverly designed Niña so every apartment can capture views of the ocean.

They call Niña’s design “coastal sophistication with barefoot luxury,” with one of the main design drivers the timeless curves, which will stand the test of time.

Macquarie York also have Ocean House, a luxury collection of apartments at Palm Beach, each with three bedrooms, a multi-purpose room, and 200 sqm of living area.

The development has been designed by the local architecture firm BDA Architects, who say the striking building is sculpted from inspiration from the surrounding natural environment of the movement of water and sand.

Ocean House 1101 Gold Coast Highway, Palm Beach QLD 4221 

Little Projects

The Melbourne-based Little Projects branched out to Queensland a few years ago with their first project, Signature at Broadbeach, but really kicked in to life in 2021.

Following the sell-out of Signature, some 245 apartments, Little Projects tailored their next project to the high demand for luxury owner-occupier apartments. Their latest Broadbeach development, Aperture, has been a huge hit with buyers locally and interstate.

Aperture Broadbeach 20 Mary Avenue, Broadbeach QLD 4218 

Aperture has just 29 apartments across the 35 levels, with 26 full-floor apartments with three bedrooms, three bathrooms and three parking spaces.

They start from $2.1 million, with every level of the 120 metre building offering uninterrupted ocean views from the balcony off the living area.

Speaking to Urban, Pyke says the team have a firm belief in the longevity of the Gold Coast apartment market, and are working towards securing more development sites heading in to 2022.

Iris Capital

Iris Capital were another making their move on the hot Gold Coast market in 2021. They recently launched their $800 million apartment project Victoria & Albert.

V&A will have over 400 apartments across its two towers, which share a subtropical recreational podium, two levels of premium offices and commercial facilities and a fresh food and dining retail on the street level.

Victoria & Albert 12-18 Albert Avenue, Broadbeach QLD 4218 

Iris, who are behind the $350 million redevelopment of the iconic Bourbon and Beefsteak Hotel in to 48 luxury apartments at home in Sydney, are heading in to 2022 with another local site secured, on the dress circle Garfield Terrace.

Arnaout said Iris Capital has been looking to expanding its operations outside of NSW for some time, initially exploring a move into Victoria.

“However, the way the market is heading and how buyers have responded to south-east Queensland has definitely driven our decision to expand further north as opposed to Victoria,” Arnaout said.

“The onslaught of investment and migration into south-east Queensland, the prospect of the Olympics in 2032 and regional growth over the next decade have certainly changed our strategic focus. For us, it’s a no brainer.”

Gurner

Tim Gurner swooped on the Gold Coast in 2021, securing the Ferny Ave block owned by the collapsed Ralan, who had planned for two towers on the sprawling Budds Beach site.

In early 2022 GurnerTM will be launching the first stage of the $1.25 billion. Dubbed La Pelago, the 11,000 plus sqm space will now have four towers with nearly 1,000 apartments, around a quarter dedicated to a hotel.

La Pelago, likely named after the small commune in Italy, centralises on a private island theme, where each building is surrounded by over 9,000 sqm of amenity, lush tropical landscaping by SWA and pool-side water retreats, creating four private islands.

Gurner has appointed ICON to build the first 68-level tower. The build price is estimated to be over $350 million, and will take just over three years to complete.

Abadeen

Sydney’s Abadeen Group launched their first project to the Gold Coast in 2021, starting in Palm Beach where they are developing Villea.

The 69-apartment tower at 26 Mawarra Street was a hit with local owner-occupiers and first home buyers, given its more affordable entry price compared to other projects in the area.

Villea Palm Beach 26 Mawarra Street, Palm Beach QLD 4221 

Justin Brown, the CBRE chairman who founded Abadeen over two decades ago, said the company was delighted to have purchased such a strategic site to enter the Gold Coast market.

“We are extremely excited with the purchase in what we believe is one of Australia’s premier beachfront locations,” Brown said when Villea launched earlier this year.

“We know the market is running very strongly on the southern Gold Coast, in Palm Beach particularly, and believe the market is primed for this project.”

Macquarie Developments

The Sydney-based Macquarie Developments Group made a big move on the Gold Coast, having secured approval to develop the tallest tower in Broadbeach.

The Gold Coast City Council gave the development the green light, after Macquarie amended the approved application after they bought the site in October through GV Property Group.

Macquarie Developments Group has altered the development approval that they inherited back in 2016, which was for a 42-level tower.

Assana will now rise a further 11 levels, but will have considerably less apartments, down from 186 to 146, a move which sees the developer cater to growing trend of bigger apartments for the owner-occupier.

The slender, 52-level Assana, at 15 Rosewood Avenue, will be the tallest tower in Broadbeach, topping the nearby The Oracle Beach Tower, which peaks at 50 storeys.

Head of Development and Construction Peter Galvin said his team worked closely with Gold Coast City Council, Gold Coast-based Urban Planning Services, and award-winning architects SJB, to achieve a successful outcome.

“We wanted to improve on the existing DA because we felt we could deliver a better outcome for everyone – for us, the community, and future residents,” Galvin said.

Pask

The Melbourne property developer Pask has been in Brisbane for a while, developing greenfield sites around the capital for a number of years.

But they announced themselves on to the Gold Coast in 2021 when they launched Esplanade, its luxury Palm Beach apartment development on the sought-after The Esplanade.

Strong demand from buyers has seen half of the 16 residences snapped up prior to the project’s retail sales launch.

NPA Projects Director Andrew Erwin saying he’s seen interest from Gold Coast locals, as well as from Brisbane, and Melbourne.

“Great design and quality craftsmanship are what Pask are well-known for in Melbourne,” Erwin says, highlighting their work at the Millswyn, a collection of eight luxury apartments, two penthouses and a restored heritage residence in South Yarra’s exclusive Domain precinct.

Weiya Holdings

The Sydney developer Weiya Holdings has nearly sold out its first Gold Coast apartment development, DE-LUXE, the apartment redevelopment of the 1930s cinema and Old Burleigh Theatre Arcade in Burleigh Heads.

The ground level and arcade will be retained and restored, and will see 13 levels of luxury apartments built above the space.

Just a few apartments remain in the Goodwin Terrace development, which could home Queensland’s most expensive penthouse if the lavish spread fetches the $23 million asking price.

Their next project in the GC is Aalto, a 38-level luxury high-rise development on their recently acquired $50 million block of land at 75-79 Garfield Terrace, right on Northcliffe Beach.

Sammut

The Sammut Group has been operating in the luxury residential apartment space in Sydney’s Sutherland Shire region for the best part of three decades.

They made a name for themselves on the Gold Coast in 2021 with their near sell-out of their first project in Queensland, Coast, on the sought-after Garfield Terrace in Surfers Paradise.

Within weeks of lodging its development application earlier this year, it sold more than half of the 43 beachfront apartments.

“The kind of swift sale is unlike anything I have experienced in my 35 years in the industry,” Sammut Group CEO and co-founder Allen Sammut said.

