The Fraser Coast council has begun clearing at the site of its CBD redevelopment, despite the project not yet having the final sign-off from its elected representatives.
Demolition work at the corner of Main St and Torquay Rd at Pialba has begun, despite the final sign-off on the multimillion dollar redevelopment of the site yet to be given by Fraser Coast councillors.
The council is expected to vote on final approval of the $100million public plaza, library, council administration centre and community spaces later this month. But the bulldozers have already moved in.
It is understood preparations have begun ahead of the vote as delaying could hold the project up for months.
Deputy Mayor Denis Chapman said the federal government was partnering with the council through the Hinkler Regional Deal to build the new community hub.
The big spending in Hervey Bay has left ratepayers in other parts of the region unimpressed.
“The new development in the Hervey Bay City Centre will feature a public plaza, a larger library over two levels, a council administration centre incorporating a Disaster Resilience Centre and flexible community spaces that can be booked day and night,” Mr Chapman said.
“This project is a once-in-a-generation opportunity to reshape the Hervey Bay city centre, to create jobs and drive economic growth and investment.
“Detailed design of the new Hervey Bay Library and Council Administration Centre is underway now, and work on undergrounding power near where the new building will be is due to start later this month.
“Before that can happen, the vacant building that council owns on the corner of Main Street and Torquay Road must be demolished. That work has started this week and is expected to be finished in the coming days.
“The work to underground power is expected to be completed by November, weather and construction conditions permitting.
“There will be traffic management in place while the works are underway to underground power, including a full closure of Torquay Road from the Torquay Road roundabout west while trenching works are completed.
“Council will be working with Ergon to ensure businesses in the area have continued power supply while the process to underground power is underway.
“We thank businesses and residents in advance for their patience while this important work occurs.”
Councillor David Lewis said more than three-quarters of the development would be community space.
“The new library and council administration centre will be a place to support learning and innovation, and a place where the community can come together to socialise and benefit from centralised council services,” he said.
“By improving the library’s floor space and design, we can cater for our growing population and help improve education outcomes in our region.”
The project has had some detractors, with Maryborough MP Bruce Saunders calling it the “Hervey Bay Taj Mahal”.
It would be partially funded with $40 million awarded from the Hinkler Regional Deal, but the council would need to borrow more than $50 million to build the new facilities, a figure Mr Saunders said would blow out.
“By improving the library’s floor space and design, we can cater for our growing population and help improve education outcomes in our region.”
The project has had some detractors, with Maryborough MP Bruce Saunders calling it the “Hervey Bay Taj Mahal”.
It would be partially funded with $40 million awarded from the Hinkler Regional Deal, but the council would need to borrow more than $50 million to build the new facilities, a figure Mr Saunders said would blow out.
North Rothbury ranked number one in CoreLogic’s Hedonic Home Value Index in 2022, which encouraged investors to invest there. Why? North Rothbury shares a postcode with Huntlee, the Hunter Valley’s newest masterplanned development.
A new town center with all your essential shopping and personal needs awaits you in Huntlee, just north of the Pokolbin wine region. The main hub is located just north of the Pokolbin wine region. In addition to the daycare, medical center, Coles supermarket [see scroller at bottom], a tavern, and specialty shops, Huntlee Fitness will open in just a few weeks.
With the vineyards right outside your doorstep, Huntlee offers a few years worth of quality weekends. But it turns out Huntlee is well located for another very important reason as well. There are many job opportunities available in Singleton, Maitland and Cessnock, ranging from education to engineering, hospitality to high-tech. Thus, Huntlee has become a destination for working families in the area looking for a safe and supportive environment to raise their children.
It’s all in the numbers
As the Hunter’s first town in 50 years, the masterplanned community will eventually have 7500 residents spread over four villages. The area is 45 minutes from Newcastle and is easily accessible from the freeway to Sydney, so residents are taking full advantage of the remote-working revolution that has taken off since Covid.
As forecasts indicate, North Rothbury-Branxton-Greta is poised for explosive growth, and the region’s unsurpassed lifestyle as well as home prices well below the NSW median make it highly desirable.
It is estimated that the population will grow by more than 60% to 14,100 residents by 2041 — a sixty percent increase from the current 8800 residents.
Hydrogen hub
With the average block in Huntlee ranging from 225sq m to 897sq m, residents can achieve a home that is out of reach in the major urban areas. The median rental yield is a healthy 4.9 per cent* and the rental vacancy rate is just 2.79 per cent*. With the Hunter announced as one of NSW’s first green hydrogen hubs, the region is poised to become a major employment centre for new low-carbon jobs#.
