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More than a quarter of new QLD homes sell to foreign buyers: ANZ

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brisbane market place

MORE than a quarter of new homes built in Queensland are being bought by foreign buyers, new research from ANZ reveals.

MORE than a quarter of new homes built in Queensland are being bought by foreign buyers, according to new research from one of Australia’s big four banks.

Foreign investors are estimated to have bought between 11,000 and 18,000 homes in the state during the 2015/16 financial year, making up 10 to 15 per cent of total housing turnover.

But the number is significantly higher when it comes to new homes, with foreign buyers purchasing between 25 and 45 per cent of newly-constructed dwellings in Queensland in that period, according to new research from ANZ Bank.

ANZ research reveals an increase in demand for Australian homes from foreign buyers. Image: AFP/William West.

ANZ research reveals an increase in demand for Australian homes from foreign buyers. Image: AFP/William West.Source:AFP

ANZ senior economist Daniel Gradwell said foreign property purchases in Queensland had increased fivefold in five years, largely driven by Chinese nationals.

“In Queensland, the vast majority of foreign approvals were for the construction of new dwellings — about 95 per cent — which probably suggests it’s heavily weighted in the apartment sector,” Mr Gradwell said.

But Real Estate Institute of Queensland chief executive Antonia Mercorella said she was skeptical about the research and doubted foreigners were buying as much as 45 per cent of new homes in the state.

“That seems unlikely to us from our experience at the coal face of selling real estate,” she said.

“It is important to note that while China is the undoubtedly the largest proportion of our foreign buyers, the Chinese government recently put a ban in place on Chinese nationals buying overseas real estate so it’s unlikely these numbers reported in the ANZ report – if true – will continue.”

High rise apartment towers on the Gold Coast.

High rise apartment towers on the Gold Coast.Source:News Corp Australia

Mr Gradwell said the research showed there was a clear divergence between the impact of foreign buyers on dwelling prices and housing construction in Australia.

“It’s clearly impacting the construction sector, which has helped the economy transition away from mining and support employment growth,” he said.

“The sizeable foreign-buyer share of newly-constructed housing implies that foreign demand has been an important contributor to Australia’s recent construction boom.

“If this demand were to dry up suddenly, Australia’s construction pipeline would likely be notably weaker than currently expected.”

ANZ research has found more than a quarter of new homes in Queensland sell to foreign buyers.

ANZ research has found more than a quarter of new homes in Queensland sell to foreign buyers.Source:News Corp Australia

And while some in the industry blame increased foreign activity as one reason why house prices in Sydney and Melbourne have soared in recent years, Mr Gradwell’s research suggests it may not be a major factor.

“The relatively lower share of total market activity suggests that foreign buyers have not been the primary driver of the price growth in recent years,” he said.

Nationally, ANZ estimates foreign buyers purchased between 35,000 and 60,000 homes in 2015/16, making up 7 to 13 per cent of total housing turnover during the period.

Foreign demand for Queensland homes has increased. Photographer: Liam Kidston.

Foreign demand for Queensland homes has increased. Photographer: Liam Kidston.Source:News Corp Australia

Mr Gradwell said the size of foreign ownership of Australia’s housing stock was significant, but not large enough for ANZ to be concerned about a foreign exodus from the housing market.

ANZ compiled the research using Foreign Investment Review Board data on approvals and recent estimates from the Reserve Bank of Australia.

Mr Gradwell pointed out no one could say with any certainty as to what impact increased foreign investment has had on the housing market because there was no concrete data or stand-alone body to monitor activity beyond the building approval process.

Credit Suisse released research in October, using revenue figures obtained from state governments under freedom of information requests, estimated fewer than one in 10 new homes in Queensland sold to foreign buyers.

The investment bank estimates foreign investors pour $700 million into residential property in Queensland on an annual basis.

But that’s a small proportion of the total value of Australian real estate, which is estimated to be $6.7 trillion nationally.

Originally Published: www.news.com.au

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The most in-demand Brisbane suburbs for July 2018

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The most in-demand Brisbane suburbs for July 2018

Brisbane may not be the most popular Queensland location to invest into compared to other markets, but it is certainly seeing a rise in demand and in median price, according to new data.

