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: www.news.com.au
Nearly 20pc of Brisbane’s apartments empty amid oversupply: BIS Oxford Economics
Apartments under construction in inner Brisbane. Photo: Glenn Hunt.Source:News Corp Australia
THOUSANDS of homes are lying empty in Brisbane’s most desirable neighbourhoods amid a chronic apartment oversupply.
NEARLY 20 per cent of the apartments in inner Brisbane are sitting empty and more than 50 projects have been shelved or ditched altogether as landlords struggle to survive the city’s oversupply crisis.
More than 10,000 new apartments have been abandoned or deferred by developers in the past 12 months amid waning investor demand, rising construction costs and lending restrictions, according to a new report by economic forecaster BIS Oxford Economics.
The building frenzy in the heart of Brisbane has been well publicised, with a rise in off-the-plan sales since 2013 allowing a greater number of projects to reach sufficient precommitment levels to begin construction.
But record levels of apartment completions have tipped the market into oversupply, putting pressure on rents and prices and resulting in a growing number of “ghost houses”, according to the Inner Brisbane Apartments 2018-2025 Market Brief.
There are signs things are improving though, with the latest CoreLogic Home Value Index revealing the fall in unit prices in Brisbane slowed by 0.6 per cent in the past month.
Unoccupied dwellings comprised 17 per cent of total apartment stock across inner Brisbane on the night of the 2016 Census, according to the report.
That’s up from 11 per cent on the night of the 2011 Census.
BIS Oxford Economics senior manager of residential property Angie Zigomanis said many unoccupied apartments were kept as second homes or speculative investments, but a number were also empty because landlords simply couldn’t find a tenant for them.
“They’ll always be competing against the latest and greatest new stock, so they’ll need to offer incentives to make their properties more attractive,” he said.
This financial year, BIS Oxford Economics estimates about 8,300 apartments will be completed in the inner Brisbane area — a new record annual rate of apartment completions.
West End, Brisbane CBD and the Inner North areas are likely to see the highest number of apartments come to market, followed by Toowong and Woolloongabba.
“Coupled with restrictions on interest only loans (a mainstay of investors) and the Queensland government introducing a stamp duty surcharge for overseas investors, we expect to see significantly fewer projects being able to achieve the pre-sales requirements for projects to commence.
“Sharply rising construction costs have also meant that developer’s margins have been eroded, impacting the next round of projects, particularly if there is a slump in prices making planned projects no longer viable.”
The vacancy rate for the inner Brisbane area climbed to 4 per cent in the December quarter of 2017.
Brisbane’s next foodie hot spots: Why home hunters are hungry to buy here
SCHOOLS, transport, views … great cafes? Check out the foodie suburbs that are already drawing investors, and those that will be the next to boom.
IF you don’t own a home in one of these suburbs, it might be time to wake up and smell the coffee.
Brisbane’s burgeoning cafe culture and caffeine cravings are fuelling the property market, with buyers prepared to pay a premium for real estate in suburbs that offer lifestyle and convenience — including being within walking distance of their daily brew.
Brisbane’s CBD, inner north and inner south continue to be strong dining destinations, but suburbs further from the city and with more of a village atmosphere are emerging as the next foodie hot spots.
Upper Mount Gravatt, Kelvin Grove, Albion, Nundah and Wilston are among a list of suburbs identified in analysis by corporate giant PwC.
And buyer agents say caffeine-craving home hunters are paying up to $50,000 more for homes in areas that are easily accessible to cafes, bars and restaurants.
There are currently 36 hospitality projects, including bars, cafes or restaurants, in the planning or construction stages in greater Brisbane, according to construction database, Cordell.
Most of those are in Fortitude Valley, followed by Coorparoo, Redcliffe, Kangaroo Point, Greenslopes and South Brisbane.
PwC Australia managing director-real estate Robert Cavallucci said their research was based on accessibility to bars, entertainment and dining precincts, as well as the concentration of those venues in each suburb.
Brisbane CBD, Fortitude Valley and South Brisbane came out on top, but Mr Cavallucci said the analysis also highlighted a number of emerging lifestyle hubs such as Albion, Nundah and Coorparoo — all with great transport links.
“It just validates what many of us think around why people choose where they choose to live and what areas of Brisbane have become hubs of activity,” Mr Cavallucci said.
