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Sunshine State property market snapshot

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In last week’s column I took a look at the local factors influencing the market in Sydney. This week, let’s look north to the Sunshine State for a snapshot on what’s happening on the ground in Brisbane, the Gold Coast, the Sunshine Coast and surrounding regions.

Overall, South-East Queensland has shown stability this year with consistent sales activity, however price growth did slow to just 4% along the Brisbane to Gold Coast corridor for the financial year. The reasons behind this include the lowest net interstate migration in more than two decades; a weak state economy; comparatively high unemployment; and the change of government. At a macro level, there’s obviously been challenges.

Drilling down though, some areas are experiencing exciting activity. Low interest rates are encouraging upgraders in the $1 million-plus bracket in premium areas such as Ascot, Hawthorne, New Farm, Bulimba and Paddington. Many are choosing to keep their existing homes in the $500,000 to $1 million bracket for investment.

First home buyers are also back, buying in affordable suburbs like Mansfield, Salisbury and Belmont where homes are selling faster than anywhere else in Brisbane, according to CoreLogic RP Data.

Solid demand and a shortage of homes for sale in some areas pushed Brisbane’s auction clearance rate to its highest level on record (since 2009) at 50% for the year to August. By comparison, over the same period of the year, Brisbane recorded 46% in 2014, 40% in 2013, 33% in 2012 and 24% in 2011.

Apartments are a different story, with a rising oversupply in inner city areas like West End, Fortitude Valley, Newstead and Hamilton. Buyers are very discerning and only competing for properties with unique features. Downsizers are snapping up three bedroom properties but the smaller non-descript options are sitting on the shelf.

Typically, an increasing house price gap between Brisbane and Sydney is pivotal in creating new market energy. By August 2015, the gap was $431,500 – the largest gap in dollar terms on record with Sydney house prices 88% higher than Brisbane, according to CoreLogicRP Data.

As a result, we are now seeing a steady flow of Sydney and Melbourne buyers heading north. Southern investors are chasing capital growth and the highest yields of the major capital cities, while young families are seeking affordability and lifestyle.

Owner-occupiers are purchasing Queenslander-style family homes in blue chip areas where they are paying half what they would in Sydney for an equivalent home. Many are leasing these properties for decent yields while they look to secure work before moving here permanently.

On the Gold Coast, the sub-$1 million market has been buzzing with a mix of local upgraders and southern investors and seachangers. It has also been an excellent year for prestige property with the entry level of the region’s Top 50 Home Sales (Gold Coast Bulletin) in FY15 rising to $2.5 million from $1.323 million in FY14.

The China Factor – a key element in Sydney and Melbourne’s booms, is increasingly at play in Queensland and especially on the Gold Coast. The juwai.com property portal reports purchasing intent up by 1,120% YOY, which is not surprising as more Chinese developers build locally and market their projects directly back home.

Construction on the long-awaited $1 billion Jewel hotel and apartment project at Broadbeach by its Chinese owners began in March and the first non-stop flights from the Gold Coast to China have now commenced.

On the Sunshine Coast, the market is bullish especially above $1 million. Locals who have been waiting out the post-GFC downturn are upgrading now and we are seeing a significant influx of southern seachangers. Buderim is among the favourites due to its schools; and lifestyle homes are popular in Noosa, Mooloolaba and Sunshine Beach.

I remain very optimistic about South-East Queensland. The weakening dollar will boost tourism, there are a slew of new infrastructure projects underway and the economy appears to be responding to new political management.

While the Gold Coast has always had a good international reputation, Brisbane is increasingly asserting itself as a sophisticated global city, particularly following the G20 in 2014. The ‘big country town’ stigma of old has been eroded by a continuing undercurrent of social, economic and cultural change.

Once state economic conditions improve and Sydney slows further, the South-East Queensland property market will be ready to roar.

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Residential

Bray Park and Mango Hill fastest selling homes in Pine Rivers

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HOMES in Bray Park and Mango Hill are among the fastest selling in the northern suburbs of Brisbane, latest data reveals.

CoreLogic data shows houses in these suburbs are on the market for an average of 48 days before being snapped up by buyers.

Other top performing suburbs in Pine Rivers include Kallangur, where homes sold in an average of 50 days, Strathpine and Petrie at 54 days and Warner with 57 days.

Strathpine’s David Deane Real Estate director and sales manager Mark ­Rumsey sold 55 Leone St, Bray Park, in just 19 days on the market.

The four bedroom, two bathroom home — built in 1975 on 607sq m — was very popular with buyers.

“This type of property is very popular, because it gives you flexible living options, everything is fresh and it’s not far from schools and rail,” Mr Rumsey said.

“I’ve got plenty of examples within 500m of this home that have sold just as fast.

“Strathpine, Bray Park and Petrie are the thinnest I’ve seen stocked for a long time.”

He said buyers were “quickly realising” the area was good value for money.

“There’s a huge employment base, with Brendale and North Lakes massive drivers for housing out here,” Mr Rumsey said.

“The spotlight is also on with the university and railway upgrade … and it’s only 20-25km from the CBD.

“In areas like Aspley and Bracken Ridge, the same house you’re paying an extra $50,000 to $100,000, so people see huge benefits in just coming out a few extra kilometres.

“These areas will only continue to be popular with buyers and investors.”

