How did the Brisbane and Queensland property market perform in June, and what can we expect moving forward?
In these uncertain times, Brisbane and Sunshine state have had the benefit of being relatively unscathed by Covid-19 from a healthcare perspective, with low infection rates and mortality. This has meant the state has eased restrictions earlier than expected, which the
Real Estate Institute of Queensland (REIQ) believes has brought renewed interest to the housing sector. This is not to say the lockdown and restrictions have not been felt there, with the tourism sector in freefall, the jobs of hospitality workers remains uncertain and there is little likelihood tertiary students will return in the foreseeable future. Despite this, the housing market there has remained true to form, displaying traditional resilience and lower volatility overall than Victoria or NSW – a strength we highlighted in our May property update.
How has the Queensland and Brisbane property market been tracking?
Brisbane property prices
Monthly change: -0.4%
Monthly change: -0.8%
According to the latest CoreLogic Home Value Index, the Brisbane property market edged a slight -0.4% over June, which leaves it +0.8% for the quarter and +4.3% for the YTD for a median dwelling price of $503,148. If you look at distinct dwelling types, houses were marginally down -0.4% for a median of $557,265, with units a little softer at -0.8% and a median of $387,420.
Over the long term, propertyupdate.com.au reports that Inner City and Hawthorne houses have performed the best, rising +5.1% over the last 5 years. For units, East Brisbane and Wynnum West lead the way over this timeframe, advancing +3.4% respectively.
The Brisbane market edged slightly lower -0.4% over June, which leaves it +0.8% for the quarter and +4.3% for the YTD
Regional Queensland property prices
Monthly change: -0.4%
Monthly change: 0.0%
Overall, regional properties in the Sunshine State are down -0.3% for June and -0.1% for the quarter. Looking at the longer term, property prices are still up +4.5% over the year. The median dwelling price for regional properties currently sits at $379,942.
Overall regional markets in the Sunshine State are still up +4.5% over the year
Taking a look at houses by dwelling type – houses have softened over June sliding -0.4% to a median of $386,454. Units have remained unchanged at 0.0% for the month with a median of $363,549.
Brisbane and Queensland rental market update
The lockdown has had a significant impact on Brisbane’s rental market, with the mass exodus of international students, tourists and hospitality workers prompting a sharp rise in vacancy rates. CoreLogic has also warned that Airbnb properties are flooding the rental market, which is exacerbating vacancies and leading landlords to slash weekly rents.
The lockdown has had a significant impact on Brisbane’s rental market, and prompted a sharp rise in vacancy rates
Rental data compiled by Domain found that some Brisbane inner city listings, “…were forced to slash median weekly rent prices by more than 30 per cent during the COVID-19 pandemic peak in April”. This has since firmed up to 24.0 per cent in May, which is not as aggressive as the discounting seen in Sydney – City and East (36.7%) or Inner Melbourne (33.2%) over the same timeframe.
Gross rental yields for Brisbane houses in June are still higher than Melbourne or Sydney – at 4.2%, with units at 5.2%, while yields for regional property are even more attractive with houses producing 5.1% and units 5.5% over the month.
What does this mean and what can you expect?
Overall the sun is still shining for the Brisbane and Queensland property market, with a minor drop in price growth. This is to be expected given the impact health restrictions have had on the real estate sector, consumer sentiment and unemployment.
The REIQ believes that, “Despite property prices continuing the trend of positive growth, it’s anticipated that the housing market will ultimately feel the impact of the coronavirus in the months to come – largely based on diminishing consumer confidence, rising unemployment and a tightening in lending practices”.
CoreLogic has commented on how well the housing market has weathered the storm, pointing out that the impact so far has been, “…milder than initially anticipated”, and that there is a drift in values lower rather than a crash. They believe this is due to:
- Low stock levels
- Government fiscal stimulus
- Continued low interest rates
- Willingness of lenders to defer payments in the short term
However key risks relate to the eventual removal of stimulus measures and borrower repayment holidays. There is also a real risk that a rise in cases will see a return to restrictive policies, as we have just seen in Melbourne, which will impede seller/vendor activity and hamstring growth.
Clearly current market conditions mean you need to be a smart seller.
How to be a smart seller
We reached out to our community of sellers who sold their home during Covid-19 and found that many of them achieved really positive results. This is despite the very real challenges the pandemic has thrown up.
Their overriding experience was that if you have a listing in a sought-after postcode that is presented well and priced reasonably – you are still likely to get multiple offers. Homeowners who have sold recently also noted that though there are less people attending open homes, they are more likely to be serious buyers with pre-approval from a lender.
