Brisbane investment property
Good news for Australians considering a real estate investment in Queensland: Home values in Brisbane are on the rise.
The RP Data – Rismark Home Value Index reported that home values increased 1.2 per cent over the September quarter in Brisbane.
This rise was felt equally in both detached houses and units.
While value increases have been relatively small compared to other markets, this hasn't been a bad result for those seeking Brisbane property investment.
"While Brisbane’s recent performance has been somewhat lacklustre, it provides a more affordable option for purchasing property when compared to Sydney and Melbourne," read the RP Data – Citibank Housing Market Overview October 2013.
Demand has also been a plus for the region.
RP Data estimated that over a 12-month period ending in July 2013, there were 41,977 homes sold in Brisbane.
This marks a 14.6 per cent increase in sales volume when compared to the previous year.
High demand has also resulted in an increase in rent rates, good news for those looking to invest in rental properties and units.
In fact, according to the Housing Market Overview, Brisbane is the city with the smallest difference between house and unit rental rates.
This comes on the heels of a separate report from RP Data and Rismark showing that home values have been steadily rising in the area over recent months.
Not only have home values risen 1.4 per cent on a month-over-month basis during November, they increased 2.6 per cent over a three-month period as of October.
With values rising and demand high, now might be the perfect time to consider purchasing investment property in Brisbane.
Posted by Tyler Wyndham
Property investment in Brisbane is going to increase in the coming months, according to the Real Estate Institute of Queensland (REIQ).
The organisation said real estate activity is on rise in the state overall, but investment property in Brisbane is likely to become more popular in particular.
Preliminary figures for the September quarter showed the number of house sales in Queensland jumped nine per cent, when compared with the preceding three-month period.
REIQ chief executive officer Anton Kardash said the data builds on previously solid performances this year, with some agents in the state waiting up to five years to see such positive results.
"Given the price increases in the southern states, there is no doubt that Queensland remains one of the most affordable places to buy or invest in property," he explained.
"With this in mind, we are likely to see an increase in interstate investors and migrants taking advantage of these excellent opportunities."
According to Mr Kardash, there are a number of other indicators that the Queensland market is in a period of recovery, including a reduction in the number of days homes are spending on the market from 90 to 78.
He also pointed to a fall in the average rate of vendor discounting over the last year, with sellers only shaving off 6.5 per cent of the asking price, compared with 7.9 per cent in 2012.
"Over the quarter, there was an increase in sales for under $350,000 across Queensland – potentially to investors – which has temporarily impacted some median house prices," the REIQ noted.
Brisbane property investors may be encouraged to hear that the state's property market also appears to be more stable than in Sydney and Melbourne.
Mr Kardash said the Queensland capital is taking a more measured approach to growth.
Brisbane property investment could be set to benefit from two new pieces of legislation that aim to cut red tape in the industry.
The Real Estate Institute of Queensland (REIQ) welcomed the tabling of the Property Occupations Bill and the Agents Financial Administration Bill into parliament, stating that the move will provide the sector with its own separate laws.
Pamela Bennett, REIQ chair, said the real estate industry has been "legislatively bundled in" with other occupations for too many years.
"The REIQ always felt that our profession deserved its own specific legislation," she explained.
The proposed changes will make buying and selling property in Queensland easier, the REIQ stated, including stricter disclosure of third-party benefits to buyers and removing the requirement for agents to disclose the commission they are receiving.
Investment property in Brisbane may benefit, with attorney-general Jarrod Bleijie stating that Queenslanders will be able to make "big purchases" without being burdened by unnecessary bureaucracy.
"By reducing the number of approved government forms and incorporating warning statements into contracts, we can achieve this," he explained.
"Cutting waste and red tape is also delivering on a key election commitment."
REIQ chief executive officer Anton Kardash said the changes would provide a mix of benefits for both agents and consumers, with the organisation offering its input throughout the process.
These amendments will ensure the real estate industry becomes more professional and, ultimately, more accountable, he added.
"The REIQ always wanted this landmark piece of legislation to provide much-needed simplification and clarification," Mr Kardash stated.
Other changes proposed include deregulating the maximum commissions available and extending the statutory limit on lengths of appointments for a sole exclusive agency from 60 to 90 days.
This will better reflect the market realities present in the Queensland real estate sector, the REIQ claimed.
Posted by Tyler Wyndham
People considering buying investment property in Australia would be wise to consider purchasing apartment units in Queensland, according to Bankwest's First Time Buyer Deposit Report.
While home prices are relatively affordable in the Sunshine State compared to other states, higher prices have still discouraged first-time home buyers from entering the market, the report showed.
While wage growth has been strong in the area, the abolition of the first home owners grant for established dwellings during October 2012 also likely explains the 22 per cent decline in first-time buyer numbers for October 2013.
