“We are not discounting [the original prices of] apartments in Brisbane, but rather managing an orderly sell down of any remaining stock we have,” Metro marketing and sales general manager Phil Leahy said.
BUYERS from southern states will be tree-green with envy as we reveal Brisbane’s most affordable acreage suburbs within 20km of the CBD.
CoreLogic analysis has identified 14 suburbs where you can live on land, lots of land, for less than $1 million and still be within a half-marathon of Brisbane CBD’s Queen Street Mall.
Using an automated valuation model (AVM) it analysed the value of properties with a land area of more than 4000sq m in each suburb to assess a median value.
According to the results, the cheapest buy-in was at Eatons Hill on Brisbane’s north where you could purchase your acreage dream for just over $780,000. Eatons Hill also had a healthy six per cent capital gain in value during the past year.
Acreage priced below $800,000 could also be found in Warner and Pinjarra Hills, while Moggill, Bellbowrie, Anstead and Bunya were priced below $900,000 for rural residential.
The analysis revealed acreage property had experienced healthy long-term 10-year gains.
CoreLogic head of research, Cameron Kusher, said tracking the price cycle of acreage markets could be challenging.
“You don’t typically see many transactions in the market and it’s a very specific buyer for that kind of property,” he said.
Mr Kusher said while buyers moving to Queensland from southern states were driving price growth for near-city housing on traditional size lots at present, acreage provided good, long-term prospects for purchasers.
“It’s never going to be a market that consistently ‘shoots the lights out’, but when the demand does turn, you can get some pretty strong increases in values over a pretty short period of time,” he said.
Ray White Rural director, Jez McNamara agreed lifestyle acreage price cycles could be a little bit difficult to track.
“It’s a very slow moving market that’s based on emotion rather than need,” he said.
“It’s very hard to do a comparative analysis as well because there’s not only different houses but different infrastructures.
“You might have some with large sheds or stables or horse complexes or beautiful gardens — it varies greatly.”
Mr McNamara said there were opportunities for buyers to get in now and enjoy long-term benefits.
“I think the cycle is still growing — people are getting more confident to go out a bit further and get that dream home,” he said.
“You look at a New Farm house where you’re paying $1.1 million for 400sq m with a rundown Queenslander, or you can go to Camp Mountain or Chandler and buy five acres with a nice house on it. It starts to make sense for a lot of families.”
Mr McNamara said infrastructure which helped reduce commuting time would continue to benefit near-city acreage.
“Through Brookfield, Pullenvale and Fig Tree Pocket — those sorts of areas. Legacy Way tunnel has really changed that commute to Brisbane,” he said.
“I got back to New Farm from Brookfield in about 15 minutes using Legacy Way — I was shocked actually.”
Mr McNamara said as Brisbane continued to grow, so would the value of commutable acreage.
“When you can buy acreage this close to the Brisbane CBD for under $1 million — I just see nothing but upside in it,” he said.
According to realestate.com.au Moggill has the highest number of acreage properties listed on the market at the moment — 30. While there are none in the Eatons Hill area.
Originally Published: www.news.com.au
Metro Property’s discounts leftover Brisbane apartments
Want a bargain? Metro’s Newstead Towers in Brisbane has 20 per cent discounts. Supplied
Real estate agents are offering 20 per cent discounts on apartment sales at four of Brisbane-based developer Metro Property Development’s Brisbane CBD projects as the apartment market continues to face headwinds.
Along with 20 per cent discounts on one and two-bedroom apartments, buyers were being offered a 4.5 per cent rental one-year guarantee at Aqua Newstead, Broadway on Ann, Canterbury Towers, and Newstead Towers. These apply to apartments priced between low $400,000 to nearly $600,000.
The oversupply problem in Brisbane is heating up, with the Queensland Treasury now warning its apartment market could take a turn for the worse, especially if the bigger Sydney and Melbourne markets begin to falter.
But Metro said the discounts applied only to residual stock, not entire projects or launch prices, with residual discounting being part of a business-as-usual stock clearance.
“The heat has certainly come out of the Brisbane market from where it was a couple of years ago, but we see it as just back to normal market conditions with good buying opportunities and plenty of growth potential in the coming years to buyers entering the market now.
“We have already secured buyers for the four buildings and are in the run up to settling the last of these units over the next couple of months.”
He said discounts were sometimes offered by agents on their own accord, hoping developers would accept the lower prices.
“We see this all the time, however I can confirm there is no discounting to our [original] price lists and we have been successful in maintaining pricing levels thanks to the locations, amenity, inclusions and designs offered in the apartment projects we have been selling,” Mr Leahy said.
Discounts aside, a 4.5 per cent rental guarantee was reasonable and agrees with SQM Research’s data which show the latest rental yield for two-bedroom units in Brisbane was close to 5 per cent.
“We are taking an average of 18 days from handover to secure a tenant via our in-house rental team. Given this strong demand, we do offer a one-year rent guarantee to investors,” Mr Leahy added.
“We are having excellent success getting investors from both Melbourne and Sydney to look at Brisbane as a more affordable investment option than the other wo capitals vis-à-vis lower purchase prices with high rental yields.”
Analysis: Brisbane’s backyards emerge victorious over townhouses but for how long?
Queensland Budget 2018: What it Means for the Property Industry
This year’s budget focused on infrastructure, tourism and mining funding.
Property investors will also be met with a 0.5 per cent increase in the land tax rate for aggregated holdings above $10 million, as well as an increase in the additional foreign acquirer duty from 3 per cent to 7 per cent.
The government also announced it will cut back the first home owners’ grant.
So what does the state budget mean for the property industry?
Here is what you need to know.
Additional Foreign Acquirer Duty
Aligning with states nationwide, the Queensland government announced an increased rate for additional foreign acquirer duty.
The AFAD is an additional tax on relevant transactions that are liable for transfer duty, landholder duty or corporate trustee duty which involve a foreign person directly or indirectly acquiring certain types of residential land in Queensland by foreign persons.
The duty will rise from 3 per cent to 7 per cent and is forecasted to result in an increased revenue of $33 million per annum.
The state government will dedicate $4.217 billion to transport and roads.
The Sunshine State’s long-awaited duplication of the Sunshine Coast rail line received $161 million.
The Toowoomba Second Range Crossing project received $543.3 million, a route to the north of Toowoomba from Helidon to the Gore Highway.
Brisbane’s Cross River Rail received $733 million to go toward the $5.4 billion project. The federal government failed to pledge any assistance towards the Cross River Rail project earlier this year leaving the state government to foot the bill.
There’s also $487 million over four years for upgrades to the M1 on Brisbane’s south and on the Gold Coast.
First Home Buyers Grant Slashed
First home buyers have come to expect a $20,000 starter grant since 2016 will now see it cut to $15,000 if they buy a house from July onwards.
The $5,000 boost had been added to the grant in 2016 by former Treasurer Curtis Pitt, with the measure supposed to be in place for just one year.
It was extended twice in six-months until the end of 2017 and then to June of this year.
Land Tax Increase
Under the new taxes introduced in Tuesday’s budget, foreign landowners with more than $10 million worth of landholdings will now be in line for a 0.5 per cent increased rate of land tax.
Individuals with properties worth more than $10 million will now incur an additional rate of 2.25 per cent (or 2.5% for trusts or companies) for every dollar of taxable value over $10 million.
This is expected to bring in $71 million in revenue in its first year, with a projected 11 per cent increase in 2018-19 land tax revenue.
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