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What’s pushing up Brisbane land values?



What’s pushing up Brisbane land values?
A new government report has revealed the direction land value is moving in Queensland’s capital city, and what’s behind that movement.

The Valuer-General’s 2018 Property Market Movement Report, following a statewide market survey and consultation with local government, has completed a valuation of some of Queensland’s largest property markets and has found land values have risen by 6 per cent since the last valuation.

Over the valuation period between 2016 and 2017, single residential units saw high levels of competition from local, interstate and international buyers. In this market, a total of 47 suburbs in the city saw no median value increase, while 87 saw rises up to $50,000; 32 saw rises between $50,000 and $75,000, while 12 recorded rises above $75,000, which include Hamilton, Chapel Hill, Seven Hills, Carindale, Holland Park and Sunnybank.

For the multi-unit market, there were slight rises recorded due partly to the Brisbane City Plan 2014, a plan to increase interest in apartments. However, the report noted lowered demand and oversupply meant activity dropped off in the latter half of 2016.

The report also mentioned suburbs impacted by the 2011 floods had seen healthy recovery, with property being sold in some of the flood-affected land at prices similar to non-flood affected land.

Looking further to Logan, Ipswich and Moreton Bay Regional Council, the report shows these areas all experienced improving land areas, with the residential property market seeing land values driven by demand for housing in the Greater Brisbane area.

Logan City saw minor to moderate rises in residential land values due to demand for property located in central and affordable suburbs, such as Browns Plains, while higher values in eastern suburbs, like Springwood and Shailer Park, saw only minor value rises.

A demand for farm land has had a knock-on effect on overall land value in Logan City, along with the Stockleigh, Undullah and Veresdale areas, and in Ipswich City in Purga, Peak Crossing and Willowbank.

Meanwhile, Ipswich City’s residential land values experienced moderate rises in Springfield Lakes and Redbank Plains, while multi-unit land values saw a minor to moderate rise in Bellbird Park, Bundamba and Goodna, according to the report.

In the Moreton Bay Regional Council area, residential land values rose since last valuation, with the Redcliffe as well as southern areas nearby Brisbane City experiencing slight to minor land value increase. Caboolture and areas nearby Pumicestone Passage saw very minor value increases, and small hinterland towns saw for the most part no change, aside from a minor rise in Dayboro.

For multi-unit land values in the region, Caboolture saw mostly no movement, while southern areas near Brisbane experiencing slight to minor rises.

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Market Place

Five Brisbane houses under $500,000 ripe to renovate to perfection



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Brisbane apartment valuations on the slide with thousands more units on the way



Brisbane apartment valuations on the slide with thousands more units on the way

The large number of newly completed apartments – about 8300 – expected to hit Brisbane in 2017-18 will only worsen the problem, DFP says, quoting the latest residential data from property research group BIS Oxford Economics. A further 5000 units are in the pipeline for 2019. Yongyuan Dai/IStock

Mortgage revaluations of second-hand homes in inner Brisbaneare between 20 per cent and 30 per cent lower than the prices they originally exchanged for, one more sign of falling demand and over-supply in the Queensland capital, according to private property lender Development Finance Partners (DFP).
DFP, which provides commercial loans to residential developers, has discovered that not only are the values of new dwellings being pushed down, but secondary apartments and townhouses have been swept up in the downward slide.

The large number of newly completed apartments – about 8300 – expected to hit the city in 2017-18 will only worsen the problem DFP says, quoting the latest residential data from property research group BIS Oxford Economics. An additional 5000 units are in the pipeline for 2019.

According to BIS, the average number of apartments constructed in inner Brisbane outside of a boom year is about 2000.

DFP believes, based on information provided by its clients and industry experts, that the Brisbane apartment market will be further “tested” in the last half of the year.

“It’s a shock and it pressures those owners who do not have substantial equity,” DFP director Matthew Royal said.