There were sight unseen, full-floor apartment purchasers from Sydney and Melbourne in recent weeks. The project is set for completion in late 2023.

 

Article Source: www.urban.com.au

 

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Iris Capital lodge Surfers Paradise apartment plans for 71 on Garfield

The project, 71 on Garfield, named after its prime location at 71-73 Garfield Terrace which Iris secured earlier this year, will have 51 apartments

The hotly anticipated development of Garfield Terrace is heading in to 2022, with further plans submitted to the Gold Coast City Council for a luxury apartment tower.

Following the submission by the Sydney-based Weiya Holdings, who plan to develop Aalto, a 64 apartment block at 75-79 Garfield, the fellow Sydney-based developer, Iris Capital, has lodged plans for their next development which sits next door.

The project, 71 on Garfield, named after its prime location at 71-73 Garfield Terrace which Iris secured earlier this year, will have 51 apartments across the 38-level tower, as well as a two level beach house.

DBI, who handled Iris Capital’s recently launched Victoria & Albert in Broadbeach, their first foray in to the Gold Coast apartment market, put together the plans for 71 on Garfield.

“Iris Capital is set to deliver a new breed of building, combining subtropical principles, fashion inspired design and a sky living experience,” DBI’s design statement read.

“71 on Garfield is designed exclusively for the coastal environment, moving away from smaller unit types and white upstands to embrace the increasing demand for large apartments and a new level of coastal sophistication.”

Another aimed at the high end holiday maker or owner-occupier, the smallest apartments on offer will have three bedrooms and span half a floor, oriented to have ocean-facing balconies.

They run over half way up the tower, before hitting the resident facilities on level 24 where there will be a swimming pool and pool deck, a gym with a sauna, and an outdoor barbecue and dining area.

Up to level 33 will be the full-floor, four bedroom apartments, each with a study and private plunge pool on the balcony.

The most impressive apartments are right on the top of the tower.

The five-bedroom subpenthouse spans two levels and has a larger plunge pool on the lower level balcony, an upstairs ocean-facing master retreat with a private balcony, study, two walk in wardrobes, and an ensuite. Each of the five bedrooms have walk in robes and ensuites.

Crowning the tower is a three-level penthouse, with the same floorplate as the subpenthouse, but with the addition of the rooftop, where a room, pitched as being suitable as a gym, lounge, or games room (complete with a sauna), opens to the outdoor area where there’s a swimming pool and outdoor kitchen.

The beach house starts from the ground level and has four bedrooms and two living areas across its two levels. There’s a pool that opens from the ground floor living space.

DBI said that narrow sites are challenging, which makes quality urban design principles more important than ever.

“Reclaiming direct visual connection between the street and the beach and enhancing permeability is essential,” the team noted.

“The aesthetic reveals the balance between fashion, craft, elegance and luxury. Soft edges and elegant curves help to soften the built form and create a distinctive ‘welcoming’ identity, at a macro scale to the city skyline and a micro scale at the pedestrian level.

“The timeless design and lines of the towers are highlighted by the metallic textured and crafted sculptural spine of the building dialogue with the elegance and simplicity of the glass volume.

“The materiality relates to a ‘decadent’, yet sophisticated, fashion icon and beach lifestyle.”

There development of Garfield Terrace is expected to continue in to the new year, with the Brisbane-based Siera primed to create a boutique tower. KTQ are also set to reveal what they intend to do with their huge amalgamated beachfront site.

 

Article Source: www.urban.com.au

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Cottee Parker Architects’ four best Queensland projects currently selling on Urban

“I wanted to create a strong legacy to leave behind, and I am extremely confident that I have done exactly that,” Cottee said.

Established in Brisbane in 1989 by Geoff Parker and Rob Cottee, Cottee Parker has evolved into a national practice with studios operating in Brisbane, Gold Coast, Melbourne, Perth and Sydney.

The firm, which combines “intellect and creativity with a skilful, sensitive approach to design”, has garnered recognition for their design outcomes.

“We design considering culture, environment and the human condition to produce responsive and sustainable solutions. We use our experience, skills and knowledge to create designs that work for clients and the community”, the multi-disciplinary practice said.

Past projects include Queens Wh​arf in Brisbane, one of Australia’s most ambitious cons​truction projects, and West Si​de Place in Melbourne.

“I wanted to create a strong legacy to leave behind, and I am extremely confident that I have done exactly that,” Cottee said.

Over 50 projects designed by the firm are currently listed on Urban. Below are four of our favourites that homebuyers can secure via Urban today.

1. Mirador, Chevron Island Developer: Citimark Properties

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

A unique blend of built form and nature, Mirador has been designed by Cottee Parker as part of the coastal identity of Chevron Island.

The 71 luxury residences respond to ocean views while reinforcing a coastal through a refined material palette including its white façade, bronze metal features and natural stone elements.

Two, three and four-bedroom apartments are generously sized with butlers’ pantries, island benches, wrap-around balconies and walk-in robes.

Extensive landscaping is also a key design feature, with cascading greenery softening the built form whilst providing a lush subtropical backdrop to the residential recreational spaces including the pool, gym, wellness and barbeque areas.

2. Seasons, Birtinya Developer: Cube Developments

Seasons Birtinya 1 Prosperity Drive, Birtinya QLD 4575

Cottee Parker has been engaged on a new residential project by Cube Developments that is certain to attract young property buyers.

Situated in the growing coastal suburb, Birtinya, Seasons is a trendy $102 million apartment development with almost 150 units in two, three and four-bedroom configurations.

Architect Sandra Brown said an emphasis on aesthetics, generously sized apartments and a number of amenities was expected to impress young buyers.

“We have focused on a range of materials to achieve a sleek, urban feel [with] timber, aluminium, plenty of greenery, as well as getting a lot of the off-form concrete into the design,” she said.

3. Nature by Cube, Cotton Tree Developer: Cube Developments

Nature by Cube 49 The Esplanade, Cotton Tree QLD 4558 

Nature, located in the small waterfront suburb of Cotton Tree, will deliver 12 luxury residences.

Designed by Cottee Parker, the development sits high above the Maroochy River, surrounded by green parkland and ever-shifting tidal sand bars.

“The brief that Cube gave us [was] we want the best the Sunshine Coast has ever seen”, Sandra Browne said.

The sculptural project features a glass façade and hosts a number of amenities, including a 25-metre lap pool, gym, steam room and spa, yoga lawn and sun lounging areas.

4. Lowanna Beach Resort, Buddina Developer: WOW Group

Lowanna Beach Resort
38-44 Lowanna Drive, Buddina QLD 4575

Lowanna, an Aboriginal word that is often used to describe exquisite beauty, is the namesake of the newest development to hit Buddina.

Three buildings make up the new Lowanna Beach Resort offering, each presenting a different perspective of the surrounds, and connected by centralised resort facilities.

All residents can enjoy the luxurious landscaped gardens, light-filled, tropical open communal areas and pool and barbeque facilities.

Residences boast generous floorplans, large balconies, plenty of storage and high-quality finishes.

