QLD property valuations to fall in flood affected areas

Areas of Queensland that were affected by the devastating floods at the beginning of the year will experience a drop in land valuations, one property expert has asserted.

Kathy Mac Dermott, Queensland executive director of the Property Council of Australia, commented that it is likely that flood-affected properties will see a valuation drop of between five per cent and 25 per cent, depending on the extent of the damage and the area the property is located in.

She advised property owners – including those who may already have a Brisbane investment property or are considering a similar purchase – to seek advice if they think the valuation they receive does not accurately reflect the impact of January's natural disasters.

Queensland's Valuer-General, Neil Bray, recently announced that land valuations in the state will be undertaken annually – a move that was applauded by the Property Council.

Ms Mac Dermott commented: "This will ensure that any changes in the market are reflected immediately, avoiding significant jumps in land values. The Property Council remains confident that this legislation provides a robust framework for valuations to be conducted into the future."

The Real Estate Institute of Queensland suggested that rents may rise in Brisbane before the end of the year, as vacancy rates in the state capital have slipped to 1.8 per cent.

Posted by Tyler Wyndham

Latrobe City mayor highlights property investment potential

The mayor of Latrobe City has highlighted the community as an appealing area for property investment after it was featured on the Sky News Business Channel over the Easter weekend.

Darrell White commented that the valley is "a solid place to invest" and commented that the Property Success program by Margaret Lomas recently showcased the "huge opportunities" available in the region.

He told the Latrobe Valley Express that a number of factors make the area an appealing investment destination, including its proximity to Melbourne, as well as strong rental returns, several nearby schools and universities and infrastructure in the region.

Mr White said: "We know that Latrobe City is a solid place to invest, and the recognition of Ms Lomas, and her program, have now cemented this knowledge in the minds of investors."

He added: "We look forward to welcoming enquiries from across the country."

Other popular areas to make a Melbourne property investment include a number of suburbs in the city's south-east.

Enzo Raimondo, chief executive officer of the Real Estate Institute of Victoria, commented that recent figures recorded by the organisation show Mount Martha, Langwarring and Mornington are popular areas for property investment due to their affordability and strong capital growth in the past 12 months.

Posted by Sara Pritchard 

Calls for off the plan stamp duty to be abolished in QLD

The Queensland executive director of the Property Council of Australia is calling on the state government to abolish stamp duty for off the plan sales for a three-year period.

Kathy Mac Dermott made her remarks – as well as a request to the treasurer to abolish a so-called temporary 0.5 per cent land tax surcharge established in 2008-09 – following the publication of a new report by the council.

She commented that according to recently-commissioned research from economic consultancy firm AECgroup, the property sector contributes one and a half times more to Queensland's gross state product (GSP) than the mining sector.

In total, the property industry is responsible for $30.9 billion – or 12.6 per cent – of the state's GSP.

But she noted the state is "at serious risk of killing the goose that has, year after year, laid the golden egg".

She commented that reforms need to be made to property taxes and regulations in order to encourage both investment and employment in the property sector.

Ms Mac Dermott asserted: "We need immediate reform and relief in taxes, fees and charges to restore the state's competitiveness and rebuild investor confidence in Queensland."

Vacancy rates in Brisbane have fallen to 1.8 per cent and the Real Estate Instituted of Queensland suggests that rents are likely to rise as a result.

This could be encouraging news for those planning a Brisbane property investment, as buyers could enjoy a strategic position in the current market.

Posted by Tyler Wyndham

Melbourne auction volumes down over Easter

A very low number of auctions are expected to take place in Melbourne over the Easter weekend, with around 40 scheduled for April 23 and 24.

The Real Estate Institute of Victoria (REIV) announced that with Easter and Anzac Day taking place over the weekend, very few sales are likely to take place.

However, the weekend following Easter is likely to see around 560 auctions, with a further 620 scheduled for the weekend after. It is unlikely, however, that the volumes seen in last weekend's 964 auctions – which had a 61 per cent clearance rate – will be seen again until the spring, the REIV reports.

Overall, this year's total volume of sales is only nine per cent lower than at the same period last year – and 51 per cent higher than during the height of the GFC in 2009.

Earlier this month, the REIV highlighted the western suburbs of Werribee, Footscray and Caroline Springs as having good capital gains over the past 12 months.

The organisation tipped these communities, as well as Kew and Malvern East, as potentially good places to make a Melbourne property investment thanks to their affordability and good transport links. 

Posted by Sara Pritchard

Brisbane rental market ‘returning to normal’

The rental market in Brisbane is beginning to return to normal following the devastating January floods, new figures from the Real Estate Institute of Queensland (REIQ) have indicated.

Some flood-affected Brisbane suburbs experienced significant weekly rent rises in January, with many tenants displaced by the floods seeing temporary accommodation for January and February, commented Pamela Bennett, chairman of the REIQ.

In particular, statistics from the Residential Tenancies Authority indicated a rise in demand for three and four-bedroom homes in the period immediately following the floods.

This contrasts with the two-bedroom unit rental market, which remained consistent by comparison.

While the REIQ indicates that the rental market is stabilising as Brisbane continues to recover from the floods, a number of city suburbs have seen tightening conditions.

The vacancy rate in the Redlands, for example, stood at 2.4 per cent – its lowest rate in the past 12 months.

Moreton Bay is also experiencing slightly tighter market conditions than observed in the last survey, with rental listings receiving up to five applicants in the Caboolture area.

RP Data research analyst Cameron Kusher expects rental demand to rise in the city in the coming months, making Brisbane property investment a potentially appealing option.

