Brisbane Housing Market Insights: August 2021

The Urban Developer’s latest Brisbane housing market insights, looking at the month for July, reveals that it’s been a stellar year for the city’s residential market despite on-going snap lockdowns.

This resource, to be updated monthly, will collate and examine the economic levers pushing and pulling Brisbane’s housing market.

Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.

Brisbane median house and unit price values

Type	Month	Quarter	Annual	Median
All	2.0%▲	6.0%▲	15.9%▲	$598,615▲
Houses	2.2%	6.7%▲	17.7%▲	$674,738▲
Units	0.8%▲	2.7%▲	7.0%▲	$419,143▲

^Source: Corelogic Hedonic Home Value Index – July

Brisbane’s typically slow-moving property market has continued to rise as part of a post-pandemic boom that experts say could fuel a further 15 per cent rise in house prices in the coming year and more than double by the time the 2032 Olympic Games commence.

The latest Corelogic home value index shows Brisbane dwelling prices have risen by 2 per cent on a rolling four-week basis.

Brisbane house prices advanced a further 2.2 per cent during July, pushing it up 6 per cent for the recent quarter and 15.9 per cent for the year to date.

The current median value for dwellings is $589,000 which is $3000 higher than just a month ago.

The median house price of $675,000 continues to attract interstate migrants from the larger markets of Sydney, where the median is now $1.25 million, and Melbourne at $945,000.

The current median unit price in Brisbane is $419,000, which is $4000 more than one month ago.

With a population of roughly 3.7 million, Queensland’s southeast is Australia’s fastest-growing zone.

Forecasts suggest it will top five million by the middle of the next decade.

Corelogic research director Tim Lawless said if the Sydney 2000 Olympics were any indication, Brisbane could be tracking a similarly strong performance.

Between when the Olympics were announced in September 1993 and when they were held in September 2000, Sydney dwelling values jumped by 60 per cent, almost twice the growth recorded across the broader combined capital cities benchmark region.

Brisbane’s housing market: policy updates

Olympics to Push Brisbane Market’s Limits

Brisbane house prices will hit the $1-million median well before the 2032 Olympics with suburbs near venues tipped to move up to $3.9 million.

Property projections from PRD Research indicate the median price would reach $1.7 million by 2033 and would be “immensely” boosted on the Gold and Sunshine coasts.

PRD chief economist Diaswati Mardiasmo said it was clear that hosting major events had served the property market well.

Federal Budget 2021: Property Hits and Misses

The federal government has rolled out its latest budget in May, a single-year plan centring on aged care, childcare, infrastructure, investment tax breaks and more help for home buyers as it tapers off the record spending from last year’s budget.

The budget will use superannuation incentives to help younger Australians enter the property market and older Australians vacate the family home.

While there have been some significant aids to the property industry and construction sector, experts have also noted some missed opportunities.

Queensland Budget Announcement

Queensland faces a “hard road” during the next four years as the state recovers from the coronavirus pandemic, Treasurer Cameron Dick says.

Property tax concessions are notably absent from the Queensland budget as the state details its plans for the year to come.

Instead 86,000 interstate migrants, health and education investments as well as infrastructure spending are expected to boost the state economy.

What the experts are saying about Brisbane’s housing market

Louis Christopher
Managing Director
SQM Research

“Regardless of the Olympics, Brisbane is likely to outperform the market as it’s due for a surge after years of sluggish growth,” he said.

“So the probability is that outperformance could go on for longer than one or two years post-Games.

“Developers are likely to position themselves early, looking to secure development sites with the intention of capitalising on increased investor demand in key areas.

“I think developers will be aiming to position themselves in key precincts early.

“We are likely to see increased competition among developers for prime development sites, especially around the inner south where so much of the infrastructure activity is taking place.”

Nicola Powell
Chief of Research
Domain

“What’s interesting around hosting the Olympics is that the impact on housing values isn’t going to be during the games; it’s going to be far more stretched than that because it’s such a significant event for Australia and Brisbane.