 

Article Source: www.urban.com.au

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Weiya Holdings submit 38-level Garfield Terrace, Surfers Paradise beachfront apartments

They’ve submitted plans for Aalto, a 38-level luxury high-rise development on their recently acquired $50 million block of land at 75-79 Garfield Terrace, right on Northcliffe Beach

The Sydney developer Weiya Holdings is set to embark on one of its most impressive Gold Coast projects in 2022.

They’ve submitted plans for Aalto, a 38-level luxury high-rise development on their recently acquired $30 million block of land at 75-79 Garfield Terrace, right on Northcliffe Beach.

Conrad Gargett, who handled Weiya’s first Gold Coast apartment project, DE-LUXE, the apartment redevelopment of the 1930s cinema and Old Burleigh Theatre Arcade in Burleigh Heads, have again been commission to create the project.

They say 75-79 Garfield Terrace offers a unique opportunity to connect with the pristine coastline of Queensland’s Gold Coast, through an uncompromising and bespoke place of luxury high-rise living.

“Situated directly on Northcliffe Beach, the distinctive building form draws from the surrounding Queensland vernacular, with respect to subtropical design, expansive outdoor living and a robust material palette,” Conrad Gargett’s submission to the Gold Coast City Council read.

“The relationship with nature is expressed in the building’s unique curvature and a harmony of flowing lines which envelope the tower form. The articulated edges display a natural rhythm comprised of soft corners and long sweeping forms, inspired by the inimitable movement of drifting sands and water along the coastline.”

Aimed at the higher end owner-occupier or holiday maker, 40 of the Aalto’s 64 apartments are three-bedders, with just five two-bedroom apartments on the lower levels.

As the building rises there are 18 four-bedroom apartments, a number of them full floor. But the crowning jewel is the penthouse, which spans a massive 1,830 sqm, one of the biggest apartments on the Gold Coast. That is set to have five bedrooms its own cinema room, a gym, an indoor and outdoor kitchen, and a 15 metre swimming pool.

Resident amenity is located across two levels from the upper ground floor, which has two resort-style lap pools, one facing the ocean and one facing the building next door, as well as barbecue and communal dining areas.

Above is the fitness centre with a gym, a wellness centre with four outdoor hold and cold baths and a yoga room. There will also be a wine lounge and private dining area, and a library meeting-style space.

Landscape architect Lat27 handled the landscaping, with the focus of the landscape design to create a high quality contemporary landscape that responds to the architecture and creates a variety of opportunities for interaction, activity and gathering, each influenced by the coastal lifestyle of the community and context.

Conrad Gargett wanted the lower levels of the building to connect with the surrounding area.

“The design approach explores humble notions of openness and connectedness with a tower structure that touches the earth lightly,” the architecture firm stated.

“The tower’s expansive podium is purposefully unenclosed, providing light-filled outdoor spaces which invite the natural elements of the coast deep within the building footprint.

“The podium levels are conceived as a series of modestly scaled common spaces, designed to intimately connect with the ocean views and enhance a resort like experience based around, exercise, leisure, outlook and community.”

Patrick Pancur is handling the sales and marketing of the project, with a 2022 launch expected.

Garfield Terrace is set for a wave of luxury high-rise apartments in 2022, with the also Sydney-based Iris Capital set to lodge plans next door to Aalto at 73 Garfield Terrace. They bought the Premiere apartment tower a few months ago.

Central Equity will soon fully launch Pacific One, at 18 Garfield, while KTQ Group are working out their plans for their massive amalgamated site.

The Brisbane-based Siera Group, who are soon to launch Tapestry on Chevron Island, will be planning something more boutique on the dress circle strip.

 

Article Source: www.urban.com.au

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Funds Turn to Health Precincts in Hunt for Returns

Some of Australia’s biggest healthcare property funds are turning to medical precinct development as yields soften and the market grows increasingly competitive.

Speaking at The Urban Developer’s Healthcare Property vSummit, Dexus head of healthcare partnerships George Websdale said the $1.3-billion Dexus Healthcare Property Fund was diversifying into the development space.

“We think there’s an opportunity to move into development,” Websdale said.

“We have a $16-billion development pipeline and a skill set to deliver very complex precincts … that’s a space we really like and that is a point of differentiation for us.

“For us the opportunity is very much development-led, buying real estate on the market at the moment is very competitive … and while we’ll continue to look at doing that we think there is an opportunity to move into that development space.”

Australian Unity head of property Chris Smith said the property fund had acquired some sites in “key precincts” to add to its healthcare portfolio but had been pursuing a develop and hold strategy more recently.

“Over the years we’ve built up our land bank as well,” Smith said.

“We’re quietly developing our own product, so we’re not buying as much on market.

“We tend to be getting a stronger yield that way and we just continue along that vein, trying to stick to our 60 to 70 per cent hospitals [asset split] and mainly along the eastern seaboard.”

The “precinct megatrend” is one that will continue to influence healthcare property assets into the future, according to Northwest Healthcare Properties senior vice president of precincts Alex Belcastro.

“There’s absolutely no doubt that we’re seeing this precinct megatrend across Europe, North America, and Australia and New Zealand,” Belcastro said.

“There’s a growing understanding that building precinct advantage in the public and private sectors and also universities through research is a key focus.

“That’s certainly an area where we’re seeing significant opportunity for the public and the private sector to come together.

“It’s a great time for healthcare globally and there’s no doubt that there needs to be a level of sophistication from investors as well.”

Northwest acquired a 50 per cent stake in Epworth at Geelong earlier this year, which includes land around the site. Belcastro said they would be looking to “build out the precinct” and agglomerate other sites for precinct development.

“We’ve been quite active in the develop to hold space … we’ve acquired a site in Coomera directly opposite the proposed new Coomera greenfield public hospital which is set to be the largest greenfield public hospital on the Gold Coast.”

 

Article Source: www.theurbandeveloper.com

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Sunshine Coast Approves Wave Park Development

Surf Parks Australia’s plans to build a wave pool on the Sunshine Coast have moved forward, gaining council approval as a tourist attraction.

The theme park plans are for a 13.4ha site on the western side of the Bruce Highway at Johnston Road, Glass House Mountains.

The wave park designed by Sprout Architects includes a wave pool, wellness centre, amenities, dining, and education centre as well as learn-to-surf facilities.

The plans were lodged in late 2020 and fast-tracked by the Sunshine Coast Council as part of the economic resurgence plan.

Surf park development applications have surged across the country since Urbnsurf lodged plans in Melbourne in February 2020 and include a $300-million resort and park planned on the Gold Coast, unveiled in October.

The Sunshine Coast has also been inundated with residential developments, with 6000 lots unlocked between Caboolture and Caloundra along with continued pressure by developers for more to cope with the acute land shortage.

▲ The rural site will be developed into a surf park and is currently owned by Drew and Jocelyn Walker of Moby Vics Pty Ltd. 

Surf Parks Australia chief executive Craig Morrison said the development would provide opportunities to the local construction and tourism industries now and into the future.

