Madison Park Stage 1 is now registered

In some exciting news for property investors, Stage 1 of Madison Park is now registered and stage 2 is now available for consideration.

This exciting new residential community is perfectly positioned within Park Ridge, a vibrant and well-connected urban location in the Logan region of South East Queensland.

It is located just 30 minutes from Brisbane CBD and less than an hour to the Gold Coast’s beautiful beaches.

Relax and enjoy everything life has to offer right on your doorstep, with employment, education facilities, shopping and medical facilities right around the corner.

Set in picturesque, tree-lined streets, Madison Park is the ideal place to raise your family, in a friendly, community-oriented neighbourhood.

Easy living has a new address at Madison Park

Madison Park is a central piece in a 25-year development plan to create an urban hotspot, where everything is designed to support a better lifestyle.

Public and private education providers are within minutes, and there are numerous childcare facilities within close proximity too.

The refurbished Logan Hospital is just 15 minutes away, in addition to a brand new Woolworths and the upgraded Park Ridge Town Centre for your convenience.

The residential community is within close distance to several city centres and industrial estates, providing strong employment opportunities.


 

Brisbane a landlords’ market as rents rise

Brisbane is fast becoming a landlords’ market as vacancy rates tighten and rents continue to climb, putting investors in the box seat in 2020.

New data released by SQM Research reveals asking rents for houses increased 0.9 per cent in December to $473 a week — that’s 3.4 per cent higher than they were a year ago.

The rental vacancy increased slightly last month, but is still tight at 2.9 per cent, and lower than the 3.2 per cent recorded the same time last year.

Experts say it could be a good time to invest in property in Brisbane, with rents rising and vacancy rates tight.

Nationally, the residential rental vacancy rate increased marginally in December to 2.5 per cent.

SQM Research managing director Louis Christopher said there was a small rise in vacancy rates across all cities in December due to seasonality, but rents continued to rise.

“The increasing rents in most capital cities could see a move towards a landlords’ market in the coming months,” Mr Christopher said.

Property Club president Kevin Young said owners of investment properties in Brisbane would be “crazy to sell” this year.

The independent property group has identified four Queensland locations where property investors were set to benefit.

These include areas that are already under recovery including Brisbane and the Gold Coast as well as areas that are at the bottom of their property cycle such as Townsville and Ipswich.

“Property owners and, in particular, investors who can hold onto their properties during 2020 can expect to benefit from rising values moving forward,” Mr Young said.

But Propertyology head of research Simon Pressley said that while the cost of housing was relatively affordable in Brisbane, the city’s property market had experienced little growth since 2007 and buyer activity continued to be soft.

Mr Pressley said 2020 would be dominated by commentary around the October state election.

He said all investors should spend time setting financial goals for the year ahead, including the locations likely to produce the best results over the long-term.

“There’s never been a situation in our lifetime that borrower interest rates were so much lower

than rental yields like we have right now, and it seems increasingly likely that the RBA might cut again in February-March,” Mr Pressley said.

“This means that, even with a very small deposit, the annual cost to hold an investment property is near zero, so whether you’re using cash or equity in existing property, do something proactive for your future and get in the game this year.”

Source: realestate.com.au

Good things on the horizon for the southeast

QLD Excerpt From The 2019 December Market Report

Rental markets tighten in the Sunshine State, and experts see good things on the horizon for the southeast.

A Queensland suburb has taken the top spot in CoreLogic’s Top Rental Performers list. Country town Blackwater was named the best rental market in Australia as of September 2019. The suburb offers rental returns as high as 11.7% on average, while house prices are very low at a median of under $150,000. The market is now so tight there’s no more room for renters.

In fact, the Sunshine State dominated the Top Rental Performers report, claiming 42 out of 100 spots on the list.

 

The Real Estate Institute of Queensland (REIQ) confirmed these findings in its Rental Vacancy Rate Report for the June 2019 quarter, noting that markets had tightened and were stronger compared to the previous quarter. This indicates rising rental demand in this state.

