Builder Brokers 1800 1 BUILD Brisbane Price House Growth to grow

BRISBANE is on the cusp of a mini boom with house prices set to “accelerate” over the next three years — outperforming every other capital city, a leading industry player predicts.

In its Australian Housing Outlook 2019-2022, released today, QBE forecasts median house price growth in the Queensland capital to average 6.4 per cent per annum over the next three years, boosted by tourism, an improving economy and affordability.

That’s more than a 19 per cent increase in average growth by 2022, taking the median house price to $660,000.

The QBE report, based on new data provided by BIS Oxford Economics, states that tourism is boosting the economy in Queensland and a decade of modest house price growth has left the market “relatively affordable”.

“With the Queensland economy also forecast to strengthen, residential price growth is forecast
to steadily accelerate through to 2021/22,” the report said.

https://www.realestate.com.au/news/brisbane-house-price-growth-to-accelerate-19pc-in-next-3yrs/

Brokers assist customers by getting results faster and the best outcome.

Notably, the vast majority (84 per cent) of borrowers said they believed there were benefits to using a “home loan expert (e.g. mortgage brokers)” throughout the home loan process, largely due to their knowledge of bank processes and legislation, understanding of “how to get the process done faster” or because “they know the way to get [the borrower] the best deal”.


The vast majority of Australians believe the home loan application process to be a negative one, but two-thirds believe that using a mortgage broker makes getting a home loan easier, new research from Aussie has found.

The findings come in Aussie’s new Cutting through the Home Loan Crap report, which saw more than 2,000 Australians surveyed by Lonergan Research between 28 June and 7 July 2019.

Notably, the vast majority (84 per cent) of borrowers said they believed there were benefits to using a “home loan expert (e.g. mortgage brokers)” throughout the home loan process, largely due to their knowledge of bank processes and legislation, understanding of “how to get the process done faster” or because “they know the way to get [the borrower] the best deal”.

Moreover, 68 per cent of Australians agreed that using a mortgage broker makes getting a home loan easier, with younger adults (Gen Z, Millennials and Gen Y) more likely to agree that brokers make the mortgage process easier than their older counterparts.

When asked what they believed were important elements of a good home loan experience, 9 out of 10 respondents said “having consistent help” through the process was important (88 per cent), as was “having someone who can simplify the complexity” (87 per cent) and “knowing someone is across all the current regulations, procedures and processes” (87 per cent).

A similar percentage also stated that it was important to “be able to talk to someone early”, have “access to home loan experts”, or “work with someone who has direct local knowledge” in order to have a good home loan experience.

More than three-quarters of Australians said it was also important to have “someone who can just take control and manage it for me”.

https://www.theadviser.com.au/breaking-news/39496-majority-believe-brokers-make-getting-a-mortgage-easier

Recent BCC planning scheme changes affecting Development

STATUS OF BRISBANE CITY COUNCIL'S BAN ON MULTIPLE DWELLING DEVELOPMENT IN THE LOW DENSITY RESIDENTIAL ZONE

History

Historically, the Brisbane City Plan 2014 allowed for Multiple Dwelling development to be established on sites within the Low Density Residential Zone with an Impact Assessable development application, subject to public notification and consideration of matters raised in submissions. The current version of the Brisbane City Plan 2014 (v15.00.2019) Overall Outcome 4.c of the Low Density Residential Zone Code states – 

“Development, other than a dwelling house, including dual occupancy or a multiple dwelling is not accommodated within this suburban setting unless on a well-located site of over 3,000m².”

Therefore, Multiple Dwelling development could be considered, subject to satisfaction of a locational test (with respect to public transport nodes and proximity to business centres) and a minimum lot size of 3,000sqm. 

Brisbane’s Future Blueprint

In 2017, community consultation in the form of the Plan your Brisbane campaign was undertaken, where more than 100,000 people provided feedback on the future of Brisbane. From this, Brisbane’s Future Blueprint was established which essentially sought to guide the development of Brisbane in accordance with community expectations.   

Within Brisbane’s Future Blueprint, eight (8) principles were identified –

  • Create a city of neighbourhoods;

  • Protect and create greenspace;

  • Create more to see and do;

  • Protect the Brisbane backyard and our unique character;

  • Ensure best practice design that complements the character of Brisbane;

  • Empower and engage residents;

  • Get people home quicker and safer with more travel options; and

  • Give people more choice when it comes to housing.

