Median house prices at auction break records in August, despite lockdowns

Australians continued to buy property under the hammer at record prices during August, despite protracted lockdowns in its two biggest capital city markets, with Sydney’s auction median reaching a whopping $1.92 million and Melbourne’s $1.19 million.

The latest Domain Auction Report found that Sydney, Brisbane, and Canberra recorded the highest clearance rates for the month of August since Domain records began.

While Sydney and Melbourne’s median auction prices for houses soared to record highs, they were up elsewhere too, nearing records in Brisbane ($990,000), Canberra ($1 million) and Adelaide ($729,000).

Domain chief of research and economics Nicola Powell, said the strength of capital city auction markets across the nation showcased unusually strong competition and demand over the final month of winter.

“It’s phenomenal. For some buyers, lockdowns aren’t deterring,” she said.

Capital city auction performance for August 2021 

City	Clearance Rate	Auctions Scheduled	Auctions Sold	Passed in	Sold prior	Withdrawn
Sydney	77.3%	2272	1737	155	46.5%	15.8%
Melbourne	52.5%	4138	1526	121	28.3%	43.4%
Brisbane	60.1%	546	323	151	24.8%	11.7%
Adelaide	71.2%	538	371	111	13.2%	7.5%
Canberra	83.6%	368	255	15	30.8%	11.5%
Geographies are based on ABS GCCSA geography. Auction reporting rates are 98.9 per cent in Sydney, 98.4 per cent in Brisbane, 96.8 per cent in Adelaide, 82.9 per cent in Canberra and 70.3  per cent in Melbourne. Melbourne’s collection rate is impacted by a higher than normal number of postponed auctions.

Data provided by  

“The fact is, lockdowns or not, some people still need to buy; they could be in between houses, they could have missed out earlier in the year, and now they’re ploughing ahead and making a strong offer.”

Sydney’s strong clearance rate had largely been supported by having fewer homes on the market but a high level of demand from buyers.

In Brisbane, Place Estate Agents chief auctioneer Peter Burgin said auctions had well and truly cemented their place in the property market in 2021.

“Everything about August was unprecedented. In terms of volume, it was unprecedented; the number of buyers was unprecedented. We’re now averaging eight people for every auction. That number last year would have been three, possibly four,” he said.

“The market is exceeding vendor expectations. Every week you go into another bunch of auctions and say, is this the week the market is going to give us a bit of a black eye – but no, bang, it’s back on. People are going with fairly aggressive bids and bidding competitively.”

Mr Burgin said Brisbane’s exploding auction market was unlikely to soften any time soon.

“There are so many powerful forces working in the Brisbane market. Brisbane as a city is a very desirable place to live. The locals are getting that – there’s more and more interest in our market. I think we’ve got every right to see that Brisbane’s future is bright.”

 

Article Source: www.domain.com.au

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Where house prices have risen the most in the past five years

House prices have doubled or risen even more over the past five years in a string of sought-after hotspots, often by the beach, new figures show.

The stunning growth reveals the effect of the sea-change trend that was gathering steam pre-pandemic but has taken off since the widespread shift to remote working.

Ultra-low interest rates, high-speed internet and long lockdowns have fuelled the demand to move out of capital cities for a more relaxed lifestyle.

Noosa has been drawing southern buyers, sending Sunshine Beach house prices soaring 161.1 per cent in five years to a median of $2.2 million, Domain data shows.

Noosa Heads rose 88.6 per cent over five years to a median of $1.495 million, while along the Sunshine Coast, Minyama jumped 138.1 per cent to $1.375 million.

The area has seen interest from prestige buyers, with a Sunshine Beach trophy home fetching $17 million in May last year, snapped up by former prime minister Kevin Rudd and his wife, businesswoman Therese Rein. A Noosa Heads home sold for $10.91 million in a deal linked to Gina Rinehart.