Development is also happening at pace in the town centre. Across the road, the luxury retirement village, Green Ridge, is under construction. Nearby land earmarked for primary and secondary schools is ready for development, as the area is now approaching government-mandated population milestones. In the short term, Branxton and Greta primary schools are minutes away; a wide range of public and private secondary schools are also close by.
Planned to prosper
The emphasis in Huntlee is on self-sustainable communities that generate their own micro-economies by providing employment, education, entertainment, shopping and community services all within the town.
Connectedness is key at Huntlee, which is dotted with parks and walking paths. Huntlee District Park is the jewel in the crown, acting as a social hub for friends and families. Set among the trees is a cafe, an amphitheatre, picnic areas, barbecue facilities and an adjoining dog park.
The year 2023 will see the development focus swing to bringing even more vitality and diversity to the town centre with modern residential and residential/commercial townhomes all within walking distance of the shopping precinct. The Urban Series development offers super modern, open-plan designs––packing a lot of home into highly affordable land footprints.
“The Urban Series will offer a new way of living in the area, especially for the growing number of working and professional people and their families,” says Robert Crane, sales director of Huntlee. “The lock and leave lifestyle will suit a wide range of people, from young couples, executives, right through to downsizers and retirees.”
Huntlee’s residential community is a mix of owners and renters. As at early 2023, the median house price was $826,000 with the median rent $685 a week. Huntlee’s latest land release offers flexible block sizes to suit a variety of needs, the average range is 225sq m to 895sq m with a handful of larger lots available.
Australia’s leading builders offer an impressive range of homes open for inspection at the Huntlee Display Village, worth the trip alone just to steal some design ideas. Of particular interest to investors is the ability to choose design configurations that maximise rental returns and resale.
All land lots come with standard electricity, water and sewer connections. Huntlee also provides a separate recycled water system for toilets and gardening, eliminating the need for bulky water tanks. As well as this, there’s natural gas and FTTP internet connections, fencing at the side and rear, and front landscaping all included in the land purchase price.
The investment and determination to masterplan an entire town is significant. However, the pay-off is also worth the effort, with returns and resales of Huntlee properties homes outperforming the broader housing market. Executive summary: the perfect combination of low vacancy plus high yields in a booming location.
There’s more to NDIS properties than meets the eye when it comes to achieving returns three to four times higher than traditional property investments.
A surprising performer continues to be a viable investment option for property investors despite much coverage of Australia’s housing boom in 2021. NDIS property delivers returns of up to 20% per year due to Australia’s unpredictable housing market, which is home to thousands of disabled Australians.
While NDIS property investments offer significant returns, the ethical implications are also significant. During the next four years, the number of users of supported independent living is expected to increase by 35% from 26,000 to 35,000, according to a statement released by the National Disability Insurance Agency in August last year.
NDIS properties nationwide are in short supply, which contributes to the rise in Australians needing supported living. Linda Reynolds, Minister for Government Services and National Disability Insurance Scheme, said the Government understands it can be challenging for some participants to find suitable Specialist Disability Accommodation (SDA).
Minister Reynolds said that expanding the SDA market is critical to ensuring that participants with high support needs have access to housing that is innovative and meets their needs.
SDA is specifically designed housing for people suffering from severe functional impairments and/or who require high levels of support. Each year, the Federal Government provides $22 billion in NDIS funding to individual participants to pay for housing under SDA.
Ethical considerations versus financial gain
Founder and managing director of NDIS Loan Experts Yannick Ieko said if you look at it purely from a numbers perspective (because not everyone is interested in ethical aspects), you can generate a much higher income or yield with an NDIS property than with a traditional investment property.
The truth is that Australians with disabilities are facing a terrible, terrible situation at the moment. In particular, young people with disabilities are being forced to live permanently in retirement homes, hospitals, or some very inappropriate settings in order to meet their needs, according to Mr Ieko in Your Investment Property magazine.
As NDIS houses, apartments, and townhomes are constructed, they will provide some stock for those people to move into a place that is entirely suited to their needs, which is the ultimate win-win.”
I want to invest. What should I do?
Those tempted by the returns and potential for life-changing changes will find it difficult to find and purchase an established, completed NDIS property with a tenant already living there.
Most investors we see buying NDIS properties are purchasing house and land packages, which means they are creating new housing stock, which is what is most needed.
“It’s not completely different from traditional house and land investments, in that you still need a parcel of land, knockdown or rebuild, or if it’s in a new estate, identify the land and purchase it. You should engage a builder that specialises in NDIS properties like G Developments. prior to purchasing as the block needs to be assessed due to access requirements.
The limited number of NDIS specialists across the country makes it very helpful to work with someone who has expertise and a network within the space, Mr Ieko says.
Despite its specialized nature, NDIS property is not out of reach for anyone willing to put in some time in order to reap some very big rewards, Mr Ieko explained.