In an attempt to protect the Brisbane backyard and our unique character a deliverable was established that sought to stop townhouses and apartments being built in areas for single homes.

Major Amendment Package H

In response to community consultation and Brisbane’s Future Blueprint, Brisbane City Council proposed to amend the Brisbane City Plan 2014 to remove provisions allowing for Multiple Dwelling development in the Low Density Residential Zone. These proposed revisions were proposed on the 4th of September 2018, labelled Major Amendment Package H, and were issued to the Queensland Government for review. 

Major Amendment Package H seeks to –

  • Remove provisions in the Low Density Residential Zone Code and the Multiple Dwelling Code that allow for Multiple Dwelling development be established in the Low Density Residential Zone on lots over 3,000sqm that are well-located. The revised Overall Outcomes of the Low Density Residential Zone Code state –


“(c) Development maintains a low density character in which multiple dwellings are not accommodated.”


  • Remove provisions in specific Neighbourhood Plans that allow for Multiple Dwelling development to be established in the Low Density Residential Zone; and


  • Revise specific Neighbourhood Plans to reinforce the existing restrictions on Multiple Dwelling development in the Low Density Residential Zone. The revised Overall Outcomes of the Neighbourhood Plans predominantly state –


Multiple dwellings are not accommodated in the Low density residential zone, including where in a precinct or potential development area.”

Major Amendment Package H has been given the green light to proceed to public consultation, with submissions open until Monday the 26th of August 2019. 

Council have flagged an anticipated adoption date of mid-2020. 

Amendment Package J

Further to Major Amendment Package H being released for community consultation, Amendment Package J was recently made publicly available which proposes further impacts upon Multiple Dwelling development. The amendment is in response to a deliverable of Brisbane’s Future Blueprint seeking to increase the car parking requirement for development in suburban areas. 

Amendment Package J proposes to amend the Transport, Access, Parking and Servicing Planning Scheme Policy to increase prescribed car parking rates for suburban Multiple Dwelling development. 

Notable changes being –

  • Revise the prescribed parking rate per 2 bedroom dwelling from 1.25 spaces to 2 spaces;


  • Revise the prescribed parking rate per 3 bedroom dwelling from 1.5 spaces to 2 spaces;


  • Include a prescribed parking rate per 4 or more bedroom dwelling of 2.5 spaces; and


  • Revise the prescribed visitor parking rate per dwelling from 0.15 spaces per dwelling to 0.25 spaces.

Amendment Package J is open for submissions until Monday 26th of August 2019 with an anticipated adoption date of late 2019. 

Summary

Although policy changes are yet to come into effect, there is a clear policy directive to prohibit Multiple Dwelling development in the Low Density Residential Zone in this interim period. The 6 – 12 month timeframe for Brisbane City Council to assess an Impact Assessable development application for Multiple Dwellings in the Low Density Residential Zone raises valid concerns for new site acquisition. 

www.tpalliance.com.au LinkedIn Facebook

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Plans Lodged for $130m Parramatta Square Development

A development application to build 5 Parramatta Square will be lodged by the City of Parramatta in the latest part of the $3.2 billion Parramatta Square urban renewal project in Sydney’s west.

Parramatta’s new civic, cultural and community building, dubbed by the Mayor as the “beating heart of Parramatta”, will be the final addition to the new city centre.

The $130 million multipurpose six-storey building is expected to open in April 2022, and will coincide with the completion of the remaining Parramatta Square precinct, a 3-hectare mixed-use area aimed at revitalising Parramatta city centre with premium grade office space and retail.

The new building was designed by French firm Manuelle Gautrand Architecture and Australian firms DesignInc and Lacoste + Stevenson following an international design competition.

City of Parramatta Lord Mayor Cr Andrew Wilson said the city’s Town Hall, constructed in 1885, will be integrated and accessible from the new 5 Parramatta Square development.

“I’m delighted to see Council’s long-term vision for one of Australia’s largest urban regeneration projects progressing and I look forward to watching 5 Parramatta Square go from concept to reality,” Wilson said.