House price rises, past five years

State	Suburb	Median house price	Five-year change
QLD	Sunshine Beach	$2,200,000	161.10%
QLD	Minyama	$1,375,000	138.10%
VIC	Somers	$1,706,750	135.40%
TAS	Rokeby	$434,000	126.00%
NSW	Byron Bay	$1,960,000	120.20%
NSW	Palm Beach	$4,362,500	102.90%
VIC	Jan Juc	$1,287,500	98.10%
NSW	Bulli	$1,400,000	95.70%
VIC	Bright	$756,000	95.30%
VIC	Sorrento	$1,910,000	94.90%
VIC	Brown Hill	$530,000	91.00%
TAS	Moonah	$550,000	89.70%
QLD	Noosa Heads	$1,495,000	88.60%
QLD	Hamilton	$1,762,500	86.00%

“The real top end of town – your corporate captains, your industry leaders – they’re securing these properties in Noosa,” Dowling & Neylan director Dan Neylan said.

“They now feel very confident they can continue their work-life and continue to operate from a regional location like Noosa.

“Some of them are feeling they might not travel as much as they might have previously, and they want to secure a good property and a lifestyle property they can come to… They feel if we’re going to see lockdowns, they want to be able to isolate in a nice environment.”

He said the new Sunshine Coast Airport’s international flight capacity would make it viable for businesspeople or expats to have a home in Noosa and travel internationally for work once it is possible to do so.

Reed and Co director Adrian Reed said the area recorded steady growth pre-Covid, and the airport and hospital infrastructure projects laid robust foundations for the market.

“Post the first shutdown, it’s like someone lit the Bunsen burner under Noosa, and it probably accelerated beyond our expectations,” he said.

“It’s the perfect storm from a property perspective with some other economic fundamentals like low interest rates.”

Highly skilled work can now be performed from lifestyle locations, bringing affluent Sydneysiders and Melburnians north. At the same time, retirees have pulled forward plans to move to the area, and wealthy individuals who can no longer travel internationally are looking for Noosa homes instead, he said.

Other remote workers prefer Byron Bay, where the median house price skyrocketed 120.2 per cent in five years to a median of $1.96 million.

That’s for the suburb of Byron Bay alone – nearby neighbourhoods are recording a spillover effect, with Suffolk Park up 81.8 per cent to $1.45 million over the same timeframe.

Locked-down Melbourne and Sydney remote workers have been looking for more space near the beach in a smaller town, Cape Byron Property’s Bryce Cameron said.

“I think [remote work] is here to stay, so that is really changing the outlook for many people,” Mr Cameron said.

“They’re now able to live their desired lifestyle and have the same income as in the city.

“A few of my most recent sales have actually been sight unseen. [Of] the last two, one was from Sydney, one was from Melbourne.”

Beaches closer to the city recorded strong growth, with Palm Beach on Sydney’s northern beaches up 102.9 per cent in five years to a median of $4,362,500, while Bulli in Wollongong rose 95.7 per cent to a median of $1.4 million.

Melburnians have been flocking to the Mornington Peninsula as the city goes through extended periods of lockdown.

Prices in sought-after Sorrento are up 94.9 per cent from five years ago to a median of $1.91 million, with Blairgowrie up 85.7 per cent to $1,392,500.

The back beaches have become more popular with buyers seeking seclusion, and Somers house prices rose 135.4 per cent to a median of $1,706,750 in five years.

RT Edgar Portsea’s Geoff Hall said the growth had been “extraordinary”.

“I’ve never seen a rise this rapidly in a market before, and I don’t think anybody has,” he said.

“Every time there’s a lockdown, it seems to throw fuel at the fire … People want their little slice of heaven.”

Melbourne-based buyers are often looking for holiday homes or homes where they could split their time, spending four to five days at the beach and the rest in Melbourne if their offices allow this flexibility, he said.

With little for sale, he expects prices could keep rising.

“I don’t think we’ve seen the top of the market yet,” Mr Hall said. “We’re expecting a spike in the market as soon as the lockdown is over.

“The pent-up demand is enormous.”

 

Article Source: www.domain.com.au

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Construction begins at The Monaco, Main Beach apartment tower, as penthouse sells for $9.5 million

Andrew Erwin, of NPA Projects, who is marketing The Monaco, said buyers are responding to the enhanced level of amenity on offer.

A locked-down Sydney buyer has snapped up the penthouse in the Gold Coast’s own apartment principality – The Monaco – for $9.5 million, as developer Ignite Projects pushes forward with construction next week ahead of an imminent sell out.

