THE lure of affordability, lifestyle and world-class beaches made southeast Queensland’s coastal markets the stars of the property sector in 2017.
While home values grew just 2.4 percent in Brisbane over the past 12 months, they jumped nearly 7 percent on the Gold Coast, while houses climbed in value by more than 7 percent on the Sunshine Coast, according to the latest data from property analytics firm CoreLogic.
Half of the top 10 property sales in Queensland last year were made on the Gold Coast; totalling $48.9 million.
And some agents say the markets are set to strengthen further in 2018 as Sydney and Melbourne homeowners cash out of their million-dollar homes in favour of a more laid-back, affordable lifestyle in the tropical north.
The REIQ’s latest Queensland Market Monitor shows the median house price in the Sunshine Coast statistical division jumped from $557,500 in June to $570,000 in September, while the Gold Coast achieved a new house price record of $606,000.
The Queensland government recently declared the number of interstaters migrating to the state was at its highest level in eight years, with 15,716 people moving here in the year to March 2017 — most coming from New South Wales.
CoreLogic senior research analyst Cameron Kusher said both the Gold Coast and Sunshine Coast property markets had benefited from that boost in interstate migration more than Brisbane.
Ray White Surfers Paradise holds its major auction event of the year later this month to coincide with the January holiday period when many interstate and overseas visitors flock to the Gold Coast.
More than 100 properties will go under the hammer at its annual ‘The Event’ on January 28, with many holiday homes and investment properties set to sell to interstate and local investors.
Ray White Surfers Paradise chief executive Andrew Bell said the region had recorded solid sales figures in 2017 thanks to economic stability, job creation and steady population growth.
Mr Bell said the property market at the northern end of the Gold Coast had strengthened considerably because of new medium and high rise development in areas like Southport and Hope Island.
“That’s where all the new development is and it’s given people a lot more opportunity,” he said.
Mr Bell said suburbs like Coomera and Pimpama were had also become “powerhouses” for house-and-land developments, attracting demand from interstate.
“It’s not just people buying holiday homes,” he said.
“It’s just getting so difficult to live in Sydney with the cost of living and the traffic.
“People are saying ‘it’s time to move!’ and I think they’re seeing the Gold Coast as being the best it’s ever looked.”
And with vacancy rates of less than 1 per cent on the Gold Coast, Mr Bell said an increase in home construction was more than welcome.
“We can have 20 plus people turn up to an open home, so we desperately need more investors to buy some stock to help with this huge demand from tenants,” he said.
Kollosche Prestige Agents managing director Jordan Williams said the Gold Coast property market experienced periods of strength and weakness in 2017, but he predicted a bigger year in 2018.
“I know for a fact that for the last half of last year a lot of buyers were sitting on their hands reading the negative articles that said the market was going to crash,” Mr Williams said. “They’ve bought off me since then and realised its actually going to continue to improve.
“I think it’s going to be an exciting year.”
Mr Williams also said the majority of homes he sold were cash contracts, unlike the pre-GFC days.
“We have very affluent local and interstate buyers who are fourth, fifth and sixth generation wealthy,” he said.
“Our vendors who own these homes are also affluent, successful people and they don’t muck around with finance and building and pest inspections.”
Kristian and Haley Hughes are selling their five-bedroom waterfront home at 31 Pilot Court, Mermaid Waters through Kollosche Prestige Agents.
They’ve lived there for nearly three years, but have decided to sell and rent in the area so they can use the capital to fund Mrs Hughes’ new make-up venture.
Mrs Hughes, who runs The Institute of Makeup beauty school, said Mermaid Waters had benefited from the growth in popularity of nearby Burleigh Heads.
“I feel it’s becoming the new central location — nestled between Burleigh and Broadbeach,” she said.
The Hughes are hopeful they’ll benefit from the growth in the market over the past 12 months, with the median house price in Mermaid Waters increasing by more than 17 per cent.
Their family home is decked out with floor-to-ceiling glass, which captures spectacular 180 degree views.
“For someone who wants to make it their forever home, they’ll never run out of room,” she said.
“It was hard finding a place to put an offer on even then, because (homes) were selling before they even went to market.”
Further north, Noosa was the standout performer in 2017.
REIQ figures show Noosa was the state’s top performing market in the three months to September, recording annual house price growth of nearly 10 per cent.
Over the past five years, Noosa’s median house price has jumped by more than 40 per cent.
Tom Offermann Real Estate principal Tom Offermann said the company ended 2017 with eight sales averaging $5.9 million each.
The agency sold a sprawling waterfront home with a drive-through boatshed, two jetties and a boat ramp at 29-31 Wyuna Dr, Noosaville, for close to $11.9 million late in 2017 — setting a new record for the area.