“We appreciate the strong support from ther council, their assistance and diligent approach to ensuring all relevant planning matters were thoroughly addressed,” Morrison said.

“We strategically selected the Moby Vic’s location for this project due to its ease of access, and proximity to both the Sunshine Coast and Moreton Bay regions as well as the added benefit of minimal disruption to our community and our local environment.”

Deputy mayor Rick Baberowski said the approval was potentially a critical step towards the first major new tourism offering on the Sunshine Coast in decades.

“Once completed, this surf park will attract a new range of visitors to our region, visitors who would most likely extend their length of stay and generate a substantial economic benefit,” Baberowski said.

“These sorts of developments are a significant sign of further confidence in the future of our region, which all helps to deliver new facilities and services to meet the needs of our communities.

“At the end of the day, our community is the ultimate winner as we continue to attract appropriate new investment to our healthy, smart and creative region.”

 

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Charter Hall Lands Telco for $450m Office Block

Charter Hall’s $450-million development in the Adelaide CBD will be home to Telstra after the telco signed to a 10-year agreement, further boosting confidence in the post-pandemic office market.

Telstra will occupy a significant slice of the planned 40,000sq m of office building at 60 King William Street after taking 6000sq m across two levels.

The 10-year agreement builds on Charter Hall’s long-term relationship with Telstra, including its global headquarters at 242 Exhibition Street in Melbourne, and at 275 George Street and 69 Ann Street in Brisbane.

Charter Hall office chief executive Carmel Hourigan said the new agreement at its premium-grade office development would notch up Telstra’s total leased space with the developer to more than 130,000sq m in Australia.

“[This agreement] underpins the strength of our partnership and reflects Charter Hall’s ability to deliver high quality, technology enabled buildings to meet the needs of Telstra’s business,” Hourigan said.

Construction, being overseen by Built, began in March and is scheduled to reach practical completion in mid-2023.

The development will be held across a partnership including Charter Hall Prime Office Fund, the Direct PFA Fund and through an institutional mandate with super fund investor VFMC.

Telstra, which was advised by Michael Greene of JLL, will relocate its Adelaide workforce once the development is completed in 2023.

It will join Services Australia after the federal government agency agreed to take 28,500sq m across 10 floors in the Cox Architecture-designed building earlier this year. More than 2200 Services Australia staff will relocate from four locations in 2023.

Charter Hall’s latest signing comes amid positive signs for the resurgent office sector with high-profile leasing agreements.

In Melbourne, Aware Super, which recently merged with VicSuper, will consolidate from three locations across the city into one, taking up 8000sq m at 555 Collins Street, a new $800-million office block also being developed by Charter Hall.

The under-construction tower is now 44 per cent pre-committed and is due to be completed by 2023.

Its anchor tenant is Amazon, whose commitment last year enabled Chart Hall to kick-start development of the first stage of a $1.5-billion, two-tower project.

GPT has also leased half of its 34,000sq m within its Queen & Collins complex in the Melbourne city centre after completing a $272-million redevelopment of the former global headquarters of ANZ Bank.

Meanwhile, global skincare brand Aesop has also signed up as a major tenant of a $95-million Collingwood office building being developed by Peregrine Projects.

In Sydney, ARA Australia, led by Edward Federman, has tied down the Department of Defence which plans to depart its existing digs at ISPT’s 270 Pitt Street.

The Department of Defence plans to take 18,000sq m at ARA’s newly renovated tower at 320 Pitt Street.

The 10-year term, brokered by JLL’s Alex Wong, Justin Hayes and Will Hamilton, represents the city’s largest existing-site leasing deal since 2019.

 

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Is Bilinga the next Gold Coast apartment hotspot?

The small enclave is located north of Coolangatta where the market has been running hot for well over 12 months, and south of the equally booming Palm Beach

Rarely is Bilinga talked about when discussing the Gold Coast apartment boom.

The small enclave, north of Coolangatta where the market has been running hot for well over 12 months, and south of the equally booming Palm Beach, hasn’t had the influx of apartment development applications like some of the other coastal hotspots, until now.

The prominent South East Queensland developer, Mosaic Property Group, has identified the area as having potential for future growth, claiming their first site in the suburb.

The Brisbane-based team, who in 2021 sold out L’Orient on the Sunshine Coast, The Witton in Brisbane’s Indooroopilly, and Kensington in Toowong, have had SJB put together designs for a boutique project of 13 apartments over seven levels at 1 Surf Street. Seven of the apartments are full-floor, ocean-front apartments.

A number of developers have descended on Golden Four Drive, the beachfront strip that runs all the way from Currumbin through Bilinga to Kirra Beach.

The Brisbane-based Cielo Group had been looking for an opportunity to break in to the Gold Coast for a while, and grabbed 55 Golden Point Drive, a 503 sqm site through GV Property Group, which had in place approval for a six-level building with five apartments.

But when Cielo, led by Justin O’Donnell and Azemm Dannaoui, secured the site, they had the local architecture firm Zarchitects create a nine-level building, which has beach views from the higher levels, including the residents communal rooftop space, where there’s a pool and barbecue areas and outdoor dining, all with views over the beach.

There are nine three-bedroom apartments, each with a multi-purpose room. Each of the bedrooms has a walk-in wardrobe. There is a master suite in each apartment, that has a larger walk-in, and its own ensuite.

“The design of the development reflects the emerging medium rise development in Bilinga and will contribute positively to the character of the locality,” Zone Planning Group wrote in the development application.

CBRE’s Nicholas Clydsdale is marketing the apartments, which are expected to hit the market in the new year.

There will be a similarly boutique project at 303 Golden Four Drive, just 19 apartments designed by Ellivo.

That will have a communal ground floor with lap pool, gym, and a lobby, as well as a single apartment with its own plunge pool. Crowning the project will be two, two-level penthouses.

Another development of just 16 apartments will be created at 281 Golden Four Drive, just two per level.

Dubbed Pacific View, the nine-storey tower has been described by Creativo Architects as being a fluid marriage of soft curves that blurs the line between organic and artificial.

“With a splash of contemporary art-deco reinterpretation, it presents itself as a sophisticated high-end product, yet it integrates with the natural surrounding environment,” the design statement read.

“The design intent in fact addresses multiple issues at once: naturally provides articulation to the street façade, protection from the western sun, protection to the traffic noise and dust, filters sunlight and created soft shadow patterns through the apartments and the façade itself.”

“The proposed design aims at becoming a soft and pleasant recognizable landmark in the local urban realm. The choice of the materiality draws from the extensive presence of bricks in the area.”

Residents will have access to a recreational area which has a lap and plunge pool, an outdoor shower, yoga retreat, sauna, and a gym.

Also on the 1,539 sqm block will be a luxury four-bedroom beachfront house.

A Sydney-based developer will be creating the highest density project submitted in recent months at 89 Golden Four Drive.

