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Investment and leasing conditions improving for 2014

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Moreton Investor, Property Management, Investment properties, Real estate Moreton, Mortgage Broker Moreton, Moreton property market, Moreton property prices, rental properties

Colliers International indicate that Australia’s property sector will see a return to more positive conditions in leasing markets and further confidence in the investment market in 2014.Moreton Investor, Property Management, Investment properties, Real estate Moreton, Mortgage Broker Moreton, Moreton property market, Moreton property prices, rental properties

  • Colliers International Chief Executive Officer, Australia and New Zealand, John Kenny said strong investment conditions had been the defining feature of the Australian property market in 2013, with Australian property continuing to attract increasing capital from both Australian and offshore investors.
  • “Our market has been considered a safe haven with low interest rates and attractive yields continuing to attract international investors and providing solid investment conditions for local investors”, said Mr Kenny.
  • Colliers International found that heading into 2014 there are a number of factors which will lead to continued confidence in the investment proper markets and an improvement in demand for business premises across office, retail and industrial and will have high employment impacts.
  • “This includes an ongoing improvement in global conditions, the strong recent return of confidence in the housing market and increasing business confidence on the back of improvements to consumer confidence”, said Mr Kenny.
  • “As consumers begin to move away from high levels of cautiousness and move to increasing their spending, this is likely to lead to greater business activity and higher levels of business investment.”
  • Nerida Conisbee, Colliers International National Director of Research, said 2014 would see a continuing shift in buyer profile within Australia’s property market.
  • Ms Conisbee found that the offshore investors have been experiencing the strongest growth over the past five years and in 2012 accounted for more than half of all direct purchases by volume. In 2012 local investors re-entered the market and by November 2013 accounted for more than 70 per cent of total direct sales.
  • “By the end of October, this group accounted for $4.3billion of total transactions. This is higher than what was experienced in 2007 prior to the global economic downturn, and more than double the 2012 level” said Ms Conisbee.
  • Colliers International found that the improving conditions overseas have started to influence investment in Australian REITs and will directly impact property over the next 12 months.
  • “Earlier this year, there was a lot of offshore capital flowing in however at present, there appears to be a shift back to other markets, particularly the US and Europe,” Ms Conisbee said.
  • “Offshore buyers are, however, still active although there are a number of changes that are occurring to the types of buyers targeting Australia. The majority of offshore money has been coming from Singapore, Hong Kong, Europe and North America. Australia remains attractive and in some ways is becoming more so for a new emerging group of investors.”
  • Colliers International also found that the key player of international investing was China and large capital also coming from South Korea.
  • “Chinese investors have been very active in the residential space this year and this trend is now starting to spill into the commercial property market,” Ms Consibee said.
  • “In 2013 the amount of Chinese direct investment in commercial property stands at $871million (to the end of November), which represents a rapid increase from 2007 when just $17million was recorded.  This was boosted significantly by the sale of Centennial Plaza in Sydney in November which was one of several transactions completed that month involving a Chinese purchaser.”
  • Colliers International saw significant Chinese purchases in Australia during 2013. These sales include; Centennial Plaza (260, 280 and 300 Elizabeth Street, Sydney): Sold on behalf of Investa Property Group to Invesco (on behalf of Chinese Investment Corporation), for $305 million. The largest direct property transaction in the Sydney CBD this year, which was brokered by Colliers International, and; 229-234 Franklin Street, Melbourne: Sold for $17 million to a private Chinese investor by Colliers International on behalf of Jimmy Goh.
  • It was primarily privately-owned companies and private investor groups that had risen significantly, including HNA Group, Ridong Group, Dongrun Investment Group and Maville Group.
  • “We can expect to hear more of these groups over the next decade as changes to regulations surrounding investment into property by Chinese investors is expected to lead to significant amounts of capital entering Australia.
  • “We are also seeing waves of capital from South Korea, where the nation’s huge pension system is actively investing in property globally.
  • “It is likely that pension funds will continue to increase their investment in Australian property, both local superannuation funds, and offshore groups. Malaysian investors are also expected to become more active, particularly from the huge amounts of personal wealth in that country.”
  • Colliers International forecasts for leasing markets in 2014 were cautiously optimistic as the improved business confidence and better economic conditions offshore will improve the housing market and return consumer confidence and will see a recovery in rent across all sectors.

