Last week, we reflected on the South East Queensland markets too see what has passed and what may come to be. Thanks to the commentary and insights from Colliers International’s SEQ experts, we were able to provide an overview of 2016 and a forecast for 2017 in the SEQ capital and metro markets.
However, there’s more to the SEQ, and so Colliers International in Brisbane and the Gold Coast have provided more commentary on The South East Queensland’s office and retail leasing, hotels and healthcare and retirement living.
By Mark McCann, National Director of Office Leasing
Brisbane office leasing market outperformed many expectations in 2016. We experienced positive absorption and return of general business sentiment and confidence in the macro economy. Significant volume of leasing transactions from the Queensland State Government in the CBD and Metro regions provided much needed relief and stabilisation of the vacancy rates in both markets.
This was also a year for completion of three major CBD projects: 180 Ann Street, 480 Queen St and the Qld State Government office tower at 1 William Street – a combined total in excess of 185,000 square metres.
In 2017 we are expecting a positive absorption of space to continue across all asset grades. Corporate businesses will continue to leverage off the favourable commercial market in order to reduce their corporate footprint by way of smarter and more efficient fit-out design.
The emergence of ‘co working’ operators and growth of the education sector will continue to stabilise and positively impact on the overall vacancy in the market.
The new supply pipeline in the CBD will be constrained from 2017 to 2019. Apart from existing additions such as 310 Ann Street, there is only one development in the CBD which will be completed around the beginning of 2019. This cap on new development supply and limited existing additions, will help in reducing the overall vacancy from record levels to more historic 10 year averages.
Healthcare & Retirement Living
By Chris O’Driscoll, Associate Director of Healthcare & Retirement Living Transactions
In 2016 we have witnessed an increase in volume of ventures between sports and services clubs and retirement and aged care groups. Such ventures are likely to continue in 2017 as there are a range of benefits for both the club and the operator, some including:
- cash injection to the club
- ability for operator to leverage off existing infrastructure and amenities
- both club and operator benefit from existing members and incoming residents, and
- improved club facilities.
Brisbane City Council is currently offering incentives for these type of developments, with a particular focus toward clubs. Incentives include 33 per cent reduction to infrastructure charges and an additional two storeys allowance for medium to high density locations.
Land in South East Queensland is in high demand for all property asset types across the healthcare sector including: retirement villages, manufactured housing estates/land leased estates, aged care, private hospitals and medical precincts.
We are seeing sharpening discount rates and yields for operating retirement and manufactured housing estates following the deregulation of homecare.
By Neil Scanlan, National Director of Hotel Transactions
In 2016 strong leisure markets lead to an increase in purchaser interest in Cairns and the Gold Coast. Brisbane market transactions were very quiet as the market understands the effect of new supply additions.
In 2017 the leisure markets will continue to strengthen, however they will still be below replacement value ensuring no new addition to supply occurs. Brisbane is to remain tightly held as supply/demand curve stabilises. We are likely to see demand from existing hotel investors, with hot spots being the Gold Coast and Tropical North Queensland.
By Kym Thrift, Director, Retail Leasing
In 2016 we have seen a pickup in activity in Brisbane from big restaurateurs, such as Fink Group who opened Otto at 480 Queen Street. General feedback from these sophisticated restaurant groups is their confidence about Brisbane’s growth and changing culture. They are changing their mindsets about our demographics due to the planned development and strong tourism numbers.
Majority of the leasing deals done by Colliers this year were around casual dining and quick service food. Food sector is very much on the increase and there is very little activity from fast fashion groups. However the market is responding very well to international fashion brands such as H&M and Zara.
In 2017 many more entrants and brands will be announced on the back of continued development surge within the inner city ring. This rapid growth, more than the state’s average, is creating more demand which is directly impacting the retailers’ performance.
Total estimated expenditure for the CBD is $3.85 billion per annum for main trade area and it is growing. Brisbane has also experienced three per cent tourism growth year on year.
We see demand coming from well-established local operators and sophisticated restaurants from Sydney and Melbourne looking to take advantage of our urban renewal and growth. The hotspots will continue to be Fortitude Valley and Newstead due to the level of development that is happening in the area, with potentially 11,980 new apartments coming online over the next 3 years.
The population growth in this inner city region is at 8.5 per cent per annum, almost five times the growth of the Brisbane average at 1.8 per cent. Retail spending is also growing by 9 per cent annually, with casual dining spend levels at 88 per cent higher than the Brisbane average.
Ideal retail leasing opportunities in these locations are TC Beirne building refurbishment and Gasworks Stage three, which is currently under construction.
Originally Published: https://www.theurbandeveloper.com/
Sydney Baby Boomers drive real estate boom in Brisbane
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
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.
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.
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.
It is listed through Tansy Grant and Justin Sykes of Ray White – Noosa.
Originally published: brisbaneinvestor.com.au
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.
The report examines sales activity, rather than prices, to determine the best and worst local government areas for property market growth.
The Moreton Bay region has 10 rising star suburbs where sales have been steadily increasing including Banksia Beach, Bellmere and Deception Bay.
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.
“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
Banksia Beach $550,000
Caboolture South $290,000
Deception Bay $345,000
Eight Mile Plains $788,000
Ferny Grove $595,000
Kippa Ring $415,000
Mt Warren Park $390
Sandstone Point $420,000
Sinnamon Park $720,000
Sunnybank Hills $660,000
Victoria Point $522,000
Originally published: www.news.com.au
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