The REIQ report highlighted the low vacancy rate of just 2.4% in Greater Brisbane. However, no Queensland rental market is tighter than Maryborough’s, which saw vacancy rates drop to 0.3% in the March quarter from 1.6% in September 2018. Vacancies are also very limited in the Fraser Coast region, where the average vacancy rate comes in at just 0.9%.

“The Gold Coast and Sunshine Coast have each enjoyed solid house price rises, benefiting from strong migration inflows and an undersupplied market. Vacancy rates are low, but supply is rising,” says BIS Oxford Economics’ associate director Angie Zigomanis.

“The greatest upside to house prices is expected to emerge in Brisbane, although it will not be immediate. Net interstate migration flows into Queensland have increased.”

With mining a slow industry these days in Queensland, tourism could be the sector to facilitate an uptick in the state’s economy. According to the CoreLogic CHIP (Cordell House Index Price) Report for July 2019, overseas investors are looking to construct largescale resorts in the northern part of the state, as well as new residential properties in 2020. This could foster population growth in the coming years.

However, Zigomanis does warn investors to be mindful of supply levels in Queensland.

“There remains an oversupply of dwellings in the state, mainly in the apartment sector, and any economic recovery in the state is yet to gain traction. This is forecast to keep any price rises modest in 2019/2020.”

Source: yourinvestmentpropertymag.com.au

Boom time forecast for Brisbane’s housing market in 2020

Record low interest rates and cheap credit could boost Brisbane home prices by up to seven per cent in one year, a new report reveals.

SQM Research’s Housing Boom and Bust Report for 2020, released today, forecasts an increase in home prices in the Queensland capital of between three and seven per cent — a recovery from the sluggish growth recorded in the first half of 2019.

The base case scenario forecast assumes no changes in interest rates and no intervention by the Australian Prudential Regulation Authority (APRA), in which case SQM predicts Brisbane home prices would increase between three and six per cent.

In the best case scenario for Brisbane, prices are forecast to rise between four and seven per cent if interest rates are cut to 0.5 per cent by April 2020.

And the worst case would be if interest rates are cut to zero, which SQM predicts would trigger price falls.

SQM Research managing director Louis Christopher said Brisbane’s improving economic outlook and recovery in mining investment was set to benefit the housing market.

“An increase in mining investment is coming through as we speak and that’s going to be a nice job creator for the city,” Mr Christopher said.

The forecast is for Sydney home prices to rise between 10 per cent and 14 per cent and Melbourne prices to jump by 11 per cent to 15 per cent.

But while Sydney and Melbourne home values are set for a sharp rebound, Mr Christopher said he had doubts about the sustainability of the recovery in those “overvalued” markets.

“Long term, our two largest housing markets look vulnerable and forever reliant on cheap credit,” he said.

“Brisbane is definitely offering better value for money for those who decide to move from Sydney to Melbourne.

“The problem in the past has been people will come from the south but struggle to get jobs, but the economy’s picking up and I think there will be more white collar jobs on offer in Brisbane over 2020 and 2021, which may well encourage more buyers from down south.”

Mr Christopher said he also anticipated a recovery in Brisbane’s rental market in 2020, with rents forecast to increase between three and five per cent.

“Brisbane is increasingly facing a shortage of rental accommodation after years of being in surplus,” he said.

“Vacancy rates are consistently falling and it has turned into a landlord’s market.”

Brisbane’s vacancy rates are increasingly becoming tighter

From an investment perspective, Mr Christopher said Brisbane’s eastern suburbs were most likely to outperform.

“When I look at rental vacancy rates, they tend to be tighter in Brisbane’s east than other regions,” he said.

“I think it’s a matter of lifestyle. The bulk of residents, if they were going to pick a region in which to live, would probably pick Brisbane’s east.”