Turner Studios has designed the nine-level apartment development for 81 apartments

 

Article Source: www.urban.com.au

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Tri-level penthouse in The AU in Surfers Paradise snapped up for almost $9 million by local buyer

The AU’s two only penthouses span across three storeys – each featuring four bedrooms, an option for a lap pool and an additional master bedroom or meditation suite on the top floor.

A local developer buyer has snapped up one of the two exclusive three-level penthouses crowning The AU – the new luxury Surfers Paradise apartment tower on the dress circle Esplanade.

The buyer has paid just south of $9 million for the 477 sqm space, which he intends on further customising for his family’s entertainment and lifestyle needs.

There’s scope, particularly with the third level of the penthouse, which can be crafted into something truly unique, ASF Group Marketing Director Daniel Fang said.

“The purchaser of the final penthouse could add another ocean view master suite, but there’s already plenty of bedrooms. Thus, the options for a yoga or meditation room with full-width views of the beach, a cinema room, or even a personal gym are certainly available to them,” Fang suggested.

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

The penthouse starts from level 17 and has a separate private lift within to access the higher levels. Offering 16m frontage directly facing the ocean, the penthouses feature four bedrooms with the second level having the option of including a lap pool.

“It’s always a good sign when someone in the same industry sees the outstanding value proposition and quality of what you’re delivering and subsequently buys into the project,” Fang added.

“They truly do their due diligence, and the fact they’re happy with what they see, with the quality of the process and the track record of the development company, is a great vote of confidence for The AU.”

There’s been significant interest from discerning local buyers for the lower level apartments. The price per square metre matched with the unrivalled beach and ocean views in such a central location in Surfers Paradise is incomparable to any other development on the market currently.

It’s been local and interstate business owners who have made up the majority of the enquiry so far.

“The AU will be an exclusive community – a true boutique offering where you can get to know your neighbours. Of course, the residences also provide an elevated degree of privacy given that a typical 255 sqm residence will span an entire floor with its own private lift lobby.”

Each full-floor apartment with a starting price of $3.45 million offers three bedrooms and a multi-purpose room, or four bedrooms, each with stone kitchens and an open plan living and dining area. Furthermore, each residence boasts a 16m frontage directly facing the Pacific Ocean and beach.

The resident amenity is located on the 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 shopping precinct, just a few minutes’ walk from the actual site of The AU.

 

Article Source: www.urban.com.au

 

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Sales launch at Niña, the newest Chevron Island apartment development

Plus, led locally by Danny Juric, cleverly designed the project so every apartment can capture views of the ocean

Niña is the latest Chevron Island apartment development to hit the small Gold Coast island inland from Surfers Paradise.

It’s the second development on the island by the Sydney-based Macquarie York, who are just a few apartments away from selling out their first Chevron Island project, Allure.

Niña, less than 200 metres from Allure at 8-10 Parnero Street, will home 73 apartments in a 22-level building designed by Plus Architecture.

Nina, Chevron Island 8-10 Parneno Street, Surfers Paradise QLD 4217 

Plus, led locally by Danny Juric, cleverly designed Niña so every apartment can capture views of the ocean. They call Niña’s design “coastal sophistication with barefoot luxury,” with one of the main design drivers the timeless curves, which will stand the test of time.

The two-bedroom, two-bathroom apartments with over 80 sqm of internal living space start from $700,000, with the three-bedroom apartments spanning over 116 sqm priced from $950,000.

Levels one to seven will have four apartments per floor, three-bedder at the front of the building, and two-bedders with their own media rooms located at the rear of the building. This is where Plus’ clever design comes in. The two-beds will have balconies that extend on the side of the building, allowing for views of the ocean.

From level eight, the building will have a four metre set-back. Levels eight to 15 will home four two-bedroom apartments per floor, before hitting level 16 where the large sub-penthouse style apartments kick in.

There will still be two two-bedders at the back, but spanning the width of the building will be a half-floor, three-bedroom apartment, with two balconies, one off the master suite which will have its own walk in wardrobe and ensuite, and one off the open plan kitchen, living and dining room. These apartments will also have a media room.

There are two two-level penthouses from level 21. Downstairs is one of the bedrooms, and the main living, kitchen and dining area. Upstairs is another two bedrooms, and another outdoor terrace with its own plunge pool.

On this level is also an open rooftop will be further amenity, including a wet edge, resort-style pool with day beds, a sunken firepit space with built in seating, and a barbecue terrace, and with seating.

The town planner, Urban Planning Services, said Plus designed the building based on a local coastal vernacular, playing off the image of surrounding modern developments.

“Niña is beautiful, elegant and feminine, but with an undeniable strength and presence,” Plus Architecture director Danny Juric said.

“From the very beginning, we set out to create a building that was truly individual and boldly stepped away from the traditional interpretations of what Gold Coast living embodied.”

 

Article Source: www.urban.com.au

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Australia’s most searched property locations in 2021

It was a blockbuster year for bricks and mortar, as low stock levels and even lower interest rates fuelled a buying boom that saw the national median house price reach a record $994,579.

Almost every corner of the country shared in the property market’s success due to the emergence of buyer trends brought about by the pandemic, including tree changers and sea changers searching for serenity and space.

But a deep dive into Domain search data shows that while such trends did emerge, a more traditional approach to real estate was still at the top of buyers’ minds.

In fact, the most searched regions on Domain in almost every state and territory were inner-city enclaves, partly because populous areas remain desirable, according to Domain’s chief of research and economics Nicola Powell.

Tasmania

Buyers chasing affordability have helped Launceston take out the most searched region in Tasmania, overtaking the capital, which notched a new median house price record as well.

Hobart’s median house price rose 31.9 per cent to $698,212 in the year to September 2021, on Domain data.

Meanwhile, the median house price in the Launceston and North East region rose 32.4 per cent to $480,000 in the same period. And the region’s unit prices rose 27.1 per cent to $371,000.

Launceston was the most searched region in Tasmania and cheaper than Hobart.CREDIT:CHARLES STREET/LUSY PRODUCTION 

“Launceston is much more affordable than Hobart … what that is reflecting is people searching elsewhere around Tasmania and Launceston being the second biggest city, it becomes the most obvious area [to search],” Ms Conisbee said.

The top three most searched regions in Tasmania on Domain were:

1. Launceston
2. Hobart
3. Eastern Shore

Queensland

The Gold Coast took out the top spot in Queensland where buyers were searching for properties in the state this year, with roughly a quarter of inquiries coming from Sydney, Dr Powell said.

“That speaks to the interstate movers to those lifestyle locations. We cannot disregard the fact that we have seen an exodus in our two major cities, that was happening anyway and it was accelerated by the pandemic,” she said.

Gold Coast’s median house price rose 18.8 per cent to $820,000 in the year to September 2021.

The region’s median unit prices rose 14.1 per cent to $535,000 in the same period.

The top three most searched regions in Queensland on Domain were:

1. Gold Coast
2. Brisbane’s City & North
3. Sunshine Coast

Western Australia

The southern suburbs region of Perth topped the list in Western Australia, with buyers looking at properties anywhere from Fremantle down to Rockingham.