He told the Sydney Morning Herald that with limited new development taking place in the city this year, current properties are likely to face higher demand than usual.

Posted by Tyler Wyndham

Rents ‘to rise’ in Brisbane

Rents in Brisbane are expected to rise in 2011, with vacancy rates falling to 1.8 per cent, new figures from the Real Estate Institute of Queensland have shown.

Reporting on the figures, the Sydney Morning Herald highlighted that the full impact of supply shortages is not likely to be seen until June.

RP Data research analyst Cameron Kusher commented that rental demand in Brisbane is expected to rise in the coming months – a situation exacerbated by limited new development in the city this year.

Mr Kusher commented that this situation could encourage property investment in Brisbane, particularly among those who are "looking to strategically position themselves in the market".

The property industry provides 35 per cent of Queensland's taxation revenue to state government coffers – to a tune of an estimated $3.4 billion – according to Kathy Mac Dermott, Queensland executive director of the Property Council of Australia.

She also highlighted that the industry accounts for more than 300,000 jobs across the state and emphasised that investor confidence in Queensland needs to be boosted in the wake of January's natural disasters.

The council is calling for a broad range of changes – recommended across residential, commercial, retail and industrial sectors – to be implemented by state leaders to ensure the recovery of the property industry.

Posted by Tyler Wyndham

Strong rental performance in Spring Hill, Brisbane City

The Brisbane suburbs of Spring Hill and Brisbane City have been identified as potential areas for property investment thanks to strong rental yields recorded over the past quarter.

New figures from the Real Estate Institute of Queensland (REIQ) identified these two suburbs, as well as a number of communities in Logan, Greater Brisbane, as having gross rental yields of six per cent.

This could make these areas popular locations to consider when planning a Brisbane property investment.

Another community to consider for buy-to-let investment, according to the REIQ, is Acacia Ridge. This established suburb, with a mix of older-style weatherboard and brick properties, as well as new-build homes, enjoyed gross rental yields of 5.9 per cent during the first quarter of 2011.

Organisations including the Urban Land Development Authority have an important role to play in encouraging Queensland property investment, one expert asserted last month.

Kathy Mac Dermott of the Property Council of Australia hailed the organisation as an essential player in the state's property sector for the foreseeable future, as it take pressure off local councils and assists in delivering development and assessment and planning functions "in a timely manner".

Posted by Tyler Wyndham
 

‘Robust’ rental yields across QLD

Investment properties in the Brisbane suburb of Loganlea make up an estimated 25 per cent of the residential housing market and rental yields are among the highest in Queensland, according to one real estate body.

New figures published by the Real Estate Institute of Queensland indicate that Loganlea is popular for a number of reasons – including its proximity to excellent transport links to the CBD and Gold Coast, as well as general affordability.

A number of young families choose to buy their first home in this appealing suburb due to its affordability – the weighted average median price of a residential property is $318,000.

Loganlea recorded a gross yield of 5.8 per cent, making it Queensland's third-highest performer for residential rental properties in February.

Australian Bureau of Statistics figures also released for the month of February indicated that the number of private sector houses approved in the state increased by 1.1 per cent.

Brisbane property investment could receive a further boost from a long-term vision for the city's infrastructure, a former Australian leader commented earlier this year.

Jeff Kennett, the former premier of Victoria, said that Brisbane could follow the lead of urban centres such as Melbourne when it comes to planning for a growing population.

Posted by Tyler Wyndham

South-east Melbourne suburbs ‘experiencing good capital growth’

Individuals planning a Melbourne property investment may wish to look to the suburbs in the city's south-east, according to Real Estate Institute of Victoria (REIV) chief executive officer Enzo Raimondo.

Citing recent REIV statistics, he suggested that Mornington, Mount Martha and Langwarring were three "affordable" south-east suburbs that have experienced "good capital growth" in the past 12 months.

He made his remarks as the REIV published figures showing the median house price for the March quarter in Melbourne is at $565,000 – down from the revised December quarter median of $601,000.

Mr Raimondo said that while it remains to be seen how well the market will perform in 2011, fundamentals remain strong – particularly employment, consumer confidence and population growth.

However, he also highlighted that the overall number of transactions has fallen 18 per cent compared to a similar period last year.

Reducing property taxes could be one way of encouraging more investment in Melbourne, REIV asserted earlier this month.

The organisation called for housing affordability to be addressed at the federal and state levels, particularly when it comes to providing assistance to first-time buyers.

REIV also called for improvements to the land taxation process in its Budget submission to the state government.

Posted by Sara Pritchard

Pre-Easter auction fortnight ‘best in recent memory’

Melbourne property buyers may enjoy the most favourable conditions of the year so far this weekend, the Real Estate Institute of Victoria (REIV) has highlighted.

The coming two days mark the second half of the "busiest pre-Easter fortnight in recent history", the REIV asserted. While last weekend saw 951 auctions take place with a clearance rate of 59 per cent, this weekend is set to see 1,000 properties go under the hammer.

According to REIV estimates, the number of properties sold this weekend could top figures recorded in 2009, when clearance rates were higher. The comparable period two years ago saw 437 homes auctioned, with a clearance rate of 73 per cent. This resulted in 341 home sales – the 2011 figure would be closer to 600 if clearance rates are comparable to last weekend's.

Prospective buyers may wish to look to the popular suburbs of Epping, Malvern and Moorabbin if they are thinking about making a Melbourne property investment.

All were identified by REIV as having the highest clearance rates in auctions held during the first three months of 2011.

The year-to-date clearance rate for Melbourne auctions stood at 63 per cent at the end of last month.

Posted by Sara Pritchard