“It will grow the infrastructure and the associated job creation, and with that, it will bring economic prosperity and what we could see is a bit of a turnaround in unit growth as well.

“I think this is something that sets Brisbane apart from our other capital cities because, until 2032, there’s a long period of time, which means there’s lots of time for purchases on big-ticket items in terms of infrastructure.”

Matthew Hassan
Senior Economist
Westpac

“Coronavirus disruptions are likely to take some heat out of markets in coming months.

“Price growth may stall altogether, however, any slowing is very likely to be transitory, with easing restrictions and a national economic rebound driving a subsequent re-acceleration.”

Gareth Aird
Head of Economics
CBA

“Momentum remains buoyant as evidenced by elevated auction clearance rates.

“And there appears to be a clear sense amongst households that whilst the economic shock will be severe, it will be short lived and activity and employment will bounce once the lockdown is over.

“As such, there is unlikely to be any material shift in the household perception of the property market over coming months.”

Brisbane housing market forecasts

NAB is forecasting Brisbane house prices to rise by 19.5 per cent over the next 18 months with a 4.4 per cent rise across 2022.

ANZ economists predict Brisbane house prices will rise by 9.5 per cent next year, as low interest rates and government stimulus flow through the economy.

CBA now expects Brisbane house prices to increase by 16.6 per cent to December 2022 compared to 13.7 per cent in Sydney and 12.4 per cent in Melbourne.

Westpac has also updated its property forecasts, with Brisbane real estate prices tipped to surge 20 per cent between 2022 and 2023.

Brisbane auction clearance rates 

Week	Clearance rate	Total Auctions
Week ending 4 July 2021	64.4%	133
Week ending 11 July 2021	75.8%	162
Week ending 18 July 2021	66.7%	169
Week ending 25 July 2021	75.2%	169

^Source: Corelogic Auction Clearance Rates – July

According to CoreLogic, more than 30 suburbs across the state hit double digit increases in the past quarter.

The median house price in New Farm gained 7.6 per cent during the June quarter and has grown nearly 17 per cent in the past 12 months to $2.1 million.

According to REA, Fortitude Valley is the hottest sales market in the city and recorded the third most sales in Queensland so far this year, as well as the most units.

Nundah is the sixth most popular suburb in the state and number two for units at 259 sales, followed by Bracken Ridge with 252 house sales.

Virginia, on the city’s northside, is currently the most popular suburb for rental investment properties with rental yields now at 4 per cent.

Northgate, at 3.9 per cent, was close behind, followed by Hawthorne, 3.7 per cent and Grange at 3.6 per cent.

Brisbane residential rental vacancy rate

City	July 2021 vacancy rate	Monthly % change
Brisbane	1.3%	0.0%

Rental stock on market 

City	July 2021 vacancies	Vacancy net loss
Brisbane	4780▼	627▼

Brisbane rent prices 

Type	Rent	Monthly % change	Annual % change
Houses	$515.00▲	3.2%▲	10.4%▲
Units	$393.00▲	0.8%▲	2.4%▲

^Source: SQM Research – July

Rent in south-east Queensland rose 15.4 per cent over the 2020-21 financial year, placing the region in the top dozen Australian markets for rent increases.

Corelogic’s quarterly rental review for June showed an increase in rent of 6.6 per cent across the country.

The growth ranged from 0.2 per cent in the North East and North West Melbourne markets to 23.7 per cent across the South East of Tasmania.

Corelogic head of research Australia Eliza Owen said annual rent increases were observed across 79 of the 88 markets analysed.

“This follows a decade of relatively subdued annual rent growth, averaging 1.8 per cent since June 2011,” Owen said.

“The annual growth rate of 6.6 per cent marked the strongest annual uplift in over a decade.”

All cities have climbed more than 7 per cent apart from Sydney, up 3.2 per cent, and Melbourne, where rents have dropped 1.4 per cent because of last year’s long lockdown.