Incentives from the Federal Government’s SDA scheme account for the rewards mentioned by Mr Ieko. Registered providers can lease approved SDA housing to approved participants on behalf of investors. SDA funds can only be paid to registered providers with enrolled and compliant properties.
The apparent decline in popularity of Brisbane real estate toward the end of last year appears to be over, with the city’s real estate market regaining momentum and trailing only one other state capital.
With a fourth consecutive month of price growth, Brisbane property buyers are demonstrating a robust appetite for real estate.
Property prices in the capital of Queensland also increased in June, albeit at a slightly slower rate than the month before, in keeping with the overall trend of rising home values across the nation.
For the second month in a row, detached houses led the recovery, growing faster than units.
Albeit that pace of development in June marginally facilitated contrasted with May, it stayed solid notwithstanding the effect of increasing loan fees and school occasions on the general market.
Given the low consumer sentiment associated with the initial shock of Covid and the Global Financial Crisis at the beginning of the year, it may be considered remarkable that buyer numbers remain resilient.
The closeout market in Brisbane showed soundness from May to June. As per Apollo Closeouts, the typical leeway rate in June was 65%, marginally lower than May’s 66%.
While the typical number of enrolled bidders per sell off diminished somewhat from 3.9 in May to 3.7 in June, there was a striking expansion in the level of enlisted bidders who effectively partook and made offers, ascending from 60.3 percent to 63.95 percent across the two months.
Brisbane is presently the subsequent best performing property market among Australia’s capitals, sitting simply behind Sydney as indicated by the June cost development information.
While certain people might decide to sell because of rising holding costs, especially those progressing from fixed loan fees in the last a very long time of 2023, the current profundity of purchasers seems adequate to retain such changes.
Except if there are significant changes sought after drivers, it is far-fetched Brisbane will observer further cost decreases for the time being.
New listings scarce in Brisbane
Again reflecting the broader national situation, the issue of limited supply continues to dominate the Brisbane market.
According to CoreLogic, new listings entering the market are 30 per cent lower than this time last year, while total listings in Brisbane have decreased by 15 per cent from a year ago.
This scarcity of available properties poses a significant challenge for Brisbane property buyers, as despite their willingness to make transactions, they struggle to find suitable options to purchase.
Sellers in Brisbane have been hesitant to put their properties on the market, primarily due to the lack of confidence in finding a new property to buy or rent.
In an exceptionally competitive rental market, the possibility of renting as an interim solution between a sale and purchase is challenging and often impossible.
The absence of widespread panic among sellers has resulted in a situation where they refrain from taking action, further tightening the market.
Options for buyers vary across different suburbs.
According to PropTrack data, certain suburbs experienced a significant decrease in new listings compared to the previous year.
Marsden, located in Brisbane’s south and known for its secondary school catchment zone, witnessed a decline of 64 per cent in the year to May.
Similarly, Yeronga and The Gap also had substantial drops in year-on-year listings, with 59 per cent and 55 per cent fewer properties available for sale, respectively.
On the other hand, some suburbs provided more choices for buyers.
Ashgrove in Brisbane’s inner northwest saw a remarkable increase of 108 per cent in year-on-year listings. Ascot and Auchenflower were also big movers over the year, each with 64 per cent more options.
Real estate buyers making compromises
The ongoing increase in interest rates is significantly affecting borrowing capacity, which in turn impacts the property demand, however, what we’re observing is that individuals are making compromises based on affordability, rather than delaying their property purchasing decisions.
Compared to other capital city markets, Brisbane property remains more affordable than most.
The dwelling value-to-income ratio for Brisbane is lower than that of Sydney, Hobart, Adelaide, and Melbourne. It’s little wonder buyers from other east coast capitals are increasingly drawn north.
According to CoreLogic, Brisbane property buyers need to allocate 40 per cent of their household income to cover mortgage payments.
While high and placing the average borrower in the mortgage stressed category, this percentage is 52 in Sydney, 45 in Hobart, and 44 in Adelaide, making Brisbane the most affordable capital city on the east coast.
This affordability factor has contributed to an influx of buyers relocating from the south in recent years.
Many of these newcomers have sold their homes in New South Wales or Victoria and found equally desirable properties in Brisbane, with substantial savings remaining.
Alternatively, some buyers are upgrading their homes to enhance their lifestyle, fully aware that they can stretch their budget further and secure a high-quality property in Brisbane.
Units no longer star of the show in Brisbane
In June, the values of dwellings in Greater Brisbane rose by 1.3 per cent, according to CoreLogic, translating to a quarterly growth rate of 3 per cent. The median value of a dwelling in Greater Brisbane now stands at $725,397.
Additionally, PropTrack data reinforces this positive trend, indicating a 0.08 per cent increase in dwelling prices for the month across Greater Brisbane. The median value of dwellings by PropTrack is recorded at $731,000.