Data from realestate.com.au’s Property Outlook – July 2018 report shows that demand in Brisbane is up 5.9 per cent year-on-year. Both houses and apartments are up, with rises of 6.7 per cent and 4.5 per cent respectively.

The report stated that offshore property searches are very active and is the most popular capital city for demand from this particular investor type.

The overall median price saw a rise of 1 per cent to $485,000, with the report noting that the timing in the cycle seems to be moving out of sync with Sydney and Melbourne, claiming “prices never increased to the same level and it remains far more affordable”.

Overall, metro Brisbane was fairly in demand and experienced positive price growth. The eastern region of Brisbane was the most in demand and saw the largest median price growth, with a rise in demand of 16.7 per cent and a median price rise of 5.7 per cent to $556,000. The next best region in demand was the inner city region, which saw demand rise to 13.7 per cent, but was the only region to experience a price growth decline by 3.1 per cent down to $628,000.

The most 10 popular suburbs in Brisbane, according to realestate.com.au, are:

Houses

  1. East Brisbane
  2. Indooroopilly
  3. Paddington
  4. Holland Park
  5. Wilston
  6. Chandler
  7. Windsor
  8. Coorparoo
  9. Newmarket
  10. Toowong

Apartments

  1. Graceville
  2. Mansfeld
  3. Tarragindi
  4. Camp Hill
  5. Red Hill
  6. Ashgrove
  7. Holland Park
  8. Tingalpa
  9. New Farm
  10. Paddington

Regional Queensland saw every single area rise in demand with the exception of the Gold Coast, which declined by 9.1 per cent. The strongest rise in demand was Gladstone, which was up 39.1 per cent and a median price of $230,000 and was followed by Fraser Coast, which was up 33.8 per cent and a median price of 33.8 per cent and Gympie, which was up 32.2 per cent and a median price of $295,000.

Despite the demand, price growth was fairly down, aside from four areas; the Sunshine Coast which rose 5.8 per cent to $545,000, the Gold Coast which rose 4.1 per cent, Mackay which rose 0.3 of a percentage point to $321,000 and Gympie, which held steady.

Gladstone saw the largest median price growth decline, falling 14.8 per cent, and was followed by Rockhampton, which declined 12.7 per cent to $240,000 and Bundaberg, which declined 7 per cent to a median price of $265,000.

Metro Brisbane median price and demand

RegionMedian priceMedian price year-on-year percentage changeDemand year-on-year percentage change
East$556,0005.7%16.7%
North$540,0001.9%6.0%
South$635,0001.6%-2.1%
West$633,5000.6%0.1%
Inner City$628,000-3.1%13.7%

Regional Queensland median price and demand

RegionMedian priceMedian price year-on-year percentage changeDemand year-on-year percentage change
Bundaberg$265,000-7.0%30.2%
Cairns$340,000-4.2%6.5%
Douglas$335,000-1.2%19.3%
Fraser Coast$305,000-1.6%33.8%
Gladstone$230,000-14.8%39.1%
Gold Coast$536,0004.1%-9.1%
Gympie$295,0000.0%32.2%
Mackay$321,0000.3%31.1%
Noosa$608,000-3.5%24.2%
Rockhampton$240,000-12.7%5.6%
Sunshine Coast$545,0005.8%6.5%
Toowoomba$355,000-1.0%4.8%
Townsville$310,000-1.6%10.9%

Source: www.smartpropertyinvestment.com.au

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Mega mansion sells for $11m plus

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Mega mansion sells for $11m plus

The riverfront property in Hawthorne sits on a 2137 sqm riverfront block.

ONE of Brisbane’s most enviable trophy homes has sold for more than $11 million in the city’s biggest sale of the year so far.

The mega mansion, on a sprawling 2137 sqm riverfront block in Hawthorne, has been home to energy executive Shaun Scott and his wife, Sarah, for the past eight years.

Mega mansion sells for $11m plus
The view from the property in Hawthorne.

The Scotts’ property has been snapped up by self-made millionaire Anthony Yap, who founded Good Price Pharmacy Warehouse.

