Sunday, August 29, 2010
However, the Real Estate Institute of Queensland’s (REIQ) June quarter median house report shows continued tough market conditions with the preliminary number of sales across the state down by about five per cent compared to the previous quarter. Most areas of the state recorded minimal median house price changes over the period."
“Agents have been reporting quieter market conditions since about early April when the string of interest rate increases began to have a negative impact on the market. Uneven economic data is also starting to worry consumers with many buyers currently happy to sit on the fence until a clearer economic picture emerges.”
While sales activity is currently subdued compared to last year, the REIQ June quarter report found property prices in most areas of the state are now on par with what they were two years ago.
“Over the past two years, Queensland’s median house prices have jumped up and down depending on the types of buyers in the market at the time,” REIQ managing director Dan Molloy said.
“Last year, the numbers of first-timers in the market was higher than usual, so correspondingly the median went down given they bought cheaper properties. This year, there has been a return to a more even distribution of first and non-first home buyers in the market so the medians have increased accordingly.
“This change in buyers, and the types of properties selling, has unfortunately given the false impression there has been robust property price growth when prices are now really where they were two years ago.”
Brisbane’s continued population growth has underpinned the capital city’s performance over the past two years with its median house price increasing about 9 per cent to $530,000 for the year ending June 2010.
Thursday, August 26, 2010
Tuesday, August 24, 2010
- Investment properties to flood market
- Prices set to soften
- Short-term gains unlikely
"PROPERTY investors are targeting off-the-plan apartments hoping for short-term capital gain, with thousands of prospective pre-sale buyers eyeing Sydney projects.
Ray White is reporting a 6 per cent lift in investor buying as shares weaken and with the end last year of the boosted first-home buyer's grant, The Australian reported.
But analyst Michael Matusik predicts investment properties will flood the market in the near term, leading prices to soften.
An Australian Housing and Urban Research Institute report this month said 80 per cent of investors buy for long-term gain, but at least half sell within five years because of cashflow problems or disappointing capital growth. One in four investors sells within 12 months.
Developers in Sydney are reporting strong demand for new residential projects following stamp duty concession by the NSW government this year. ...
Mr Matusik said property prices would not crash, but there would be deflation in values over time.
"In the next decade, we might see very little growth, and if investors keep buying and thinking 'I'm going to make a killing and then move on', they're going to find themselves a little disappointed," he said.
This would be mostly the case in Melbourne, where the market had been strong, he said. In Perth, Brisbane and Adelaide, the trend had already started to occur.
Sunday, August 22, 2010
- the development not actually starting, as some developers commence selling prior to obtaining development approval from the Council and many developers do not have finance prior to selling
- the development starting late and finishing later than you want (which is not good if you want to move in; but may be good if you are an investor)
- the development finishing earlier than planned (which is not good if you are not ready to move in, or if you are an investor and planned for a later settlement)
- the developer going bankrupt or running into financial difficulties during development, and so cutting corners or having another builder take over
- changes to apartment layout and size, that may be permitted by the contract
- different quality to what you expected
- different views to what you expected
- having no control over the appointment of the onsite manager and caretaker, who could be appointed under a long term contract
- body corporate fees being low for the first year (to attract purchasers) but then increasing dramatically in year two when the body corporate finds out not enough was budgeted
- paying too much for the apartment, especially if the market goes down between contract and completion, or if you are buying something "different" and so can't really determine value when you sign the contract
- not being able to obtain finance when it comes time to settle.
Saturday, August 21, 2010
"Now that you are all aware of the Body Corporate and Community Management Amendment Bill 2010 lets spend some time explaining, if passed, what it is going to mean for you.
Open for public consultation until 23rd September 2010 the Bill proposes to outline new concepts and principles for the setting of Contribution Schedule Lot Entitlements (CSLE), along with a provision for lot owners who were disadvantaged by adjustment orders to have the amended CSLE changed back to their original schedule prior to any change. We have provided a brief summary of the main areas of the Bill below but urge anyone who believes they will be affected to review a copy of the Bill at www.deedi.qld.gov.au and make a submission to email@example.com.
1. Introduction of the following Principles for deciding CSLE:
- Equality Principle -The CSLE must be equal except to the extent which it is just and equitable in the circumstances for them not to be equal.
- Relativity Principle - The CSLE must take into account factors such as the nature, features and characteristics of the lots, the purposes for which the lots are used, how the scheme is structured, the impact the lots may have on the costs of maintaining the common property and the market value of the lots.