You also want to partner with an agent who has adapted to the current climate, so they can help you sell successfully. Use our Smart Seller’s tool to select the top performing agents where you live.
This article is republished from www.openagent.com.au under a Creative Commons license. Read the original article.
Waterfront wonder: see why this rare Pelican palace is going to be irresistible to lifestyle lovers
A rare, palatial waterfront beauty is about to become someone’s new dream home on the Sunshine Coast and smash the sale price record for its coastal suburb.
The private oasis that is 43 Pelican Waters Boulevard, Pelican Waters, commands attention among other resplendent homes in the coveted area.
The five-bedroom, three-bathroom property sits on the largest waterfront allotment in Pelican Waters at 2492m2.
It has everything grand property wishes are made of, ticking all the boxes for desirable coastal living – space, privacy, convenience and location – with the added bonuses of being north-facing, with absolute water frontage on the widest canal.
Adams & Jones is marketing the property in an Expressions of Interest campaign that closes at 5pm on June 7.
While agent Karen Jones did not wish to pre-empt the success of the campaign, she expects the final sale price to be the talk of the town.
“We certainly expect it to be a record sale for Pelican Waters, deservedly so,” she said.
“So far, the response has been very positive.
“I am organising private inspections by appointment only for this home.
“Given the size of the land and all the extras, some of the private inspections I have had so far have taken an hour-and-a-half.”
Lifestyle and luxury are taken to the next level. This is more like your own tropical resort complete with enviable recreation facilities.
The colossal in-ground infinity pool is joined by a full-size flood-lit tennis court and mini putting green.
This boat owner’s paradise also has about a 49m frontage with private pontoon to the ocean-access canal to glide around pristine Pumicestone Passage or cruise out into the deep blue.
The water-fun possibilities are endless for those with SUPs, jet skis, kayaks or surfboards.
And there’s room for four cars plus a motorhome, or boats and trailers.
Unwind beneath the canopy of the trees, sit back and take in the breathtaking water views across the canal, dine in a romantic setting at the water’s edge or reconnect with loved ones in the large outdoor living zone complete with weatherproof roofing.
But the elegantly remodelled and beautifully styled, two-storey residence also offers grandly proportioned interiors behind the gated entrance and long and winding walkway to the front portico.
A statement chandelier over the central table is an eye-catching addition to the entertainer’s kitchen that also boasts stunning engineered stone, integrated appliances and expansive storage solutions, including a separate bar area.
While all five bedrooms are well-proportioned, beautifully appointed and offer French doors to private balconies with sparkling water views or a private outlook over the estate, the master retreat is a stand-out in comfort.
And its luxurious ensuite has a free-standing bath to soothe weary souls that looks out to the waterfront landscape.
French Oak flooring, luxe finishes and inviting spaces to relax and entertain help define the home’s immediate sense of warmth and comfort.
The separate air-conditioned office with independent access is ideal for a home business, with its own shady outdoor lounging area and meeting table.
Other features include: ducted air-conditioning, vacuum system, security and intercom.
“For me, I love the space and privacy provided by all the established trees and gardens,” Ms Jones said.
“It really makes it feel like an oasis on the water.
“Although you are walking distance to Golden Beach and Pelican Waters shopping centre and the coming marina, it doesn’t feel like you are in the suburbs.
“It is very rare to have 2492m2 of north-facing waterfront. That is very hard to find anywhere on the Sunshine Coast.
“The home was designed by Trevor Reitsma and the current owners have done a beautiful renovation, keeping true to the style and grandeur of the home but giving it a lovely relaxed, coastal vibe.”
Ms Jones said the current owners previously were living in the hinterland on more than 40ha (100 acres), and while they had “loved their time” on the largest waterfront block in Pelican Waters, they wanted to return to acreage living.
In their time by the water, they had seen the potential of the “faded beauty” they had purchased and completely remodelled and renovated the property to their own grand designs with luxury finishes.
With the property’s immaculate presentation, interest had been strong from prospective buyers.
“We have had an ex-pat with a family very interested, as well as a couple returning from working in the US for 20 years, families from Brisbane and families from other parts of the Sunshine Coast,” Ms Jones said.
“The size of the home and the rare block size have both been very important aspects of the buyers’ interest so far.
“It will be very interesting to see who the lucky buyers will be.”
Article source: www.sunshinecoastnews.com.au
For sale: Inside Australia’s version of The Great Gatsby mansion
In the luxury stratosphere of real estate, privacy is even more valuable than glittering views, blue-ribbon street addresses and the imported flourishes that crown every surface.