Perth’s South East median house price rose 3.7 per cent to $475,000, while the same area’s unit median slid 1.1 per cent down to $350,000 in the year to September 2021.

Perth’s South West median house price rose 1.1 per cent to $490,000, while the unit median slipped by 2.4 per cent to $400,000.

Multiple Perth regions topped the most searched areas in Western Australia as buyers were after big homes on even bigger blocks of land.CREDIT:ISTOCK 

The top three most searched regions in Western Australia on Domain were:

1. Perth’s Southern Suburbs
2. Perth’s Northern Suburbs
3. Perth’s Western Suburbs

South Australia

Buyers searched for properties in the north and north-east suburbs of Adelaide the most in the past year, with the area offering large homes on big blocks of land, a similar buyer trend seen in other states and territories.

The median house price in Adelaide’s north region rose 14.7 per cent to $438,000 in the year to September 2021, on Domain data.

The median unit price in the same region rose 7.4 per cent to $276,506 in the same period.

The top three most searched regions in South Australia on Domain were:

1. Adelaide’s North & North East Suburbs
2. Adelaide’s Western & Beachside Suburbs
3. Adelaide’s Eastern Suburbs

Northern Territory

Buyers were mostly drawn to the capital city as it remains the main jobs hub.

“If you have a look outside of Darwin it’s been relatively subdued in terms of price growth and desirability,” Ms Conisbee said. “Darwin is kind of it for the Northern Territory and it’s a bit reflective of the mining sector.”

Darwin’s median house prices rose 28.9 per cent to $580,000 in the past year.

The region’s unit prices rose 24.2 per cent to $369,500 in the same period.

The top two most searched regions in the Northern Territory on Domain were:

1. Darwin Area
2. Alice Springs

 

Article Source: www.brisbanetimes.com.au

 

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How much longer can the renovation boom last?

The COVID-19 renovation frenzy is set to continue throughout 2022 as property prices continue to climb and home owners decide to use some of their extra equity to finance improvements.

With the memory of successive lockdowns still burning, many more are now deciding to draw up plans to make their houses and apartments more comfortable in case they’re ever stuck inside for long periods again.

“Our forecast is that the level of renovations will actually remain elevated,” said Nick Ward, senior economist at the Housing Industry Association. “The two main drivers of this are the lockdowns that have prompted households to upgrade the value they put on their home space, and the increase they’ve seen in their homes’ worth.

“As dwelling prices have risen, they realise they have more money available for renovations, and especially when overseas travel is still difficult and won’t return for a while. As a result, people are borrowing against the value of their homes, and loans for renovations have increased over the last 12 months.”

On Australian Bureau of Statistics figures, over the 12 months to October 2021 an astonishing $11.82 billion worth of renovation approvals were given around Australia. The vast majority of these were in NSW and Victoria – the states hardest hit by the pandemic lockdowns – with Queensland next and Western Australia following.

This October alone saw $960,307 million of approvals for renovations, the first time the monthly figure has slipped below the billion-dollar mark since January 2021.

Around the country, renovation approvals in October in NSW totalled $335,684 million; in Victoria $334,461 million; in Queensland $169,505 million; Western Australia $53,149 million; South Australia $40,037 million; Tasmania $14,007 million; the Northern Territory $7760 million; and the ACT $5701 million.

Archicentre Australia director Peter Georgiev said that’s little surprise. “We’ve seen a lot of people now working from home and they’re greatly annoyed at their home circumstances,” he said. “That’s especially true when there’s a family at home and the parents have been trying to juggle work with children, so that provides a degree of impetus for home improvements.

“They want to create spaces for home offices and they want the flexibility to use spaces at home for various uses, like an office during the day and for teens to hang out with their friends in the evening. That won’t be changing any time soon. People are now in the mindset to improve their homes.”

While a number of people moved home last year to find bigger spaces, or opted for tree and sea changes, the vast majority preferred to stay put and work out how they could make better use of what they had.

The costs of moving home, plus stamp duty and agents’ fees, made many decide that money could be put to better use with renovations, says Belinda Botzolis, senior property strategist at Metropole Property Strategists.

Then there were the grants that many states offered owners during the pandemic.

“We’ve just had the biggest year for renovations ever, but it will still continue into the future,” she said. “It’s been so hard to get tradies to finish jobs, so there’ll be a lot of demand for them into 2022 too.

“Lockdowns often slowed the momentum down but they did make us realise how small our homes were, and how we really needed offices rather than study nooks, and wanted kitchens with more space, and indoor-outdoor entertaining. Instagram helped, with all the images of homes we wished we had. And since we’ll still be going nowhere in 2022, we’ll still be renovating.”

Kitchens and bathrooms and a change of flooring are still at the top of most renovators’ lists, but those lists are growing all the time, according to renovations expert Werine Erasmus of The Happy Renovator.

“After those, people are looking to create home offices or spaces to work or study from any spare space within the home,” she said. “Everyone wants a place to be quiet and work now, and the trend for renovations is going to go on and on.

“Then, if there’s any cash left over, they want to build a deck and add lighting and smart features like custom garage doors. But we find those are always secondary to the kitchens and bathrooms and flooring.”

With the return of first-home buyers to the property market, many of those are now also joining the renovation obsession, albeit at a lower value level, Ms Erasmus believes. Many of those may have over committed on large mortgages so don’t have much cash left to splash.

“So [they] are still doing renovations, but all DIY,” she said. “They’re going for the real budget options, but there’s still a lot they can achieve. For instance, instead of changing the flooring on a concrete patio, the other day I put down a stencil. It cost $30 and it looks amazing!”

Older people are now also entering the fray, Mr Georgiev believes. With all the publicity about COVID-19 outbreaks in aged care homes, and the revelations of poor conditions, he has seen a lot of them now renovating their houses and apartments in order to make them more suitable for staying in longer.

“They’re thinking, ‘Bugger this, I’m not going into one of those hell holes’,” said Mr Georgiev. “So they decide instead to cobble together changes in their own homes, like a better fit-out, so they can continue to live there. We’ll be seeing a lot of that into the future, too.”

 

Article Source: www.brisbanetimes.com.au

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Mirvac Files Concept Plans for Controversial Masterplanned Community

Mirvac has lodged plans for the first stage of its masterplanned community on the site of the former IBM complex at West Pennant Hills.

The concept plan and civil works development application lodged with The Hills Shire Council is for 252 apartments and 166 houses across the 25.87ha site at 55 Coonara Avenue.

It is one of many apartment complexes the developer has on the boil, and is anticipated to cost about $165 million. Civil works to prepare the site would cost about $30 million.

The developer won support for its residential project at West Pennant Hills, 20km north-west of the Sydney CBD, in 2017, and after soil investigations lodged plans for four apartment buildings up to six storeys on the site, with further development applications to be lodged for subsequent stages.

Mirvac acquired the site in 2016 for $74 million and was unable to re-lease the property when IBM vacated the property.