Brisbane’s housing market has shown strong performance for the second consecutive month, with median house values outpacing unit growth.
In June, median house values experienced a 1.3 per cent increase, resulting in a quarterly growth rate of 3 per cent. The current median value for a house in Greater Brisbane stands at $806,781, according to CoreLogic.
PropTrack data also confirms positive growth in the housing market, reporting a 0.18 per cent increase in house prices for June.
In June, the median value for units in Greater Brisbane were outpaced by houses, recording a 1 per cent increase while reaching a new record median of $512,262.
This growth aligns with the housing market on a quarterly basis, which has also now experienced a 3 per cent increase over the last three months.
Over the past year, units have still outperformed houses in Brisbane, with a 1.5 per cent increase in median values compared to a 9.9 per cent decrease in housing values, as reported by CoreLogic.
However, in contrast to the above information, PropTrack data presented a slight negative change in median unit prices for Brisbane in June, recording a 0.5 per cent decline. The current median value for units, according to PropTrack, stands at $546,000.
Signs of mercy in tight rental market
According to the most recent data from SQM Research, the vacancy rates in Brisbane have remained stable from April to May, staying at 1 per cent.
While the overall city-wide trend remains unchanged, certain regions within Greater Brisbane are experiencing an increase in vacancy rates.
The Ipswich region, for instance, has seen a rise from its lowest point of 0.5 per cent in August last year to the current vacancy rate of 1.5 per cent. Similarly, the Brisbane CBD, which previously had a low vacancy rate of 0.9 per cent in February, has been consistently increasing and now stands at 1.4 per cent.
Brisbane is still witnessing robust international demand for rental properties.
Net overseas migration is projected to reach 400,000 this fiscal year, marking a remarkable surge of nearly 27 per cent compared to the previous record set in 2008. It is worth noting that the majority of international migrants prefer to rent rather than buy when they first arrive in Brisbane.
According to data from PropTrack, the top countries conducting rental searches in Brisbane include New Zealand, United States, United Kingdom, India, China, and Singapore.
Notably, the return of Chinese students to Australia has had a significant impact on the increase in rental searches, as confirmed by PropTrack data.
Over the past 12 months, house rents have increased by 8.6 per cent, as reported by CoreLogic, while unit rent growth has nearly doubled at 16.3 per cent.
Despite these trends, rental yields have remained steady this month, with gross yields for houses holding at 4 per cent and gross yields for units at 5.4 per cent.
There are many hidden gems in Maryborough for property investors, although the suburb is largely known as the gateway to Fraser Island’s natural wonders.
This month, Smart Property Investments released its highly coveted FAST 50 ranking for 2024, which includes the Queensland suburb, which is located about three hours north of Brisbane.
Using open-source data and insights from a 14-strong investment expert panel, the report and ranking provide an insight into the 50 Australian suburbs that have the best prospects for the future.
Maryborough offers home buyers and investors an affordable entry point into or expansion into the market with a median price of $340,000.
However, the suburb is not just known for its low house prices. Property Investing Matters host and creator Margaret Lomas says Maryborough’s untapped potential is significant.
“It is placed to enjoy runoff demand from nearby Hervey Bay – long-term opportunity for growth over time, suitable for those wanting low buy-in prices and higher yields.”
The recent growth data shows Maryborough presents a compelling investment opportunity backed by solid market performance.
With a median quarterly growth of 1.50 per cent, and an impressive 12-month growth of 17.20 per cent in prices, the suburb is steadily gaining attention from astute investors. Additionally, properties in Maryborough have also recorded an attractive average annual growth rate of 5.60 per cent.
This consistent growth highlights the suburb’s potential for long-term capital appreciation, making it an enticing prospect for investors seeking solid returns over time.
In addition to capital growth, Maryborough boasts a strong rental market. The gross rental yield of 6.30 per cent indicates the potential for attractive rental income compared to the property’s median price.
And with a median rent of $410, investors can expect a steady cash flow and healthy returns on their investment properties.
Maryborough’s lower entry costs, combined with the potential for capital growth and solid rental yields, make the suburb an appealing option for those seeking a balanced investment approach.
From an investment perspective, Maryborough offers diverse options to suit various investment strategies. The suburb features a range of property types, from spacious family homes to quaint cottages and modern apartments.
Notably, new research from a subsidiary of the PropTech Group, Real Estate Investar, has also identified Maryborough as one of the Australian suburbs with the most opportunities to subdivide.
Joe Hanna, managing director and chief executive officer at PropTech Group, believes “the fact that properties with high subdivision opportunities are not more expensive shows us that there are still many opportunities for investors.”