“As with house prices, rent prices are seeing a deceleration in growth at the national level and across each of the capital cities, which may reflect affordability constraints, but there could also be higher levels of rental supply as investor activity in the market increases,” Owen said.

“Very high rental growth is unsustainable while income growth remains subdued.

“The result will likely be more subdued growth rates in the coming quarters, especially as investor participation trends higher, delivering more rental supply.”

Queensland building approvals 

^Australian Bureau of Statistics, (Suspension of trend series between May 2020 and Jul 2020 due to Covid-19)

Dwelling	Approved	Monthly % change
Houses	2015▼	-25.2▼
Units	2996▼	-18.4▼

^Source: Australian Bureau of Statistics; Reference period June

A significant dip in housing approvals has added fuel to the already hot property market, despite a lockdown softening.

Australian Bureau of Statistics data shows the number of private-sector houses approved dropped 11.8 per cent in June, following the downward trajectory since the end of the Federal government’s HomeBuilder stimulus package.

Across both houses and units the number of dwellings approved fell 6.7 per cent, compared to a 7.6 per cent decrease in May.

Queensland and Western Australia experienced the biggest decline in both house and unit approvals.

In Western Australia overall dwellings approvals dropped by 30.5 per cent, followed by Queensland at 18.4 per cent and Tasmania at 14.9 per cent.

In the 2020-21 financial year total dwelling approvals nationally were 27.3 per cent higher than in 2019-20 financial year, driven by a 42.8 per cent surge in private sector house approvals.

Dwelling approvals increased more than 88 per cent in Western Australia over the financial year, while in Queensland it was up 36.7 per cent and Tasmania experienced a 33.9 per cent increase.

Queensland home loan lending indicators

First home buyer loan commitments	First home buyer ratio – dwellings	First home buyer ratio – housing
Queensland	2835▼	35.8%▼	31.4%▼

^Source: Australian Bureau of Statistics – June

Owner-occupier home buyers propelled a surge in housing credit in June.

Housing credit lifted 0.7 per cent—the most in 11 years—to be up 5.3 per cent when compared to a year ago—the strongest annual pace in two years.

Owner-occupier housing credit jumped 0.9 per cent—the biggest gain in five years – to be up 7.2 per cent on a year ago—the strongest annual growth rate in two years.

Investor housing credit rose by 0.3 per cent to be 2.0 per cent higher on a year ago—the strongest annual rate in three years.

“Deteriorating affordability is likely to weigh on owner-occupier demand, and a tightening in macro–prudential policy settings will restrain the supply of credit,” Westpac chief economist Bill Evans said.

“We expect housing credit growth to exceed 7 per cent by the first half of 2022, triggering a likely policy intervention. The precise response will depend on the composition of lending over the next year.”

Most economists now expect the RBA to begin raising rates over 2023 and 2024 to a natural rate of about 1.25 per cent.

Queensland interstate migration 

March (quarter) 2021 arrivals	March (quarter) 2021 departures	December (quarter) 2020 net
Queensland	28,500▼	21,465▲	7035▼

^Source: Australian Bureau of Statistics – March quarter 2021

Interstate migration into Queensland, growing at its fastest rate since late 2003, has remained a tailwind for housing demand.

Brisbane’s population grew by 1.9 per cent during 2019-20, recording the highest growth rate of all capital cities, according to Australian Bureau of Statistics data.

Queensland experienced a net gain of 28,500 people from interstate in the March quarter and 21,465 departures.

Queensland’s population is expected to surge by more than a quarter of a million people in the next four years according to forecasts in the federal budget, as people flood in from other states.

Treasury boffins have predicted Queensland is set to gain around 20,000 people from interstate each year for the next four years—amounting to almost 85,000 new residents by mid-2025.

Next year alone, federal treasury estimates see Queensland gaining 23,800 new interstate residents, while Victoria is set to lose 1200 and New South Wales is tipped to shed as many as 15,500.

