New figures reveal property sellers raked in $15.2 billion in profits during the last three months of 2013.
New figures from RP Data reveal the number of profit making resales of properties throughout the country improved during the December quarter.
The country’s best region for turning a profit was Victoria’s Loddon Shire region, followed by Sydney, Perth, Central Highlands in Victoria and the Darling Downs in Queensland.
Housing as affordable as a decade ago
Queensland’s far north was the worst performer with 28.8 per cent of all sales during the December quarter for less than the owners originally bought. More than a fifth of property sales during the quarter in regional Queensland were at a loss.
Regional Western Australia also performed poorly with almost a fifth of sales at a loss.
Demand remained strong for properties within capital cities with only 6.5 per cent of those at a loss — the lowest level since mid 2011.
In Sydney, Melbourne and Canberra the proportion of loss making sales was highest for homes resold between one and three years.
In Brisbane, Adelaide, Hobart and Darwin homes which resold between three and five years after purchase were most likely to sell at a loss.
In Perth, homes purchased between five years and seven years ago were the most likely to sell at a loss over the quarter.
There were 74,595 properties sold during the last quarter of 2013 with only 9.7 per cent of those selling for less than the owners originally paid for them.
Losses in the December quarter totalled $457.3 million, which was an improvement on the previous quarter when 11.1 per cent of sales were at a loss.
The vast majority, 90.3 per cent, of sales during the December quarter were at a profit worth a total of $15.2 billion.
About a third of these owners at least doubled their money when they sold, but the average gross profit per sale was $225,088.
The average time to own a property before selling for a profit was 9.9 years, but if you want to double your money you need to live there for about 16 years.
RP Data research analyst Cameron Kusher said the likelihood of making a gross profit or loss was quite different based on the length of time a property was owned.
Homes bought before the Global Financial Crisis (January 1, 2008) which sold in the December quarter generally sold at a profit.
But 17.6 per cent of properties bought after that date and sold in December were for less than originally paid.
Mr Kusher said the results reflected the broader housing market trends at the moment.
“We are seeing values increase pretty much in all capital cities and a lot of regional markets as well,’’ he said.
“It does tend to reflect what we are seeing broadly but still on a historical basis the proportion of loss making sales is certainly elevated when compared to ten years ago.’’
Mr Kusher said the market appeared to be heading in the right direction, but the lifestyle market was still struggling a little.
“The lifestyle markets definitely are areas where we have seen the highest proportion of loss making sales, but again in those regions like the Gold Coast, Sunshine Coast, far north Queensland, south west Western Australia, although the proportion of loss making sales is still quite high it is trending down quite rapidly in those areas as well. Again that mirrors what we are seeing across those housing markets were we are now seeing some low levels of capital growth coming in.’’
“It just reiterates the long-term nature of investing in the housing market,’’ Mr Kusher said.
“I think what we have seen more recently is reflective of the market going forward, so people need to take a long-term view of buying property.’’
Mr Kusher said there had been a deterioration in performance in mining towns.
“Two quarters ago they were recording the lowest proportion of loss making sales, now certainly we have seen some escalation of loss making sales in areas like the Pilbara region, the Kimberley region, those mining areas in Queensland, Mackay and those sort of areas as well.’’
The best performing council area within greater Brisbane was the Brisbane City Council area, where 90.7 per cent of sales were at a profit.
In Sydney, 100 per cent of sales in the Burwood and Hunters Hill council areas were at a profit.
In Melbourne both Banyule and Knox council areas were the best performers with 97.9 per cent of sales in each area at a profit.
In Adelaide every sale in Walkerville council region was at a profit during the December quarter, while in Perth the Gosnells council area was the best performer with 98.8 per cent of sales at a profit.
Hobart was the best performing council region within Hobart with 89.6 per cent of sales at a profit, in Darwin it was the Darwin council area with 92.4 per cent of sales at a profit, and in the Canberra council region 92.6 per cent of sales were at a profit.
WHERE THE PROFITS ARE
Regions with lowest proportion of loss making resales
LODDON (Vic) (2.1%)
SYDNEY (NSW) (3.6%)
PERTH (WA) (4.3%)
CENTRAL Highlands (Vic) (4.3%)
DARLING Downs (Qld) (4.8%)
BARWON (Vic) (4.9%)
WIMMERA (Vic) (6.0%)
Melbourne (Vic) (6.0%)
ILLAWARRA (NSW) (6.3%)
GIPPSLAND (Vic) (6.3%)
Source: RP Data
Original article published at www.news.com.au by Michelle Hele, News Limited Network 22/3/2014
Top 68 suburbs for growth in Queensland revealed
Top 68 suburbs for growth in Queensland revealed. New data has shown the top 68 suburbs in Queensland for capital growth over the last 12 months to June, with the number one spot reaching triple digits.
