THE value of Queensland’s housing market has smashed through the $1 trillion barrier for the first time in history.
THE value of Queensland’s housing market has smashed through the trillion dollar barrier for the first time in history.
The state’s residential property sector is now worth $1.004 trillion — hitting the milestone in September after hovering on or just below that level for months, according to exclusive figures provided to The Sunday-Mail by property research firm CoreLogic.
It’s been a rapid rise to the top, with the total value of Queensland’s housing market sitting at $910 billion only two years ago — that’s an increase of 10 per cent or more than $90 billion in just 24 months.
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RiskWise Property Research chief executive Doron Peleg said the value of Queensland’s housing market surpassing $1 trillion was a gamechanger for the state.
“You cannot ignore a $1 trillion housing market,” Mr Peleg said.
“It makes Queensland the third major player, yet it often gets overlooked by policy makers. “This shows it is a big market with a huge impact on the economy.”
Mr Peleg said Queensland’s improving economy, housing affordability, a rise in interstate migration and increased optimism in the market were all driving the value of the state’s residential real estate sector.
But he said it was important to remember the state had a two-speed housing market, with houses in the state’s southeast performing well but units still carrying some risk.
“Overall, due to the improved economy, increase in employment and population, $15 billion construction boom and the Advance Queensland Business Development Fund, Queensland is projected to deliver good long-term capital growth,” he said.
“However, proceed with caution when it comes to units and in some areas of Queensland, particularly mining towns.”
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Real Estate Institute of Queensland chief executive Antonia Mercorella said that while $1 trillion sounded like an “extraordinarily high figure”, there were a range of factors to consider.
Ms Mercorella said the number of homes in the state had also increased in the past two years — up 4 per cent from 1.2 million in September 2016 to 1.9 million in September 2018.
The state’s annual median house price to June 2018 grew 2.1 per cent to a median of $480,000, with 56,740 house sales.
And Queensland’s median unit price for the year held steady at $400,000.
“Interestingly, the value of the Queensland residential property market represents about 13.2 per cent of value of the Australian residential property market, however, the number of Queensland dwellings represents about 17.7 per cent of the Australian residential dwellings,” Ms Mercorella said.
“This demonstrates that Queensland is definitely more affordable than other states, such as NSW and Victoria wherein the contribution of the state dwellings is lower than the contribution of the value of the state residential market.”
In the past five years, Queensland house prices had increased 19.4 per cent and units around 11.4 per cent.
“Our growth rates are modest, but as we pass the $1 trillion mark, it’s clear that good value attracts savvy buyers and this will continue to deliver growth,” she said.
CoreLogic head of research Tim Lawless said the rise in the value of Queensland housing was a natural result of higher home values, particularly across the southeast corner of the state.
Mr Lawless said the addition of new housing stock to the market had also helped.
“According to ABS residential construction data, the twelve months to March 2018 saw another 45,200 dwellings complete construction, and overall residential construction activity was worth approximately $13.3 billion across the state over the year,” Mr Lawless said.
“Although the overall value of Queensland dwellings has risen over recent years, proportionally, the value of Queensland dwellings now comprise a slightly smaller share of the national dwelling value.”
CoreLogic estimates the value of residential real estate in Australia to be $7.58 trillion.
Brisbane was the only mainland capital city to see home values grow last month, defying the national housing downturn hitting other states.
Home values increased 0.1 per cent while every other major capital city went backwards.
Annually Brisbane’s growth has hit 0.8 per cent — the highest of all state capitals — while both Sydney (-6.1 per cent) and Melbourne (-3.1 per cent) dropped into negative territory.
Mr Lawless said Brisbane was seeing a rise in buyer interest and home values, but was still significantly more affordable than Sydney and Melbourne.
Units in Rochedale in Brisbane’s south have increased in price by an average of 36 per cent in the past year, while the median house price in Hamilton has grown nearly 27 per cent to hit $1.5 million.
Outside of the capital, the Sunshine Coast suburb of Minyama has seen a 45.8 per cent rise in its median house price in the past 12 months to $1.31 million.
Darren and Vanessa McGee bought a block of land in Hamilton three years ago and built their dream home on it.
House prices in the suburb have risen nearly 27 per cent in just the past 12 months.
The couple is now selling the property at 46 Royal Terrace “while it’s nice and shiny” to take advantage of the growth in home values.
“We like the whole Crosby Road area,” Mr McGee said.
“You’ve got the Allan Border Field across the road, coffee shops, Crosby Park … and it’s close for me because do most of our work in the city.”
Mr McGee, a local builder, said he was confident house prices in Brisbane would continue to rise.
“As long as interest rates aren’t going up and unemployment stays down, that normally means housing will be strong, and with all the people moving to the area, there’s not enough houses for them all,” he said.
“I think it’s a good time to sell and a good time to buy.”
Marketing agent Patrick McKinnon of Place – Ascot said he wasn’t surprised the value of the state’s housing market had reached new heights.
“I think it’s awesome,” Mr McKinnon said.
“We’ve got the population growth and we’re still affordable — that’s the best thing about this housing market.