"NSW and Queensland were the only two states to abolish the first home owner grant for established homes in October 2012 and both have seen large drops in first-time home buyer activity," said Bankwest Executive General Manager of Retail Mark Reid.
Meanwhile, units are a much more affordable option for first-timers, making Brisbane property investment a lucrative prospect if the right types of buildings are chosen.
Mr Reid went on to say that residents of Queensland may also start flocking to the more regional areas surrounding busy urban centres.
“As first time buyers find themselves priced out of higher density city areas, regional alternatives become more appealing, and when looking outside of the typical hot-spots there are still bargains to be had,” Mr Reid said.
These findings make one thing clear: There are plenty of investment opportunities to be had for savvy Australians who understand current trends regarding the types of properties people are looking for and where.
With units and regional areas seeing more attention, investors should take notice.
Posted by Tyler Wyndham
Investing in Australian property is becoming more lucrative, as recent data shows that property values are increasing across the country's capital cities.
Figures from RP Data and Rismark International show that combined capital city property values rose 8.2 percent year to date during October.
While much of this was attributed to house prices in Sydney and Melbourne, Brisbane also had a strong showing, making Brisbane property investment even more attractive.
According to Rismark CEO Ben Skilbeck, while Sydney and Melbourne may lead the country in property values, there is evidence that this growth is expanding to Brisbane, where house values increased 1.4 per cent month-over-month and 2.6 per cent over the past three months during October.
"While Brisbane auction clearance rates are typically low in comparison to Sydney and Melbourne due to differences in the preferred sale mechanism, Brisbane auction clearance
rates are approaching the 50 per cent mark which was last consistently observed in 2009 when values increased 7.1 per cent over the year,”" Mr Skilbeck said.
The most recent data supports the sentiment held by Brisbane residents, as a separate report from RP Data and Nine Rewards found that 51 per cent of respondents to their survey believed property values would increase over the next six months during October.
This number was up significantly from October 2012, when only 33 per cent of respondents believed property values would increase.
Even more Australians expected property values to rise over a full year, with 57 per cent saying they believe property values will increase over the next 12 months.
For those considering Brisbane property investment, these numbers spell good news.
Posted by Tyler Wyndham
It seems that property investment is on the minds of many Australians these days.
A recent report from RP Data and Nine Rewards showed that 74 per cent of survey respondents believe now is a good time to be purchasing property.
While a slight reduction from May 2013 numbers from rpdata.com, these figures still show that the vast majority of respondents believe the time is now to enter the market.
One question included in the survey concerned whether Australia's housing market was vulnerable to significant value correction.
"This is the first time this question has been included in the RP Data – Nine Rewards survey," the organisation stated in its results release.
"The results show 60 per cent of survey respondents believe the Australian housing market may be vulnerable to a significant correction in values. The survey didn't probe further about what level of value decline would be considered 'significant', however, it is clear that there is a level of unease about the future of Australian dwelling values."
The good news for those considering a Brisbane property investment is that the number of respondents who were worried about value correction in the area was below the 60 per cent average.
Home values expected to rise
Despite worries in some regions of the country regarding value correction, more than half of survey respondents (51 per cent) said they expect property values to increase over the next six months. This is up considerably from October of last year, when only 33 per cent of respondents held this view.
Meanwhile, only 6 per cent of respondents believed property values would fall over the next six months.
Even more respondents expect values to rise in the long-term, with 57 per cent saying they expect values to increase over the next 12 months.
New information from the Real Estate Institute of Queensland (REIQ) has shown a sharp rise in the sale of Brisbane units in the June quarter compared to last year.
This may be due to a number of active investors entering the market to secure a Brisbane investment property, who may have been spurred by the recent cash rate changes during the latest quarter.
According to the REIQ, the preliminary volume of unit sales in Queensland has risen by almost 40 per cent compared to this time in 2012.
In the Brisbane market alone, the sale of units and townhouses has risen by 26 per cent during this period, translating into a 21 per cent rise since the March quarter this year.
"Both the unit and house markets are gathering steam with sales volumes much improved on the same periods in 2012," said REIQ Chief Executive Anton Kardash in a September 6 statement.
Mr Kardash noted that the level of sales during the June quarter this year almost surpassed the strong spring season in 2012 – short by only 66 transactions.
"In fact, the June quarter is usually the weakest of the four quarters throughout the year. Over the last 12-month period, however, this quarter was actually the second strongest and very nearly wore the crown as the stand-out three-month period of unit sales activity," he commented.
At the same time, median prices for property have increased in the state. This was particularly evident in Brisbane's areas of Kangaroo Point, West End and Nundah.
This has been reinforced by information from RP Data which showed that median house prices in Brisbane rose by 1.5 per cent over August.