Queensland’s population is predicted to hit 5.44 million by mid-2025, up from 5.17 million in June 2020

 

Article Source: www.theurbandeveloper.com

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Stockland Buys $43m Geelong Greenfield Site

Stockland has padded out its development pipeline, buying a 30.6ha site just south of Geelong as regional land demand continues to soar.

The developer plans to build a 500-home masterplanned community on the site at 502-580 Boundary Road, Armstrong Creek.

Land sales in Greater Geelong for the past quarter are at the highest point in more than a decade, according to Oliver Hume market insights.

The research showed regional Victorian market growth was driven by the ongoing shift to working from home, changing consumer preferences and a relatively affordable market.

Stockland Communities chief executive Andrew Whitson said they planned to start initial site works early next year.

“We are excited about returning to the Greater Geelong area, an area that appeals to customers taking advantage of more flexible work arrangements who value easy access to the cities of Melbourne and Geelong,” Whitson said.

“This acquisition aligns with our strategy to re-stock our residential pipeline in corridors with strong demand that cater to continued customer preferences for low density living.”

Jinding is also working on a development in Armstrong Creek, a 94ha site which it purchased for $178 million in 2019.

The demand for land in Geelong doubled from 2019 to 2020 to more than 53,000 lots sold, according to the Urban Development Institute of Australia.

Developers have been quick to respond to this, with Victoria-based Newland Developers setting its sights on creating an entire suburb, announced in February.

The development in Geelong’s northern suburbs would have 15,000 homes across the 1000ha site.

Despite the upswing in developments, land prices in the city have remained relatively unchanged, hovering around $288,767 in the past year, according to Oliver Hume.

 

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Businesses Banking On Sunshine Coast Property Market

The Sunshine Coast office market is the hottest in Queensland, according to a CBRE report, as the region grapples with the growing pains of a booming population.

Vacancy rates dropped from 21.9 per cent in 2019 to 13.2 per cent in July, 2021, as more people moved to the regions in the wake of the Covid-19 pandemic.

According to the CBRE report, the expansion of the medical precinct at Birtinya has partly driven the uptake of office space while the Sunshine Coast is also one of the biggest breeding grounds for start-ups nationally.

The Sunshine Coast economy has grown 3.5 per cent each year since 2015 and is forecast to reach $33 billion in 2033, with the new Maroochydore CBD forecast to provide 15,000 jobs and inject $4.4 billion into the economy over the project’s 20-year timeframe.

Sunshine Coast is currently home to 350,000 people and is feeling the pinch of land supply constraints and a booming residential market.

The region has the smallest lot sizes in south-east Queensland and the most expensive land, excluding Brisbane City, according to property researcher Terry Ryder.

The population is forecast to grow to 580,000 by 2041, which would require more than 70,000 new dwellings to be built, which Directive Collective claimed amounted to one new suburb every year.

CBRE Sunshine Coast managing director Rem Rafter said the past 18 months had provided “huge opportunities” for the Sunshine Coast.

Sunshine Coast infrastructure pipeline ($million) 

^Source: Deloitte Access Economics 

The property market has been the strongest performer in Queensland during the past two years, banking 7.7 per cent growth in median house prices now valued at $630,000.

“We have seen an increasing number of people moving to the region from interstate and other areas of Queensland, and there has been unprecedented government and private investment in infrastructure on the Sunshine Coast,” Rafter said.

“While the Coast’s economy was once reliant on tourism and construction, it has evolved into a modern, smart economy.”

Knowledge-based jobs and healthcare have helped bolster the economy with a further 23,000 jobs added to the Sunshine Coast during the past five years.

Rafter said low supply of freehold industrial property had fuelled “unprecedented prices” that were now at a 15-year peak, while the retail sector was bouncing back from pandemic-induced lows.

About $1.4bn in infrastructure projects are under way on the Sunshine Coast including the Maroochydore City Centre, the Sunshine Coast Health Precinct, a new business and technology precinct, a Bruce Highway upgrade and the expansion of the Sunshine Coast Airport.

 

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Construction Industry Steels Itself for Supply Shortage

Nerves of steel are not something Australia’s construction industry is ever likely to be short on.