It comes as the NAB changes its expected timing for the next interest rate cut.

The bank now expects the Reserve Bank of Australia to slash the official cash rate to 0.5 per cent in February 2020 — and potentially announce a package of unconventional policy should there be a need to provide further stimulus to the economy going forward.

“To be clear, we think that the RBA should actually provide a further interest rate cut next month with private sector growth remaining weak and little evidence to date that prior easing or the tax rebates has done enough to offset the weakness in the economy,” the bank said in a note to clients.

“However, for now, the RBA appears to be in a holding pattern, while it assesses the impact of prior rate cuts and ‘the gentle turning point’.

“We see an improvement in growth over time but not to a sufficiently strong rate of growth to prevent the unemployment rate beginning to rise.

“At the same time, the government does not seem to be inclined to provide material fiscal stimulus in the near term, which increases the need for the RBA to ease further (including a further rate cut and unconventional policy) should our forecast of a deteriorating labour market materialise.”

Brisbane couple Kimiora, 25, and Michael Bennallack, 33, are selling their house in Fairfield and hope to make a profit so they can upgrade to a bigger home in the area.

They spent the past three years renovating it and are ready to move on to their next project.

Mrs Bennallack said access to cheaper credit and the recent interest rate cuts, coupled with the prospect of more to come, had helped them to achieve their goals more quickly.

“We refinanced our mortgage at the start of the year, which was really good, and the rate cuts have given us a bit more money in our pockets to do things around the house and give it more street appeal,” Mrs Bennallack said.

Marketing agent Maree Grieve of Place – Annerley said the property had already gone under contract after its first open home on Saturday.

“We had 29 groups of buyers through, multiple offers and it went under contract on Monday,” Ms Grieve said.

“I think what we’re finding is there are definitely a lot more first home buyers in the market because money’s so cheap at the moment. People are saving and buying instead of renting.”

Source: realestate.com.au


 

Brisbane now best of Aussie cities as rates stay at historic low

Christmas has come early for homeowners, with almost a quarter of experts naming Brisbane the best city in Australia to invest in as the Reserve Bank chose to hold fast on interest rates.

Chairing the final monetary policy meeting of the decade for the RBA board, Governor Philip Lowe not only kept the official interest rate at a historic low 0.75 per cent – a move widely expected by the market – but he said “it was reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target”.

“The Board is prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time,” Mr Lowe said in a statement released after the RBA meeting.

All but one expert in the latest Finder RBA Cash Rate Survey (97 per cent) predicted rates would hold, and a whopping two-thirds now expect the central bank will move to drop to 0.5 per cent in February 2020.

The board is facing growing pressure to find the right balance between not overcooking the housing market and stirring up the rest of the stagnant economy via one of the only moves available to the RBA – lower rates.

The same Finder survey saw almost a quarter of the experts name Brisbane the top city to buy property in (22 per cent), with the Queensland capital showing “good value”.

The results could mean a surge in New South Welsh people on the hunt for property in Queensland over the holiday season, with Finder insights manager Graham Cooke saying Sydney’s low performance in the survey was a surprise.

“While Melbourne and Brisbane are strong candidates for the most promising property market in Australia, it is a bit stunning to see Sydney perform relatively poorly,” he said. “The state you live (in) doesn’t need to be the state where you buy. With many Sydneysiders grappling with housing affordability, rentvesting could be the way to go.”

Melbourne figured at the top too (22 per cent) – though with a significantly higher price tag for buyers. Canberra and Sydney were tied (13 per cent each) while 9 per cent favoured Hobart, and dragging along the bottom were Perth and Adelaide “with only 4 per cent of experts tipping the cities to be a wise property investment”.

The final RBA monetary policy meeting for 2019 comes amid a weak domestic economy that’s crying out for stimulus, with the central bank having responded with three rate cuts that have paid dividends for housing prices but not as much for the rest of the economy.