 

 

Original article published at www.theurbandeveloper.com  16/12/2013

Opinion

Sydney Baby Boomers drive real estate boom in Brisbane

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Sydney Baby Boomers drive real estate boom in Brisbane

Brisbane’s bayside suburb of Wynnum is an attractive option for southern buyers.Source:Supplied

A MIGRATION of cashed-up Baby Boomers from Sydney will lead to a real estate boom in Brisbane, according to property investment experts.

A Property Investment Professionals of Australia (PIPA) members’ survey revealed that Brisbane was regarded as the best capital city for property investment.

Of the members who participated in the survey, 46.15 per cent rated Brisbane as the best capital for investment prospects in 2018.

PIPA chairman Peter Koulizos said the Queensland capital was expected to boom as a side effect of the Sydney property boom happening when Baby Boomers were looking at retiring.

“People that have a lot of equity in their home can retire or semi-retire by selling up and buying a home in southeast Queensland,” Mr Koulizos said.

And with the median house price in Sydney more than $1 million, he said this would give them a sizeable pile of cash left over after buying a home further north.

“That is because there is such a big price difference between Brisbane and Sydney,” he said.

A PIPA survey from last year also rated Brisbane as the best capital city in which to invest, but in the past 12 months the average house price has increased by just 2.9 per cent.

Mr Koulizos said a boom would come eventually, but picking the exact point was tricky.

“Property booms take a long time to gather momentum, I doubt you will see double digit growth in Brisbane this year but it may be different next year,” he said.

Melbourne was the next best investment option according to the survey, with 19.23 per cent believing it was a good place to invest, followed by Perth at 15.38 per cent.

Originally published: brisbaneinvestor.com.au

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Opinion

The property clock strikes big for hot spot areas

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The property clock strikes big for hot spot areas

9 Lion St, Ipswich. Picture: realestate.com.auSource:Supplied

DESPITE last month’s previous lacklustre values, analyst Michael Matusik has identified the areas on the upswing.

While property values remained fairly stagnant during February, property analyst Michael Matusik has revealed where the housing market is on the upswing.

Mr Matusik’s latest property clock for houses, has Brisbane, Gold Coast, Logan, Redlands, Sunshine Coast and Gympie all in upswing.

He said a market’s position on the property clock was based on the strength and direction of key indicators including sales numbers, price and rent, demand and how much new supply there was.

His latest Matusik Missive also listed Ipswich, the Fraser Coast and Noosa markets as heading into upswing territory.

Ipswich has many beautiful homes, often at prices well below what something similar would cost in Brisbane’s suburbs. A four-bedroom home at 9 Lion St,Ipswich is listed for $879,000.

The land the home sits on was bought in 1904 from the family of the then Ipswich Mayor Mr Pettigrew. A home was built on it in 1907.

The period home has 3.5m high ceilings, VJ walls, period window, and timber floorboards which have all been restored.

REAL ESTATE: 9 Lion St, Ipswich. Picture: realestate.com.au

REAL ESTATE: 9 Lion St, Ipswich. Picture: realestate.com.auSource:Supplied

The home has two new bathrooms, a large separate dining area and study. It is listed through Steve Athanates of NGU Real Estate Ipswich.

On the Gold Coast at Robina, 196 Easthill Drive is listed for more than $850,000.

The three-bedroom home is within the Glades Golf Community.

It has formal and informal living and dining areas, and an outdoor entertainment area with a swimming pool nearby.

196 Easthill Drive, Robina. Picture: realestate.com.au

196 Easthill Drive, Robina. Picture: realestate.com.auSource:Supplied

It is listed through Ian and Linda Mills of McGrath – Palm Beach.

On the Sunshine Coast at Noosaville a home at 15 Bluebell Court is listed for offers of more than $740,000.

The three-bedroom home is in a cul-de-sac in a residential pocket bordered by the Lake Doonella Reserve.

The single-level home has open plan living and dining areas. An outdoor area overlooks the pool and reserve at the rear of the property.

15 Bluebell Court, Noosaville. Picture: realestate.com.au

15 Bluebell Court, Noosaville. Picture: realestate.com.auSource:Supplied

The property has a double lockup garage, plus on-site side parking for a boat or caravan, on the 975sq m block.

