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Some people say spring, others prefer earlier in the year. When is the best time?

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JUST when is the best time to sell your home?

Some will say the best time is when it suits you best but ask for a season and many will say spring.

They argue that the weather is pleasant – not too hot, not too cold – gardens are looking good and people are happy to be out and about inspecting properties.

Related: Where everyone wants to buy

But property analyst Michael Matusik reckons that spring being the best time to sell is a “property myth’’.

In his latest Matusik Missive he revealed the statistics showed that spring was not the best time to sell a dwelling.

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“The best time to sell an older property is in late summer, while the best time to sell new property is in the first half of the year,’’ he said.

Mr Matusik said seasonal factors really only played a minor role in the selling of a home.

More important he said was to analyse supply and demand. While supply often increased in spring, demand did not necessarily follow.

“Buyers have more to choose from and hence reduce their offers in terms of price and conditions,’’ Mr Matusik said.

His research found there was little difference in price growth between seasons and little difference between the number of properties sold between seasons.

“If anything, more sell during the first four or five months of the year,’’ he said.

And he puts that down to buyers having time on their hands to inspect properties during the holidays.

 

Originally Published: http://www.cairnspost.com.au/

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Opinion

How good an investment is south-east Queensland

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How good an investment is south-east Queensland

Why do we believe we’ll see increasing investor interest in this market? Strong population growth, a diversified and growing economy, and substantial investment in infrastructure should combine to boost demand.

We expect that these factors will swell the number of white-collar jobs – increasing demand for office space, which in turn will push down vacancy rates and raise rental incomes. This should be good news for office property investors – especially those like Centuria Metropolitan REIT (CMA) that are already well-positioned in the market.

A significant and growing population

South East Queensland (SEQ) stretches from the Gold Coast up to the Sunshine Coast and across to Toowoomba in the west. As Australia’s third-largest population zone, the region has been growing significantly, particularly Brisbane and the Gold Coast. Interstate migration figures show a pattern of steady net migration, with Queensland the only Australian state with consistent net inflows of people from other states. In the five years prior to the 2016 Census, over 220,000 people moved to the Sunshine State – mainly to SEQ where nearly 90% of population growth occurred. This is important for property investors because of its implications for demand, but the trend is interconnected with other favourable factors.

A diversified economy poised for growth

Queensland’s economy is diversified across a range of industries including agriculture, resources, construction, tourism, manufacturing, and services. Over the past two decades, its economic growth has consistently exceeded the national average – and in our view this is likely to continue.

The resources sector is gaining momentum, and a significant pipeline of major infrastructure and development projects is helping propel economic and jobs growth, in turn increasing interstate migration and driving demand for both residential and commercial property.

Investment in infrastructure

A strong infrastructure program delivers more than business and consumer amenity – it generates jobs, drives investment, and facilitates population growth. The pipeline of infrastructure and development projects announced in the past few years is likely to have a material impact on the region – substantially improving its accessibility and amenity – most notably, Brisbane’s Queen’s Wharf precinct and the Cross River Rail.

Queen’s Wharf, touted as a “world-class entertainment precinct”, is an integrated resort development costing $3.6 billion and covering over 26 hectares with retail, dining, hotel and entertainment spaces. As Queensland’s biggest ever tourism project it will be a game-changer for Brisbane, attracting overseas as well as local visitors.  Estimated to contribute $1.69 billion annually to the economy, it will employ more than 2,000 people during construction and an estimated 10,000 once operational.

The Queensland Government’s number one infrastructure project, the $5.4 billion Cross River Rail, comprises a new 10.2km rail line between Dutton Park and Bowen Hills, which includes a 5.9km tunnel under the Brisbane River and CBD. It’s the first major rail infrastructure investment in the inner city since 1986 and is set to generate urban renewal, economic development and the revitalisation of inner-city precincts.

Outlook for commercial office property investment

These factors indicate a region poised for growth – and for growing commercial property demand. CMA’s portfolio has a significant exposure to the area in general (six SEQ assets with a combined book value of over $480 million), with many of the individual assets located in those parts of Brisbane set to benefit most from these developments.