And now, more than ever, it will need them to overcome the challenges it is facing from major threats to the supply chain and the skyrocketing price of its key building material.

Steel exports from China have begun to plunge—reportedly already by more than 50 per cent in recent months—heightening concerns of a rising shortage that will exacerbate the stress cracks of an industry already under pressure.

To meet its target for peak carbon emissions by 2030, the world’s largest steel exporter has been winding back its steel production at the same time countries around the world have ramped up construction activity as part of Covid-19 recovery programs.

Meanwhile, new outbreaks, most recently of the Delta variant of the virus, have led to congestion at its major ports, compounding the supply issues and resulting in significant hikes in sea freight costs.

At least 30 per cent of Australia’s steel supply is imported, the majority from China.

With demand already outstripping supply, it is predicted soaring steel prices will climb even higher in coming months, further cementing the construction industry’s “profitless boom”.

Steel and other building material shortages also have the potential to derail the delivery of Australia’s $110-billion infrastructure pipeline if the supply chain issues worsen.

“Nobody really knows what’s going to happen … if you did you could make a fortune on the futures,” said Scott Hutchinson, chairman of Australia’s largest privately-owned construction company Hutchinson Builders.

“We’re dealing with them [the supply issues]. You just buy what you can and do what you can—you can’t stop the job. Things, generally, are difficult. It’s not an easy game. It’s a struggle.”

Hutchinson estimates that rising steel prices during the past 12 months so far have shaved at least 10 per cent off the company’s already slim profit margin.

“You’ve just got to lose money on the steel on projects you’ve already signed up on, and for the projects going forward you can either put in a high rate for steel or get the client to underwrite the value of the steel,” he said.

Australian Steel Association chief executive, David Buchanan, said import prices had almost doubled over the past year from $1100 per tonne to nearly $2000 per tonne for structural steel products.

He said the rising price had triggered a “chill effect” on buying and, combined with the impact of the recent slowdown in production in China, the volume of imported hot-rolled steel coil had hit its lowest level in the past three months.

In April, the removal of China’s 13 per cent manufacturers tax rebate caused a sudden surge in its steel price and, on top of that, there is speculation its steel products will be slapped with an export tax from early September.

“We haven’t seen too much damage as yet,” Buchanan said.

“I think we’ve been insulated in Australia by the two big steel mills we’ve got here. They’ve kept their prices relatively competitive compared to the world market.

“But we can see what’s coming, and what’s coming is shortages and delays and more price increases.”

Adding to the construction sector’s supply chain and material cost woes are major shipping bottlenecks with delays of up to 10 days to get vessels into some of China’s ports.

“Shipping is probably the biggest challenge for the industry at the moment,” Buchanan said. “The whole supply chain is getting extended and that’s a major issue.

“Because of those delays you’re going to see shortages in the total inventory in the market.

“Coupled with this, you’ve got pricing increases from the shipping lines, huge rises in container costs and that’s all adding to the increase in the steel prices.”

Buchanan said all indications were that steel prices will likely continue to spiral upwards, albeit at a slower rate, at least into the first half of 2022.

“We’ve certainly got some very challenging times in front of us,” he said. “And until the supply chain from overseas can catch up, steel shortages will also continue.”

In the latest Global Construction Monitor, the Royal Institution of Chartered Surveyors’ cited issues around sourcing building materials and the related costs in the wake of interruptions to supply chains as major concerns.

Material costs were deemed a “significant challenge” by 80 per cent of survey respondents in the Asia Pacific region. Almost two-thirds of them also suggested that shortages of materials were hampering construction activity.

The report indicates that with projections for material cost inflation increasing to more than 8 per cent over the next 12 months “pressures seem set to intensify … [and] drive costs higher”.

“Taken altogether, there appears to be several emerging headwinds for the sector to contend with and, if these were to continue to escalate, they may well begin to take some of the steam out of the current global uplift,” it said.

▲ Delays in supply are causing massive cost blowouts for projects across Australia. 