The Monaco, which has been two years in the making, is being developed by Ignite Projects and built by McNab Builders, opposite the Southport Yacht Club at the doorway to the much-loved Spit.

The Sydney-based buyer of the expansive two-level 630 sqm penthouse was impressed by the design and unrivalled location, and plans to use it for his ‘forever home’.

The penthouse sale caps off a buying rush with all but one of the 24 residences in the $110 million building sold with an average sale price of $4.6 million.

The Monaco Main Beach 2-4 MacArthur Parade, Main Beach QLD 4217 

Ignite Projects managing director Josh Foote said buyers in the opulent development will have the veritable keys to the kingdom when construction is completed in 2023.

“The Monaco in many ways represents the renaissance of Main Beach, with the building replacing an aging unit block and a well-known house, referred to locally as the ‘container home’,” Mr Foote said.

“The building is setting a new standard for the suburb, which is getting a well-deserved facelift thanks to the $205 million revitalisation of the Spit to turn it into the Gold Coast’s version of Hyde Park and a 300-berth marina at The Southport Yacht Club.”

Mr Foote said buyers have been attracted to the attention to detail and customisation options available in the residences.

“Buyers can customise their apartment, including their entire kitchen and have access to first-class facilities including a 24-metre heated pool alongside a private dining area and virtual golf simulator,” he said.

“I liken each apartment to an art gallery because of the thought that has gone into every aspect from the Greek marble and Spanish handmade wall tiles in the ensuite through to the designer cocktail bar and fluted columns throughout. It is all about luxury and refined living.”

Andrew Erwin, of NPA Projects, who is marketing The Monaco, said buyers are responding to the enhanced level of amenity on offer.

“Each apartment in The Monaco has the feel of a penthouse with unrivalled luxury,” Mr Erwin said.

“The apartments in The Monaco have sold really well and to be almost sold out before construction even starts is an amazing achievement.”

“Buyers have come from interstate and locally within Main Beach, which is the home of luxury apartment living on the Gold Coast.

“The median apartment sale price in Main Beach in May was $795,000 – more than $300,000 above the Gold Coast median of $458,000.”

The Monaco contains a collection of 25 full-floor and half-floor residences at 2-4 MacArthur Parade, Main Beach.

Article Source: www.urban.com.au

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Gold Coast Neighbourhoods Targeted for Growth

Concept planning is about to start on four light-rail station neighbourhoods on the Gold Coast to meet mounting pressure for more homes.

Nobby Beach, Miami North, Christine Avenue and Second Avenue will be the first focus of the planning process, from September 2021 to early 2022.

The move comes after the Gold Coast City Council analysed the results of the Neighbourhood Framework Broadbeach-to-Burleigh-Heads Corridor survey, in which 77 per cent of respondents agreed with the first set of neighbourhoods.

The first station neighbourhoods to be targeted for growth by the City of Gold Coast.

The results showed tourism businesses, restaurants, entertainment and mixed-use developments would provide the most opportunities for residents.

The station neighbourhoods would be updated in the council’s City Plan in 2022 to 2023, as determined by other amendment packages.

The survey showed the majority of the 1826 respondents were “beginning to recognise in order to protect our environmental areas, concentration of growth was part of that”.

According to the ShapingSEQ outlined in the current City Plan, the Gold Coast needs to provide 158,900 extra dwellings to meet growth obligations by 2041.

Eighty per cent of new dwellings should be in existing locations and 20 per cent in expanded areas of the city.

Apartment sales have increased 97 per cent this year with interstate migration the main driver, despite the nation’s population stagnating.

▲ Helensvale North will be renamed Hope Island Station and would have 179 car parks, lifts and 40 lockable space for 40 bicycles.

Meanwhile, the detailed designs for Hope Island station, formerly known as Helensvale North, were recently completed.

The details of the station, part of the $5.4-billion Cross River Rail project, follow on from the Pimpama detailed design released in July. Merimac the next on the list.

 

Article Source: www.theurbandeveloper.com

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Aria Property Group win Master Builders awards for West End apartments Tree House, launch Trellis at South Brisbane

ARIA’s latest development is Trellis, the Rothelowman-designed 12-level apartment block at 20 Edmonstone Street, also in South Brisbane

The Brisbane-based Aria Property Group has won two awards at the 2021 QLD Master Builders Award for its West End apartment development, Tree House.