“The purchase price isn’t higher and doesn’t reflect the value you can unlock by subdividing. That’s probably because of the work and uncertainty involved in the process,” he said.
“There is plenty of opportunities for investors willing to go this route.”
For home buyers who want to immerse themselves in history and experience the charm of a bygone era, Maryborough’s well-preserved streetscape, complete with grand colonial buildings and heritage-listed structures, provides a window into the past.
Maryborough’s proximity to essential amenities also enhances its investment appeal. The suburb offers convenient access to schools, shopping centers, medical facilities, and recreational areas.
Markedly, its location within a short distance from major employment hubs ensures a steady demand for rental properties, making it an attractive prospect for investors seeking reliable rental yields.
Interest rates’ limited impact is what prevents them from reducing real estate values, but for investors, Sydney and regional NSW may provide investment opportunities.
There should be more equitable distribution of pain among people with mortgages as opposed to the current interest rate strategy.
As expected, the Reserve Bank of Australia (RBA) held interest rates this month.
A softening of inflation figures presented the opportunity, and the Governor cited the need for “time to assess the state of the economy, the economic outlook and associated risks” in maintaining the cash rate.
There is, however, a risk of more rate pain in coming months unless a definitive downward trend is evident.
Although the RBA promotes the notion that rates are its only weapon against inflation, other tools are available to it as well.
In addition, there should be a better alignment of monetary and fiscal policies, consideration of whether the pain of reaching 2 to 3 percent inflation outweighs the benefits, and whether the definition of inflation should be revised, excluding housing costs and profiteering from some companies, for example.
Property prices are less affected by interest rate hikes than if wider measures were taken to combat inflation, since around a quarter of transactions are made in cash, including those made by downsizers and the wealthy.
In spite of rising rates, property prices remain stable
Price increases are typically dampened by rising rates, and this has once again happened. While the price rebound has gathered momentum in recent months, the extent of house and unit price increases has been mild. Rate rises have contributed to this tempered rebound.
Who knows where prices would have been had rates not risen so sharply and consistently over the last year.
Demand remains incredibly strong. Tweaks to stamp duty exemptions for first home buyers in New South Wales have just come into effect to add further pressure to the demand side.
On the supply side, the NSW Government has made various announcements, including developer incentives to include affordable housing as part of their projects in exchange for a more efficient approval process and extra building heights. In response, many councils have predictably hit out at their planning powers potentially being diminished.
If and when work on new supply starts on the ground, there may be some attractive opportunities on offer for investors. But for now it’s just all talk.
The critical shortage of rental accommodation and influx of immigration continues to widen the gap between rental supply and demand. Data from the Rental Bonds Board paints an unambiguous picture of the supply constraints on the rental front.
Almost without exception, one bond held by the Rental Bonds Board equals one rental property.
In NSW, the total residential bonds held as of 30 June 2023 was 961,471. As of 30 April 2023, it was 961,946. Over the past five years we have seen a decline in the growth of rental properties and now it’s going backwards.
Take a moment to consider the implications of this reduction. Of the tens of thousands of people who have needed to find a rental property in the last three months in the state, including the many who have arrived from overseas, sadly a lot have been unsuccessful.
The actions of Government in consistently targeting landlords with new regulations and legislation as apparent solutions to the rental crisis are having an obvious detrimental impact on renters.
Slipping regional areas on investors’ radars
There’s an interesting trend playing out in the regions. Some markets that were the darlings of the pandemic have come back to earth a bit. It’s not entirely unexpected and nor is it cause for alarm, as prices now compared to pre-Covid are still significantly higher.
CoreLogic’s Tim Lawless said recently: “After regional population growth boomed through the worst of the pandemic, internal migration trends have normalised over the past year, resulting in less housing demand across regional markets.”
The fact overseas migration is typically focused on the capital cities is having an impact too. In regional New South Wales, the decline in housing values from the recent cyclical high is nearly 10 per cent, according to CoreLogic.
For investors, who have been thin on the ground of late, it’s a trend that may be worth keeping an eye on, particularly in areas where easing prices correspond with new infrastructure investment. A return to growth may not be imminent in the short-term but nor is a major correction likely given the weight of demand and undersupply of homes.
Like CBD rental vacancy, regional vacancy remains extremely tight. REINSW figures for May 2023 put Sydney’s rental vacancy rate at 1.4 per cent while for the Hunter it’s 2.0 per cent and for the Illawarra 1.8 per cent.
A vacancy rate of 3 to 5 per cent is considered healthy, as it represents a balance of choice for renters and strong fundamentals for investors.
But both in Sydney and regionally, we’re still a long way from that balance.
Mortgage holders have been given a welcome reprieve following the Reserve Bank’s decision to hold interest rates steady for the second time this year but further tightening could come next month.