While in Mango Hill, Ray White North Lakes sales professional Vijay Kumar is selling 22 Limosa Court, Mango Hill.

The four bedroom, two bathroom home — built in 1998 on 825sq m — has been fully renovated and has an in-ground saltwater solar-heated pool and solar panels on the roof.

Mr Kumar said there has been steady interest in the property, on the market for $559,000.

“This property is in a cul-de-sac, which means only local traffic will go down the road, making it attractive to buyers,” he said.

“It’s also on a large block and only 10 minutes to the train station,” he said.

He agreed homes in the area were on the market for about 48 days.

“In my experience, homes generally sell between 40 and 50 days in Mango Hill,” Mr Kumar said.

“This area is only going to continue to grow in popularity, especially once the train station opens. Plus it’s close to North Lakes, which makes it attractive to buyers.”

Topping the CoreLogic list across greater Brisbane was Algester, where homes sold in an average of 23 days during the 12 months ending June, 2016.

Across the Brisbane City Council area, three other suburbs scored selling times under a month — Chermside West at 24 days, Wishart on 29 and Keperra at 30.

Moreton Bay’s best suburb was Ferny Hills at 35 days, while Logan’s best proving to be Hillcrest at 36.

Capalaba was the highest ranking suburb in Redland City, averaging 42 days on the market, while Ebbw Vale’s 49 days was the best result in Ipswich.

All of Brisbane’s top 10 suburbs had an average of 37 days or less on the market before securing a sale.

TOP 10 IN REGION

1. Ferny Hills

2. Everton Hills

3. Albany Creek

4. Arana Hills

5. Bray Park, Mango Hill

6. Kallangur

7. Strathpine, Petrie

8. Rothwell, Margate

9. Warner, Redcliffe

10. Kippa-Ring

*CoreLogic fastest selling suburbs in the Moreton Bay Region

Original article published at www.couriermail.com.au by Amelia Broadstock 18/7/16

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Residential

Mango Hill’s $10m terrace house collection

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The Capestone masterplanned community in Mango Hill will receive a $10 million terrace home collection by Vantage Buiding Group.

Moreton InvestorThe Fusion project will include 24 freehold title, two-storey terraces surrounded by wide streetscapes and located close to a future 13ha lake.

Vantage partner Ashley Nankervis said there had already been strong interest in the homes which start at $429,600.

“The Fusion range of housing provides architecturally designed, three-bedroom, two-bathroom homes that are well positioned and priced in the market,” he said.

“The newly opened Mango Hill railway station is a short walk away and offers residents who work in the Brisbane CBD an easy, 40-minute commute.

“The estate is also only a few minutes drive to the myriad of retail and entertainment options of Westfield’s newest shopping centre at North Lakes as well as IKEA and Costco.”

Mr Nankervis said Fusion was close to North Lakes Business Centre and the growing industrial precincts at North Lakes, Brendale and Strathpine.

“There is strong employment growth forecast in Mango Hill across retail, commercial, industrial and health sectors,” he said.

“More than 26,000 new jobs have been forecast given the proximity to hospitals, associated health facilities as well as the range of local shopping and retail amenities.”

State and private schools are close to the project and St Benedict’s Catholic College is within walking distance.

There is also easy access to Capestone Boulevard and the surrounding facilities.

Construction on the project is expected to start this month.

 

Original article published at www.couriermail.com.au by Paula Shearer, News Corp Australia Limited, 9.6.16

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Residential

Locals snap up first three stages of SoLa North Lakes as developers prepare for construction of next phase

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10

THE first three stages of SoLa North Lakes, comprising 59 of 120 townhouses, have sold out with the fourth phase now being promoted.

This stage includes two new floorplans priced from $405,000 with construction expected to begin in the next few months.

Stockland regional manager David Laner said he expected the Stockland-Metricon joint masterplanned community would be fully completed and sold out by Easter next year.

“There have been slightly more owner-occupiers than investors as the townhouses are pretty large,” he said.

“Forty per cent are two-bedrooms and 60 per cent are three-bedrooms.

“Most of the townhouses are also two storey with park and lake views, and we wanted to go with really good quality finishes.”

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Mr Laner said 75 per cent of all buyers were from within 10km of North Lakes, which signalled how well people knew their local areas.

“The Moreton Bay Rail Link will offer great opportunities for astute investors and I expect there will be a ripple impact on surrounding areas, like the undervalued Redcliffe peninsula, following the rail link’s opening,” he said.

“But there are now less than 40 vacant home sites left at North Lakes, out of a total of more than 5000 in the masterplan.

“So I’m seeing a little bit of urgency creep in from buyers.”

Arana Hills residents’ Stephen and Jill O’Rourke have purchased a three-bedroom townhouse at SoLa and plan to move there in June.

The couple knew it was time to leave their home after their children moved out but after living in one house for 19 years, it was difficult for them to decide where to go.

“We looked at over 55s living but we weren’t interested in that and then we looked at high rises, but we weren’t really keen about that either,” Mr O’Rourke said.

“Then when we were up at North Lakes, we looked at the floorplans for SoLa.

“We liked that it was opposite the lake, two blocks from Westfield and walking distance to amenities.

“The new station at Mango Hills is also coming soon.

“So instead of a tree or sea change, we chose a closer to amenity change.”

 

Originally Published On: http://www.couriermail.com.au/

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