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Demand for homes on the Gold Coast is outstripping supply

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Demand for homes on the Gold Coast is outstripping supply

Demand for homes on the Gold Coast is outstripping supply.Source:Gold Coast Bulletin

THE Commonwealth Games has pushed the Gold Coast property market to new heights, but now there are concerns the city won’t be able to keep up with housing demands.

Industry experts believed the market had gained momentum since it was thrown into the worldwide spotlight in April.

Ray White Surfers Paradise chief executive Andrew Bell said the bustling market since the Games had made it clear there was a shortage of stock.

“We certainly saw some reduced activity during March as everyone got prepared for the Commonwealth Games, but now there is greater buyer demand than there are properties for sale,” he said.

Demand for homes on the Gold Coast is outstripping supply

It seems everyone wants to move to the Gold Coast.Source:Supplied

Referencing research by property analyst Michael Matusik, Mr Bell said there were 19,000 new dwellings registered for sale over the past five years but 24,000 were needed to handle population growth.

He said there were about 9250 new dwellings or lots approved but not yet developed or registered for sale, which equated to less than two years’ supply.

“However, if we were to assume that the 5000 undersupply of the past five years was to be absorbed, then the real new housing supply drops to just 10 months, which is an acute shortage,” Mr Bell said.

He said the Games heralded a new chapter for the Coast as it evolved from a tourist town into a vibrant city with an expanding economy.

Demand for homes on the Gold Coast is outstripping supply

The Gold Coast and its relaxed lifestyle was thrown into the spotlight during the Commonwealth Games.Source:Supplied

“The city’s property market is riding the irreversible momentum that has now come to the Gold Coast in terms of economic diversity and with more employment options we will need more housing options for people,” Mr Bell said.

REIQ Gold Coast zone chairman Andrew Henderson said the city was dominated by owner occupiers, which was making the market much more competitive.

“There seems to be an overwhelming number of people wanting to live here on a permanent basis,” Mr Henderson said.

“There’s jobs around now, the infrastructure that we’ve got available to us after the Commonwealth Games is a big improvement.

“I think a lot of people are more than happy to stay in their homes a lot longer … which doesn’t create an abundance of supply.”

Demand for homes on the Gold Coast is outstripping supply

There is barely any space left to build in some suburbs.Source:AAP

Harcourts Coastal managing director Dane Atherton urged people to get their foot in the surging property market door to reap the benefits.

“I think the pessimistic view of a Coast property slump has definitely not happened and anyone waiting for that to happen I would caution them that they might miss the market,” Mr Atherton said.

Source: www.news.com.au

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Queensland Budget 2018: What it Means for the Property Industry

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Queensland Budget 2018: What it Means for the Property Industry
Queensland Treasurer Jackie Trad handed down the Queensland State Budget on Tuesday, delivering a surprise $1.5 billion surplus and putting an extra $200 million into people’s pockets.

This year’s budget focused on infrastructure, tourism and mining funding.

Property investors will also be met with a 0.5 per cent increase in the land tax rate for aggregated holdings above $10 million, as well as an increase in the additional foreign acquirer duty from 3 per cent to 7 per cent.

The government also announced it will cut back the first home owners’ grant.

So what does the state budget mean for the property industry?

Here is what you need to know.

Additional Foreign Acquirer Duty

Aligning with states nationwide, the Queensland government announced an increased rate for additional foreign acquirer duty.

The AFAD is an additional tax on relevant transactions that are liable for transfer duty, landholder duty or corporate trustee duty which involve a foreign person directly or indirectly acquiring certain types of residential land in Queensland by foreign persons.

The duty will rise from 3 per cent to 7 per cent and is forecasted to result in an increased revenue of $33 million per annum.

Infrastructure Improvements

The state government will dedicate $4.217 billion to transport and roads.

The Sunshine State’s long-awaited duplication of the Sunshine Coast rail line received $161 million.

The Toowoomba Second Range Crossing project received $543.3 million, a route to the north of Toowoomba from Helidon to the Gore Highway.

Brisbane’s Cross River Rail received $733 million to go toward the $5.4 billion project. The federal government failed to pledge any assistance towards the Cross River Rail project earlier this year leaving the state government to foot the bill.

There’s also $487 million over four years for upgrades to the M1 on Brisbane’s south and on the Gold Coast.

Queensland Budget 2018: What it Means for the Property Industry

Proposed Exhibition station on Cross River Rail. Artist’s Impression.Image: Cross River Rail Authority

First Home Buyers Grant Slashed

First home buyers have come to expect a $20,000 starter grant since 2016 will now see it cut to $15,000 if they buy a house from July onwards.

The $5,000 boost had been added to the grant in 2016 by former Treasurer Curtis Pitt, with the measure supposed to be in place for just one year.

It was extended twice in six-months until the end of 2017 and then to June of this year.

Land Tax Increase

Under the new taxes introduced in Tuesday’s budget, foreign landowners with more than $10 million worth of landholdings will now be in line for a 0.5 per cent increased rate of land tax.

