This Week in Real Estate – 27th August 2022
Plan For Games Facilities Launched
The next stage in Queensland’s Olympic Games journey is expected to occur in early October when the body which will evaluate infrastructure projects for the event will be formed.
Planners are already evaluating changes to the Games’ Brisbane Arena venue at Roma Street, preliminary designs for changes to The Gabba where open and closing ceremonies will be held, and an international Broadcasting Centre at South Brisbane.
Other changes could include a complete revamp of Albion’s sports and recreation facilities, new sport and rail facilities on the Sunshine Coast and an Athletes’ Village at Hamilton.
Queensland Premier Annastacia Palaszczuk has indicated she would like the major infrastructure in place a year before the Olympics to ensure everything works well.
She says South-East Queensland was able to deliver a good Commonwealth Games on the Gold Coast in 2018. “We actually got things built on time and on budget,” she says. “And in fact, I think there was a small savings component.”
Coast Light Rail Plan Advanced
The Queensland Government has agreed to plans to fast-track bridges and wildlife overpasses for the Gold Coast’s light rail system, although it doesn’t intend to pay for it.
Gold Coast Mayor Tom Tate says there are significant savings to be had if key infrastructure required for stage four of the project is delivered during stage three.
Transport Minister Mark Bailey says while the Government welcomes the plan to do the work early, the Council will need to pay for it.
“Our focus right now is getting on with the fully funded Stage 3 from Broadbeach to Burleigh,” he says.
“I welcome Mayor Tate’s enthusiasm for light rail to the airport. If he and the Gold Coast City Council would like to fund and build a fauna bridge in advance of the business case for Stage four, then I’d be very supportive of them doing that.”
Tate says building early will save ratepayers tens of millions of dollars in future construction costs.
Quote of the Week
“I do think, at least in early spring, we’re going to see quite strong listings. I think there’ll be that sense of urgency right at the start to get properties on the market.”
PropTrack director of economic research Cameron Kusher
Rentals Snapped Up At Record Pace
Rental properties are being snapped up faster than ever before, with new data revealing they stay on the market for an average of only 19 days.
PropTrack analysis shows the city where properties rent the quickest is Brisbane, where they last an average of only 15 days.
Adelaide properties rent in an average of 16 days, while homes also rent quickly in Perth (17 days), Darwin (18), Hobart (19), Sydney (21) and Melbourne (22).
The PropTrack analysis shows the number of total available rental listings is almost a third lower than pre-pandemic levels. Rents are up 8% on average, compared with the same time last year, but some markets have recorded 20% increases.
PropTrack senior economist Eleanor Creagh predicts competition for properties will become tougher as international migrants return to Australia.
The number of international students applying for visas has hit a record high, with June recording the largest number of applications in a single month in the past 10 years.
Spring Sales Expected To Be Strong
Property analysts are predicting a strong start to the spring selling season when it kicks off in September.
Listings activity is already strong in the lead up to spring, according to PropTrack which says winter seller activity is at a decade high.
PropTrack data shows total stock on market increased 4.9% in July compared with last year which is the largest year-on-year increase since 2010.
Strong activity in Sydney is behind the increase in listings.
Director of economic research Cameron Kusher is optimistic about the start of the spring selling season.
“I do think, at least in early spring, we’re going to see quite strong listings,” he says. “I think there’ll be that sense of urgency right at the start to get properties on the market.”
Real estate agency sources say that listing authorities, which is when properties are locked in to be sold but not yet on the market, are on par with the same time last year.
Elite Suburbs Defy Downturn Pressures
Buyers are still keen on high-end properties, with new analysis showing many are still rising in value.
CoreLogic analysis of price movements in the 98th percentile elite suburbs, which are typically in inner city or waterside suburbs in Melbourne, Sydney and Perth, are increasing in value.
Lawless says the ultra-high end of the market generally shows less cyclicality than other parts of the market.
He says buyer demand and homeowner sentiment in those markets are more influenced by business conditions or financial and equities markets, rather than interest rates.
His analysis shows median prices in the top percentile areas are around $4.65 million in Sydney, $3 million in Melbourne, $1.9 million in Perth and about $1 million in Darwin.
The report shows that Melbourne’s high-end median prices increased by $30,000 to $3.1 million in the 12 months to the end of July while in Brisbane prices increased by $350,000 to $2.1 million over the same period.
In greater Hobart’s top-end market, the median price rose 14% to $1.5 million.