It then sought change of use from business park to residential development and won approval to create the $600-million-plus masterplanned community.

The planned development came under fire from residents and environmentalists over traffic increase concerns, and possible detrimental effects on neighbouring ecosystem among other concerns.

The lodgement of the concept plan development application outlines building parameters across the site, building envelopes and also dwelling yields, according to Mirvac.

The application also addressed the demolition of seven low-rise interconnected office buildings next to Cumberland State Forest.

▲ Mirvac plans to hand back about 10ha of remnant forest to be incorporated into the adjoining state forest.

Plans for the first stage of housing and the apartments precinct are being finalised, which will provide greater detail on the development of the site.

Initial plans for more than 1000 dwellings on the site were scaled back after Mirvac failed to win support for a bigger community footprint.

The site is 800m from the Cherrybrook Metro Station and 3km from the new Northconnex interchange.

Mirvac has committed to handing over about 10ha of remnant forest to the state government for the extension of the adjoining state forest.

“We understand the important role the remnant blue gum high forest and the Sydney turpentine ironbark forest has in providing valuable habitat for local native flora and fauna, in particular the powerful owl, and we are committed to its protection,” Mirvac said in a statement.

“As such, any proposed demolition and construction works will be carried out under specific controls designed to minimise any potential impacts.

“As part of the proposed redevelopment, approximately 10ha of forest area will be dedicated to the state government as public open space, to become an extension of the adjoining Cumberland State Forest.”

Mirvac acquired a major greenfield site in Sydney’s south-west growth corridor recently.

The move by Mirvac enables the developer to restock its landbank in Australia’s most expensive city where stock has been snapped up by the HomeBuilder program and lot prices have surged.

 

Article Source: www.theurbandeveloper.com

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Construction Price Hikes Tipped to Climb in 2022

Construction costs across Australia are expected to keep rising next year with an industry forecast indicating they will jump by as much as almost 6 per cent.

Consultancy firm Rider Levett Bucknall has released a list of forecast construction cost hikes for capital and regional cities around the country in 2022.

According to its projections, costs will increase by 2.5 per cent in Darwin; 3 per cent in Adelaide, Melbourne and Townsville; 4.5 per cent in Perth; 5 per cent in Brisbane and Gold Coast; and 5.6 per cent in Sydney.

Throughout 2021, building material prices have increased prompting some trades to link supply rates as a condition of tender pricing and, therefore, subject to a price adjustment should the rate rise.

RLB’s New South Wales managing director Stephen Mee said upward pressure on contractor tender pricing was being experienced nationwide, albeit at differing levels.

“Melbourne, Canberra, Adelaide and Darwin have observed stable increases, generally within expectation,” he said.

“However, significant surges have been experienced in Brisbane, Perth and Sydney, with escalation forecasts for 2021 well above levels forecast at the backend of 2020.”

Mee said contractors have flagged the potential for material shortages, shipping cost increases and delays of imported goods and equipment but with pressure appearing to grow there could be further impacts to come.

“This has been most evident in Sydney where the analysis of current tender prices received in early December has resulted in revisions to the published 2021 and 2022 TPI (tender price indices) uplifts,” he said.

The uplifts published within the latest RLB International Report of 1.2 per cent and 2 per cent have been recently revised to 4.1 per cent and 5.6 per cent respectively.

“This sudden change in RLB’s escalation forecasts, highlights the current pricing volatility within the Sydney market, which is only truly reflected when project tender prices are received and reviewed,” Mee said

According to the report, construction activity metrics have nudged decade highs in Australia despite lockdowns putting an estimated $20-billion dent in the economy.

However, overall construction work across the country totalling $212 million was down slightly from $213 million in the 2020 financial year.

The fall in volume was largely due to reduced activity in Victoria—the state hardest hit by the Covid outbreak—which amounted to $2.4 billion.

Mee said the industry in both Sydney and Melbourne had adapted to various setbacks caused by total shutdowns and density restrictions on-site.

 

Article Source: www.theurbandeveloper.com

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Some markets surge, others pull back in November property shakeup

For months now we’ve seen a similar story playing out in the Australian property market: steady growth across most of the country with hints that things might be about to turn a corner.

According to the data in CoreLogic’s latest home value index report, we’ve seen that shift occur throughout November, and it may not be what you expected.

So which markets are soaring ahead and which are beginning to drag behind?

National property values: November 2021

Houses	Units
$750,096 Monthly change: +1.4%	$599,069 Monthly change: +0.9%

November’s +1.3 per cent rise in the national median dwelling value is the smallest monthly increase since January this year, but it’s still pushed the price of the median Australian home to within striking distance of $700,000.

That only tells part of the story, though, as there have been some significant changes to the growth patterns we’ve been seeing.

November was a mixed month for growth across the capitals, with Brisbane and Adelaide the standout winners. Source: CoreLogic

Sydney, Hobart and Canberra, three of the country’s most explosive markets throughout the 2021 boom, have all posted far softer monthly increases around the +1.0 per cent mark.

Melbourne has also dipped down to +0.6 per cent growth for November, and Darwin and Perth have continued to stagnate after both experiencing strong boom conditions in the first half of the year.

Brisbane and Adelaide, meanwhile, have managed to find a new top gear, with both cities delivering their highest monthly rates of growth for 2021.

Adelaide’s median price jumped up by +2.5 per cent, equating to around $13,500, while Brisbane surged an incredible +2.9 per cent. That’s $18,500 up for the month or $615 per day.

CoreLogic’s research director Tim Lawless explains that “relative to the larger cities, housing affordability [in Brisbane and Adelaide] is less pressing, there have been fewer disruptions from Covid lockdowns and a positive rate of interstate migration is fueling housing demand.”

It all takes national annual growth up to +22.2 per cent, meaning the median Australian property has gained around $126,700 in value over the past year.

Regional growth is accelerating again while capitals trend downwards

While it’s been a mixed bag in the capitals, regional markets have performed strongly across the board in November.

Regional NSW, QLD, SA and Tasmania were all comfortably above +2.0 per cent growth in November, with Victoria and WA posting solid +1.8 and +1.3 per cent gains respectively.

Every regional market delivered strong growth throughout November. Source: CoreLogic

Those figures seem to be definitively answering the question as to whether the regional trend towards a sea or tree change could be drying up post-lockdowns. As a whole, growth in the capitals is heading south, while in the regions it’s ramping back up.

Growth in the capitals is continuing to decline while it’s ramping back up in regional markets. Source: CoreLogic

CoreLogic’s report notes that “demand for housing across regional markets, especially those within commuting distance of the major cities, is continuing to benefit from the rise in popularity of remote working arrangements.”

It also points to “renewed demand for coastal and lifestyle properties, and in many cases, more affordable housing options.”

Stock levels are having a big impact on the rise and decline in growth

One of the key driving factors of this year’s boom has been that there simply hasn’t been enough supply to satisfy demand, but that dynamic is beginning to change in some markets.