Individuals with properties worth more than $10 million will now incur an additional rate of 2.25 per cent (or 2.5% for trusts or companies) for every dollar of taxable value over $10 million.

This is expected to bring in $71 million in revenue in its first year, with a projected 11 per cent increase in 2018-19 land tax revenue.

Source: brisbaneinvestor.com.au

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Brisbane and Queensland hit record property rises

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Brisbane and Queensland hit record property rises
Brisbane’s annual median house price hit a new record of $670,000 over the March quarter, according to the REIQ.

The REIQ’s March quarter Queensland Market Monitor found that against a backdrop of cooling southern markets and falling listings volumes, Brisbane house sales demonstrated “admirable” resilience, buoyed by steady population growth driving demand and underpinned by good economic fundamentals.

REIQ media and communications manager Felicity Moore said that anyone thinking of selling was going to find willing buyers in good supply.

“In this market, we could potentially see a rise in off-market sales as eager buyers pressure sales agents to see property before it hits the market,” the manager said.

The unit market eased over the 12 months to March 2018, losing 1.8 per cent off the annual median price of $442,000.

Ms Moore said that the unit market was at the tail end of an unprecedented level of supply. Rising demand would undoubtedly absorb excess stock, and the only question remaining was just how long that would take.

“Queensland has become the number-one destination for internal migration, taking over from Victoria in the latest ABS Census data, and our overseas migration is at its highest level in years, which means demand for accommodation will continue,” Ms Moore said.

The rental market is operating in the healthy range, with vacancies at 3.1 per cent for the March quarter and rising demand levels easily absorbed almost 3,200 new rental properties hitting the rental pool this quarter.

Ipswich

The Ipswich house market grew by 3.0 per cent to a new annual median house price of $340,000. March was a quiet quarter for this market, falling by 1.5 per cent, but over the year, it performed well.

The growth in the house market was offset by falls in the unit market, contracting by 3.0 per cent over the 12 months to March 2018 to an annual median unit price of $319,900.

Logan

The Logan house market delivered among the strongest performances for all markets in the March report, adding 4.0 per cent to the annual median house price to $395,000.

The unit market was one of the few markets to grow, adding 0.7 per cent to an annual median unit price of $271,000. However, over the past five years, the unit market has fallen by 7.5 per cent.

Moreton Bay

The Moreton Bay annual median house price grew a steady 2.4 per cent over the 12 months to March to deliver a median house price of $435,000. This growth is the smallest in Greater Brisbane.

The unit market felt the pain of the combined factors of strong supply and the affordability of houses, with a 3.8 per cent contraction in the annual median unit price to $346,250, down from $359,900 this time last year.

Redland

Redland LGA delivered “rock star” growth of 3.9 per cent for the year to a median house price of $530,000. The heavy lifting was done in the suburbs of Birkdale and Cleveland, which delivered 6.3 per cent and 6.7 per cent growth, respectively. The lifestyle and affordability options in this region are proving very popular with buyers.

Similar to the house market, the Redland unit market delivered stellar growth over the 12 months to March 2018, adding 3.4 per cent growth to a new median unit price of $409,500. This was by far the strongest unit growth in all of Greater Brisbane.

Gold Coast

The Gold Coast has taken the gold medal for annual median house price growth again, adding 6.0 per cent growth to a median house price of $620,000, the highest growth in the state.

The unit market added 1.9 per cent to deliver a median unit price of $428,000 for the year.

Toowoomba

The Toowoomba market has been a consistently steady performer, delivering 1.1 per cent growth for the year to March 2018 to a median house price of $355,000.

The unit market has defied regional trends throughout most of 2016 and 2017; however, gravity is now catching up and this market contracted 2.9 per cent to $300,000. The market remains 17.6 per cent larger than it was five years ago.

Sunshine Coast

The house market of the Sunshine Coast Statistical Division (SD), incorporating the Sunshine Coast LGA and Noosa Shire, has delivered moderate and sustainable growth for the quarter, the past year and the past five years.

A typical house in the Sunshine Coast SD increased in value by $31,250 for the past year to reach an annual median price of $576,250. Noosa continued holding the title of the most exclusive market compared to the Sunshine Coast local government area as Noosa houses generally cost $100,000 more.

In March 2018, the Noosa median house price reached $665,000 compared to the Sunshine Coast median house price of $563,000.

The Noosa unit market also performed well for the past 12 months, growing a stunning 7.1 per cent to reach an annual median price of $525,000 and remaining as the most expensive unit market in Queensland.

Fraser Coast

The Fraser Coast house market continues to be a steady performer, with annual median prices holding steady for the past quarter and increasing very modestly (only 1 per cent) for the past year. A typical house in Fraser Coast had an annual median price of $315,000 in March 2018.

The unit market performance was weak in the March quarter. However, its performance for the past year was better compared to the house market as the annual median unit price increased by 2.2 per cent. A typical unit in Fraser Coast had an annual median price of $259,500 in March 2018. Only about 11 per cent of the regional dwellings were units.

