Tuesday, June 28, 2011
"Chinese-owned development and construction firm Yanjian Australia has started work on a $72 million, 142-apartment building in Charlotte St in the Brisbane CBD, which it will fund entirely with its own equity.
It will be the first new apartment project in the heart of the Brisbane CBD for nearly four years. ...
Yanjian's Brisbane-based managing director Marcus Ng said the building, to be known as Midtown, would offer apartments ranging in price from $220,000 to $720,000."
Wednesday, June 15, 2011
See Brisbane Business News and Brisbane Times
Tuesday, June 14, 2011
The government announced today that from 1 August the concession which non-first home buyers receive when buying a new or established home as their principal place of residence will be removed. For a median-priced house in Brisbane, homebuyers will now be hit with more than $15,000 in stamp duty – an increase of more than $7,000.
Monday, June 13, 2011
Friday, June 10, 2011
REIQ Press Release:
The Queensland unit and townhouse market has not been immune from this year’s natural disasters and patchy economic conditions, according to the Real Estate Institute of Queensland (REIQ). According to the REIQ’s March quarter Queensland Market Monitor report, median unit and townhouse prices eased across much of South East Queensland during the first three months of 2011.
While a number of regional centres bucked this trend to record positive growth, this was mainly due to the construction of new unit or townhouse developments, or the sale of more expensive existing stock, in these areas over the period. The number of preliminary unit and townhouse sales in Queensland decreased 15 per cent over the March quarter.
“The unit and townhouse market has been impacted by lower numbers of first home buyers and investors, who are the type of buyers usually the most interested in this more affordable segment of the market,” REIQ chairman Pamela Bennett said.
“First home buyers continue to languish at about 15 per cent of the Queensland residential property market, while investors appear to have adopted a wait-and-see approach until a clearer picture emerges on interest rates and the economy. The prestige market is also struggling with the number of preliminary sales of units and townhouses for more than $1 million across Queensland dropping about 40 per cent compared to the December quarter. “
The median unit and townhouse price in Brisbane eased 1.4 per cent to $395,000 over the quarter. On the Gold and Sunshine coasts, the median unit price decreased 2.7 per cent to $355,000 and 2.1 per cent to $350,000 respectively.
“REIQ agents continue to report a significant drop in demand compared to the same period last year, but this is creating wonderful opportunities for buyers with many sellers having to be very realistic about what price they can achieve in the current conditions if they want to make a sale,” Ms Bennett said.
Wednesday, June 8, 2011
Tuesday, June 7, 2011
The luxury end of the market is “illiquid” – that is to say, it only attracts, by definition, a small number of buyers and sellers – and is afflicted by far greater risk or volatility. This is highlighted by RP Data-Rismark’s luxury property index, which is denoted by the red line in the chart below. Observe how during 2009 and 2010 the most expensive homes outperformed the broader market. Yet during the recent soft-landing, it has been this same cohort that has tanked, relatively speaking. ...
My sixth myth is that Australian house prices are massively overvalued and set to fall by 20 to 40%. You may recall that my regular sparring partner, associate professor Steve Keen, famously predicted in 2008 that Aussie house prices were “going to fall by 40% or so in the next few years.” Well, he could not have been more wrong. Dwelling prices in
Put differently, dwelling prices are nearly 70% higher than where Dr Keen expected them to be. My other mate, the economist Rory Robertson, challenged Dr Keen to a bet on this note, which the latter lost. As a result, Dr Keen ended up walking from Canberra to Mount Kosciuszko wearing a T-shirt exclaiming “I was hopelessly wrong on house prices” (or something to that effect). ...
This is just below the proportion of investment loans processed in Victoria (38.8%) and NSW (37.9%)
Mark Hewitt, general manager of sales and operations at AFG, tells Property Observer the Queensland market has reached a point where house prices have come down in past 12 months, meaning investors are seeing value in the market.