Tree House, designed by Rothelowman, won the overall 2021 QLD Master Builders Award for Residential (Regional), as well as the award for residential high-rise building over $20 million.

The development of 90 apartments was inspired by the leafy and tranquil suburb of West End, taking cues from Davies Park with over sixty mature trees are integrated throughout the development, to deliver a living and breathing urban forest.

Aria has had further success with one of their recently completed apartment projects.

The popular South Brisbane tower, The Standard, located in the heart of the Fish Lane arts precinct, has seen off the plan investors sell their apartments, secured before construction was complete, for between 10 per cent and 38 per cent higher than what they paid, with owner-occupiers showing the greatest keenness.

Investors who have held on to their apartments are also seeing strong 5.48 per cent rental yields throughout the building.

ARIA’s latest development is Trellis, the Rothelowman-designed 12-level apartment block at 20 Edmonstone Street, also in South Brisbane.

Trellis 20 Edmondstone Street, South Brisbane QLD 4101 

The development of 110 two and three-bedroom apartments is located adjacent to Musgrave Park, one of Brisbane’s oldest and most iconic parklands.

ARIA say Trellis is one of their most liveable apartments to date, featuring three metre high ceilings, Miele appliances, operable glazing and a number of sustainable features.

Reminiscent of an urban retreat, Trellis reflect a new age of living, with work from home spaces and cross flow ventilated corridors.

Trellis also has some of the highest resident amenity ARIA have offered, with 1,119 sqm of recreational amenity across the Temple of Wellness on the ground floor and the Residents’ Rooftop Club on level 13.

Completion is slated for mid-2023

Aria Property Group has been awarded Australia’s best high-density developer in 2017, 2018 and 2019.

 

Article Source: www.urban.com.au

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Cromwell Sells Ipswich Office Tower for Record $145m

Cromwell Funds Management Limited has sold the Icon building in Ipswich for $144.9 million, a record price paid for an office building in Queensland outside Brisbane.

Castlerock picked up the nine-storey building with 17,870sq m of commercial space after raising $90 million in seven weeks for its new The Auslink Property Trust No 2.

The A-grade tower at 117 Brisbane Street, in the Ipswich City Heart precinct, was built in 2013 and included 207 car parks, 120 bicycle stations and office winter gardens.

Cromwell made the decision to sell because of the $16.4-million premium to the previous book value of $128.5 million and that the trust had less than two years to maturity.

Cromwell head of retail funds management Hamish Wehl said unit-holders would receive a special distribution as a result of the transaction.

“It was a difficult decision to sell the property, however, with less than two years to go to maturity, we felt that money-in-the-hand was the right outcome for unit-holders,” Wehl said.

Castlerock director Adam Bronts said the capital raised showed the appeal of the new fund and the high level of demand for quality property assets.

“This capital raise was the largest in Castlerock’s 18-year history, so it was extremely gratifying to see such keen investment appetite for the fund,” Bronts said.

The Queensland government is Icon’s major tenant, accounting for more than 91 per cent of the net lettable area.

The sale is unconditional and is expected to settle on October 21, 2021. It was put in play through Colliers state chief executive Simon Beirne and Queensland director of investment services Sam Biggins.

“Castlerock’s acquisition is further evidence of syndicator capital moving up the price curve into larger office assets in key metropolitan markets in Queensland,” Biggins said.

“The Icon transaction represents the largest sale of an office building in Queensland outside Brisbane. Castlerock was attracted to the long-term growth prospects of the Ipswich region. which is Queensland’s fastest growing local government area.”

 

Article Source: www.theurbandeveloper.com

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My best 12 tips and tricks for first-home buyers

Aussie home values rose 18.4 per cent over the past year. No, that’s not a typo.

One of the more devastating economic side effects of COVID-19 for aspiring first-home buyers has been how the steep fall in interest rates has inflated home values.

I’m more agnostic than most about the virtues of homeownership, versus renting and investing your savings.