“The new, shiny, state-of-the-art properties are easier to let and those owners, keen to get cash flow, may set a rental that is lower than rentals applying for nearby, older, properties.

“Making things worse is that, in a new development a large number of rental properties emerge at once, flooding the market,” Mr Royal said.

Adding to the woes of lower rents, banks are refraining from refinancing interest-only loans, forcing many borrowers to repay both principal and interest.

“Lower rents push down a property’s value, reduced cash flow arrives as principal and interest needs to be paid and an investor, financially comfortable up until then, is suddenly struggling to ‘hang on’,” Mr Royal said.

Additionally, Mr Royal is predicting more time on market for re-sales of apartments from the third quarter of 2018 onwards.

“Unfortunately I am predicting more pain than gain for the most exposed assets this time next year.”

It’s been two years since concerns about an oversupply of apartments in Brisbane began but many developers are understood to be still holding onto stock, hoping the dwellings will be absorbed by a growing population

This expectation of a gradual correction is supported by the relatively flat – as opposed to rapidly falling prices of Brisbane off-the-plan units, shown in settlement data from Corelogic.

But there are fewer projects in the city, with just 12 launched in 2017 compared with 57 in 2016.


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Market Place

Hamilton Hill home of NASA inventor for sale for first time in half a century



Hamilton Hill home of NASA inventor for sale for first time in half a century

This home at 29 Queens Rd, Hamilton, is for sale for the first time in over 50 years.Source:Supplied

THE Hamilton Hill home of a Brisbane inventor who helped put NASA into space has hit the market for the first time in more than 50 years.

Norman Flournoy, 88, has 27 worldwide patents to his name, including technical inventions used in ballistics and rocketry in the United States.

His wife, Marea Reed, worked from home as an optometrist for three decades and still has the original chair she used, which was made in 1876 from solid brass and bronze.

The 79-year-old hasn’t ruled out selling the chair with the house, but stressed it would have to be a good offer.

Hamilton Hill home of NASA inventor for sale for first time in half a century

The view from the back deck of the home at 29 Queens Rd, Hamilton.Source:Supplied

Mrs Reed moved into the home at 29 Queens Road in 1965 with her first husband, who was an architect.

“It was a wreck when we first came here,” she recalls.

“He did some beautiful, sensitive alterations to the house.

“It’s a wonderful mix of the traditional colonial and the new avant-garde.”

Perched high on Hamilton Hill on 890 sqm, the six-bedroom, two-bathroom colonial home is the perfect renovation project, offering spectacular river and city views.

Hamilton Hill home of NASA inventor for sale for first time in half a century

The living room in the home at 29 Queens Rd, Hamilton.Source:Supplied

“It’s got an absolutely fantastic view and position,” Mrs Reed said.

“What I love about it is the great expanse of sky.

“It’s a very happy home.”

Traditional features include a wraparound entry veranda, original timber flooring, wide hallway and VJ walls.

There is a large back deck, which extends off the living and dining area that would be perfect for alfresco dinners or parties.

Hamilton Hill home of NASA inventor for sale for first time in half a century

The hallway in the home at 29 Queens Rd, Hamilton.Source:Supplied

It overlooks the backyard, which allows plenty of room for a pool or home extension.

Underneath the home is a spacious studio with bedroom/lounge area and kitchenette — ideal for a guest wing or teenage retreat.

Marketing agent Nick Kouparitsas of Ray White Ascot said it was rare for such properties to be offered to the open market.

“We don’t come across too many of these homes that have been in the same family for so many years,” he said.

“Around Hamilton they’re pretty rare.”

Hamilton Hill home of NASA inventor for sale for first time in half a century

One of the bedrooms in the home at 29 Queens Rd, Hamilton.Source:Supplied

Mr Kouparitsas said he had fielded interest from local and interstate, mostly from owner-occupiers looking for something to renovate on a large block in a great location.

“You’ve probably got some of the best views in Brisbane there of the river and the city,” he said.

The property is scheduled for auction on-site at 4pm on May 26.


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