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Rumble Family Offloads Pumpkin Island

Rumble Family Offloads Pumpkin Island

Pumpkin Island—made famous as a beer-soaked “man cave” in a Castlemaine Perkins brewery promotion—has hit the market for only the second time since 1961, with a price guide of $25 million.

The rolling lease for the 6-hectare island, part of the Southern Great Barrier Reef’s Keppel Group, 14km off the coast of Yeppoon in Central Queensland, will be taken to market by Knight Frank’s Deborah Cullen and Pat O’Driscoll.

Cullen said Pumpkin Island was a rare offering that was expected to attract wide interest.

“The buyer will be purchasing an entire island—rather than just a parcel of land on an island—on a rolling lease current until 2046, which is an opportunity that only presents itself once in a blue moon,” Cullen said.

“Pumpkin Island is a very unique property offering privacy, seclusion and exclusivity, and is a fantastic destination for tourists or locals wanting an escape.

“We expect it will be even more attractive in the current climate post Covid-19 for someone who wishes to use it as a safe haven during any possible future pandemics.”

Leased by Queensland brewery Castlemaine Perkins between 2012 and 2015, the island was renamed XXXX Island after being chosen by Lion Nathan from a pool of 17 to spearhead an infamous promotional campaign for their beer, with 3000 people visiting the men-only hideaway during those three years.

Pumpkin Island first opened to guests in 1964 and was handed back in 2016. The island has since been transformed into a private resort containing staff quarters, a work shed, lookout building, bar, manager’s cottage, playground, two moorings, a helipad and a catamaran.

An oyster lease also belongs to the owner and can be sold with the island allowing guests to shuck their own oysters off the rocks.

The off-grid eco-resort, named Australia’s most sustainable hotel in 2018, is powered by solar, wind and rain water storage and was recognised as the first “beyond carbon neutral” island in Australia, offsetting 150 per cent of its annual greenhouse gas emissions.

The leasehold for Pumpkin Island—one of three Great Barrier reef sites in the Rumble family’s Sojourn Properties portfolio—was purchased for $1.3 million in 2003 from previous long-time owners Roger and Merle Mason.

Sojourn Properties is a Queensland-based company with a boutique collection of properties operated under the Sojourn Retreats brand.

While the Rumbles say they are pursuing new ventures and moving closer to family in New Zealand, the island took a hit during Covid-19, with Laureth Rumble revealing to The Courier-Mail last month that although the island remained open, “we have no business.”

Knight Frank’s O’Driscoll said the property offered the potential for further development or redevelopment, with approval required from council and state authorities for building standards.

“At the moment the island can have a maximum of 34 guests but this has the potential to be increased, subject to state government ministerial and local government approval.

“Capricorn Enterprise is incredibly supportive of tourism in the region and assists in marketing, sales and training for Pumpkin Island,” O’Driscoll said.

“They also lobby local council and government when needed to achieve desired results, including tourism development plans.”

Other islands off the Queensland coast have already lured developers both in Australia and abroad, including Lindeman Island, which is undergoing a $583 million redevelopment, Hayman Island, which is getting a revamp, as is Daydream Island Resort and Lady Musgrave Island—where an underwater hotel is planned—to name but a few.

But it doesn’t always work out: ten kilometres south of Pumpkin Island, Sydney developer Terry Agnew had grand plans for Great Keppel Island but was unable to secure government approval for a casino—or a co-development partner for a $400 million resort, selling off a large portion of the island in 2018 to Singaporean and Taiwanese investors Wei Chao.

 

 

 

 

This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.

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Market Place

Boomers a ‘Force of Change’ in Retirement Property Market

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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Market Place

Houses still in high demand, apartment prices lag

apartment

The price growth of apartments continues to lag rocketing house prices in many suburbs across Sydney and Melbourne, with the trend showing little signs of abating.

The widening price gap between houses and units is a long-term trend driven by land scarcity in our biggest cities, with the difference tending to be widest between houses and high-rise apartments.

While house prices in Sydney’s North Ryde soared 29 per cent in the year ended March 31, unit prices in the suburb grew by a mere 6 per cent. Similarly, prices in Homebush grew 29 per cent, compared to unit price growth of just 7 per cent.

In Sydney’s Pennant Hills, house prices grew 24 per cent, while unit prices were flat, figures from CoreLogic show.

It is the same story in many parts of Melbourne, with Essendon North house prices growing by 19 per cent over the same period, while apartment prices fell by almost 1 per cent.