And so it is with Australia’s version of The Great Gatsby mansion.
This unique estate, on the market in Queensland, has a cinematic quality.
Here, the water fountains in the vast grounds are controlled by Bluetooth. Flick a switch for instant cocktail-hour ambiance.
In the suburb of Robertson, with intentionally little else to pinpoint its location, is this an estate of epic scale and glamour.
The listing does not mention the street address, or provide a floorplan, and there are only eleven photographs (none of the living zones, and most of the exterior) which adds to the intrigue and sense of exclusivity.
The chandeliers are bespoke, the tennis court is “championship” size and the pool house has a kitchen for parties, “his and her bathrooms” and three options for a dip – a 25-metre pool with three lanes, a spa and a cold plunge pool.
Paths and driveways curl around impeccable, verdant gardens with razor edges, reminiscent of Jay Gatsby’s estate in Baz Lurhhman’s 2013 movie starring Leonardo DiCaprio. The exterior shots for the film were of St Patrick’s Seminary in Manly, Sydney.
The Robertson estate is on the books of Place Estate Agents’ Patrick McKinnon, inviting expressions of interest.
No price guide has been given.
Mr McKinnon told Nine the level of seclusion and privacy attached to the home – which he dubbed “Brisbane’s best-kept secret” – is what held “huge” appeal for prospective buyers in this level of the market.
Boomers a ‘Force of Change’ in Retirement Property Market
As teenagers they invented pop culture and now—much older, collectively wealthier and arguably wiser—they are defining a new age group and re-inventing retirement living.
Millenials may have surpassed them in numbers but baby boomers are still having significant influence on world economies and trends—not least in the property market.
“The baby boomers are coming through and have become a force for change in the seniors’ market,” said Cameron Kirby, managing director of Kirby Consulting Group, a retirement and aged care specialist.
“The more progressive operators are definitely getting their ducks in a line.
“And there’s a lot of developers interested in dipping their toes in the market for the first time, some of them with more than 30 years’ experience in the development industry, because they can see there is huge opportunity.
“[But] many developers that want to enter into this space are probably a bit reticent because they’re worried about the complexity of it, they’re worried about the unknowns.
“The opportunities, however, far outweigh any of their concerns.
“And if you’re offering what the market wants, you’re going to be successful.”
Kirby will be a speaker at The Urban Developer Developing For An Ageing Demographic vSummit on April 28.
“The sector is continuously changing,” he said.
“You’ve got land lease communities and over-55 developments that have been moving into the traditional retirement village space.
“And, at the moment, there’s a lot of talk about integrated care in retirement living with a greater weighting on having more retirement villages and less aged care.”
Last year, a survey by benchmarking firm StewartBrown showed 58 per cent of aged care homes were operating at a loss, up from 55 per cent the previous financial year, and 32 per cent made a cash loss.
“Aged care has got some major challenges … but in the meantime there’s also the baby boomers coming through,” Kirby said.
“What I’ve seen over the last 10 years is a bit of a slide where low-care people that used to go into aged care are more likely to go into retirement villages and, equally, people that used to go into more traditional retirement villages are now probably more interested in moving into land lease communities and over-55s concepts.
“Land lease communities are growing very fast and are hugely attractive, there’s no doubt about that … but retirement villages have upped the ante enormously as well, they tend to offer much more wellness and are moving more towards the care side of things.
“Certainly, operators who are offering care in retirement villages are going from strength to strength.
“There’s an increasing amount of quality retirement villages with hotel and resort-style living and state-of-the-art amenities coming online. Pools, gyms, spas, saunas, cinemas, you name it they’ve got it.
“But those retirement living operators that have a full continuum of care solution that’s what the market is demanding … [the boomers] know they’re going to need some support down the line so they’re planning for their future.
“It really doesn’t matter, however, whether you’re doing aged care, retirement, over-55s or land lease community … because demand is outstripping supply. There is a market for all of those and they attract very different types of buyers.”
Kirby said given Australia’s ageing demographic, the seniors and retirement market was a “much more defensive proposition” for developers.
“Just as healthcare is a defensive stock on the stock market, I think seniors living is a much more defensive play in the property sector,” he said.
“It tends to be more needs driven than what a straight-out residential property play would be.
“And so, I think if we are going to be headed towards a softer property market this is an area that can really shine because seniors will still have the wealth and will still want to move and look at downsizing opportunities.”
Article Source: www.theurbandeveloper.com
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