On the Gold Coast, the massive hikes in steel prices as well as increasing supply shortages are already biting into the city’s booming and highly competitive residential construction sector.

“We’re probably very close to a $1-million loss off our bottom-line over the past six months because of the rise in steel prices … and we’re only a tenth of the size of the bigger builders,” said Steve Marais, managing director of locally-based Condev Construction.

Marais said steel supply shortages meant that there was “a degree of redesign that has to occur” day-to-day on projects in its workbook, including Marquee Development Partners’ 17-level One Cannes apartment tower in Surfers Paradise.

“You’ve just got to adapt to what’s available,” he said.

“The concern to all of us as builders is not necessarily the extra cost of the steel but, more specifically, the issue of non-supply.

“Our projects, generally, cost us around $50,000 a week to run.

“If we have supply problems for two or three weeks that’s $100,000 or $150,000, so you’d rather be paying more for your steel than losing time.”

 

Article Source: www.theurbandeveloper.com

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The Brisbane, Sunshine Coast and Gold Coast suburbs where your house earns more than you

House prices in a handful of Sunshine Coast, Gold Coast and Brisbane hot spots grew by more than an Australian senator’s salary in just 12 months, following a milestone year that saw homes in a quarter of all Queensland suburbs gain more than the annual household income.

New analysis from Domain has revealed house prices in Sunshine Beach, Minyama, New Farm and Hamilton soared by up to 400 per cent more than the average household salary in the year leading up to June, showcasing the incredible strength of the state’s market amid growing fears of affordability.

According to the report, houses in Sunshine Beach on the Sunshine Coast enjoyed a colossal $445,000 annual change in prices – far outstripping the average household salary of $76,976.

In nearby Minyama, houses gained $437,500 to outperform the average income of $70,543 by almost $367,000. In the blue-chip Brisbane suburb of New Farm, house prices rose by $440,000 – a figure that’s four times more than the annual household income of $103,516.

In the unit market, Sunshine Beach also topped the Queensland list while taking fourth place nationally after annual property prices skyrocketed by $212,500 – an incredible $135,000 more than the annual household income. The sunshine state also recorded the highest proportion of units that gained more in price growth than the annual household income, followed by NSW.

Queensland suburbs where house prices rose faster than incomes

Suburb	Annual change in property price	Annual household income	Change in property price minus annual household income
Sunshine Beach	$445,000	$77,067	$367,933
Minyama	$437,500	$70,626	$366,874
New Farm	$440,000	$103,638	$336,362
Hamilton	$352,500	$108,929	$243,571
Bundall	$337,500	$95,011	$242,489
Miami	$296,250	$79,943	$216,307
Noosaville	$280,000	$66,255	$213,745
Noosa Heads	$285,000	$79,080	$205,920
Mermaid Beach	$290,000	$84,141	$205,859
Burleigh Heads	$272,500	$79,713	$192,787

While the data might look dire for bargain home hunters, property punters said Queensland remained as cheap as chips compared to most major southern cities, with the gargantuan house price growth attributed to record rates of interstate migration in key lifestyle hot spots.

“What we have seen and what’s very evident for Queensland is the Sunshine Coast and the Gold Coast are very up there, and this data is really telling of who is active in the market,” Domain’s chief of research and economics, Nicola Powell, said.

“But 25 per cent [of suburbs with higher property price growth than salaries] is quite a strong milestone for Queensland … I think in the years leading up to the Olympics we’ll probably see even greater demand for properties there.”

Dr Powell said while the sheer rate of annual price growth appeared extreme in isolation, across the country NSW was the standout performer, followed by Tasmania, Victoria, ACT, Queensland, South Australia and Western Australia.

“What we’d seen in parts of NSW and VIC is some unbelievably extreme rates of growth … and in Queensland 69 per cent of suburbs still had lower rates of growth than the household income,” she said.