Brisbane and Adelaide are still experiencing severe shortages in stock compared to the five-year average, a key reason why they’re seeing accelerating growth, while huge spring selling seasons in Sydney and Melbourne have seen stock returning to more regular levels relative to the average.

Mr Lawless explains that “fresh listings are being added to the market faster than they can be absorbed, pushing total active listings higher.

“More listings implies more choice and less urgency for buyers.”

New listings have surged in recent weeks, and while total listings are still well below average, they’re beginning to climb up. Source: CoreLogic

The last weekend in November saw CoreLogic register the highest number of auctions in Australia since their records began in 2008. As a result, clearance rates dipped down to 71.4 per cent—still a strong result, but not at the high level we’ve been used to seeing for most of this year.

Even though new listings continue to rise, total stock on the market remains low for now, so there’s still a window of opportunity for sellers before supply and demand fully balance out.

“The rise in listings and softening of key vendor metrics implies the housing market may be moving through peak selling conditions, however, it will be important to see if this trend towards higher listings continues after the festive season,” Mr Lawless says.

Affordability and rising fixed rates are dictating changes in the market

“Virtually every factor that has driven housing values higher has lost some potency over recent months,” Mr Lawless says.

“Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available.”

The ever-growing affordability issue has been a factor in cooling some of the country’s hottest markets in recent months, and it’s beginning to push more buyers away from houses and towards units.

The CoreLogic report notes that capital city houses are now +37.9 per cent more expensive than units, the largest difference on record.

In Sydney, for example, the difference between the median house and unit price is a staggering $523,000.

“With such a large value gap between the broad housing types, it’s no wonder we are seeing demand gradually transition towards higher density housing options simply because they are substantially more affordable than buying a house,” Mr Lawless explains.

What’s next for the Australian property market?

Looking at the big picture, there are a number of headwinds that look like they’ll continue to temper property price growth in the coming months.

Total listings in most markets are on the rise, helping to ease buyer demand. As a result, CoreLogic points out that “vendors may need to adjust their pricing expectations if homes take longer to sell.”

There’s been plenty of talk about the RBA raising the cash rate earlier than 2024, and that’s been a factor in pushing up the cost of fixed rate mortgages.

Combine that with poor affordability, APRA’s tightening of lending conditions and the potential for more of those restrictions to come, and it means buyers with diminished borrowing power will be likely to pay less for property.

On the other hand, there are some positive markers when it comes to future growth. For one thing, the opening of international borders should bring a measurable increase in demand for housing.

Even though interest rates are set to rise, they’re still at extremely low levels, and that won’t change drastically in the near future. Also, with such a high percentage of Australians now vaccinated, market disruptions caused by Covid are looking less likely.

It’s important to remember that every market is different, as is every property. If you’re considering selling, speaking to a top agent in your local area is often the best first step towards getting a full picture of what’s going on around you and where the market might be heading.

Article Source: www.openagent.com.au

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2022 property market outlook – what the experts forecast

There’s no doubt the 2021 boom has been a once-in-a-generation phenomenon for the Australian property market, with breathtaking growth seen all around the country.

As the year winds down it’s a good moment to take stock of what’s happened and, with the help of some expert industry analysis, look to what comes next.

We’ll be comparing 2022 forecasts from Westpac, ANZ, Commonwealth Bank and independent financial analyst Louis Christopher’s SQM Research to find out what path the market maytake over the next 12 months.

The 2021 surge should be followed by more moderate growth in the new year

Following the unprecedented effects of the pandemic throughout 2020, many economists tipped 2021 to be a dark year for real estate growth.

Instead, we’ve seen staggering gains in just about every city and state. The final rate of national growth for the year is expected to be around +22 per cent, the largest annual jump since 1989.

There are a number of factors that look to be putting the brakes on that rapid increase, though.

Affordability pressures are putting the squeeze on buyers. A surge in new listings is evening out supply and demand. Fixed rate mortgages are on the rise and there may be further tightening to lending standards by APRA.

On the other hand, the Australian economy is proving to be very robust, vaccination rates are high, immigration is set to return in earnest, and interest rates, even if they do rise, will remain around record lows.

That’s led economists to predict a reduced but still strong national rate of price growth of between about +5 and +8 per cent for 2022.

Let’s take a look at what’s in store for each state.

Article Source: www.openagent.com.au

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Record Low Rental Vacancies as Capitals Slip Under 1pc

For the first time on record five of eight Australian capital cities have rental vacancy ratesrates under 1 per cent as the national average drops to 1.5 per cent.

SQM Research data has shown many regional areas and holiday destinations were edging closer to putting the “no vacancy” signs out in the run up to Christmas.

Perth, Adelaide, Canberra, Darwin and Hobart all had vacancy rates below 1 per cent, while the bigger metropolitan areas of Sydney, Melbourne and Brisbane remained above the 1 per cent mark.

SQM Research managing director Louis Christopher said the main area of the Gold Coast had recorded another fall in vacancy rates to 0.7 per cent, and this was likely to fall further during the December-January holiday period.

“As we come to the end of 2021, the no vacancy sign is lit up across most of Australia,” Christopher said.

“There has not been a time when five of our eight capital cities simultaneously recorded rental vacancy rates under 1 per cent.

“This has translated into surging rental rises, particularly for houses where the capital city rise for the year is now recorded up by 11.7 per cent.”

Capital city vacancy rates and rent changes over 12 months

City	Nov 20 Vacancy Rate	Nov 21 Vacancy Rate	Rent (house)	12-month change
Sydney	3.5%	2.6%	$734.40	▲15%
Melbourne	4.4%	3.2%	$527.80	▲3%
Brisbane	1.8%	1.3%	$544.400	▲15.9%
Perth	0.9%	0.6%	$553.60	▲14.1%
Adelaide	0.8%	0.5%	$465	▲10.2%
Canberra	0.9%	0.8%	$734.50	▲12%
Darwin	0.7%	0.9%	$639.90	▲9.3%
Hobart	0.6%	0.3%	$494.90	▲7.3%

^Source: SQM Research – November 2021

Christopher said demand for bigger properties had increased during the pandemic, and while there had not been a reversal in this trend yet, he forecast a shift back to apartments next year.

“I believe 2022 will see a move towards units, simply by virtue of their relative affordability plus the new inflow of immigrants will look for unit accommodation first and foremost as they have done in the past,” he said.

The total vacancies Australia-wide now stands at 55,370 residential properties, down from 56,953 in November.

Melbourne and Brisbane’s vacancy rate dropped to 3.2 per cent and 1.3 per cent in November from 3.3 per cent and 1.4 per cent in October.

The Sydney and Melbourne CBDs recorded a fall in vacancy rates but remain high at 6.9 per cent and 7.2 per cent respectively.

National asking rents rose 0.4 per cent for houses to $551 per week and units rose by 1 per cent to $416 a week.

It now costs an average of $603 a week to rent a house in a capital city, an increase of 2.4 per cent over the past 30 days, while apartment rents went up 0.7 per cent to an average of $427 per week.

 

Article Source: www.theurbandeveloper.com

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