Mega mansion sells for $11m plus
Good Price Pharmacy Warehouse managing director Anthony Yap. Picture: Richard Walker.

Mr Yap and his wife, Hahn Luu, happen to be selling their current, six-bedroom home in neighbouring Balmoral, which is scheduled to go to auction next month.

Ms Luu declined to comment when contacted by The Courier-Mail.

Mega mansion sells for $11m plus
This house in Balmoral is for sale.

Mr Yap also owns another ­mansion in Balmoral, but his new digs in Hawthorne really are something else.

The home has five bedrooms, six bathrooms, two swimming pools, a heated spa, a north-south facing championship-size tennis court, a boat house, putting green and private 12m jetty.

Mega mansion sells for $11m plus
Inside the Hawthorne home.

Wait, there’s more.

There’s also a wine cellar, music room, library, gym and games room with built-in bar.

Records show Mr Scott, who is the former chief executive of Arrow Energy, bought the original property for $6.85 million in 2010.

Mega mansion sells for $11m plus
Shaun Scott is a former chief executive of Arrow Energy.

They employed architect Donovan Hill to design a brand new house, which was completed in 2014.

Selling agent David Price of Ray White – East Brisbane said the property attracted interest from potential buyers in London, New York and Dubai, as well Sydney and Melbourne.

“It was a truly international campaign,” Mr Price said.

“It’s a spectacular home. The house really had the lot because of the views over New Farm Park and the city, as well as being a flat block with a tennis court.”

There’s been some big money changing hands between the movers and shakers of Brisbane’s property market in the past year, with prestige homes attracting strong demand and increasing interest from interstate buyers.

This latest sale is the biggest of 2018 in Brisbane so far, eclipsing the $11 million sale of a mansion at 27 Sutherland Ave, Ascot, in March, and the $10.138 million sale in February of the Hamilton Hill mansion built by Christopher Skase at 36 Dickson Terrace.

Mr Price also recently sold a riverfront home at 15 Laidlaw Parade, East Brisbane, for $3.45 million and has listed another executive address at 10 Aaron Ave, Hawthorne.

“The top end’s very strong,” he said.

Mega mansion sells for $11m plus
The view from the house in Balmoral.
Mega mansion sells for $11m plus
The Hawthorne home sold for the highest price in Brisbane so far this year.
Mega mansion sells for $11m plus
Inside the Hawthorne house, which has sold.

Source: www.sunshinecoastdaily.com.au

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Brisbane’s Top Performing Growth Suburbs

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Brisbane’s Top Performing Growth Suburbs

Canny property owners in Brisbane have made huge cash gains after investing in suburbs which have recorded high capital growth.

Despite reports of a stalling real estate market, Place Advisory research has identified high performing suburbs in Brisbane, Ipswich and Logan, in the six months to March 2018.

Brisbane recorded an average capital gain of 6.2 per cent, with the inner suburb of Milton landing the highest capital growth of 19.9 per cent with median house values of $892,500.

Place Advisory’s Lachlan Walker said the growth has resulted in significant yields for property owners who have sold in the current climate.

“These gains are however the result of long-term strategies, crystallising capital growth if their initial investment was made based on the underlying drivers of population growth and the delivery of planned strategic local infrastructure,” Walker said.

SuburbGrowth (%)
Milton19.9%
Ascot13.3%
Kenmore Hills11.9%
Bundamba9.7%
Jamboree Heights9.4%
Shorncliffe9.2%
Park Ridge6.9%

Ipswich has lead the market in terms of a general rise in demand and pricing.

“The Ipswich corridor has undergone significant change over the past few years,” Walker said.

“Low entry level prices have allowed for strong growth to be achieved and value to be recognised by purchasers as this area continues to develop.

“The suburb of Bundamba recorded the highest capital growth in the Ipswich area, a significant 9.7 per cent.”

The Ipswich property market has also benefited from the awarding of a $5 billion defence contract to the region, which is forecast to generate jobs and infrastructure for the next 40 years.

In Logan, the top performing suburb was Park Ridge, with 6.9 per cent capital growth.

“The wider Logan area is a long-term investment opportunity,” Walker said.

Source: theurbandeveloper.com

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