Haley Hughes, pictured with her 3-year-old son Harry, is selling her waterfront home at Mermaid Waters. Picture: Nigel Hallett. Source: News Limited
THE lure of affordability, lifestyle and world-class beaches made southeast Queensland’s coastal markets the stars of the property sector in 2017.
While home values grew just 2.4 percent in Brisbane over the past 12 months, they jumped nearly 7 percent on the Gold Coast, while houses climbed in value by more than 7 percent on the Sunshine Coast, according to the latest data from property analytics firm CoreLogic.
Half of the top 10 property sales in Queensland last year were made on the Gold Coast; totalling $48.9 million.
And some agents say the markets are set to strengthen further in 2018 as Sydney and Melbourne homeowners cash out of their million-dollar homes in favour of a more laid-back, affordable lifestyle in the tropical north.
The REIQ’s latest Queensland Market Monitor shows the median house price in the Sunshine Coast statistical division jumped from $557,500 in June to $570,000 in September, while the Gold Coast achieved a new house price record of $606,000.
The Queensland government recently declared the number of interstaters migrating to the state was at its highest level in eight years, with 15,716 people moving here in the year to March 2017 — most coming from New South Wales.
CoreLogic senior research analyst Cameron Kusher said both the Gold Coast and Sunshine Coast property markets had benefited from that boost in interstate migration more than Brisbane.
Ray White Surfers Paradise holds its major auction event of the year later this month to coincide with the January holiday period when many interstate and overseas visitors flock to the Gold Coast.
More than 100 properties will go under the hammer at its annual ‘The Event’ on January 28, with many holiday homes and investment properties set to sell to interstate and local investors.
Ray White Surfers Paradise chief executive Andrew Bell said the region had recorded solid sales figures in 2017 thanks to economic stability, job creation and steady population growth.
Mr Bell said the property market at the northern end of the Gold Coast had strengthened considerably because of new medium and high rise development in areas like Southport and Hope Island.
“That’s where all the new development is and it’s given people a lot more opportunity,” he said.
Mr Bell said suburbs like Coomera and Pimpama were had also become “powerhouses” for house-and-land developments, attracting demand from interstate.
“It’s not just people buying holiday homes,” he said.
“It’s just getting so difficult to live in Sydney with the cost of living and the traffic.
“People are saying ‘it’s time to move!’ and I think they’re seeing the Gold Coast as being the best it’s ever looked.”
And with vacancy rates of less than 1 per cent on the Gold Coast, Mr Bell said an increase in home construction was more than welcome.
“We can have 20 plus people turn up to an open home, so we desperately need more investors to buy some stock to help with this huge demand from tenants,” he said.
Kollosche Prestige Agents managing director Jordan Williams said the Gold Coast property market experienced periods of strength and weakness in 2017, but he predicted a bigger year in 2018.
“I know for a fact that for the last half of last year a lot of buyers were sitting on their hands reading the negative articles that said the market was going to crash,” Mr Williams said. “They’ve bought off me since then and realised its actually going to continue to improve.
“I think it’s going to be an exciting year.”
Mr Williams also said the majority of homes he sold were cash contracts, unlike the pre-GFC days.
“We have very affluent local and interstate buyers who are fourth, fifth and sixth generation wealthy,” he said.
“Our vendors who own these homes are also affluent, successful people and they don’t muck around with finance and building and pest inspections.”
Kristian and Haley Hughes are selling their five-bedroom waterfront home at 31 Pilot Court, Mermaid Waters through Kollosche Prestige Agents.
They’ve lived there for nearly three years, but have decided to sell and rent in the area so they can use the capital to fund Mrs Hughes’ new make-up venture.
Mrs Hughes, who runs The Institute of Makeup beauty school, said Mermaid Waters had benefited from the growth in popularity of nearby Burleigh Heads.
“I feel it’s becoming the new central location — nestled between Burleigh and Broadbeach,” she said.
The Hughes are hopeful they’ll benefit from the growth in the market over the past 12 months, with the median house price in Mermaid Waters increasing by more than 17 per cent.
Their family home is decked out with floor-to-ceiling glass, which captures spectacular 180 degree views.
“For someone who wants to make it their forever home, they’ll never run out of room,” she said.
“It was hard finding a place to put an offer on even then, because (homes) were selling before they even went to market.”
Further north, Noosa was the standout performer in 2017.
REIQ figures show Noosa was the state’s top performing market in the three months to September, recording annual house price growth of nearly 10 per cent.
Over the past five years, Noosa’s median house price has jumped by more than 40 per cent.
Tom Offermann Real Estate principal Tom Offermann said the company ended 2017 with eight sales averaging $5.9 million each.
The agency sold a sprawling waterfront home with a drive-through boatshed, two jetties and a boat ramp at 29-31 Wyuna Dr, Noosaville, for close to $11.9 million late in 2017 — setting a new record for the area.
“It’s not just the prestige properties that buyers are targeting,” Mr Offermann told The Courier-Mail.
“There are good opportunities for buyers at all levels who want to invest or live here.”
Another driving factor behind demand for the Gold Coast and Sunshine Coast markets is a lack of stock, but BIS Oxford Economics expects rising supply over the next three years to slow forecast price growth.
Another coastal market in Queensland that performed better than expected in 2017 was Cairns.
BIS Oxford Economics noted Cairns had benefited from improved tourism and a deficiency of dwellings, which was estimated to have pushed the median house price up by 20 per cent in the past five years.
It expects home prices to grow another five per cent until 2020.
Originally published: www.news.com.au
Queensland Budget 2018: What it Means for the Property Industry
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.
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.
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.
Brisbane and Queensland hit record property rises
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.
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.
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.
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 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.
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.
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.
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.
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.
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 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.
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.
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 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 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.
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.
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