“Even though Sydney and Melbourne are falling, it’s great for us because people want to move up here.”
Mr McKinnon said it was a good time to get into suburbs like Hamilton, which would benefit from the soon-to-be-completed Kingsford Smith Drive upgrade.
“All that blue chip real estate is looking at cranes at the moment, but in 12 months, it will grow again and people will start to enjoy what Hamilton was,” he said.
TOP 10 QLD SUBURBS WITH BIGGEST RISE IN MEDIAN HOME PRICE
Suburb Property Type Number of sales Median price Growth in 12 mths
1. Minyama House 60 $1.31m 45.8%
2. Rochedale Unit 74 $685,000 35.6%
3. Mooroobool Unit 41 $278,000 34.3%
4. Tallebudgera Valley House 36 $1.09m 32.1%
5. Park Ridge House 52 $620,000 31.1%
6. North Ward Unit 101 $320,000 29.3%
7. Hamilton House 61 $1.5m 26.7%
8. Hollywell House 54 $790,000 26.4%
9. Biloela House 49 $290,000 26.%
10. Marsden Unit 44 $343,900 25.7%
(Source: CoreLogic, based on suburbs where 30 or more sales were recorded in past year)
Originally published as Queensland housing market now worth trillions
Smart buys: Brisbane’s best properties under $800,000 for sale right now
Here’s our pick of the best buys in Brisbane and some of its surrounds at the moment — and they’re all under $800,000.
34 Ivy Street, Toowong
With tongue-and-groove floorboards, a cast-iron fireplace begging for love, a sunroom, and a prime position on 405 square metres, this three-bedroom original workers’ cottage is bound to catch eyes of inner-west renovators. No price has been set yet but agent Alex Jordan says as a vacant block on land it would achieve over $600,000.
McGrath, Alex Jordan 0410 424 749
81 Payne Road, The Gap
The rear of this multi-tone brick house surprises. There’s a single-garage-cum-workshop or home office between the double carport and an elevated timber sundeck, and there’s also a pool. It is fully fenced on a 625-square-metre block, and has three bedrooms with a further small room inside that could become a fourth bedroom or study.
Harcourts, Stephen Dangerfield 0412 145 802
48 Bringelly Street, Arana Hills
From its white picket fence to its flat sandpit-friendly backyard, the DNA of this three-bedroom, one-bathroom house is pure family. Set on a flat 607-square-metre block about 20 metres from the local bus stop, Grovely State School is 900 metres away and Arana Hills Plaza, restaurants and cafes are at the end of the street.
Coronis, Jo Dryden 07 3351 5151
19 Allamanda Crescent, Albany Creek
This substantial four-bedroom, double-storey house sits on a 1250-square-metre landscaped block. It has ample room for its pool and double garage, and there is a massive covered entertaining area and both casual and formal living and eating rooms. Two state high schools are located within 2.4 kilometres of the front door.
Style Real Estate, Claire Little 0422 755 171
40 O’Quinn Street, Nudgee Beach
This 54-year-old updated beauty on a double block opposite the beach offers three bedrooms, three bathrooms and 1000 square metres of land. Open-plan living and dining space, plenty of natural light, timber floors, and a second living area with clever built-in bench seating and storage are boons. The rear has a storage shed, two garden sheds and a single garage.
Calio & Scott Real Estate, Carl Calio 0416 145 288
6 Chase Crescent, North Lakes
Worth a look if a first-time home buyer, or investor watching budget-friendly growth areas, this super neat, modern three-bedroom, two-bathroom house also has a double garage. It is set on a low-maintenance and landscaped 486-square-metre block. It also has decent-sized, open-plan living and media rooms.
Hudson Property, Viv Robinson 0407 918 184
50 Windsor Place, Deception Bay
This two-bedroom, one-bathroom cottage on a 397-square-metre corner block has serious update or rebuild potential. Set three blocks west of Moreton Bay and one block to the suburban public primary school, it is liveable as a home or easily rentable with a modern kitchen and fenced backyard. It has a separate sunroom and a single carport.
Ray White, Lydia Robins 0438 166 763
441 Beenleigh Road, Sunnybank
This renovated, four-bedroom, one-bathroom house has parking space for two cars on a 708-square-metre block. The floor plan is open between living, dining and kitchen areas and the metro rail station is about 400 metres away. Its reserve price is unknown as required by Queensland auction laws, but it was found in a search for homes under $800,000.
Auction, June 29, 12.30pm
RE/MAX, Gary Dellios 0411 879 935
4 Parliament Street, Bethania
The federal election is done for 2019, but here is another way to get into Parliament. With three bedrooms and one bathroom, this brick-and-tile house also has a double carport and a double garage. On a flat 758-square-metre block, the back section is contained making for a fine play zone. Neutral timber-look flooring in the kitchen-meals area balances the retro swirl carpet in the living-dining.
LJ Hooker, Trina Wilson 0427 188 500
Cbus Property Plans $600m North Quay Tower
Cbus Property will partner with local Brisbane developer Nielson Properties to deliver a $600 million riverfront commercial building in the city’s CBD.