At its monthly meeting on Tuesday, the RBA board left the official cash rate unchanged at 4.10%.
In a statement, RBA governor Philip Lowe said inflation in Australia had passed its peak and the monthly CPI indicator for May showed a further decline.
But he added, inflation is still too high and that it will remain so for some time yet.
“The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so.
“In light of this and the uncertainty surrounding the economic outlook, the Board decided to hold interest rates steady this month. This will provide some time to assess the impact of the increase in interest rates to date and the economic outlook.
“Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve,” he said.
PropTrack Senior Economist Paul Ryan said the RBA judged that recent data on the labour market and inflation was in line with its expectations, and opted to wait for additional data on inflationary pressures and productivity growth, in particular.
“Nevertheless, the RBA signalled that more tightening may be needed to rein in inflation, with many expecting another hike – the 13th since May 2022 – to come as early as next month,” he said.
“More tightening is expected to be needed to bring inflation back to the RBA’s target, but rates are close to their peak, which is good news for the housing market.”
The housing market has so far shown remarkable resilience to sharply higher interest rates, Mr Ryan said.
The PropTrack Home Price Index revealed Australian home prices jumped again in June, rising 0.3% month-on-month.
National prices were now just 0.1% lower than they were a year ago, and across the capitals, prices were now higher than at the same time last year.
Shock figures show over 73,000 Queensland households face acute rental stress or homelessness after massive rent hikes since the pandemic – with the highest numbers in the capital.
A National Housing Finance and Investment Corporation report found almost 40,000 Brisbane households were in rental strife – more than the rest of the state combined – after 30 per cent-plus rent rises across SEQ.
NHFIC head of research Hugh Hartigan told a UDIA breakfast in Brisbane on Wednesday that “Queensland has one of the higher levels of housing need as a percentage of the population” in the country.
“Approximately 39,700 Brisbane households face acute rental stress or homelessness, slightly more than the rest of Queensland where 33,600 households are in rental stress,” he said.
A dozen local government areas in South East Queensland logged rental price growth above 30 per cent rent from pre-Covid-19 to early 2023, NHFIC found, compared to one in Melbourne and six in Sydney.
“South East Queensland experienced the most synchronised upswing in rents in the country with 12 local government areas (LGAs) recording a more than a 30 per cent rise in rents from pre-Covid-19 levels through to early 2023,” Mr Hartigan said.
“In comparison, only 55 per cent of Melbourne’s LGAs saw rents rise by 10 per cent or less during the same period.”
LGAs across South East Queensland include City of Brisbane, City of Gold Coast, Somerset Region, Sunshine Coast Region, Moreton Bay Region, Redland City, Logan City, Shire of Noosa, Scenic Rim Region, City of Ipswich, Lockyer Valley Region, Toowoomba Region.
Rent rises in Brisbane have outpaced the rest of regional Queensland and CPI rent growth since late 2021.
The pressure did not come from net overseas migration which was negative during Covid-19, but caused by Queensland’s significant net interstate migration which lead to extremely tight rental markets, he said.
There was some hope of relief ahead, with Mr Hartigan saying “the strong net interstate migration experienced in Queensland during Covid appears to be easing and this may slow the pace of rental growth in coming years”.
New analysis of the Australian property market has revealed national home prices could return to positive annual growth as early as next month, if the current growth trajectory continues.
PropTrack’s latest Market Insight shows that if national home prices continue to grow at the same pace as they have during the past quarter, they could not only return to positive annual growth by July but could surpass their prior peak by January 2024.
“That could see home prices lift by 4% over 2023,” PropTrack senior economist Eleanor Creagh said.
“The housing market has so far avoided the steep falls many expected.
Housing demand was stronger, likely bolstered by the surge in net overseas migration, as well as very tight rental markets, Ms Creagh said.
“Given limited new stock is coming to market, buyer interest is being concentrated, which is underpinning home prices and offsetting the downward pressure from interest rate rises,” she said.
However, several other factors could weigh on the pace of price rises ahead, she added.
“Price growth may wane if stronger market conditions improve seller confidence and spark a boost in stock coming to market. Interest rates also rose again in June and may rise further, which could slow the recovery,” she said.
“Though, interest rates are closer to their peak than not, and the shock of rate rises has lessened.”
Population growth, tight rental market conditions and a housing shortfall are also expected to remain, she said.
“If stronger demand holds up against the expected slowing of the economy, most capital city markets would return to positive annual price growth in the coming months,” she said.
Sydney
In Sydney, prices have quickly rebounded this year, up 3% from a November 2022 low.
“If home prices continue to grow at the same pace as over the past quarter, they could return to positive annual growth by the end of June and surpass their prior peak by December 2023,” Ms Creagh said.