The multipurpose building will be a dedicated community space, housing a public library, café; publicly available meeting rooms with access to transport.

Developer Plans Build to Rent Project in West End, Brisbane - Builder Brokers

A five level mixed-use development project in Brisbane’s inner city will incorporate built-to-rent according to plans lodged by Brisbane-based development company Property Projects Q.

The residential component will deliver 36 dwellings, ground level retail and four above-ground levels of residential on a 798sq m development site in West End. 

The developer says it will manage the development, at 45-49 Vulture Street, under the built-to-rent model, with all units to be owned and managed in single ownership.

“This enables us a high degree of control over the delivery of the proposed residential arrangements, the tenant mix, and management of key operational aspects,” Property Project Q's planning documents said.

The WMK Architect-designed project intends to cater for residential occupants who would benefit from the project’s focus on affordable and sustainable housing, according to planning documents.

“These intended residents comprise key workers, para-professionals, young professionals, researchers and students. 

“These tenants typically don’t have dependents, and require lower-than-market rental levels,” according to the plans lodged with Brisbane City Council. 

“The proposed development provides the opportunity for this intended resident profile to rent apartments on a short-term or longer-term basis.”

Despite the increased volume of unit approvals and construction in Brisbane, the developer says there is a gap in the market for units targeting this market “seeking to live independently and not to share, and with availability at a reasonable rental cost”.

The proposed mixed-use development would feature ground-level retailing facing Vulture Street, and four levels of one-bedroom and two-bedroom apartments.

At its pre-lodgement stage, the initial West End proposal offered no car parking spaces for residents or visitors.

Plans have since been amended to provide 12 car parking spaces, including six visitor, compliant with the city plan, and six car-parking spaces to be used as a share car facility.

The developer cited the project’s central location, proximity to public transport and lower rental rates as reasons for limiting residents' parking.

Builder Brokers Sydney Australia Developers pushing ahead

Property developer Mulpha Australia has won development approval for the first timber commercial building as part of its $3 billion Norwest masterplan in Sydney’s west. 

The $53 million development, known as The Bond, was initially rejected by Sydney Central Planning late last year. 

The developer lodged an appeal against the decision to reject the 7-storey building, which will now be located on the corners of Elizabeth Macarthur Drive and Norbrik Drive, adjacent to the heritage-listed Bella Vista Farm.

The Fitzpatrick & Partners-designed timber building will comprise ground floor retail, a co- working lobby space, along with six floors of commercial office space and a childcare facility for 110 capacity.

The Norwest City scheme is intended to realise a smart cities concept.

The developer purchased the 377-hectare site, located 35km from the Sydney CBD, in the 1990s.

Mulpha Developments executive general manager Tim Spencer says Norwest is home to entrepreneurial start-ups and listed companies, including Woolworths Group, ResMed, Subaru, Westpac, Capital Finance and Norwest Private Hospital.

“As Sydney’s population and economic centre moves west, our vision is to create a highly desirable work and lifestyle destination.”

Spencer said Norwest is targeted for business growth with a planning proposal under assessment by council.

“The multi-billion investments in the Sydney Metro and Western Sydney Airport, one of the largest projects in Australian history, will put Norwest at the heart of Australia’s economic future.



Australia's Population Growth BOOMING!

Interstate vs overseas migration

Of Australia’s total population increase of 391,000 people during the year ending June 2018, overseas migration made the largest contribution (237,225 or 61 per cent).

Regional economies are continuing to strengthen their appeal, with the Gold Coast topping the list, as new analysis of Australian Bureau of Statistics data identifies the locations where populations across Australia are moving.

An increasing number of Australian residents preference satellite cities, known as tier-two cities on the outer-fringe of capital cities, and major regional cities, classed as tier-three cities, property market research firm Propertyology said.

The Gold Coast, located in south east Queensland is number one on the popularity list.

“The population of regional Australia increased by a further 89,132, to sit at a significant 8,424,137 as at 30 June 2018,” Propertyology head of research Simon Pressley said.

“More and more people are re-evaluating their need to remain in a capital city.”

The Gold Coast, which has a median house price that’s 60 per cent the cost of Sydney’s, attracted 7,441 new residents from other parts of Australia last year.