Ray White New Farm principal Haesley Cush said while sheer buyer appetite had sent prices soaring in the city’s most sought-after precincts, the fact that a stylish two-bedroom unit could still be snapped up for less than $600,000 in a trendy inner-city patch made Brisbane a gold mine.

“We have had only moderate growth in houses [in the last 10 years] and in units we’ve had negative growth so the fact that some suburbs are outperforming annual incomes is offset by the fact that people’s incomes were beating it in past years,” Mr Cush said.

“And I still think we’ve got a long way to go in terms of values before it starts to hit that big question of, ‘How long can this go for?’”

As to where he’d pour his investment property dollars, Mr Cush said anywhere with major transport infrastructure spending was bound to be a good bet.

“I think generally there are two places you should buy to get your house earning more than you. One is the traditionally good markets like New Farm, Paddington, Ascot and Bulimba – they are going to continue to grow and perform. And then, for people looking for more of a speculation, there are two other areas around the city like Kelvin Grove to the north, because it has big infrastructure changes, and Albion.”

Sunshine Beach Real Estate principal Pip Covell said the sheer lack of stock in her coastal suburb had sent property prices through the roof, with the market flourishing from both interstate buyers seeking a “sea change’ and families and adult children returning home.

“The prices are still increasing. We sold the only block of land left in Sunshine Beach last weekend and it went for $2 million under the hammer … and it’s in a residential area with no sea views,” Ms Covell said.

“You’ve got this backlog of buyers that are just sitting there waiting to pounce and a lot of people want to come and live here … I think it’s this whole thing of people being able to work from home and prices are catching up because of our location and the airport.”

It’s a trend she said had flooded into the apartment market, sparking an incredible year of sales in the unit sector with spacious beachfront units now frequently fetching millions.

Queensland suburbs where unit prices rose faster than incomes

Suburb	Annual change in property price	Annual household income	Change in property price minus annual household income
Sunshine Beach	$212,500	$77,067	$135,433
Coolum Beach	$181,000	$72,984	$108,016
Noosaville	$132,000	$66,255	$65,745
Buddina	$145,000	$79,540	$65,460
Golden Beach	$108,000	$58,145	$49,855
Mooloolaba	$118,000	$68,555	$49,445
Currumbin	$132,500	$84,544	$47,956
Palm Beach	$115,000	$70,626	$44,374
Highgate Hill	$132,000	$89,030	$42,970
Coolangatta	$90,000	$58,548	$31,452

Source: Domain 

Down on the Gold Coast, houses in Bundall, Miami, and Mermaid Beach far outperformed household salaries over the past year, with the unit sector also soaring.

“Interestingly it’s not just … houses – we were seeing that previously when units were stagnant – but we have sold both a house and unit for about $200,000 over what they sold for last year. The shift has been significant,” Harcourts Coastal agent Ben O’Brien said.

“But the market stock is down by less than half typically [and that’s a big challenge].”

In Bundall, the annual change in house prices reached $337,500 over the past year – more than three times that of the annual household salary of $94,899. In Miami, house prices collected $296,250 – which is just over $216,000 more than the average salary.

For units, Currumbin was the star performer with an annual price change of $132,500, compared to the household salary of just over $84,000.

“Southport is where I would put my money right now as it’s still undervalued. I see plenty of growth there,” Mr O’Brien said.

 

Article Source: www.domain.com.au

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Last chance to buy a La Mer, Main Beach apartment as luxury owner-occupier demand continues on the Gold Coast

More than three quarters of the 29 apartments, developed by Polites Property Group in partnership with QNY Group, are already reserved

The luxury owner-occupier boom covering the whole of the Gold Coast is seeing apartments in luxury towers snapped up and sold out in double-quick time.

The latest is La Mer, the 34-level Main Beach apartment project on at 3580 Main Beach Parade

More than three quarters of the 29 apartments, developed by Polites Property Group in partnership with QNY Group, are already reserved, with the majority snapped up by locals.

The entry level three-bedroom apartments, which were priced at $2.35 million, have all been accounted for, with the remaining three-bed apartments now priced from $3.18 million.