Top 68 suburbs for growth in Queensland revealed
Outlined in the Real Estate Institute of Queensland’s Queensland Market Monitor report, REIQ CEO Antonia Mercorella said despite the ‘doom and gloom’ of the property market, there are still locations that are seeing large gains in profitability.
“A total of 68 suburbs throughout Queensland have delivered double-digit growth over 12 months, which is a really strong result,” Ms Mercorella said.
“And there are many more suburbs delivering strong single-digit growth. It’s a great market to be in at the moment.”
While south-east Queensland saw a lot of attention, there were some high growth suburbs found in central and northern Queensland.
The area with the strongest growth was Blackwater, which saw a rise of 151 per cent growth, which Ms Mercorella attributed to the resurgence of coal prices.
Aside from Blackwater, 10 other suburbs saw growth over 20 percent. These included:
- Spring Mountain with growth of 103.6 per cent;
- Collinsville with growth of 46.2 per cent;
- Minyama with growth of 45.8 per cent;
- with growth of 32.9 per cent;
- Hollywell with growth of 30.5 per cent;
- Miles with growth of 23.5 per cent;
- Mount Coolum with growth of 21.9 per cent;
- Dundowran beach with growth of 21.5 per cent;
- Boonah with growth of 21.3 per cent; and
- Idalia with growth of 21.3 per cent.
Ms Mercorella said the top 11 suburbs were indicative of steady growth across the state, but warned against calling it a ‘boom’.
“While we’re definitely seeing prices come back in western Queensland mining towns, such as Blackwater, these prices are still below their peak,” she said.
It’s unlikely we’ll see a return to pre-2013 prices in those areas anytime soon.”
While the top 11 suburbs show a spread of high growth suburbs through the state, 41 suburbs out of the 68 are located in the ever-popular south east corner of Queensland.
Of these, 15 suburbs were located in theCoast region, with the highest growing being Minyama, which ranked fourth overall.
The Brisbane region also saw a large number of high performing suburbs at 13. Hamilton was the region’s best performer and fifth overall.
Next was Ipswich with six suburbs, then the Gold Coast with four, Moreton Bay with three, while Redland and Logan suburbs did not rank.
Outside of south east Queensland, 27 regional suburbs ranked on the list, with the Townsville region recording four suburbs. Its highest performer was Idalia, which ranked 11th overall.
Next were the Cairns and Gympie regions, both recording three suburbs each. Cairns’ top performer was Palm Cove, which ranked 26th overall, while Cooloola Cove was Gympie’s top performer, which ranked 42nd overall.
While only recording one suburb, the Whitsunday region’s Collinsville ranked third overall.
The Bundaberg and Toowoomba regions both recorded two top suburbs, while the Banana, Charters Towers, Fraser Coast, Gladstone, Isaac, Livingstone, Mackay, Rocky, Scenic Rim, Somerset and Western Downs regions all had one top suburb each
The top 68 suburbs which experienced double digit growth over the last year to June 2018, according to the REIQ, are:
|Rank||Suburb||Median price||Capital growth over 12 months (as a percentage)|
|27||Charters Towers City||$142,500||14.0%|
First home buyers, investors in Queensland cashing in on spring selling season
THE number of homes for sale in some of Queensland’s entry-level markets has surged this spring selling season, as first home buyers and investors emerge from hibernation to hunt for bargains.
Local real estate agents are reporting a 50 per cent jump in the number of homes hitting the market in the outer northern suburbs of Burpengary, Morayfield and North Lakes since the start of August.
And new figures from property research firm, CoreLogic, reveal new listings are up 11.9 per cent in Brisbane over the month and 2.8 per cent higher than they were during spring selling season this time last year.
Unit listings have skyrocketed nearly 90 per cent in Fairfield and almost 60 per cent in Strathpine in the past 12 months, while there are at least 30 per cent more houses on the market in Middle Park than there were a year ago.
Raine & Horne Queensland general manager Steve Worrad said there was strong demand for housing in the state’s entry-level markets, driven by first home buyers and investors, who were being lured by their affordability compared with Sydney and Melbourne.
Reserve Bank of Australia data reveals the proportion of first-home owners loans has risen to 18.5 per cent this year from a low of 12.9 per cent two years ago.
Figures from home builder Porter Davis and realestate.com.au reveal that 46 per cent of would-be buyers in the Queensland market are currently looking to purchase their first home.
Raine & Horne Burpengary, North Lakes and Morayfield principal Gina Wells said entry-level four-bedroom properties in Burpengary were selling for $420,000, while homes in North Lakes started from $550,000.In Morayfield, entry-level properties were available from $330,000.
“First home buyers prefer suburbs such as Burpengary and North Lakes as they are only 40 minutes by rail or road from the Brisbane CBD, coupled with the region’s affordability.”