It is listed through Tansy Grant and Justin Sykes of Ray White – Noosa.

Originally published: brisbaneinvestor.com.au

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Opinion

Where to invest: These are the suburbs where house prices are tipped to grow

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Where to invest These are the suburbs where house prices are tipped to grow

Annaliese Bullock, 27 with husband Jared, 27 and daughter Lyla 5 months sold their Burpengary before it even went on the market. Picture: AAP/ Megan Slade.Source:News Limited

THESE are the rising stars of Brisbane’s property market, the 27 growth suburbs investors need to know about.

INVESTORS chasing capital growth in Brisbane are spoiled for choice, with a new report identifying 27 suburbs where house prices are tipped to rise — and more than half of them have a median price of less than $500,000.

Property analyst Terry Ryder has identified the rising stars of the property market — where sales are rising steadily and house prices are set to follow. And they’re not the inner-city, blue chip suburbs you might expect.

Terry Ryder, managing director of Hotspotting.com.au.

Terry Ryder, managing director of Hotspotting.com.au.Source:News Corp Australia

Moreton Bay is the number one local government area in the state for growth, according to the latest Price Predictor Index report from Hotspotting.

The report examines sales activity, rather than prices, to determine the best and worst local government areas for property market growth.

This property at 8 Kroll St, Kippa-Ring, is inviting interest over $379,000.

This property at 8 Kroll St, Kippa-Ring, is inviting interest over $379,000.Source:Supplied

This big, four-bedroom home at 35 Westminster Rd, Bellmere, is available for offers over $379,000. Picture: realestate.com.au.

This big, four-bedroom home at 35 Westminster Rd, Bellmere, is available for offers over $379,000. Picture: realestate.com.au.Source:Supplied

The Moreton Bay region has 10 rising star suburbs where sales have been steadily increasing including Banksia Beach, Bellmere and Deception Bay.

This family home at 33 Male Rd, Caboolture, is on the market for offers over $349,000.

This family home at 33 Male Rd, Caboolture, is on the market for offers over $349,000.Source:Supplied

This cute Queenslander cottage at 62 Tibrogargan Drive, Narangba, is on the market for offers over $355,000.

This cute Queenslander cottage at 62 Tibrogargan Drive, Narangba, is on the market for offers over $355,000.Source:Supplied

Quarterly sales in Burpengary have risen from 69 to 97 in the past six quarters, while at Sandstone Point, sales are up from around 40 per quarter to 55 to 60.

Homes are selling so fast in the area that Jared and Annaliese Bullock just sold their four-bedroom house in Burpengary for $475,000 before they had a chance to even put it on the market.

Mrs Bullock said she contacted an agent at RE/MAX Ultimate, who brought through a couple of potential buyers and the offer was made within days.

But she’s not too surprised, given how close the suburb is to the train station, shops and the highway. The couple also recently bought two units as investment properties in nearby Caboolture. Acacia Ridge, Algester, Eight Mile Plains, Kuraby and Sunnybank Hills are also predicted growth areas.

This four-bedroom home on 617 sqm at 13 Stonewood St, Algester, is for sale.

This four-bedroom home on 617 sqm at 13 Stonewood St, Algester, is for sale.Source:Supplied

“It’s the affordable, outer areas that have got the most activity at the moment,” Mr Ryder said.

“The infrastructure is pretty good, with train links to the centre of the city, and there’s lots of shopping centres and good amenities.”

“The sweet spot is to be about 200 metres from a school, a shopping centre and a train station.”

SUBURBS WHERE SALES ARE RISING

Acacia Ridge $402,000

Algester $493,000

Banksia Beach $550,000

Bellmere $345,000

Birkdale $533,000

Boondall $490,000

Burpengary $420,000

Caboolture $340,000

Caboolture South $290,000

Deception Bay $345,000

Eight Mile Plains $788,000

Ferny Grove $595,000

Goodna $324,000

Jimboomba $480,000

Kippa Ring $415,000

Kuraby $679,000

Mt Warren Park $390

Narangba $458,000

Petrie $410,000

Raceview $318,000

Sandstone Point $420,000

Sinnamon Park $720,000

Springfield $426,000

Sunnybank Hills $660,000

Tingalpa $516,000

Victoria Point $522,000

Woodridge $299,000

Source: Hotspotting

Originally published: www.news.com.au

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