La Mer 3580 Main Beach Parade, Main Beach QLD 4217

Despite the high entry price, the apartments still provide solid value for money compared to some of the older-style apartments in Main Beach.

QNY Group boss Anthony Quinn says the reason behind La Mer’s success, beyond offering a competitive price point, is its unparalleled south-east Queensland location.

Quinn referenced the recent success of Polites Property Group’s recent joint venture with Ignite Projects on its $85 million Cabana Palm Beach project, and its complete sell-out.

La Mer is translated from French meaning ‘the sea’, and honours the connection, as each apartment features ocean views and direct access to the beach.

The tower has been designed by the local architecture firm Archidiom, who are behind Sea at Palm Beach and Aniko’s Hope Island development.

La Mer will also feature an entire level dedicated to resort-style amenities including a 13-metre lap pool and barbecue facilities.

 

Article Source: www.urban.com.au

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Mirvac Sells Half Stake in Heritage Locomotive Workshop

Super fund Sunsuper has parted with $231 million for a half stake in Mirvac’s recently completed Locomotive Workshop redevelopment in Sydney.

The deal, representing a 4.7 per cent cap rate, similar to an investment yield, comes shortly after SunSuper decided to shift its commercial property mandate from AMP Capital to Mirvac—an agreement that is yet to be finalised.

Mirvac’s $450-million heritage conversion of the Locomotive Workshop in Eveleigh is part of the Australian Technology Park precinct on the edge of Redfern and encompasses 31,000sq m of A-grade office and retail space.

It comprises a two-storey sandstone and brick structure and has heritage features including cast iron columns, wrought iron trusses and heritage artefacts.

The workshop’s tenants include fintech company Quantium, Post Op Group and OMG, a major marketing company, while The Grounds and Romeo’s IGA are two of the key retailers.

Adam Woodward, James Mitchell and James Barber of Colliers International, alongside Ben Schubert, Paul Roberts and Graeme Russell of Knight Frank, advised Mirvac on the deal.

▲ The project’s architecture, interior design and heritage interpretation services were managed by Buchan alongside Sissons and heritage specialists Curio Projects. 

Woodward said the “groundscraper” site had become a highly sought-after office and retail location, as evidenced by 97 per cent of the building being leased prior to its completion in May.

“The Locomotive Workshop offers a rare commercial opportunity in Sydney’s burgeoning fringe office market,” Woodward said.

“The site is a unique heritage conversion offering world-class amenities and located in the Central-to-Eveleigh rail corridor, which will benefit from the NSW government’s $10.4-billion rail infrastructure investment that is currently under way.”

The broader 13.9ha technology park is owned by a Mirvac-led consortium of AMP Capital, Sunsuper and Centuria Property Funds.

The precinct is 5km from the Sydney CBD and a short walk to Redfern train station.

It also includes public artworks by local artists, public and shared spaces, a village green and community orientated sports facilities such as basketball, tennis and futsal courts, and a proposed scooter park.

Schubert said demand for Sydney’s fringe office investments has remained strong in spite of the pandemic.

“Investors are looking to acquire assets in emerging locations that are set to benefit from infrastructure improvements and that are known to attract tenants from the growing technology sector and wider creative industries,” he said.

Sunsuper, among the country’s largest and fastest-growing super funds with $85 billion under management, is no stranger to South Eveleigh where it already has a third stake in the 55,000sq m Commonwealth Bank complex, The Foundry.

The deal follows two major divestments this month for Mirvac, exiting a Sydney mall and a co-investment in a hotel portfolio.

In a similar deal, British investor M&G Real Estate bought Mirvac’s blue-chip EY Centre in the Sydney CBD for $575 million, taking a 50 per cent stake.

That transaction was struck on a tighter 4.1 per cent capitalisation rate.

The developer is also looking to divest its holding in the Tramsheds in Sydney’s Harold Park—a similarly positioned 6100sq m heritage reconversion.

 

Article Source: www.theurbandeveloper.com

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