He said precinct development was where urban planning was heading in Brisbane, with dining, bars and entertainment park of providing the whole package for residents.
Property Pursuit director Meighan Hetherington said an increasing number of homebuyers were seeking the lifestyle, village atmosphere and better connection to the community that cafe precincts offered.
Ms Hetherington said some of her clients were prepared to pay an extra $40,000 or $50,000 for a property if it was within walking distance of a lifestyle precinct.
“It may not even be price driven — it can often be a ‘yes’ or a ‘no’ decision on a property,” she said.
Ms Hetherington said Wilston was particularly popular with investors because of its “village feel”, but the suburbs of Banyo and Mitchelton were also gaining popularity among investors because of their emerging cafe cultures.
Universal Buyers Agents director Darren Piper said property investors had always wanted the convenience of access to public transport and schools, but they were now more driven by lifestyle factors.
“First home buyers’ dreams of the white picket fence and Queenslander are being pushed aside and those both with and without kids are instead wanting something they can lock up and leave and be able to walk 50 metres and be spoiled for choice with cafes, restaurants and entertainment,” Mr Piper said.
He said he dealt with many clients who were prepared to pay more to be near cafes or a shopping precinct.
“It’s a big-ticket item for them now,” Mr Piper said.
“If someone had a budget of $500,000 … they might stretch $20,000 to $30,000 to have that convenience at their doorstop.
“And I think what you’re seeing in the last 12 months in Brisbane is developers are really starting to get on board with it as well.”
Mr Piper said New Farm, Teneriffe and Bulimba were popular among his clients because of their cafe cultures.
New mum Sara Brown-Kenyon, 32, loves living close to cafes so that she can catch up with friends at short notice and have the freedom of being able to get out of the house with her four-month-old daughter.
“It’s great to have somewhere I can take the pram and walk to get a coffee,” she said.
“It keeps me sane while I’m on mat leave!”
Her friend, Lissa Lyons, lives in Wilston and enjoys the convenience of having plenty of amenities to choose from.
FOODIE HOT SPOTS
*Paddington — Milton
*Newstead — Bowen Hills
FOODIE AREAS TO BOOM
*Upper Mount Gravatt
*Kelvin Grove — Herston
(Sources: PwC, Cordell, Meighan Hetherington)
What Palmer paid for Fig Tree Pocket mansion
Rivergum Retreat is the height of Brisbane riverside living.Source:Supplied
EMBATTLED former billionaire Clive Palmer is back in the winner’s circle, with records confirming how much he paid for a luxury, seven-bedroom riverside Brisbane property complete with wine cellar and gold class cinema.
Mr Palmer, who in November won a $200m case against Citic over Pilbara royalty payments, was named as the buyer of Rivergum Retreat, the multimillion-dollar hideaway of embattled Linc Energy founder Peter Bond.
Clive Palmer and wife Anna at the Gold Coast 2018 Commonwealth Games on Sunday. Picture: Chris Hyde/Getty Images.Source:Getty Images
The Fig Tree Pocket mansion has a games room of its own.Source:Supplied
The home is one of the best in Brisbane.Source:Supplied
Property records yesterday showed $7.5m was the price paid for the seven-bedroom Fig Tree Pocket home, a sale which came just seven months after Bond and his wife Louse Marie inexplicably knocked back $9.2m at auction.
Now instead of losing $300,000 on the property, the Bonds have lost millions, having paid $9.5m for the 1.2Ha property a decade ago. This at a time when the Fig Tree Pocket has been experiencing a boom with its median price rising 61 per cent in the last five years.
Embattled Linc Energy boss Peter Bond in a file picture at the home which has its own jetty, boat ramp, pontoon and boat shed. Picture: Steve PohlnerSource:News Corp Australia
Such an idyllic spot.Source:Supplied
The kitchen has a butler’s pantry and is fully kitted out with top of the range appliances.Source:Supplied
The mansion, called Rivergum Retreat, is the height of Brisbane riverside living with over 1,900sq m indoor/outdoor living space, 132m direct river frontage, the Gold Class private 12-seat cinema, private on-site boating facilities including a boat ramp, pontoon, jetty and boat shed, a heated horizon pool and championship tennis court.
It also has a formal separate guest quarters, manicured parklike grounds, outdoor teppanyaki room, a climate controlled wine cellar and Mr Palmer will now also have a boardroom at home with three separate meeting rooms as well.
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