The 3,000sq m corner site, an amalgamation of 205 North Quay and neighbouring 30 Herschel Street, will now house the city’s latest A-grade commercial building.
The office development, to be known as 205 North Quay, will deliver 50,000sq m of net lettable area.
Cbus Property chief executive Adrian Pozzo said the site was ideal as it takes advantage of Brisbane’s strong economic outlook, employment growth and the state government’s infrastructure investment.
“205 North Quay is a major riverfront CBD site, ideally located to capitalise on the major infrastructure projects nearby such as the recently announced Roma Street Station, Brisbane Metro, Cross River Rail and Brisbane Live,” Pozzo said.
“Queensland’s economic growth also anticipated to continue to outperform the Australian average.”
“We will look to build on these strong economic foundations and our past success with 1 William Street, to deliver a premium and future-focused commercial tower for Brisbane’s CBD in collaboration with our partner, Nielson Properties.”
No stranger to Brisbane CBD’s commercial market, the project follows Cbus Property’s 46-storey “tower of power” at 1 William Street, home to the Queensland government.
The 205 North Quay development will add to the continued regeneration of the burgeoning North Quarter precinct, which will also include Mirvac’s 80 Ann Street tower to be tenanted by Suncorp, Shayher Group’s 300 George Street project and the recently completed W Hotel on George Street.
The development will also be located in Brisbane’s prime commercial district, capitalising on the major infrastructure projects nearby such as the recently announced Roma Street Station, Brisbane Metro, Cross River Rail and Brisbane Live.
“As a local Brisbane developer, we’re excited to be a part of the evolution of the North Quarter as it becomes a vibrant hub bolstered by outstanding connectivity to Brisbane’s CBD and premium infrastructure and amenity,” Nielson Properties director Ross Nielson said.
Cbus and Nielson have commenced preliminary discussions with the Brisbane City Council.
Last week, Brisbane-based Sentinel Property Group snatched up Makerston House, a neighbouring commercial property in Brisbane’s North Quarter precinct from investment management company Challenger for $103 million.
Further along the CBD riverfront, work has also commenced at the $3.6 billion Queens Wharf developed by the Destination Brisbane Consortium, a joint venture led by casino giant Star Entertainment Group, Far East Consortium and Chow Tai Fook Enterprises.
Work is also under way on Brisbane’s newest riverside public space, with the area between the Goodwill Bridge and 1 William Street to be developed into an above-water pedestrian walkway and recreational area called Waterline Park.
‘Why not Hendra?’ The luxury house that is poised to set a new benchmark for this Brisbane suburb
A prestigious new property in Hendra is tipped to break records when it goes under the hammer in a couple of weeks, setting a new benchmark for luxury in the area.
The five-bedroom, four-bathroom house may be located on General Street, but its myriad of bells and whistles means it’s anything but.
With a plethora of top-line features, including travertine tiles, state-of-the-art fixtures and a mosaic-tiled swimming pool, it includes a climate-controlled wine cellar as well as bespoke cabinetry throughout.
Marketing agent Patrick McKinnon of Place Ascot said the house was part of an emerging trend in the suburb towards luxury new builds. The developers behind the home, Innovare Builders, were quickly transforming the standard of Hendra homes project by project, he said.
“They’ve really lifted the benchmark for what’s expected in Hendra and set the tone for the quality that people look for here,” he said.
“This house should a set a record for the area for 405-square-metre non-racecourse property. The records are around the $1 millions and I think this is better than anything else comparable on the market right now.”
While perhaps not as well-known as its prestigious neighbouring suburbs of Ascot and Hamilton, Hendra’s gentrification is well underway, partly due to the redevelopment of Eagle Farm Racecourse.
The 379-square-metre statement home is within an easy canter of the racecourse as well as many cafe precincts.
Orazio D’Arro of Innovare Builders said Hendra’s multitude of attributes made the decision to develop there simple.
“In a nutshell, why not Hendra?” he said.
“We first chose Hendra because it is a gentrified living suburb with wide, tree-lined streets full of traditional and modern character houses and dotted by cafes, boutiques, other community businesses and gorgeous local parklands.”
Mr D’Arro said the design inspiration was Hamptons exterior meets modern European interior.
“Modern life requires thoughtful use of space and automation as well as comfort and this was at the forefront of each and every design and inclusion decision,” he said.
Located within easy commute of the Brisbane Airport as well motorways north and south, the home can be controlled from anywhere in the world via state-of-the-art automation and electrical integration.
“Part of a busy modern family’s lifestyle demands convenience – even while travelling – and the electronic aids offered up here deliver convenience in spades,” Mr D’Arro said.
Other features of the home include a rear patio designed for al fresco dining and summer barbecues, with a built-in, custom outdoor kitchen that features a barbecue and beverage centre.
The home also boasts an in-ground swimming pool lined with mosaic tiling and a manicured, drought-resistant lawn with landscaped gardens.
The property is located at 6 General Street, Hendra, and will go to auction on Saturday, June 22.
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