This Week in Real Estate – 19th February 2022
Brisbane-Gold Coast Fast Rail Planned
A $1.121 billion plan to provide fast rail services between Brisbane and the Gold Coast, will result in substantial new track and station infrastructure.
Queensland Premier Annastacia Palaszczuk says the upgrade is part of the infrastructure which will be built ahead of the 2032 Olympic Games.
There has been significant growth in South-East Queensland in the past 20 years and an additional 1.2 million people will live in the region by 2036.
“My government is committed to seeing transport times between the Gold Coast and Brisbane reduced, as we continue to see the population increase in key suburban areas along the rail corridor,” Palaszczuk says.
The Federal Government has committed $178 million in pre-construction funding.
Infrastructure Australia has listed improvements for the Gold Coast rail line between Kuraby and Beenleigh as a priority since March 2018.
The project will increase capacity through track duplication. Currently trains on the Gold Coast line share a single track in each direction, reducing peak capacity.
Overseas Buyers Target Coast Market
The shine is yet to come off the Gold Coast market with overseas buyers already inundating local agents following the opening of international borders.
Data from realestate.com.au shows international searches for property in Queensland increased by 39% in January compared with the same time last year.
Searches on the Gold Coast increased by 25% over the same period.
Buyers Optimistic For 2022 Purchases
Rising prices have not put buyers off in 2022, but many are rethinking where they will buy.
The Buyer Barometer survey by Real Estate Buyers Agents Association (REBAA) and Property Talk Australia (PTA) reveals homebuyers and investors are optimistic. REBAA president Cate Bakos says the study highlights the “sheer resilience” of the market.
“When it comes to a fear of missing out, buyers are evenly split with 48% afraid they’ll miss the boat in 2022 but an optimistic 52% believing they can still get a foot on the property ladder,” she says.
The results show investors will be more dominant in 2022, with 49% planning to buy an investment, compared with 43% last year.
Chris Dimitropoulos of PTA says Australians feel safe and are willing to pay a bit more because they feel conditions aren’t going to change.
Many investors phasing out of Sydney and Melbourne. “They’re buying something interstate or regionally around $500,000 and renting it for $400-450 a week.”
2022 Rate Rise Not Inevitable: RBA
Despite the constant media speculation that interest rates are set to rise this year, it is not an inevitability in 2022, according to the Reserve Bank of Australia Deputy Governor.
The Deputy Governor Guy Debelle told a Senate hearing that while a rate rise is possible this year people should not start to think it is inevitable, despite speculation building following strong inflation figures and a drop in the unemployment rate.
Debelle’s comments echo similar comments made last week by RBA Governor Philip Lowe.
Debelle says whether or not the official interest rate rises will depend on how a number of things evolve.
The RBA and Treasury are predicting a 50-year low jobless rate of below 4% later this year. Unemployment hit a 13-year low of 4.2% in December.
Economists believe the next lot of jobs data will show that unemployment has dropped further, despite the disruptions caused by the COVID-19 Omicron variant to the economy.