Pressley says Queensland’s interstate migration has continued its run with 28,668 adding to the state’s population growth for the year to June last year.

“One of the most obvious trends in the analysis was the migration of so many people away from capital cities to regional areas,” Pressley said. 

Up to 6,370 Australians relocated to the Sunshine Coast last year, this number more than the 4,266 Australians who relocated to Melbourne.

The data shows Queensland, Hobart and parts of regional Victoria and New South Wales were popular locations of choice for Australian residents.

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“Queensland well positioned to lead the next residential upturn. BIS oxford Building in Australia 2019-2034 report

The next pick-up in residential construction will be led by a spike in non-residential investment in the resource states of Queensland and Western Australia, according to a new analysis from BIS Oxford.  

According to BIS oxford Building in Australia 2019-2034 report, building commencements are set for a deeper downturn than initially anticipated, but would “recover strongly” by 2020-21.

The report noted that the real value of national building commencements contracted an estimated 12 per cent in 2018-19 to $109.8 billion, down from the record peak in the previous year.

BIS Oxford claimed that the downturn has “further to run” with an additional 8 per cent decline forecast for 2019-20, adding that the fall in residential building commencements would outweigh the growth expected in the non-residential sector.

The research firm noted that the tightening of lending practices, coupled with falling property prices, sparked the construction downturn, but a reversal in sentiment in response to recent political and economic developments would ultimately trigger a recovery.

Robert Mellor, managing director at BIS Oxford Economics, observed: “FY2019-20 should represent the trough for total building, with a strong rebound anticipated from 2020-21 onwards as interest rate cuts, easing mortgage serviceability tests and first home buyer stimulus help facilitate a broad recovery.  

“Total building activity is anticipated to climb near its previous peak over the coming five years.

“Strong population growth, a rising national dwelling stock deficiency and housing stimulus are set to provide considerable support to the residential building and renovation sectors, while non-residential building is projected to remain elevated at a high base over the medium term.”

Mr Mellor added that he expects the next upturn in residential construction to be led by a spike in non-residential investment in the resource states of Queensland and Western Australia.

“The next pick-up in new dwelling construction is expected to coincide with a continued buoyant level of non-residential investment and a turn in mining investment,” Mr Mellor said.

“Queensland and Western Australia are well positioned to lead the next residential upturn, ahead of New South Wales and Victoria.”

According to BIS Oxford, first home buyers and upgraders would initiate the recovery in residential commencements, with investors following once rental vacancy rates tighten and make rental yields more lucrative.

However, Mr Mellor stated that if investors do not return to the market as expected, “the momentum needed to sustain the recovery will be lacking”.

“We could experience a deeper downturn before then, and a delayed recovery, if fundamental drivers of residential activity were to ease more than expected,” he added.  

“A crisis of confidence surrounding build quality in the apartment market has the potential to weigh further on apartment construction over the short term, adding downside risk to the outlook.”

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BuilderBrokers 1800 1 BUILD Australia - Lendlease Senior Living Market in China

Listed development giant Lendlease is set to build between 5,000 and 10,000 senior living units in China in the next five to six years.

Lendlease joins a growing number of foreign aged care operators targeting China, where the number of people aged over 60 reached 250 million last year and is expected to surpass 300 million by 2025.

Lendlease’s maiden facility, on the outskirts of Shanghai, will house 1,300 residents across 850 apartments paying transferable, long-term membership rights starting at $400,000 for a one-bedroom unit and ranging up to $650,000 for a three-bedroom unit.

The senior living development, known as Ardor Gardens, will be the first of almost $2 billion worth of new retirement villages Lendlease has planned for the Shanghai and Yangtze River Delta area over the next five years. 

The 22-building retirement village, which will be located in Zhujiajiao, will offer bespoke round-the-clock service, wellbeing and concierge services and will be managed by a team of experienced professionals from the luxury hospitality industry.

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BuilderBrokers18001BUILDBIS Oxford Economics has forecast Brisbane’s median house price to rise by 20 per cent over the three years to June 2022.

Brisbane house prices could rise up to 20 per cent over the next three years, the largest increase in national house prices for the period, according to BIS Oxford Economics. 