Bundaberg

The Bundaberg house market has held its ground over the past five years, with a house costing about the same today as it did five years ago. However, the market showed small growth levels of 1.8 per cent over the past 12 months, which is encouraging.

A house in Bundaberg cost an annual median price of $285,000 in March 2013 and March 2018.

The unit market performed a bit better than the house market over the past five years. A unit in Bundaberg increased in value from $251,400 in March 2013 to $259,000 in March 2018.

Gladstone

Gladstone has stared down some of the most challenging market conditions in the state. This market lost 8.5 per cent over the 12 months to the March quarter to have a median house price of $280,000. This market is more than 38 per cent below where it was five years ago.

The unit market fell by 36 per cent over the past 12 months to an annual median unit price of $167,500.

Rockhampton

The Rockhampton property market slipped moderately for the past year, with house prices falling by 1.9 per cent to $265,000 and unit prices contracting by 1.3 per cent to $295,000.

Units continued to outperform houses, as they’ve done for much of the year, and ended the year more expensive than houses. This atypical performance may be the consequence of the limited unit market, which represents less than 10 per cent of the region’s dwellings.

Mackay

The Mackay house sales market has delivered an outstanding 4.1 per cent growth to the annual median house price to reach $333,250 and live up to last quarter’s forecast of a stronger start to 2018.

This market is now officially in recovery.

However, the unit market performance remained weak as unit prices fell by 7.8 per cent to $212,000 for the past year. Mackay is the second most affordable unit market in the state.

Townsville

Townsville delivered a surprising fall of 3 per cent in the annual median house price for the year to March to reach $325,000.

Even more surprising, units grew a massive 5.7 per cent for the year to March to $280,000.

Cairns

Cairns delivered steady growth of 2.5 per cent over the past 12 months to arrive at an annual median house price of $410,000 in March 2018.

The Cairns house market has been one of the top two regional performers (excluding the south-east corner) for the past five years of all the areas analysed in the Queensland Market Monitor. House prices increased by 17.1 per cent, or $60,000, from $350,000 in March 2013.

The unit market was weak in the year to March, with the annual median unit price falling by 1.7 per cent to $232,000.

Source: brisbaneinvestor.com.au

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Brisbane house prices have hit a record high

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Brisbane house prices have hit a record high

Brisbane’s property market performed well in the past quarter with median house prices reaching a record high. Picture: AAP/ Ric FrearsonSource:News Corp Australia

BRISBANE’S house prices have hit a record high with new figures revealing the median had now hit $670,000.

While the property market continued to cool in southern states, new figures released by the Real Estate Institute of Queensland showed the median house price within the Brisbane local government area was 3.1 per cent higher in the March quarter.

REIQ CEO Antonia Mercorella said the growth demonstrated “admirable resilience’’ in the local market.

She said the price rise was buoyed by steady population growth and strong demand and a lack of new listings.

Stock on market was down to just 6.1 per cent — the lowest in the state.

As a result Ms Mercorella said buyers had to act fast if they wanted to snare a property with days on market now at just 32 days.

Matt Lancashire of Ray White New Farm, said the past quarter had been a strong one for the Brisbane market

“Our last quarter was the most positive quarter in this financial year for us,’’ he said.

Mr Lancashire said the unit market in the inner city was starting to fire again and importantly Brisbane’s property market including the luxury end, was seen as really good value.

He said in the past couple of months there had been a huge amount of interstate interest in the market.

The report said the outlook for the house market in the Brisbane local government area remained solid while parts of the unit market continued to face difficult conditions because of oversupply.

“We expect to see greater equilibrium between supply and demand over the next 12 to 24 months,’’ it said.

REIQ chairman Peter Brewer said the figures showed that Queensland was a “safe haven’’ for property investment.

“Interstate migration is still strong, that helps give us stability around prices as well,’’ he said.

Mr Brewer said with pledges for spending on infrastructure through Federal and State governments on things like Queensland roads, property was becoming more attractive here.

“Overall it is a pretty healthy report for Queensland compared to other states,’’ he said.

Mr Brewer said growth in Brisbane and Queensland was “steady, nice, comfortable and sensible’’ and that wasn’t a bad way to be.

“Real estate is still the number one spectator sport and people still watch it with passion and we are very, very, safe.’’

Other council areas outside of the Brisbane area also performed well during the quarter. The Logan local government area delivered one of the strongest performances during the quarter

with its median house price up 4 per cent to $395,000.

The report found the “lifestyle markets’’ of the Gold Coast and Sunshine Coast had continued to drive the growth of sales and rentals.

The Gold Coast median house price was down by 0.3 per cent in the quarter, but grew by 6 per cent in the past 12 months to $620,000, the highest growth in the state, while on the Sunshine Coast the median house price rose by 2.3 per cent for the quarter and 5.2 per cent for the past 12 months to $576,250.

Source: brisbaneinvestor.com.au

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