What's going on in Brisbane

[Coxy89]

My partner and I bought our first investment property last year in Taringa, it's a large townhouse in a small complex and we were suprised how little interest there was when we purchased. We've been looking for a new PPOR/investment property in the last few months and there is definitely a different feel to the market this time, although this seems to have dropped off as we get closer to christmas.

I agree with the above re units. South Brisbane and Newstead have something obscene like 2500-3000 apartments proposed or already approved for construction, surely something has to give there?

From what I'm hearing the appetite for this kind of product isnt waning though, every launch seems to have massive sales numbers on the opening weekends and they are selling out fast. One project that I am working on at the moment had $80m of sales on the first weekend and the split is something like 75+% investors vs owner occupiers. I think we will see some much cheaper rents in these complexes in the next few years as more and more of them are built. Great for bringing more people into the city and increasing density which I am all for, I don't think they are a great investment though.

 

[see_change]

We signed a contract for a OTP last year in Teneriffe ( our first too date ) for 530 . Due for completion mid next year

comparables , same developer , one street away , very similar layout are around 640 - 650 .

Tried to find a rental comparison in the same block , but no vacancies.

Cliff

 

[LeoT]

We signed a contract for a OTP last year in Teneriffe ( our first too date ) for 530 . Due for completion mid next year

comparables , same developer , one street away , very similar layout are around 640 - 650 .

Tried to find a rental comparison in the same block , but no vacancies.

Cliff

Nice one see change! Looks like this is one OTP that could do well.

Leo

 

[willair]

We signed a contract for a OTP last year in Teneriffe ( our first too date ) for 530 . Due for completion mid next year

comparables , same developer , one street away , very similar layout are around 640 - 650 .

Tried to find a rental comparison in the same block , but no vacancies.

Cliff

Just to give you a update on the property I posted the other day in the area you both have bought into inner Teneriffe Brisbane,my real estate mate told me it's under contract for 3.785 mil this morning ,not sure if he's been drinking home brew again but that's the price he told me.imho..

http://www.realestate.com.au/property-house-qld-teneriffe-118361159

 

[see_change]

We had a long chat with the developer and he spent some time driving us around the area. He pointed out one river front block he wanted to buy into when he finished his current development and it was in that price range .

Cliff

 

[Roosterman]

Have just had my townhouse in Coorparoo revalued.

Purchased in early August this year for $565k

Revalued today at $625k

Happy days

 

[Corey Batt]

Have just had my townhouse in Coorparoo revalued.

Purchased in early August this year for $565k

Revalued today at $625k

Happy days

Fantastic result.

I'm finding clients reval's right now in Brisbane's Inner North/South are doing exceedingly well. Outer suburbs still showing positive results, but a lot more patchy.

 

[Ace in the Hole]

Have just had my townhouse in Coorparoo revalued.

Purchased in early August this year for $565k

Revalued today at $625k

Happy days

That's a nice 10% gain.
Did you buy very well or do you think the market has actually grown a reasonable amount?

I've got 11 in Camp Hill and Annerley, so hope to have achieved similar figures.

 

[Roosterman]

That's a nice 10% gain.
Did you buy very well or do you think the market has actually grown a reasonable amount?

I've got 11 in Camp Hill and Annerley, so hope to have achieved similar figures.

To be honest I'm not sure. I may just have been a little lucky.

I spent a few months researching the area and it seemed that prices for townhouses had not moved much since 2009/2010 - mine sold for $585k in 2009 so I figured anything below this was probably good value.

 

[Adrian Cahill]

HI Cliff,

I have a strong feeling that the numbers being published somewhat lags the reality of whats happening on the ground in Brissy.. ...
Only time will tell how Brissy turns out in the next 12 months, but its very interesting!

leo

Leo's point really stood out. I feel you find out by those on the ground (and I don't mean Agents you don't know) and up in Townsville, where I am in now, I speak with an owner of a Realestate Company. (The owner, not the staff) We've developed trust and he knows dealing with me means repeated business and referrals. Can't give a good enough comment on Brisbane right now. Good luck guys.

 

[Andrew_A]

Leo's point really stood out. I feel you find out by those on the ground (and I don't mean Agents you don't know) and up in Townsville, where I am in now, I speak with an owner of a Realestate Company. (The owner, not the staff) We've developed trust and he knows dealing with me means repeated business and referrals. Can't give a good enough comment on Brisbane right now. Good luck guys.

Just to jump on the other side of the equation, Brisbane rents have been slow and that means yields have dropped in line with the growth, sometimes considerable, over the last 2 years.

I distinctly remember the pickup that I first noticed in January 2013 in Brisbane and have watched how that's flowed through over the last two years, which in terms of growth bursts is a longish time.

The relative value still is good for Brisbane compared to other capitals it seems, however I'm less confident about predicting the next market change or when it's likely to happen, in the meantime more strength ahead for 2015. You could watch employment and yield curves but then again what's the point unless you have an actionable plan to act on that data?

One point that's probably already been mentioned I'm sure, the falling AUD is making Australia less expensive for those expats earning non AUD and foreign buyers. Global macro is a hard game to play and the next big move is out there somewhere waiting to happen.