Raine & Horne Lower North Shore director Stuart Bourne said house prices were definitely on the up, with reserves being surpassed, which was a marked change from six months ago where they were being reduced, or just met.
“I would say buyers’ mentality is they’re comfortable with the rates where they are now,” he said.
So what I mean by that was when it was first coming up to (rises of) half a per cent, half a per cent, half a per cent, buyers were in a bit of shock each time.”
However, Mr Bourne said with commentary from the experts predicting there will likely be another 0.5% to 1% rise, many buyers were assessing their options.
“I think a lot of buyers in the current market look at that and go well, ‘Is that going to change our lifestyle?’ It’s only going to penalise them on terms of borrowing capacity,” he said.
“So, therefore they’re caught in this do we buy now with what we want? Or do we lose our capacity? We might save a few thousand but we’re going to be buying in an area that we don’t really want to buy in. So it’s a catch-22.”
Melbourne
PropTrack data suggests Melbourne property prices will potentially return to positive annual growth by October.
Scott McElroy, Belle Property Carlton principal, said buyer and seller sentiment within the owner-occupier market remained stable.
“There hasn’t been really any major reductions in values,” he said.
“The strong part of the market is probably young couples, professional couples between the $800,000 and $1.5 million market.
“Sub 500 ($500,000), there’s plenty of buyers. We just sold a one bedder in West Melbourne as big as a shoebox for $325,000 and it had 100 inquiries on it.
“So, there’s a lot of people who just want to get their name on a title and don’t want to pay rent and don’t want to move into a property and find out 12 months later they’re going to move out.”
Brisbane
Home prices in Brisbane are up 2% so far this year and could be on track to return to positive annual growth by July 2023, surpassing their prior peak by September 2023, Ms Creagh said.
Adelaide
Adelaide prices reached a fresh peak in May, up 2.6%.
“Home prices have hit fresh price peaks for the past eight consecutive months,” Ms Creagh said.
If the growth is maintained, Adelaide will continue to reach new price peaks throughout 2023.
Perth
Perth property prices have bucked the falling price trend and prices reached fresh peaks in May, up by 3.1% so far this year.
Sean Hughes, Realmark Coastal director, said he expected prices will skyrocket over the next few years.
“I think WA could see 40 or 50% growth in the next three years,” he said.
“The overarching thing above interest rates is supply and demand and no market in the world is different where it’s not affected by supply and demand issues,” he said.
“We have a massive undersupply…even if we had numbers where we are at the moment, and we just had a localised demand, we would have an increase in prices.
“But the demand is coming not just from locals. Such a big portion is east coast and overseas based (buyers). In 25 years of selling real estate, I’ve never seen as much inquiry from east coast and internationals.”
Canberra, Hobart, and Darwin
Canberra has recorded a rapid turnaround in prices, with home prices possibly returning to positive annual growth by October 2023. In Hobart prices could reach positive annual growth by March 2024, while inDarwin, prices could experience annual growth by August this year.
A BIG country town famous for its golden guitar, another dubbed the beef capital, and a holiday hotspot ranked the country’s least liveable city have been named in a list of cheapest places in Australia to buy property.
A new report by leading property analyst and Hotspotting director Terry Ryder suggests investors seeking affordable property with prospects in the next six months should look further afield than their own backyards.
The Hotspotting report names five regional ‘cheapies with prospects’ across the country that meet the criteria of having affordable buy-in prices, solid rental returns, potential for price growth and growing populations.
It comes as new figures show Australia faces a population boom fuelled by a rise in net overseas migration of up to 1.755 million by 2028.
Regional areas are predicted to grow at phenomenal speeds, particularly in Queensland as migrants form NSW and Victoria seek out more affordable living options.
Hotspotting director Terry Ryder said the report featured five regional locations where investors could readily find properties in the $200,000s or $300,000s, and which also had solid growth potential.
“They’re not that hard to find because regional Australia is full of locations with good growth prospects and solid properties in the $200,000, $300,000, and $400,000 price brackets,” Mr Ryder said.
“They are regional centres which share characteristics of low prices, solid rental returns, and the potential for price growth. In fact, many of these areas can match the best capital cities for capital growth over time.”
Hotspotting general manager Tim Graham said many regional areas had outperformed the big cities in the past three years.
“Affordable prices, higher yields and superior growth: it’s a win-win-win situation for investors,” Mr Graham said.
“Of course, not every regional centre in the nation is a future hotspot. A location needs to have more to offer than cheap real estate to be featured in this report — it must also have growth drivers likely to lead to capital growth over time.”
Dr Laura Crommelin, Senior Lecturer in City Planning at the School of Built Environment at the UNSW said some regions had experienced a significant influx of new residents in recent years motivated by cheaper, more spacious housing on offer.