The tax breaks on housing are generous but beware the hidden costs, such as stamp duty, which can add up if you move too often.

The choice to buy is a personal one, often driven by desire for stability and security. That was certainly a big factor for me in buying my first home almost two years ago.

So, if you have decided your goal is to own a home, here are my top tricks and tips to help you. It won’t get everyone a home, but I hope it provides you some food for thought during what can be a stressful experience.

It’s harder for you than your parents

Baby boomers will recall their days of having to scrimp and save for a home deposit. And that may have been true for their experience.

However, it didn’t take – as it does today – an average of 11 years for a worker on the median full-time salary (about $80,000) to save a 20 per cent deposit on the median home value ($666,000), assuming a savings rate of 15 per cent of gross income. It just didn’t.

Don’t give up

Yes, it’s a bitter pill to swallow that the home you want could have, on average, cost about 20 per cent less this time a year ago. But it is what it is. And barring a property crash, which almost nobody is predicting, it’s only going to get worse.

Adjust your expectations

While you’ve been faithfully sticking to your idea of what property should be worth, everyone else has been out there hocking themselves to their eyeballs in debt and pushing up prices.

I’m not saying it’s right. I’m just saying your one-person protest at the inequity of it all is not doing much to change things.

Lower rates work in your favour

While they make it harder to save a deposit, lower interest rates increase the amount financial institutions are willing to lend you. Why? Because when interest costs fall, you have more space in your budget to meet the repayments on a bigger loan. You might be surprised how much the banks are willing to lend you.

Talk with lenders early

When I got serious about getting a home loan, I literally walked into three bank branches on my high street and spent a couple of hours chatting to their loan staff. They’ll ask for an estimate of your income and living expenses and usually give you a rough idea of what size loan you could service.

Many home-loan specialists are also doing zoom sessions during lockdown. Just make sure it’s only a preliminary conversation, and you’re not formally applying for credit because this can show up on your credit history.

Track your spending

If you do speak to a lender or broker, the first thing they’ll do is pepper you with questions to which you don’t know the answers. How much do you spend on electricity? Haircuts? Entertainment? Food? Eating out? Get ahead of the game by figuring this out in advance. And cut where you can.You can download and use the spending tracker I designed here.

Investigate the FHSSS

Stashing your savings in the bank doesn’t get you much these days. It is tempting to look at shares, but volatility can make things tricky.

One alternative is the First Home Super Saver Scheme, whereby you can put money into your superannuation at the low tax rate of 15 per cent, then later withdraw up to $50,000 for your first home. Eligibility and withdrawal conditions apply but, if I was starting again, I’d check it out.

Re-think your deposit

It would be nice to put down a full 20 per cent deposit on your first home, but it is not necessary. I put down about 15 per cent. It is not uncommon for major banks to accept deposits of 10 per cent – often less with smaller players.

Just be aware you’ll be up for paying Lenders Mortgage Insurance (LMI) if you don’t have the full 20 per cent, which can cost upwards of $10,000. You can have the cost added to your loan amount.

If your income is below a certain threshold, you can investigate accessing the government’s First Home Loan Deposit Scheme. Places are limited and not all lenders can offer it, but it covers the cost of your LMI on loans with deposits as small as 5 per cent.

There is a separate scheme for single parents with deposits of just 2 per cent.

Access ‘bank of mum and dad’

Swallow your pride and ask for help – if you’re lucky enough to have it. Parents can go guarantor on a loan to help you avoid paying LMI. They can also just give you cash for your deposit. It’s so unfair but it’s true.

Reconsider location

Think about whether you could live at least a suburb or two further out. The rise of working from home has opened up new opportunities for living further afield, where prices are generally lower.

Local property markets vary

Property prices rarely rise across the board. Talk to real estate agents about which suburbs may be undervalued. Take it all with a pinch of salt, but it can’t hurt to ask, right?

Re-imagine your dream home

It’s hard, but chances are you can live in something smaller. Unit prices have not risen as fast as free-standing homes. Many people are now raising young families in units or apartments. Nab a ground floor one if you can – they can feel quite house-like and give you direct access to communal space.

Good luck out there, I’ll be thinking of you.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions. 

 

Article Source: www.brisbanetimes.com.au

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