The economic forecaster expects the increase in Brisbane’s median house price over the three years to June 2022, although it anticipates most of this growth to be recorded toward the end of this period. 

A total rise of 6 per cent is forecast for Sydney’s median house price, and Melbourne could see 7 per cent for the three years to June 2022.

Lendlease and Google sign off on $21bn USA project

Lendlease has signed a $21 billion deal with Google to develop three major areas in San Francisco in what is the developer’s largest deal to date. 

Google and Lendlease have entered into a joint agreement to undertake the masterplanning and development of three major land holdings in California’s San Francisco Bay Area.

The agreement will see the internet giant and ASX-listed Lendlease work together over the next 10 to 15 years redeveloping the global tech company’s Silicon Valley landholdings in San Jose, Sunnyvale and Mountain View into mixed-use communities.

The partnership comes after Google’s announcement of a $1 billion housing commitment for up to 15,000 homes in the Bay Area last month by its chief executive Sundar Pichai. 

The Bay Area, home to Silicon Valley and the birthplace of Google more than 20 years ago, has since seen a growing housing affordability crisis in the region.

Lendlease estimates that it will develop up to 15 million square feet of residential, retail, hospitality, and other associated community uses in the new neighbourhoods. 

While Google will focus on developing its office space within these mixed communities. 

The entire project, comprising residential, retail, and hospitality components has an estimated end development value of US$15 billion (about A$21 billion). 

Google’s Real Estate vice president David Radcliffe said development work on the project could kick off by 2021, subject to planning approval, with Lendlease playing a key role in delivering a minimum of the 15,000 new homes on the landholdings.

“[The] agreement expands on an existing and successful partnership that will help us deliver on two important objectives,” Radcliffe said.

“Our commitment to accelerate the production of residential units in the Bay Area, and our plan to build mixed-use developments.”

The “existing and successful partnership” includes the pairs working history, after bidding on a $2 billion development project on Sydney's city fringe ultimately rejected by the New South Wales government in 2016, for the redevelopment of a former industrial site in Rozelle — the White Bay Power Station. 

Lendlease US chief executive Denis Hickey said the deal, signed between the two parties in San Francisco, edges its global development pipeline close to $100 billion. 

“It's the largest deal in Lendlease’s 61-year history,” Hickey said.

“This joint agreement between Google and Lendlease will help address the need for new housing in the San Francisco Bay Area.

“We’re eager to contribute our world-class approach to creating unique urban communities.”

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New report on Social housing NDIS Builder Brokers.

The Australian Housing and Urban Research Institute releases.

A national housing report, with input from a University of Tasmania academic, has concluded having a low income is rarely viewed as a necessity for the provision of social housing.

The report from the Australian Housing and Urban Research Institute has said social housing was allocated on a priority needs basis which viewed homelessness and risk of homelessness as a priority factor, followed by other circumstances which required support like having a disability or escaping violence.

"In practice, this means that having a very low or low income alone is rarely a pathway into social housing," the report said.

"The need for shelter alone is rarely enough to trigger entry into social housing."

It said a lack of affordable housing alternatives put pressure on the sector due to the return of tenants who had previously left the system.

In Tasmania, a single person on a weekly wage of $552 would be eligible for social housing, as would a single adult with a child on a wage of $954 or a couple with two children on $1022 a week.

The report noted Tasmania's efforts to utilise private housing stock for people eligible for social housing such as the government's private landlord's incentive scheme and assistance for social housing tenants to purchase the homes they rent.

It said some states provided no such assistance.

The report said because there had been a shift in prioritising social housing for people with complex needs, the likelihood of households being in a position to move from the social housing sector had decreased and policies did not reflected this.

Queensland's 100,000-property public housing shortfall revealed

Queensland has a severe shortage of social and affordable housing, an issue that is projected to get worse by 2036 according to new research.

More than 102,000 additional social houses are currently needed across the state, and 54,700 affordable houses are also needed with nearly 13 per cent of Queenslanders spending more than 30 per cent of their income on rent.

Queensland has a severe shortage of social and affordable housing, an issue that is projected to get worse by 2036 according to new research.

