Top Headlines Week 14, 2022
- Posted By David Brown
Queensland’s house prices are still on the rise, with some suburbs jumping an impressive 40% in the last 12 months. As supply in Brisbane has decreased the prices of the surrounding suburbs have now increased. Logan, Beaudesert, Cedar Grove, and Cedar Vale all rose between 42% and 44%, and still their median house prices are lower than that of Greater Brisbane. Greater Brisbane median house price rose by 2% in March alone and rose by 32% over the last 12 months. Detached homes have seen the greatest price increase with a rise of 32% over the past 12 months which equates to the median house price level increasing by $200,000. This means Greater Brisbane’s median house price is now at $856K which is a record high. The current trend shows that suburbs along the Brisbane River have had the greatest price increase. Fairfield rose by 46% and Robertson by 44% over the past 12 months. The numbers are still not slowing and 2022 has started off strong. We could be in for another year of record-breaking prices.
Developers are rushing to get plans approved before planning scheme amendments. The proposed amendments will increase setbacks, reduce building heights and down-zoning with the end goal to reduce density along the city’s coastal strip. This poses a large threat particularly to tower developments, especially for a city that is known for its skyline of skyscrapers, Development Industry experts warn. The Gold Coast City Council is still yet to receive approval to implement these amendments from the Queensland Government. “Every developer is scrambling to lodge DA’s, as are we.” says Barry Morris, Director of Morris Property Group, one of the city’s well-known high-rise developers. He says the amendments will have a major shift on the city’s planned landscape and will have effects on the City’s growth as a whole. This new amendment will contradict previous amendments which promoted development and housing. It seems to be counter-productive of what the City is in need of right now. During COVID-19 there was a massive migration of people moving to South East Queensland. The City is already struggling to cope with the increased population, these amendments will not allow developers to offer solutions.
A luxury house-sized riverfront apartment in Brisbane has sold for $6.8M. The apartment located in the Aquila building is New Farm, is a rare sight to see on the market. The selling agent Tom Lyne from Ray White New Farm has said this sale has set a new record for the building. The 418sqm apartment was sold to a German family who will use as their base in Brisbane. “These apartments are as good as, if not better, than some of the houses in the suburbs.” Says Mr Lyne. This apartment is larger than the average house, with 4 bedrooms, 3 bathrooms, and a large entertainment deck. The luxury apartment market is the strongest it has ever been. Last month another apartment in the same building sold for $6.6M at 485sqm. The apartment building only has 10 units.
Watching the Sydney and Melbourne markets over the recent months, they have started to slow. House prices have fallen 0.2% in Sydney and 0.1% in Melbourne, for the first time since the beginning of the pandemic. Nationwide the current House Price Index is at a growth point of 0.34% in March alone, which slower than any other month since May 2020. There has been speculation that that the Queensland market is going to slow down when interest rates inevitably rise this year. But Experts are saying that this isn’t going to be the case for Queensland. The Queensland market grew another 2% in March and still is showing no rate of slowing down. Property Prices have continued to increase, with median house prices up 10% in some suburbs and up 14.3% in stronger suburbs such as Oxenford. This is still doesn’t match the peak that was since throughout 2021. It looks like the Gold Coast market in particularly isn’t going to have a steep downturn but more of a plateau. Just showing more evidence that the Gold Coast market has been under-priced for years
Half a stake in Helensvale Westfield Shopping Centre has been sold for $185M, to boutique fun manager IP Generation. The half stake has been on the market since June 2021. Helensvale Westfield is located 19km north of Surfers Paradise. The centre is on a 17.27ha site which is mostly unused. The centre opened in 2005 and has the trifecta of supermarkets being home to Woolworths, Coles, and Aldi. It also has discount department stores Kmart and Target along with 130 specialty stores and 6 mezzanine offices. Helensvale Westfield is in a prime position located nest to Helensvale Station, Helensvale Light Rail Station, and the M1. It will be interesting to see If this new ownership will lead to upgrades, extensions, or refurbishment to the centre especially with the rapidly growing population in the area.