“Some who are priced out of the city housing markets may be able to afford a more spacious, standalone dwelling in a regional area,” Dr Crommelin said.
“Those regional areas within striking distance of the city are increasingly popular with those who still might commute once or twice a week to the city for work, but spend most of their time living by the coast.”
Dr Crommelin said demand for affordable rental properties was also exceptionally high in some regions.
-AUSTRALIA’S TOP 5 CHEAPIES WITH PROSPECTS-
Rockhampton, Central Qld
Affordable housing
Revitalised CBD
Billions in renewable energy projects
$2.5 billion Shoalwater Bay Military Training Centre redevelopment
$1.1 billion Rockhampton Ring Road
$983 million River Fitzroy to Gladstone water pipeline
$495 million Lower Fitzroy River weir
$575 million master planned estate.
Mr Graham said Rockhampton’s affordable property market had been relatively unaffected by the pandemic.
“This resilience, plus the roll-out of several significant construction projects, are turning Rockhampton into a magnet for southern migrants, first homebuyers and investors,” he said.
“Demand for properties is high and vacancies are tight — below 1.5 per cent in most Rockhampton postcodes.”
Mr Graham said Rockhampton’s diverse economy was being boosted by the resources sector with construction of the Bravus (formerly Adani) coal mine well under way.
Tamworth, Regional NSW
Strong future as regional freight hub
High population growth
$210 million hospital upgrade
$1.3 billion Dungowan Dam project
$37 million University of New England Tamworth CBD campus
Mr Ryder said Tamworth continued to grow, with billion-dollar infrastructure projects rolling
out.
“With its intermodal freight hub, Tamworth Global Gateway Park is set to be one of the engine rooms of the New England economy,” Mr Ryder said.
“The city is also part of a significant emerging region for renewable energy developments, with projects worth more than $10b on the horizon, including a Tamworth Big Battery.”
Mr Ryder said Tamworth was also appealing for its affordability and rural lifestyle, and along with its space and established facilities.
“A wave of new residential developments is also now under way, or in the pipeline, throughout the LGA and in nearby areas,” he said. “The Tamworth property market is strong, with low vacancies and the consistent delivery of high rental yields continuing to attract investors. Units are also recording double-digit annual growth of 20 per cent and above.”
Mount Gambier, Limestone Coast, SA
Affordable housing
Low vacancies and rising rents
$120 million renewable energy plant
Forestry industry development hub
Timber plant expansions
Hotel upgrades
Mr Graham said Mount Gambier was rated one of the best regional centres in South Australia for property investment due to its affordable housing, lifestyle opportunities and employment growth.
“Forestry is also one of the key industries in the region with expansion plans in the pipeline for several of the region’s largest employers,” he said.
“The region has also become popular with interstate and intrastate residents moving to the Limestone Coast.”
With a median house price of $375,000 and yields above five per cent, Mount Gambier is a location worth considering by investors seeking affordability, notable cash flow and prospects for growth, plus rental availability is extremely tight, with vacancies staying below one per cent since 2020, he said.
Lockyer Valley, Regional Qld
Strategic location between Ipswich and Toowoomba, with good road links
Strong, diverse economy including manufacturing, agriculture, tourism,
resources, and government admin
$11 billion Inland Rail Project
$245 million water distribution plan
$180 million food processing plant
$110 million Equine Precinct
$100 million Lockyer Energy Project
The population in Queensland’s Lockyer Valley, halfway between Brisbane and Toowoomba, is expected to grow by more than 37 per cent by 2046, jumping from 41,000 now to 57,000, according to new population figures.
Mr Ryder said the region was rated among the top 10 most fertile farming areas in the world.
“The area is also home to light industry and a Queensland University campus, is at the gateway to the Surat Basin mining precinct and has a growing renewables sector,” he said.
Good road links and a scenic backdrop of the steep hills and mountains meant the area’s natural beauty and rural charm attracted visitors and residents from across the state and beyond, he said.
Geraldton, Regional WA
WA’s second largest port
Largest WA city north of Perth
Australia’s windsurfing capital
Major mining centre
High-speed train to Perth proposed
Commercial activity hub
Affordability and rising sales activity
Very low vacancies
The only city on Western Australia’s Coral Coast, and the largest north of Perth, Geraldton is a key regional centre that has grown swiftly in recent years, in line with growth in Perth and the State overall.
“With an increasing population and growing economy, there has been a notable increase in the LGA’s property market,” Mr Ryder said.
“Geraldton experienced a marked uplift in sales activity in this period that was partly due to budget prices when compared to Perth, with houses typically priced in the $300,000s.”
Earlier this year, Geraldton came last in a study by Avenue Perth of the most liveable cities in Australia, based on safety, average cost of living, number of banks and number of restaurants.