The latest RBA Rate Indicator showed market sentiment has definitely shifted towards a hold position, with a 91 per cent expectation of “no change” yesterday. “As at 2 December, the ASX 30 Day Interbank Cash Rate Futures December 2019 contract was trading at 99.270, indicating a 9 per cent expectation of an interest rate decrease to 0.50 per cent at the next RBA Board meeting,” according to the ASX rate tracker.

One of the Australia’s Big Four banks, the Commonwealth Bank, expected the RBA to keep its options open for future rate cuts.

“It is not the external sector which is driving low annual growth rates in Australia’s real GDP, but the weakness in Australia’s domestic economy,” the latest CBA Global Markets Research report said.

But if the RBA expects more cash in hand for homeowners will mean more retail spending, it may be disappointed, with CBA predicting that extra wealth off lower mortgage rates would be used “to speed up debt repayment”.

“Most households that have a home loan have not adjusted their principal and interest repayments downwards as a result of recent RBA easing. Just 7 per cent of CBA customers with a principal and interest home loan, for example, have reduced their monthly repayments as mortgage rates have come down in 2019.”

Source: realestate.com.au / The Courier Mail


 

Brisbane to outshine Sydney and Melbourne dwelling prices in 2020

Brisbane dwelling prices will outperform those in Sydney and Melbourne in 2020, according to Westpac.

They believe the Queensland capital will see eight per cent increases next year, above the six forecasted for the two major capital city markets.

Westpac suggest the strong momentum in Sydney and Melbourne will fade as affordability issues re-emerge and population slows.

Brisbane is well positioned due to its affordability and population inflows.

“Momentum heading into 2020 is clearly positive, albeit uneven across markets,” Westpac advised.

They said in the near term, the main guidance comes from current price momentum, auction markets, listings and their buyer sentiment measures.

“Nationally, these are all showing positive prospects for early 2020 with price growth accelerating, auction clearance rates riding high in Sydney and Melbourne, listings showing a clear tightening and a positive pulse from buyer sentiment pointing to a further lift in demand.

“The cyclical momentum is strongest in Sydney and Melbourne but is also showing a notable pick up in Brisbane. Adelaide and Hobart are seeing a more muted lift with Perth yet to pull out of its multi year price decline.

They predict a number of factors to shape residential property over 2020.

“The first is policy – we expect the RBA to cut rates by another 25bps at its February meeting and to turn to so-called unconventional policy measures to provide additional stimulus,” Westpac advise.

The second factor is supply, both in the form of sellers returning to the market and the physical supply of new dwellings. New listings fell to extreme lows in 2019.

“Our analysis suggests the listing cycle tends to follow the sales cycle by about six months. A likely lift in new listings will test the depth of demand in the first half of 2020. The supply of newly built dwellings will also remain elevated. Completions eased back from a record 218k in 2018 to an estimated 205k in 2019.

“Our projections have this easing to around 175k in 2020, still well above average pre-boom levels with about 50k of that high rise dwellings. New supply could prove difficult to absorb and will weigh on prices and rents in some segments – Sydney’s rental vacancy rate and Melbourne’s stock of unsold units being key areas to watch.

Westpac believe would-be buyers in Sydney and Melbourne will be priced out of the markets and will seek more affordable markets if the current price resurgence continues, which will slow growth.

“As 2020 unfolds we expect another dynamic to come to the fore around affordability and population flows.

“Despite the price correction in 2017-18 and a further lowering in interest rates, affordability remains relatively stretched in Sydney and Melbourne.

“The resurgence in prices see these markets run into the same affordability constraints that emerged in 2016-17 as prices near previous peaks.

“Investor activity will lift as low deposit rates and equity volatility drive more interest in real estate but funding is likely to remain a constraint on investors.”