More than 102,000 additional social houses are currently needed across the state, and 54,700 affordable houses are also needed with nearly 13 per cent of Queenslanders spending more than 30 per cent of their income on rent.

https://www.brisbanetimes.com.au/national/queensland/queensland-s-100-000-property-public-housing-shortfall-revealed-20190314-p51451.html

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Brisbane Queesland Leading property market price increase

Queensland leading the way

Queensland is leading the way in the recovery. Brisbane has been the first capital city off the block in terms of price growth. 

Brisbane's infrastructure backlog is finally starting to move with a string of new projects, which is helping to lift the state economy and take over from the city's slowing apartment market.

“Over supply of apartments in Brisbane had the potential to derail Australia’s financial stability, however, not only did Brisbane weather the downturn very well, it is the first capital city to see positive growth in June,” Conisbee said.

The Queensland capital was up 0.1 per cent in the quarter with a median of $490,000, weathering the national downturn despite risks its over supply of apartments threatened to derail financial stability.

Sydney and Melbourne both lost 0.4 per cent in the quarter to $805,000 and $650,000 respectively.

“There is also greater positivity in the market as a result of a new airport runway and casino,” Conisbee said.

The Queensland budget, announced last month, featured almost $13 billion in capital works programs to support 40,500 jobs across Queensland, with 25,500 of these jobs in regions.

The Palaszczuk government is using the Cross River Rail to undertake redevelopment in Woolloongabba in Brisbane's south and the Roma Street transit station, which they are hoping to turn into a 17,000-seat entertainment stadium. 

The Brisbane City Council's $944 million Metro project will also link with the Cross River Rail.

“While there is a clear affordability edge in South-East Queensland compared to Sydney, it is jobs that is making the move possible,” Conisbee said.

“The upswing is also extending to regional areas, with Mackay seeing the strongest price growth of any region in Australia over the past 12 months, and many smaller mining towns are roaring ahead.

“The other more unique factor about Brisbane is that we are seeing some big jumps in offshore property seekers,” Conisbee said.

“Chinese buyers are gone but property seekers from India have more than doubled over the past 12 months, perhaps suggesting that Indian born buyers may begin to have as big an influence on house and land sales as they have had in Melbourne and Sydney.”

https://theurbandeveloper.com/articles/market-recovery-rea-group

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Developer Villa World Enters $293m Takeover Deal

Property developer Villa World has entered into a binding agreement with Avid Property Group in a $293.6 million takeover deal. 

Under the scheme, ASX-listed Villa World agreed to $2.3451 cash per share.

Independent chair of Villa World Mark Jewell said once the scheme is implemented shareholders will receive a cash payment at a “meaningful premium to the trading price of Villa World shares prior to the announcement of the initial Avid proposal”.

The price is 17.8 per cent premium to Villa World’s closing share price of $1.99 as of 14 March, the last closing price of Villa World shares when Avid initially approached the group.

Avid has a $3 billion portfolio of broad acre and medium-density, residential and industrial projects, and is owned by a number of international institutional investors, whose investment is managed and advised by Proprium Capital Partners, a fund manager headquartered in the United States. 

Avid chief executive Cameron Holt said the acquisition strategically combined two strong performing and complementary businesses.

“Leveraging the talent, expertise and systems of both businesses will create a stronger, better platform from which to grow,” Holt said.

Avid expects to fund the cash consideration from internal resources, equity contributions and debt facilities, with the scheme not conditional on Avid securing funds.

The implementation of the scheme is still subject to conditions, including the approval of Villa World shareholders.

The scheme also carries a break fee of approximately $3 million, payable by Villa World to Avid. 

Subject to shareholder approval and the conditions being satisfied, the scheme is expected to be implemented in late October-early November.

Villa World's board is being advised by Macquarie Capital as financial adviser and Allens as legal adviser.

Tenant Demand for Brisbane Apartments Strengthens

Brisbane's apartment vacancy rate fell to just 1.6 per cent in March, driven lower by a slowing decline in supply and continued population growth. 

Brisbane's vacancy rate tightened by 0.6 per cent from the previous quarter according to a new report by property consultants Urbis.

Comparatively, the Real Estate Institute of Queensland (REIQ) recorded a vacancy rate of 2.1 per cent for the total inner Brisbane rental market over the same period, down 4 per cent from the previous quarter.