Our view is that Brisbane office markets, where five of CMA’s assets sit, are continuing to improve, with vacancies hitting a five-year low – indicating increasing tenant demand – and continued yield compression, demonstrating strong investment demand. Office sales hit the highest level in a decade during 2018 (at $2.35 billion), increasing 60% from 2017.

With the strong outlook for SEQ, we expect the region will continue to attract tenants and investors alike.

Source: brisbaneinvestor.com.au

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Opinion

Brisbane’s out-performing real estate markets: Hotspotting’s Terry Ryder

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Brisbane's out-performing real estate markets Hotspotting's Terry Ryder

Brisbane is like a car where the engine is revving but it can’t move forward because the handbrake is on. The city’s property market is poised for an up-cycle but, according to the generalised price data published in mainstream media, it’s not yet happening.

Brisbane is like a car where the engine is revving but it can’t move forward because the handbrake is on. The city’s property market is poised for an up-cycle but, according to the generalised price data published in mainstream media, it’s not yet happening.

The key point for investors, however, is that there are many Brisbane markets achieving above-average price growth.

There’s no doubt that Brisbane real estate has an underlying strength and it continues to show gradual improvement in its market. It remains poised to deliver on the potential shown by advances in the economy, population trends (lots of Sydney refugees are escaping to affordable South-East Queensland) and infrastructure spending. 

The price data for the Greater Brisbane Area is noteworthy, because it shows that the generalised figures published in mainstream media are highly misleading. The latest figures from sources like SQM Research, Domain and CoreLogic have Brisbane houses showing little or no growth in the past year, but Hotspotting’s suburb-by-suburb analysis shows there are many out-performers.

We analysed 269 suburban markets, looking at the latest price figures showing quarterly and annual growth rates: 83 of them have recorded annual price growth above 5% (including 20 suburbs with double-digit growth) and another 100 have recorded growth below 5%; 47 have dropped by less than 5% and 39 have dropped more than 5%.

This means seven out of 10 suburban markets have median prices higher than a year ago – very different to the trend in Sydney which is dominating media coverage and causing careless analysts and writers to morph that into a national downturn.

Many of the Brisbane suburbs where the median house price has lifted more than 10% are higher-end markets, including Bardon (up 11% to $1,005,000), Hendra (up 13% to 1,100,000), Graceville (up 13% to $950,000), Kenmore Hills (up 10.5% to $900,000), Norman Park (up 10% to $950,000) and Paddington (up 11% to $1,165,000).

But the highest annual growth in median house prices has been recorded for Sandgate houses (up 19% to $755,000).

A key trend is that 27 or the 39 markets with prices down more than 5% are unit markets: median prices have dropped for apartments in Bowen Hills (20%), Bulimba (15%), East Brisbane (15%), Woodridge (10%), Greenslopes (11%), Hamilton (11%) and Woody Point (18%). 

This reflects the cold reality that the Brisbane unit market has been oversupplied for the past few years – and not just in the inner-city areas.

The Moreton Bay Region LGA has been the busiest market in Greater Brisbane for some time – and my latest survey of sales activity shows that the number of suburbs with rising demand has risen from 7 (six months ago) to 12 – making it one of the leading municipalities in the nation for growth markets.

Growth locations include Bray Park (median $435,000), where quarterly sales have been 37, 57, 62 and 65 in the past 12 months; Murrumba Downs ($540,000) where the sales pattern has been 50, 60, 58 and 68; and Everton Hills ($595,000), where sales have been 26, 39, 39 and 45. 

A number of Moreton Bay suburbs recorded good median price growth in the past 12 months, including Beachmere (up 10%), Sandstone Point (8%), Upper Caboolture (7.5%), Strathpine (10%), Burpengary East (up 9%) and numerous others which grew 5-6%.

