- Posted By David Brown
Herron Todd White (HTW) report gives an overview of May. Australia’s leading proeprty valuers, HTW’s review of the property market gives an accurate and unbiased opinion on what the current movements of the property are.
HTW are a constant reliable source of proeprty market insight, after all they are the ones doing the finance valuations and ultimately determine is people get finance or not. It is certainly interesting to see how much confidence they still have in the market, even after the rise of interest rates for the first time in 11 years.
Here is the latest proeprty clock and the Meridien View on what is happening in the Australian property market. It an overdue to see some markets finally starting to decline, after almost 18 months of all markets across Australia rising. It will be interesting to watch what other markets will follow suit and when leading into the second half of 2022.
Since the beginning of the year Brisbane has faced the worst floods seen since 2011, interest rate rises, and many other challenges to overcome, yet the Brisbane property market has not slowed. The South East Queensland region is still the top pick for anyone to looking to invest or live. The latest numbers from CoreLogic shows that Brisbane has achieved capital growth of around 6% per quarter. Comparing this to Melbourne and Sydney who have their price gains flatten. It great to hear that the Gold Coast market is attracting so many buyers, it doesn’t come without its challenges. The effects of the construction boom that began in 2021 and still being felt currently. The high demand just can not be sustained. The Queensland Government has even issued an incentive to the first 1000 tradespeople to work in Queensland for 8 weeks will receive a bonus.
Northern Gold Coast
The construction industry is refusing to slow down, with many developers launching projects in the Northern Gold Coast to help feed the overwhelming demand for properties in the area. There is still a high demand for builders. Many sites that have been sold in the past 6 months still been built on yet as it is ‘not their turn’. Builders are still trying to catch up from the slowing of the construction industry that was caused by supply change issues. Multiple builders have had to contact clients and advise of the rising construction costs. They gave them the option to terminate the contract or renegotiate the contract price to reflect the increase of construction costs. In some cases, builders are returning deposits and owners are forced to shop around for a new builder. Majoring of the construction works are happening in estates located in Pimpama and Coomera. The region has also seen an increase in the rate per square metre for construction. For instance, 12 months ago, a turnkey property at 215sqm was $254K or $1181 per square metre. Now a turnkey property at 189sqm is $312,480 or $1653. That is an increase of 30% in just 12 months. It’s not only the prices that have gone up, but the time houses are taking to build as well. A year ago, builders were quoting that a house would take 16 weeks to reach practical completion, they are now quoting 200 and 300 days which works out to 28 and 43 weeks respectively. With the RBA not shying away from more potential interest rate rises, it will be interesting to see is that could finally calm this booming market.