Houses in Melbourne’s Canterbury saw their prices jump more than 14 per cent, while units dipped 4 per cent. In inner-city Hawthorn East, houses were up 9.6 per cent, compared to a 6 per cent fall in unit prices.

Earlier analysis by CoreLogic showed more expensive property markets, particularly those close to CBDs and in areas where there are high numbers of units relative to houses, tend to have the biggest price gaps.

Eliza Owen, head of research at CoreLogic, says one of the reasons for the relative recent poor price performance of unit markets is COVID-19 related travel restrictions, including the closure of Australia’s international borders.

Demand for investment units in urbanised centres likely fell because of their high exposure to migrants and international students.

During the height of the pandemic, many units were empty, particularly in inner Melbourne.

The re-opening of international borders is seeing arrivals from overseas rising quickly, which should help to support the prices of units in both Sydney and Melbourne, she says.

However, Owen says one area of concern remains the prospect of higher mortgage interest rates, with prices of investment units more sensitive to rate movements than houses.

Many analysts expect the Reserve Bank of Australia to start increasing official interest rates this year, possible as early as June, with lenders expected to pass on any hikes in their variable rate mortgages.

Following two years of surging property prices, the big gains made over the past year appear to be over.

Sydney house prices were 0.1 per cent lower in March after being flat in February. Unit prices were 0.5 per cent lower in March and 0.3 per cent lower in February.

In Melbourne, house prices down 0.2 per cent lower in March, following flat prices February. Unit prices were 0.2 per cent higher in March and 0.1 per cent higher in February. However, those small gains came after big falls in inner-city unit property values during COVID-19 restrictions.

Coming off the back of strong annual growth, falling affordability continues to be a key factor affecting property market conditions.

A surge in the cost of living and rising rents is restricting the ability of prospective homeowners to save and borrow.

In last month’s federal budget, the government expanded the number of places available in its low-deposit scheme.

The program allows first-home buyers, and others, to buy new or existing dwellings with a deposit of only 5 per cent, instead of the usual 20 per cent that is needed to avoid paying expensive lenders’ mortgage insurance.

 

Article Source: www.brisbanetimes.com.au

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Brisbane

Brisbane house prices leave units in the dust

Brisbane house prices

The gap between house and apartment prices in Brisbane is now the widest in at least two decades, but is set to shrink over the next 12 months as housing affordability bites and buyers choose cheaper options, Colliers says.

Colliers residential director Queensland, Andrew Roubicek, said the price difference between houses and apartments in Brisbane has reached 45 per cent compared with an average of around 20 per cent between 2003 and 2015.

Brisbane house prices further escalated with the onset on COVID-19 when people placed a higher value on privacy with interstate migration to the Sunshine State also propelling Queensland’s property market.

Property data company CoreLogic estimates that Brisbane house prices increased 32 per cent in the year ended March 31 compared with 15 per cent growth for units over the same period.

CoreLogic said house price growth is slowing faster than units and Mr Roubicek predicted that Brisbane apartment values will rise by “at least” another 15 per cent in the next 12 months.

Mr Roubicek said rising construction costs have hit the new apartment market hard and that comparable established stock costs about 25 per cent less.

“There have been several examples of new developments achieving pre-sale [targets] only to have developers refund deposits and tear up contracts because building costs escalated to a point where it was financially unviable,” he said.

“As a consequence, developers who are looking to acquire new development sites are forced to increase their projected sales prices by around 20 per cent.

“Just 18 months ago a two-bedroom apartment in Brisbane might have sold off the plan for $9000 per square metre.

“But to build that apartment today the developer would need to achieve a sale price of $11,000 per square metre for the project to stack up.”

He said as result new stock is selling slower than established units, a trend that will play out through the rest of this year.

“The market is coming to terms with those newer prices and are seeing in the short-term better value for money in the established unit market.”

He said it is a similar scenario to when GST was introduced in 2000.

“When GST came into the market overnight the cost of housing went up 10 per cent and put more demand into the established market, where the prices of stock grew and the difference between new and second hand became narrower.”

Mr Roubicek said he believed the record price gap between houses and apartments will contract through the year.

“If you believe in history, if you believe in charts, and take a long-term view you would have to think that gap is going to narrow because everyone’s talking about affordability, everyone’s talking about interest rate movements,” he said.

“Natural forces will push what would have been a buyer of a detached home back into the unit market because of affordability.”

 

Article Source: www.afr.com

 

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