“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.
AND the winners are … Check out the best of the best in real estate in 2017. How did your suburb perform?
Property analyst CoreLogic’s annual ‘Best of the Best’ report shows more than $231 million was spent buying houses in the inner southeast Brisbane suburb this year — nearly $20 million more than last year.
The outer northern suburbs of North Lakes, Narangba and Caboolture were also big hits with buyers, followed by Redland Bay, Cleveland and Thornlands.
But when it comes to units, more money was splashed in Surfers Paradise in 2017 than anywhere else in the country, except for Melbourne, which saw more than $817 million worth of apartments change hands.
Buyers splurged more than $696 million on apartments in Surfers Paradise, followed by Hope Island.
The end-of-year report reveals Queensland’s best performing suburbs across 10 categories.
When it comes to capital growth in the past 12 months, the top gong for houses goes to Yeronga, which saw houses grow in value by more than 25 per cent.
CoreLogic head of Australian research Cameron Kusher said it was interesting to see other riverside suburbs such as Yeerongpilly, Indooroopilly and Fig Tree Pocket also recorded strong growth during the year, despite being impacted by the 2011 floods.
“People do tend to have a short memory and this data’s showing that they do,” Mr Kusher said.
Looking at values in suburbs with at least 10 sales in the 12 months to September 2017, the report shows Brisbane’s inner north remains home to the most valuable suburbs in Queensland for houses.
Teneriffe had the highest median house value at more than $1.7 million, ahead of Ascot with a median value of more than $1.5 million and New Farm at $1.485 million.
Tennyson tops the list when it comes to the most valuable suburb for units, with a median apartment value of nearly $1.1 million.
The central Queensland town of Dysart, hit hard by the mining downturn, was the least valuable for houses, with a median value of $98,187.
Mr Kusher said Camp Hill was not a suburb you’d expect to see among the highest number of sales, but it had experienced a high turnover of stock this year.
“It’s not the kind of suburb you’d typically think would be at the top of the list because it’s not an area where you’ve seen a lot of new housing,” he said.
“But it’s quite close to the city and has been relatively affordable.”
Josue Lopez, and his wife Krystal, are not surprised home buyers have poured so much money into property in Camp Hill this year.
They saw the potential in the suburb eight years ago when they bought their Queenslander at 49 Boundary Road, which has just gone under contract after receiving six offers.
“We were encouraged by Camp Hill at the time because of its proximity to the city, cafe culture and character homes,” Mr Lopez said.
“The schools are also fantastic.
“I think we made a savvy decision to buy here when we did.”
They spent more than $100,000 restoring the house to its former glory, while keeping original features such as ornate ceilings and picture rails.
“I think the results speak for themselves,” Mr Lopez said.
“We contemplated doing a more modest renovation, but you just don’t get the same finish.”
MORTGAGE INTEREST RATE SHOCK
Place Coorparoo agent Robyn Tait, who marketed the Lopez’s house, said Camp Hill had enjoyed a strong 12 months of sales.
“The suburb has gone from strength to strength,” she said.
“People are investing a great deal more in renovations than ever before.
“Five years ago, we used to see $50,000 renovations. Now it’s not uncommon to see $500,000 renovations.”
Ms Tait said character homes were in “enormous demand” because of their timeless appeal and renovation potential.
She said street and suburb records were regularly broken in the past year, including a home she just sold for $1.029 million at 3 Halland Terrace, which set a new record for a three-bedroom Queenslander on a block size under 800 sqm in Camp Hill.
TOP 10 SUBURBS FOR HIGHEST VALUE OF HOUSE SALES IN BRISBANE 2017
Suburb Median value Total value of sales
Camp Hill $844,015 $231,322,801
North Lakes $483,504 $223,910,630
Narangba $467,084 $214,444,127
Redland Bay $533,506 $212,195,253
Ashgrove $948,559 $201,893,350
Cleveland $564,096 $196,666,558
Carindale $829,798 $196,631,200
Forest Lake $441,361 $194,014,771
Thornlands $565,138 $193,995,197
Caboolture $331,278 $179,426,674
TOP 10 SUBURBS FOR HIGHEST MEDIAN VALUE IN BRISBANE IN 2017
Suburb Median value
New Farm $1.486m
St Lucia $1.184m
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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