“We are not anticipating a massive rush, but there are positive signs in both Queensland and WA,” Hewitt says. “That there is a lot of stock available, especially on the Gold Coast. Looking at the overall market, Hewitt says property investment has remained at consistent levels throughout the ups and downs of the property cycle, but strengthened significntly in May. It is certainly a buyer’s market right now, and investors looking at rising yields are probably better insulated from the impact of rising interest rates than other types of buyers.”
Monday, June 6, 2011
Saturday, June 4, 2011
- Felix, Apt 121, 1 bed, no car - failed to sell at or after auction, now listed for $330,000
- Felix, Apt 147, 2 bed, 2 bath, 1 car, end apartment - failed to sell at or after auction, now listed for $470,000
- Charlotte Towers, Apt 605, 1 bed, no car - failed to sell at or after auction, now listed for $315,000
- Charlotte Towers, Apt 2401, 1 bed, 1 car - failed to sell at or after auction, now listed for at the unrealistic price of $410,000
- Festival Towers, Apt 906, 1 bed, no car - failed to sell at or after auction, now listed for $320,000
- River Park Central - Apt 603, 2 bed, 2 bath - failed to sell at or after auction, now listed for $410,000
- River City, Apt 1803, 2 bed, 2 bath - failed to sell at or after auction, now listed for $433,000
- Aurora, Apt 626, 3 bed - failed to sell at or after auction, now listed for $1,300,000
- Grosvenor, Apt 1504, 3 bed - - failed to sell at or after auction, now listed for $1,800,000
Wednesday, June 1, 2011
For real estate, some economists say, an end to the seemingly endless decline in housing values might be in sight.
Not immediately. At the moment, prices are still dropping. In 20 large cities, prices fell 0.8 percent in March from the previous month, according to the Standard & Poor’s Case-Shiller Home Price Index released Tuesday. That pushed the closely watched index below its level of two years ago to a new post-bubble low, and put it 33.1 percent under its July 2006 peak.
Few analysts expect housing prices to rebound anytime soon. But quite a few are predicting that the market is close to the moment when things will stop getting worse, which will be a major improvement all by itself.
“By far the bulk of the downturn of housing prices is beyond us,” said Paul Dales of Capital Economics. He expects the market to slip 5 percent further, slightly more than he was expecting a few months ago.
“There are some amazingly favorable signs. Housing is the most undervalued it’s been in 35 years,” Mr. Dales said. “At some point, it’s going to do very well.”
Sales of studios and one-bedrooms rebounded first after the market crashed in late 2008, followed by three-bedrooms, but it wasn’t until mid-2010 that the two-bedroom market started its comeback. Now, brokers say that the demand for smaller apartments has ebbed and that two-bedroom apartments are all the rage, especially those priced at the lower end of the market.
Alan Nickman, an executive vice president of Bellmarc Realty, says that more buyers have recently come to him looking for apartments between $750,000 and $1.2 million. “That’s basically your starter two-bedrooms,” Mr. Nickman said, adding that the pool of potential buyers included “first-time buyers who are going straight into a two-bedroom,” bypassing smaller units.
This is information from RP Data.
Prices & Volumes
- · Prices down 1.5% over the past 12 months across capital cities
- · Sydney and Canberra have bucked the trend and actually grew
- · Early signs of sales volumes increasing after a very weak Dec/Jan period
- · Sydney sales volumes now above a 5 year average
- · Melbourne sales volumes starting to fall as capital growth slows
- · Sales volumes in Brisbane at 10 year lows
- · Premium sector the weakest performer
- · Rents and yields continue to improve
- · House and units taking longer to sell, and vendor discounting increasing
- · The number of properties advertised for sale is at an historic high
- · Dwelling approvals were reasonably buoyant during 2010 but are now falling sharply
- · When refinances are excluded finance commitments are extremely subdued
- · Investors are taking little part in the current market
- · First home buyers and non-first home buyers relatively inactive at the moment
- · Although population growth is slowing, the supply of new dwellings has been insufficient