“It’s not just the prestige properties that buyers are targeting,” Mr Offermann told The Courier-Mail.
“There are good opportunities for buyers at all levels who want to invest or live here.”
Another driving factor behind demand for the Gold Coast and Sunshine Coast markets is a lack of stock, but BIS Oxford Economics expects rising supply over the next three years to slow forecast price growth.
Another coastal market in Queensland that performed better than expected in 2017 was Cairns.
BIS Oxford Economics noted Cairns had benefited from improved tourism and a deficiency of dwellings, which was estimated to have pushed the median house price up by 20 per cent in the past five years.
It expects home prices to grow another five per cent until 2020.
Originally published: www.goldcoastinvestor.com.au
Will the new Brisbane State High School catchment affect property prices?
Changes made to Brisbane State High School’s catchment zone are already affecting properties for sale in the area, according to local real estate agents.
The state government released new catchment maps last week which revealed Brisbane State High School’s catchment zone could be cut by 25 per cent to manage pressure on its rising enrolments.
The school’s current catchment stretches through West End and out to Dutton Park but, under the new draft catchment, students from more than 500 households in Dutton Park, Woolloongabba and Highgate Hill would no longer be eligible for direct entry to State High once the neighbouring high-rise school in Dutton Park opens in 2021.
It’s been a devastating revelation for homeowners who bought in the area specifically to be in the catchment of Queensland’s top performing state high school, said Sam Peterffy, of Harcourts Homeside.
Not only are they upset at being kicked out of the catchment, they’re worried the value of their property will fall because if it, she said.
“Of course the people who are already living here are worried — many of them bought here for the school,” she said.
“I feel sorry for these people. They might have young children, aged five and under, and bought here planning for their children’s future. Now that’s up in the air. It’s not a great situation for them.”
Ms Peterffy said the local property market had already been affected.
“From a buyer perspective, I have people who were looking in these areas and have straight up said they’re no longer looking at Dutton Park or anywhere that’s out of the catchment,” she said.
Brisbane State High School is a 3200-student strong, selective GPS school, sought-after for its top academic results and extensive extra curricular program.
Demand for places is so high, the school employed an investigator this year to uncover families rorting the catchment system.
Ben Salm of Place Estate Agents is selling a beautiful six-bedroom family home at Grantham Street, Dutton Park, that is currently in the State High catchment, but would be bumped out under the new plan.
He said it had already affected the property’s desirability for some buyers.
“It’s something we’ve seen a fair bit of with feedback from the buyers coming through,” he said.
“They’re unsure about the new school because it’s all so unknown at this stage; that creates a hesitancy and then you get less competition, which potentially means lower prices.
“Because this house is now looking like it’ll be out of the State High catchment, the feedback we’re getting suggests the price could be $50,000 less than what it might have been worth three to six months ago.
“There is a grace period though, so you never know what will happen.”
It’s important to note the effect on current and future families will not be immediate. Brisbane State High School students living in the proposed catchment zone for the new school will be allowed to remain enrolled at State High for the duration of their studies, while their siblings will still be able to enrol under transitional arrangements.
The government also said that families with primary school children living in a street which appears on both catchment maps can choose to enrol their child at either school.
But the changes are causing a lot of uncertainty. Ms Peterffy recently sold a house at Gloucester Street, Highgate Hill, a street where some houses will still fall in the catchment and others won’t.
This particular house will still be in the catchment, so the competition to secure it was strong, with four offers in one weekend, Ms Peterffy said.
“I had a couple who argued about it. The husband was saying that the new school was likely to be great but the wife was really worried about it,” she said.
“She just kept saying, ‘But it’s not going to be Brisbane State High, it won’t be the same’. So for them, the fact this house would still be in the catchment in a few years’ time was very important to them.
“That said, there will always be people who will want to buy in Dutton Park anyway. It’s the best suburb in Brisbane in my view.”
And Ms Peterffy said the silver lining would be in the new school, Inner City South State Secondary College, which had the potential to bring new buyers to the area long term.
“Some buyers who may not previously had Dutton Park and surrounding areas on their radar may come here because there is going to be a shiny new school with the best of everything and a connection to the University of Queensland,” she said.
“I know everyone wants to be in the State High catchment right now but my prediction is this new school will be in the top 10 state high schools in Queensland very quickly.”
Mr Salm said the property market could pick up again in these areas once the plans for the school are finalised and released to the public.
“It could actually create quite a bit of excitment in the area once there’s a lot more detail released and prices could go up again,” he said.
“I think in the long term this school will be competition for State High but at the moment it’s making buyers unsure about being in the area, and will only make competition for property staying in the State High catchment even tougher.”