Ms Wells said investors made up about 30 per cent of buyers in the entry-level markets because they appreciated the region’s affordability, infrastructure and historically low vacancy rates.
“We’ve had an excellent September, and we expect the property markets in this region to motor along well into December thanks to a decent level of homes for sale and consistent buyer numbers, which include plenty of Sydney investors chasing the strong yields this region offers,” she said.
Nicole Taylor, 21, and her partner, Billy Mawson-Perini, 20, have just bought their first home in Burpengary — a four-bedroom, two-bathroom house on a 663 sqm block of land.
“We started looking around Rothwell and North Lakes and actually left Burpengary to the last minute, but when we saw this place, we loved it straight away,” Miss Taylor said.
“It’s got more land and the area’s nice. It’s good for a first home.”
Stan Egawa from Place – Sunnybank said those suburbs were attracting buyers in the $600,000 to $700,000 price range.
“There is good interest compared to some of the surrounding suburbs,” Mr Egawa said.
“We’re getting double digit buyers through open homes (in Mount Gravatt East and Holland Park), which is very strong.
“In Sunnybank, we’re only getting one or two people to an open home.”
Mr Egawa said many first home buyers were looking for a home they could move in to straight away and live in comfortably, but with potential to renovate the kitchen and bathroom down the track.
“Three-bedroom, one-bathroom houses are very popular,” he said.
“Their ideal location is Coorparoo or Greenslopes, however, they’re realising that for the amount of money they’ll be paying in that area, they’re going to end up with a lot older house or compromising on block size.”
Rob Karaka of All Properties Group said first home buyers were active at the moment in the suburb of Regents Park, with near new or new four-bedroom, two-bathroom houses on 600 sqm blocks were selling for between $400,000 and $550,000.
Shaji Rajan has just bought his first home in Regents Park after renting for three-and-a-half years.
For just $430,000, he was able to secure a five-bedroom, two-bathroom house on a 600 sqm block at 34 Lamberth Road.
But he had competition, with his offer only accepted after another offer fell through.
“Regents Park is a very good area and it’s affordable,” Mr Rajan said.
“For our budget, we can find very good houses here and good schools and it’s very easy for us to get to work.”
Algester and Calamvale on the southside are also attracting strong interest.
Andrea Manson of Belle Property – Calamvale said listings had jumped “substantially” this spring and first home buyers were keen to get in to the market before interest rates went up. “There’s that perception it’s going to happen sooner rather than later and so many (first home buyers) are wanting to lock in a lower rate while they can,” Ms Manson said.
“Anything under $500,000 in our area is very popular with first home buyers.”
Agents in regional parts of the state are also reporting a strong start to the spring selling season.
Home sales in Bundaberg are 5 per cent stronger than they were this time last year, according to Raine & Horne Bundaberg principal Joshua Rub.
“Values remain consistent despite the spike in sales and those properties that are priced, presented and marketed professionally are selling within 3.5 weeks,” Mr Rub said.
“Sales are higher this spring simply because we have more committed buyers than tyre-kickers.”
He noted the sale to a first homebuyer of a three-bedroom house close to the beach at 25 Heritage Drive, Bargara, for $272,000 within two weeks of hitting the market.
“In Bundaberg and Bargara, local first home buyers and investors are extremely active this spring,” Mr Rub said.
In Gladstone, which had been hit hard by the mining boom hangover, home sales are at their strongest point in four years, according to Raine & Horne Gladstone principal Mark Patton.
“Well-priced entry-level properties valued upwards of $140,000 offer excellent value and incredibly competitive yields that are as high as 7.5 per cent,” Mr Patton said.
“The savvy buyers have recognised the Gladstone market has reached the bottom and they are making their presence felt at open homes.
“Many have also realised that by buying now, they’ll have a good opportunity to share in some capital growth too.”
FIRST HOMEBUYER HOTSPOTS THIS SPRING SELLING SEASON
Suburb Median house price
North Lakes $492,000
Suburb Median house price
Mount Gravatt East $657,000
Holland Park $710,000
Regents Park $410,000
Town Median house price
(Source: CoreLogic, Raine & Horne, Place Estate Agents, All Properties Group, Belle Property)
Originally published as Where Qld first home buyers are looking this spring
Renewed hopes of saving North Lakes Golf Club
Residents living around the financially troubled North Lakes Golf Club are increasingly hopeful it can be saved from being turned into a retirement community.
The course has been bought by developer Village Retirement Group and is due to close at the end of 2019 although a DA is yet to be submitted.
The Save North Lakes Golf Club group met with Moreton Bay Regional Mayor Allan Sutherland this week and spokesman Andrew Cathcart tells Mark he is confident local will get a fair hearing.
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