Source: propertyobserver.com.au


 

Government Accelerates $3.8bn Infrastructure Spend to Spur Economy

The federal government has announced it will put billions of dollars towards significant projects across the country, accelerating major infrastructure investments in a bid to stimulate the nation’s economy.

Dismissing the move as “panic” or “crisis measures”, prime minister Scott Morrison announced he would bring forward infrastructure investment announcing $3.8 billion in funding over the next four years.

More than half of which, $1.8 billion, is planned to be rolled out in the next 18 months.

The move follows calls for government to provide more stimulus in the nation’s economy given Australia’s record low interest rates and sluggish growth.

“It’s careful considered investment,” the PM said in Brisbane on Wednesday before announcing the Queensland spend.

Queensland Premier Annastacia Palaszczuk described the state’s “historic” deal as a “huge win for Queensland”, and an extra $1.9 billion towards roads, rail and funds for regional Queensland.

Queensland projects

  • $446.3 million in new road funding, including the M1 exit upgrades
  • Construction of Gold Coast Light Rail Stage 3 will kick off after the announcement of $157 million in additional funding for the project
  • Up to $648 million of projects to be “fast-tracked”, delivered sooner.
  • Accelerated funding for Linkfield Road Overpass
  • Mt Crosby Road Interchange upgrade
  • $10 million brought forward for Rockhampton Ring Road
  • Agreement on Inland Rail linking freight from Melbourne to Brisbane, with $6 billion invested in Queensland.

The Australian government’s contribution towards the Gold Coast light rail is now $269 million, up from its earlier $112 million commitment.

The Queensland state government had called for an increase in federal funding for the $709 million light rail project after its own funding announcement in August.

Construction of the 6.7 kilometre track of the light rail’s Broadbeach to Burleigh extension will commence on the Gold Coast.

The infrastructure plan will bring forward $1.8 billion to be spent on “shovel-ready projects” over the coming 18 months.

“All of these projects are projects which are going to get people home, sooner and safer, will strengthen our economy[…]not just now but well into the future,” Morrison said in Brisbane on Wednesday.

“These are structural changes we’re making, not one-off cash splashes.”

A $400 million infrastructure injection to boost South Australia’s economy was announced on Monday, with additional funds to go towards projects including the Darlington Upgrade and Flinders Link project.

Earlier this year, Reserve Bank governor Philip Lowe called on government saying that “further investment in infrastructure was needed”.

The outlook for the Australian economy is little changed since August, reveals the RBA in its minutes of the last Reserve Bank meeting, which held the cash rate at 0.75 per cent.

“Looking forward, growth was expected to strengthen gradually to 2 per cent over 2020 and around 3 per cent over 2021,” the RBA said in its minutes released on Tuesday.

“This outlook was expected to be supported by accommodative monetary policy, recent tax cuts, ongoing spending on infrastructure.”

While quarterly GDP growth picked up slightly since its low point in the second half of 2018, RBA members noted that the forecasts for growth and the labour market had been “largely unchanged” from August.

At the time of publishing, the infrastructure projects for Western Australia was yet to be announced, with every state and territory touted to benefit from the infrastructure spend. Source: The Urban Developer


 

What’s in store for the First Home Loan Deposit Scheme

The Australian Government has announced it will introduce a First Home Loan Deposit Scheme (FHLDS) to support eligible first home buyers purchase a home faster.

The Scheme is expected to commence on 1 January 2020 and will be administered by NHFIC.

The Parliament of Australia passed legislative amendments to give effect to the Scheme on 15 October 2019.

NHFIC will provide further information about the detail of the Scheme including confirmed eligibility criteria, participating financial institutions, application and assessment processes, and updates on implementation of the new Scheme in due course.

NHFIC is also consulting with financial institutions and other key stakeholders leading up to the commencement of the scheme.

Please note, applications for the Scheme are not yet open, but all current details can be found at – nhfic.gov.au/what-we-do/fhlds/

While we wait for more details to materialise, check out what is on offer right here in South East Queensland!