The Brisbane-north precinct (the northern suburbs of the sprawling Brisbane City Council area) is now level with the Moreton Bay Region on growth markets (those where demand, as measured by sales volumes, is rising). 

With Moreton Bay Region and Brisbane-north the strongest market, it means the Brisbane market is strongest north of the Brisbane River (with more than half the rising suburbs in the Greater Brisbane area being in these two northside precincts).

A number of Brisbane-north suburbs recorded have good annual price growth, headed by Gordon Park (9%), Hendra (13%), Sandgate (19%), Newmarket (8%) and Nudgee (10%) – while many others have grown 5-6-7%.

These numbers, once again, show how misleading the generalised data is – and that investors need to dig a little deeper to find the growth markets. Brisbane – boosted by the affordability and rental yield comparisons with the biggest cities – has a lot more forward momentum than the media reports suggest.

Once the handbrake comes off (with the big banks starting to compete for business again and the Federal Election soon to be history), Brisbane will become a more obviously upwardly-mobile market.  

Source: brisbaneinvestor.com.au

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Queensland’s 100,000-property public housing shortfall revealed

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Queensland's 100,000-property public housing shortfall revealed

Queensland has a severe shortage of social and affordable housing, an issue that is projected to get worse by 2036 according to new research.

More than 102,000 additional social houses are currently needed across the state, and 54,700 affordable houses are also needed with nearly 13 per cent of Queenslanders spending more than 30 per cent of their income on rent.

By 2036, Queensland is projected to need 254,300 more social and affordable houses – the second-highest unmet need behind NSW, the report found.

The new figures come from a UNSW City Futures Research Centre report on social housing shortfall across Australia.

Regional social housing shortfalls are higher than in Brisbane, the data shows, but Brisbane residents are slightly more likely to be spending more of their income on rent.

Housing Minister Mick de Brenni said housing affordability was a “big issue” for Queensland.

“Through the Palaszczuk government’s $1.8 billion Queensland Housing Strategy, Labor is driving key reforms and targeted investment across the housing continuum,” he said.

“The Strategy commits us to build more than 1000 affordable homes for Queenslanders, as well as a further 4522 new social homes to help ensure everyone has a safe, secure and stable place to live.”

Lead researcher Laurence Troy said 22.5 per cent of Australia’s entire housing growth must go to social housing to meet demand into the future.

“Our analysis shows that the sheer number of households in rental stress across the country means that if we’re going to meet the need, at least 12 per cent of all our housing by 2036 will need to be social and affordable housing – which is a very reasonable ambition in global terms,” Mr Troy said.

“To cover the backlog of unmet need and future need in Australia two in 10 new homes will need to be for social housing over the next 20 years, and a further one in ten for below-market affordable rental housing.”

Mr Troy said the research’s financial modelling found the “best and cheapest way” for governments to meet the need for social housing was to fund it through upfront grants and low-interest government financing.

“Delivering below market rental housing through the not-for-profit sector, as opposed to the private equity model, will save $3 billion a year by removing developer mark-ups and shareholder returns,” he said.

The financial modelling was commissioned by the NSW community housing sector.

Mr de Brenni said the state government was “listening” through its recent public consultation on rental reform and was committed to investing in affordable housing in partnership with community housing, to provide more subsidied homes for low income earners.

“We heard Queenslanders are struggling to afford rental properties in the suburbs close to where they work,” he said.

“Through our Build-to-Rent pilot project, we are seeking to work with the private sector to increase the number of long-term, affordable rental properties for low to moderate income earners, including key workers in health, early childhood and hospitality.

“Internationally, the Build-to-Rent model is delivering fantastic outcomes and facilities for tenants and we’re looking to see what the market is open to delivering here.

“The pilot, if it proceeds, will see $70 million invested towards delivery of hundreds of affordable rental properties for key workers in inner-city areas where affordability has been identified.”

Mr de Brenni said the registrations of interest for that pilot had seen strong market interest, and the department was considering the responses before calling for expressions of interest.

Source: brisbaneinvestor.com.au

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