The maps and the enrolment management plan are out for public consultation until September 30.
Medium Density Development Round-Up: Brisbane
The Urban Developer recently published our first medium-density development round-up, covering five low-rise development proposals in Sydney.
This week we turn to sunny Queensland to seek out the latest in low- to medium-rise development in Brisbane – uncovering nearly $200 million worth of proposals that have recently entered planning assessment.
1. 79 Swann Road, Taringa
Its proximity to the University of Queensland and public transport makes Swann Road a popular destination for developers.
Sanchi Development has proposed a 6-storey Cottee Parker-designed project that will include 3-levels of basement parking.
The proposal is located nearby the Indooroopilly shopping centre and south-east bikeway with the Taringa Train Station and bus stops within 400 metres of the site.
The building will host a communal roof top terrace with views of Mt Coot-tha which will include a gym and BBQ facilities.
2. 69-71 Swann Road, Taringa
Local developer Mosaic Property has proposed a low-rise, five-storey development at 69-71 Swann Road in Taringa.
The 1,256sq m site was purchased for $3.1 million and will be developed to deliver 16 dwellings.
Subject to approvals, construction will start early next year and is expected to cost $19.2 million.
3. 8-10 Amersham Street, West End
Developer Amersham Street Pty Ltd has lodged a proposal for a 5-storey residential development in Brisbane’s hip suburb of West End.
The $20 million project will create 23 units as well as 39 car parks with an estimated $9 million construction cost.
Each apartment has its own balcony or private terraces with the building topped by a rooftop garden with a fireplace and BBQ for tenants to take advantage of city views.
The project will launch to market early-2019.
Editor’s note: Adam Di Marco, founder of the Urban Developer, is a director of Amersham Street Pty Ltd.
4. 77 Walkers Way, Nundah
Dennis Family Corporation has lodged plans for 32 triple-storey townhouses along 77 Walkers Way in Nundah.
The $21 million development, designed by Ellivo Architects, is spread across 7,069sq m of rural zoning.
The project will include of 4,902sq m of communal space and 1,556sq m of private open space.
The site is located in within a 1 km of Toombul Shopping Centre and 3.5 km of Brisbane Airport.
The Dennis Family told The Urban Developer construction was expected to start late-2019 following pre-sales.
The property group is also going to tender to select a construction partner for the project.
5. Parkside, Springfield (Stage 2).
Springfield City Group’s second stage development in the heart of Springfield Central will create 74 apartments as well as 196sq m of ground floor commercial and retail space.
The $39 million development, designed by Plus Architecture, will overlook Robelle Domain Parklands and will be walking distance from Orion Town Centre and Springfield Central Train Station.
Construction commencement will be dependent on pre-sales, however, Springfield City Group told The Urban Developer the target commencement date was forecasted for the second or third quarter of 2019.
A builder has not yet been appointed to the project.
Brisbane House Price hits all-time high
Brisbane house price has hit an all-time high.
The median brisbane house price is peaking at $673 000, which Real Estate Institute of Queensland (REIQ) says is a very good sign.
“It tells us that this market has well and truly recovered from the post GFC slump” CEO, Antonia Mercorella, said.
The latest Market Monitor report by REIQ revealed Brisbane’s median house price has increased 2.5% in the past year and 30% over five years.
The top growth suburbs across the city’s south include Holland Park West, Manly West and Carindale.
Brisbane’s median house price has hit an all-time high. The median house price is peaking at $673 000, which Real Estate Institute of Queensland (REIQ) says is a very good sign. (9News)
In the city’s North, it’s Mitchelton, Stafford Heights and McDowall.
“Those suburbs are really popular with families in particular. And what they demonstrate is that there is good affordability.” Ms Mercorella said.
David Conboy is currently selling a five-bedroom, two-bathroom home at Mitchellton, asking $675,000.
He is not surprised the suburb is booming.
Antonia Mercorella, said the post-GFC slump is over in the Brisbane property market. (9News)
“In this area we have a fantastic access to infrastructure to local schools, shops and public transport as well,” the Harcourts Property Sales and Marketing Consultant said.
A bit further out, the best performer in Greater Brisbane has been Caboolture South.
It has seen an increase of 30.4% to a median house price of $327 000.
Brisbane’s median house price has hit an all-time high. (9News)
“With the Bruce Highway improvements, we should continue to see those suburbs performing strongly, into the future” Ms Mercorella said.
Across Queensland, the coastal markets have seen the most growth.
Noosa on the Sunshine Coast taking out the top spot, up 6.9% to a median house price of $695,000.
It takes the title from the Gold Coast, where the median house price sits at $622,000.
“They offer just such a good lifestyle. You’re close to the water, close to nature” Ms Mercorella said.
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