- Unimproved Value Principle - Where the CSLE must be proportionate to the unimproved value of the lots.
- Market Value Principle - Interest Schedule Lot Entitlements must reflect the respective market values of the lots, except to the extent which is is just and equitable for the lot entitlements not to reflect the respective market values.
2. Adjustment of CSLE
A Body Corporate is still entitled to change its CSLE by passing a Reolution Without Dissent. The notice of meeting must be accompanied by a written document outlining the changes and the reasons for the changes.
An owner is still able to apply to have the CSLE changed either through Specialist Adjudication or the Queensland Civil & Administrative Tribunal (QCAT), however there are restrictions. For an existing scheme, the scheme must have been affected by a material change since the last time the CSLE were decided. For schemes established after the commencement of the Bill, the owner making the application must believe the CSLE are not consistent with the deciding principle.
3. Previous Decisions
The proposed Bill will allow an owner (who must have been an owner at the time an order was made) to submit a motion to the Body Corporate to revert back to the CSLE before any order to change them was made. There will be a three (3) year time limit for an owner to submit such a motion. If the Body Corporate receives a motion from an owner, it must identify the CSLE pre-adjustment and call a general meeting to allow owners to vote, by Resolution Without Dissent, whether to change the CSLE back to what they were pre-adjustment. Special provisions will apply to Lots that have been subdivided or amalgamated.
4. Applications already made
If an application is being heard by a Specialist Adjudictoar or QCAT and a decision has not been made or has not been given effect at the commencement of the Bill, it will cease to have effect when the Bill commences.
Some other relevant changes proposed include:
- A buyer may terminate a contract if it is entered into but before settlement, a new Community Management Statement (CMS) is recorded and:
- the seller does not give the buyer a copy of the new CMS within 14 days (or longer if agreed by both parties) after the new CMS is recorded; and
- the buyer would be materially prejudiced given the extent to which the new CMS was different to the previous CMS; and
- the buyer gives the seller 14 days notice (or longer if agreed) that they wish to terminate the contract.
- A buyer may terminate a contract if they are buying from the Original Owner for the Scheme if they reasonably believe that the CSLE are inconsistent with the principle on which they were decided and the buyer would be materially prejudiced if they completed the contract. There is a 90 day time limit to terminate after the buyer (or a person acting for the buyer) receives a copy of the contract."
Tuesday, August 10, 2010
Sunday, August 8, 2010
Friday, August 6, 2010
Listed real estate group Mirvac is set to continue its successful track record of quality residential development on Brisbane in-fill sites after the purchase of a prime 7,637-square-metre former Department of Primary Industry site at Hamilton.
Previous projects by Mirvac on classic in-fill sites in Brisbane include The Arbour On Grey (at South Bank), Quay West, Grosvenor, Waterline Bulimba, Park Hill Village, Mariner’s Reach, Cutters Landing and more recently Waterfront Newstead.
Mirvac’s Queensland CEO Matthew Wallace says the Hamilton site, located in Hercules Street, is six kilometres from the CBD and will likely accommodate more than 500 residences. Its end value will be around $300 million.
“We are very excited about the purchase of this site and while our planning is still in its initial stages at present we will be delivering a residential product that will broaden the price segments in which we operate,” he says. “The site is extremely well located and the same team that has delivered such projects as Cutters Landing, Tennyson Reach and more recently Waterfront Newstead will be behind the Hamilton development.
“The product will be affordable, it will be quality, it meets the State Government and city council’s planning goals of higher density in the CBD fringe and will be a prime example of contemporary urban design.” Wallace says the Hamilton development is a prime example of Mirvac’s national strategy to continually review and refine its product offering in line with demand and opportunities that arise.
Wallace says the Hamilton development will leverage off the established amenity within the immediate locale and it is proposed that the urban street environment will integrate with the existing Portside development.
The site is adjacent to the Portside Wharf development and cruise ship terminal, is approximately 500 metres to the City Cat, five minutes to the Gateway Motorway and 10 kilometres south of the Brisbane Airport.
The DPI has recently vacated the site.
“We are planning a range of innovative one and two bedroom product on the site and our research indicates that there will be significant demand for this product and this location,” he says.
“Our plan is to provide affordably priced, high-quality residences to a broad section of the marketplace and our team is excited about turning their minds to a new challenge.
Wallace says it is expected that approvals permitting, Mirvac will release the first of the residences at Hamilton next year.