Last week, Brisbane set a record in residential property with the sale of a Kangaroo Point mansion for a jaw-dropping $18.48m. Overall, the city registered a record number of transactions in homes above the million-dollar threshold last year.
Demand for Brisbane property is particularly strong among Chinese buyers. The city is now the third most searched state capital in Australia on the international Chinese-language property portal Juwai.com. Aside from China, demand for Brisbane homes stems from investors from the United States, New Zealand, and the United Kingdom, according to the Real Estate Institute of Queensland (REIQ). “We see the gap between Sydney and Melbourne closing in the next couple of years,” said Patrick Hunt, manager at Indigo Building Group. Hunt noted that interstate investors from the southern states had begun their “northern migration,” drawn in part by Brisbane’s more affordable median house price and stronger yields. For all its attractions, growing investor demand has alarmed the Queensland government, which has seen house prices reach unsustainable levels in Sydney and Melbourne. In June, the state government levied a 3% surcharge on foreign purchases, hoping to keep the market from overheating. Source: REIQ Your Investment Property
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The housing market in Queensland grew moderately in 2016 with Q4 results showing a weaker result for units, according to the REIQ.
The REIQ Queensland Market Monitor: December 2016 quarter report found the Brisbane LGA median house price grew 1.6 percent this quarter, to a new high of $655,000. The annual median house price grew 4.1 percent over the past 12 months. The unit market performed less well, falling 4 percent this quarter. CoreLogic has Brisbane's unit median price currently at $488,000. Antonia Mercorella, chief executive officer, REIQ said this is the consistent, sustainable growth that the Brisbane house market has become known for and it is great that it’s such a solid performer. "The unit market performed less well, falling 4 per cent this quarter, with supply issues finally gaining traction that many had forecast. "However, over the past 12 months the unit market has only fallen 1.1 percent and over the past five years the market is still in positive territory, having grown 11.3 percent. “These supply issues have, as expected, had a small impact on prices, however, we know that the market is an excellent self-regulator and developers are already scaling back projects scheduled for this year and in 2018," she said. Source: REIQ It can be seeing that Glitter Strip prepares to host the Commonwealth Games in just over a year, its lifeblood industries — construction, tourism and real estate — are humming while health care is rising fast.
Apparently, while other regional economies have been struggling, the Coast’s has grown from $26.3 billion to $29.6 billion in five years, figures analyzed by finance and economics consultants AEC Group for the The Sunday Mail/Courier-Mail’s #goqld series reveal. Construction has been the star performer. After dipping below $2.5 billion in the wake of the GFC when major developers went belly-up and the banks black-listed the Gold Coast, the value of the city’s building sector is back in $3 billion territory. Gold Coast approvals are surprisingly strong because unit approvals have held up, unlike in Brisbane,” Master Builders deputy CEO Paul Bidwell said. “Building approvals are an indicator of construction activity in the year ahead so it’s going to be a very good 2017 down on the Coast.” Coast real estate has also bounced back from its GFC lows, with latest Real Estate Institute of Queensland figures showing median sale price growth of 5.6 per cent in 2016 and 16.5 per cent over five years. And tourism is also booming, with latest figures revealing a record influx of 4.67 billion Australian and overseas visitors in the 12 months to September, up 6.2 per cent. Tourist spending jumped almost 9 per cent to $4.3 billion. Gold Coast Mayor Tom Tate said he was optimistic the Coast could avoid a post-Commonwealth Games hangover. “There are about $11 billion worth of private and public projects ready to go, (some) I would say past the Commonwealth Games,” he said. “We’re working hard to get the light-rail third stage (from Broadbeach to Coolangatta) off the ground and to attract more international students.” Source: REIQ Gold Coast economy grows to $29.6 billion ahead of 2018 Commonwealth Games |
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