"Brisbane's housing market has been underperforming since the onset of the GFC with home values still almost 10 per cent lower than their previous peak which was back in November 2009. The strong result for August was evident across both the detached housing and the unit markets and may potentially mark a positive turning point for Brisbane’s housing market," said RP Data Research Director Tim Lawless.
Posted by Tyler Wyndham
Brisbane investment property may be looking like a more attractive option for investors, after new research from RP Data has shown that rising house prices in Sydney and Perth may shift buyer focus.
According to Cameron Kusher, RP Data's senior researcher, the high rate of competition in the Sydney and Perth housing markets may lead many investors and homebuyers to flock to other cities where stock is more plentiful and prices are lower.
At the same time, house prices in Sydney and Perth have been rising rapidly over the last few years – resulting in lower affordability for many buyers in the market.
This has been evident in the RP Data Home Value Index which was released in July. The property research company found that the Sydney and Perth housing markets experienced price increases of 6.5 per cent and 8.3 per cent respectively.
Mr Kusher stated that he expects buyer focus to shift to Brisbane and Adelaide, where median dwelling prices are at $429,000 and $382,000 respectively and are well below the median seen in Sydney and Perth.
These prices are likely to be more attractive for those searching for Australian investment properties.
"With home values rising at a faster pace in Sydney, Melbourne and Perth than in Brisbane and Adelaide, we expect that gaps in selling prices will increase over the coming months which may then see a shift in focus to the more affordable markets of Brisbane and Adelaide," said Mr Kusher in an August 15 statement.
The price rises seen in Sydney could be fuelled by the current low level of stock on the market – which has in turn driven up demand in the city.
In June this year, available housing stock in the Sydney market plummeted to lows last seen in 2009. This was seen through a decrease of 14.6 per cent from May to June, translating to a yearly change of 23.1 per cent.
Posted by Tyler Wyndham
Current or prospective owners of Brisbane investment property are set to benefit from the recent cash rate cut made yesterday (August 6), in which the Reserve Bank of Australia (RBA) made a 25 basis point reduction.
According to a statement from the Real Estate Institute of Queensland (REIQ), this rate cut is an encouraging sign for the property market in the state.
"We have been witnessing improving sales activity and confidence levels for about six to 12 months now so today’s rate cut will continue to provide more good news for our market," said REIQ chief executive officer Anton Kardash in a August 6 statement.
Mr Kardash stated that the real estate market in the state is expected to heat up over the months leading to spring, especially once the federal election is over and consumer confidence has returned.
"Of course we all hope that the election produces a clear majority which will have a positive and stabilising effect on our economy and correspondingly on our property market," Mr Kardash commented.
Furthermore, RBA governor Glenn Stevens stated that the board decided to reduce the cash rate after analysing a number of economic trends – such as domestic and international growth.
According to Mr Stevens, the level of economic growth in Australia has been "a bit below trend" over the last 12 months, which may be attributed to the slowdown in mining investment. This slowdown had affected the unemployment rate, boosting it up further to 5.7 per cent in June nationally.
As the rate is now at its lowest level since 1959 at 2.5 per cent, it makes a good opportunity for owners or buyers of investment property in Australia to secure finance at a lower interest rate.
Banks and lenders have already begun to pass on the RBA's reductions. National Australia Bank, for example, cut their standard variable home loan rate to 5.88 per cent.
Posted by Tyler Wyndham
In what could be encouraging news for owners of Brisbane investment property, new information from the Real Estate Institute of Queensland (REIQ) has shown a decrease in vacancy rates across the state.
According to REIQ data, the vacancy rate has experienced a notable tightening over the last 12 months, with the rate in Brisbane dropping to 2.1 per cent in June this year.
REIQ chief executive officer Anton Kardash stated that these lower rates have helped to increase investor activity in the state.
"While lower vacancy rates means competition for rental properties is greater, it is also attracting more investors, which is good news for our property market," said Mr Kardash in an August 2 statement.
"When you also consider the underlying dollar value of loans to Queensland investors captured by the ABS, it clearly shows that investment activity is at its highest level since June 2009."
A REIQ analysis of information released by the Australian Bureau of Statistics showed that investor activity in the state has risen by 14.9 per cent over the 12 months to May this year.
Further research from RP Data and Rismark has found this rise in investor activity to be evident not only in the state, but also throughout the rest of the country.
"While overall outstanding credit to housing only grew 4.4 per cent over the year to May 2013, the dollar value of lending commitments to investors in the month were 24 per cent higher than in May 2012," said Rismark chief executive officer Ben Skillbeck.
At the same time, investment properties in Brisbane are providing investors with good levels of rental yields.
The RP Data-Rismark Home Value Index showed that the rental yield for Brisbane and Gold Coast houses is currently at a level of 4.8 per cent, while units are providing 5.4 per cent, which may also be helping to attract investor activity in the state.
Posted by Tyler Wyndham