 

[NPB]

Just to jump on the other side of the equation, Brisbane rents have been slow and that means yields have dropped in line with the growth, sometimes considerable, over the last 2 years.

I distinctly remember the pickup that I first noticed in January 2013 in Brisbane and have watched how that's flowed through over the last two years, which in terms of growth bursts is a longish time.

The relative value still is good for Brisbane compared to other capitals it seems, however I'm less confident about predicting the next market change or when it's likely to happen, in the meantime more strength ahead for 2015. You could watch employment and yield curves but then again what's the point unless you have an actionable plan to act on that data?

One point that's probably already been mentioned I'm sure, the falling AUD is making Australia less expensive for those expats earning non AUD and foreign buyers. Global macro is a hard game to play and the next big move is out there somewhere waiting to happen.

G'day Andrew,

We have certainly experienced the rental marketing softening over the last 12 months, this time last year we didn't have a vacancy, that is not the case now. Working much harder to keep vacancy rates to a minimum.

As for capital growth we are still bullish on Brisbane in 2015, the market has certainly picked up but with the large growth spurts in Sydney and Melbourne the value for money certainly seems to still be in Brisbane for the next 12 months at least.

Regards

 

[jerryparker]

Qld Focus areas

I am focusing on

• 
  Brisbane new build units but careful on location and position inside complex, North Brisbane, and south Brisbane house & land
  Toowoomba- 4 bedroom house and land as well as dual key
  Sunshibe Coast and up to Namboor House & Land
  Gold Coast waterfront and house and land
  
  There are fundaments reasons these areas will have growth including new infrastructure, new business growth, increasing job growth and established community infrastructure inc schools, university, hospitals, public transport.
  
  I am expecting published double digit capital growth, as well as adding early capital gain by purchasing well located quality properties and building new house & land packages.

 

[Holmes2012]

I'm also keen to know what suburbs they are.. Were these vals done by the bank? refinancing wasn't a problem?

Did starter ever reply or is he waiting for the next API magazine?

 

[Ausprop]

As for capital growth we are still bullish on Brisbane in 2015, the market has certainly picked up but with the large growth spurts in Sydney and Melbourne the value for money certainly seems to still be in Brisbane for the next 12 months at least.

Regards

I was sharing that sentiment last year but have to say it's now risk on. The Syd/Mel run up was without fundamentals and with the national economy on the verge of a stall those gains will slow if not be taken back by the market. I think the good times have been cut short and the mining slow down doesn't bode well for Brisbane. Softening rental is the precursor to softening sales.

I see today the collapsing dollar is likely to benefit Tasmania. Hard to see it being a hot market tho.

Structurally this country is as vulnerable as it has ever been. The mining boom saw that dependency as a positive, we are now returning to the bad old days... stuffed currency, lower living standards, exporting base products to try and foot the bill for an enduring addiction to foreign credit to prop up the housing market and a requirement to literally import everything that is manufactured.

Will they slash rates to try and fire up the engines again? Is it too late? Will it fire asset markets?

 

[Daniel95]

Just continuing with some of the discussion from previous pages in regards to units, what are everyones thoughts on older 2 bed units in small complexes? I don't think those issues discussed would relate to these smaller blocks but i'm not entirely sure.

I'm from Sydney so i'm just learning the Brisbane market, however Taringa looked interesting due to its close proximity to the uni. Also, other suburbs like Nunduh are interesting due to the lower entry price, thoughts? Only want to spend around 350-370k

 

[euro73]

I think units are terrible investments.
Has anyone been to a "nice" 30 yr old unit? I haven't. The unit itself maybe newly renovated but the common area is usually *****. And that is out of your control.

Another thing with units to me is the lesser ability to add value. Can't put granny flat, can't extend balcony, can't add shed, garage ect. No re-zoning potential, no subdivision.

When comparing unit price vs. house price, one must eliminate newly builds out of both data set. I bet you once you take away newly builds, you will find a massive difference between unit price growth vs. house price growth.

For many years now, new unit construction has comfortably outperformed new house construction, so we are clearly heading away from a house and land nation to a medium density nation - at least in our major cities. That doesn't make your position right or wrong, and I'm not suggesting houses wont remain attractive to people , but the market is moving towards medium density more and more as populations in our major cities grow, and Governments are unable to justify funding roads and rail for such low density, and just as importantly because demographics have changed and will continue to change. People marry far later than generations ago, and have fewer children than generations ago, and later in life. Within the decade there will likely be a growing trend towards downsizing as the first seriously wealthy baby boomers retire, and all of these things mean that our cities are going to keep going up as much or more than they are going out.

 

[starter]

Did starter ever reply or is he waiting for the next API magazine?

Sorry missed the question.

St Mary's and Guildford they were in. Bank valuations and already refinanced.

Obviously Sydney as a whole has done well and that was my whole point, units can give you a cheaper entry point and in a rising market some time that's more important than waiting to get a house.

 

[BV]

We signed a contract for a OTP last year in Teneriffe ( our first too date ) for 530 . Due for completion mid next year

comparables , same developer , one street away , very similar layout are around 640 - 650 .

Tried to find a rental comparison in the same block , but no vacancies.

Cliff

There was Similar capital gains on OTP houses in Schofields NW Sydney (my son bought 1)