The figures from Urbis quarterly Inner Brisbane Apartment Rental Review highlights a market in transition, with many in the residential sector continuing to shift focus from investors to owner-occupiers.

Brisbane's premium market is also seeing a flurry of activity, however Riga warned of risks for buyers in this market generally take longer to transact. 

“This market of premium buyers is expected to sustain growth moving forward as our Brisbane market matures, and acceptance of the apartment lifestyle spreads across multiple demographics,” he said. 

“Ultimately it comes down to ensuring that each development aligns the potential buyer market with the pricing and inclusions that they expect.”

Predictably, a significant portion of buyers spending $2 million-plus on apartments continue to be down-sizers, swapping the family home for a large inner-city apartment.

At the lower end of the market one-bedroom apartments have continued to remain popular with inner Brisbane renters.

Urbis found that one-bedroom, one-car space apartments had the highest average number of rental applications per apartment with the inner south and CBD recording higher rents on average.

Hopes are growing for the apartment market in the Queensland capital. A separate report by JLL earlier this year said Brisbane apartment prices and rents would stabilise over the next 12 months.

For now, conditions in Brisbane, the apartment construction market that was first to boom and also the first to decline, remain weak.

Michael Shekell

Director

Builder Brokers 1800 1 BUILD

https://theurbandeveloper.com/articles/tenant-demand-for-brisbane-apartments-strengthens

Who Will Build the 730,000 New Social Dwellings Australia Needs?

Research from the Australian Housing and Urban Research Institute (AHURI) consistently shows that regardless of which funding or financing model is used to provide social housing, there is a gap between what it costs to build and manage social housing and the amount low-income tenants can afford to pay to live in it.

While rent subsidies and assistance help many low-income tenants, they do not impact the overall lack of supply of housing. Addressing this deficit will call for the construction of some 730,000 new social dwellings across Australia over the next 20 years.

“There is genuine need for large-scale investment in affordable housing to deliver the supply required into the future,” AHURI executive director Dr Michael Fotheringham said.

“There are key roles to play for developers, financiers and planners, as well as community housing providers and government.”

The National Housing Finance and Investment Corporation (NHFIC) launched in 2018 to provide loans, grants and investments that complement, leverage and support commonwealth, state and territory activities related to the creation of housing. 

At this year’s National Housing Conference — the largest gathering of those working with social and affordable housing — a panel will revisit the NHFIC one year on: is it the silver bullet to financing affordable housing or is it just one piece of a yet to be completed financing and funding puzzle?

“Absolutely lower cost debt plays a key part in the delivery of new supply of affordable housing,” Hume Community Housing chief executive Nicola Lemon said.

Hume Community Housing is the first organisation to be approved for a NHFIC loan.

“Our partnership with NHFIC and its investors has already delivered great outcomes, but it is not the end game. 

“The end game is that affordable housing is fully established as a pure standalone asset class, that attracts capital and institutional investment that can provide yield returns aligned with that of infrastructure investments. 

“There is no silver bullet and for this to occur a range of subsidy, tax and policy settings need to be reconsidered at all levels of government.

“The CHP sector is ready to work with investors, developers and governments to ensure the settings are right to deliver much needed social and affordable homes now and in to the future.”

The CEO of NHFIC will be joined by ANZ, who helped finance the first bond, Hume Housing and another community housing provider who have received loans through NHFIC’s first funding round to develop much-needed affordable housing.

Cross-sectoral communications and partnerships have been heralded as the key to success in such projects.

A dynamic line up will come together for the National Housing Conference’s major session Dollars to Dwellings: Financing affordable housing. 

Read more and view the full program here.

Mirvac Set to Launch 124 Home Everton Park Project

Mirvac will kick off construction on its Everton Park project later this year, the development will feature 124 residences including a mix of homes and townhouses located seven kilometres from Brisbane CBD.

The development approval, granted by Brisbane City council, comes after community pushback and an appeal made against the project. Mirvac has since reduced the 139-lot estate to 124-lots and removed all three-storey townhouses, putting a two storey height limit in place.

Masterplan changes also include a change to the minimum lot size, increased to 400sq m, with the 300sq m lot sizes removed.

Construction of the six hectare site is expected to commence in late 2019.

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