February 15, 2017
by Platform Research
February 15, 2017
Underlying demand from Chinese property buyers will remain strong despite forecasts of instability including settlement risk, a Brisbane conference heard last night.
The Annual Aus-China Investment and Economic Roundup – organised by business intelligence firm Basis Point – said property was one of five “boomlets” influenced by Chinese buyers.
Some turbulence was expected in Australian property markets off Chinese buyers under pressure over financing and funding expatriation out of China, according to Basis Point managing director David Chin.
“The first half of 2017 will be slow – because of the Trump effect and currency regulations – but the second half will be as before.”
Mr Chin did not expect settlement risk to be a major issue with Chinese buyers despite financing issues including local banks withdrawing lending to foreign investors.
Basis Point’s “Dragon Down Under” report, released at the conference, said there were “still strong incentives for Chinese buyers to settle or offload before settling”.
Apart from capturing profits from valuation increases, property was considered a safe haven investment outside of China, it said.
“A small loss is not material in the overall strategy of the Chinese investor.”
Settlement risk would not begin to “manifest itself” in the general market until mid 2017, according to Mr Chin.
Among the biggest targets for Chinese investment were Melbourne and Brisbane, with some major room to grow in the Queensland market given its relatively more affordable pricing.
Department store David Jones has submitted a DA to develop a new luxury David Jones boutique along the high-end James Street shopping strip.
The proposed development will be an internal refit of the former SPACE Furniture showroom and will span three levels totalling 1,437 sqm.
This store will effectively reflect a downscaled but specialist version of a typically larger David Jones store.
According to the DA, the boutique store will house a bespoke merchandise offer curated specifically to suit inner-city Brisbane’s growing population and the many visitors to the thriving James Street retail and lifestyle precinct.
The proposed ground level will feature an entry concierge, womens accessories and jewellery as well as beauty section. Level one incorporates womenswear, fitting rooms, shoe and handbag area and storage, and accessible bathroom.
Level two incorporates menswear, womenswears, fitting rooms, mens accessories and shoes and storage, staff lounge, kitchen, administration and lockers. Personal shoppers and style advisers are also planned for the store however and lockers. Personal shoppers and style advisers are also planned for the store however to the dismay of many shoppers there is no food hall planned.
This will be David Jones’ second smaller format high-end boutique after a similar offering opened in Sydney’s Barangaroo development in November last year.
David Jones James Street is anticipated to open early 2017.
For more information, please visit https://brisbanedevelopment.com/david-jones-unveils-new-high-end-james-street-boutique/
Brisbane’s New Runway is entering its next important phase of construction with the awarding of the $120 million Dryandra Road Works contract to McConnell Dowell.
The Dryandra Road Works contract, which will create up to 300 new jobs during the build, is a significant structural element of the new runway project involving the construction of a reinforced concrete four-lane underpass.
The underpass will allow vehicles to travel under the taxiways that will connect the new runway to the Domestic and International terminals and existing runway system. This is necessary to ensure continued access to key airport facilities such as the Royal Flying Doctor Service, General Aviation Terminal and Acacia Street viewing area.
Works are expected to begin on site in March this year with a completion date in August 2018.
The Dryandra Road Works package will be followed later this year with the final and largest works package, the Airfield Works.
Julieanna Alroe, Brisbane Airport Corporation (BAC) CEO and Managing Director, said the Dryandra Road contract was a significant component of the overall contribution to jobs for the region, with 2,700 employment opportunities estimated at the peak of the runway’s construction.
“Most importantly, when the new runway opens in 2020, Brisbane Airport will have one of the most efficient runway systems in the country with sufficient capacity for many years to come,” she said.
“Efficient operations and ample capacity will attract more opportunities and boost business, injecting an estimated $13 billion into the Australian economy by 2034 and supporting more than 88,000 jobs nationwide.
“So it’s very exciting to be realising the grand vision for Brisbane Airport that has been in the planning since 1988 when the airport was opened in its current location as the opportunity it creates for Queensland is unlimited.
“Indeed we are very fortunate that more than 30 years ago the Government at the time had the foresight to select this particular location for Brisbane Airport.
“It is a decision that has allowed maximum growth of the airport with minimum impact to the community due to the 6 kilometre buffer zone, the largest in Australia for any capital city airport,” Ms Alroe said.
For more information, please visit https://brisbanedevelopment.com/construction-starts-120-million-airport-taxiway-bridge/
Buying into popular Sydney school zones has become even tougher, with prices in some public school catchments soaring by as much as a third last year, a report released on Tuesday shows.
In Sydney’s 10 fastest growing school catchments, sales prices increased by more than 20 per cent in the 12 months to October 2016, compared to 1.5 per cent growth Sydney-wide, the latest Domain School Zone Report shows.
While this posed a challenge for new parents, proximity to a good public school could dramatically improve the fortunes of those living within the catchment, Domain chief data scientist Nicola Powell said.
“We know from anecdotal feedback from both agents and parents that a desirable school zone can influence prices by up to 10 to 15 per cent,” she said.
“The school catchment helps determine the type of life you’re going to live, your commuting time and the education for your children, so it’s understandably something people will pay more for.”
When Chris Quevedo and his wife Lucy started their home hunt last year their top priority was their four-year-old son Joshua.
“The main question was one of schools in the inner west and where we could send our son,” Mr Quevedo said.
They bought in Petersham for $1,365,000 because it was close to a combination of good public, private and Catholic schools.
“The ranking of the schools in the area is high and where we bought is on the boarder of several schools, so we’d be able to get him in if we tried,” he said.
Their buyer’s agent, National Property Buyers’ Simone Luxford, then working for House Search Australia, said homes were now selling nearby for $1.6 million – less than 12 months later.
“With clients that do particularly want to move into school catchment zones, some come to us with a specific school in mind and others come with an area in mind asking what the schools are like,” Ms Luxford said.
“If they’re really sold on a specific school they’ll pay more to get it over the line when push comes to shove.”
Often, these are home buyers considering the school zones before their children are even born – young professional couples who have plans on a family, she said.
For more information, please visit https://www.domain.com.au/news/prices-in-popular-sydneys-school-zones-surged-by-as-much-as-a-third-last-year-report-shows-20170208-gu8dhj/
At its first meeting for the year, the Reserve Bank has decided to again leave official interest rates at the record low 1.5 per cent. Rates have now been on hold since August last year’s cut.
Although rates remain on hold, latest data continues to report a mixed performance by the national economy. The jobless rate has rise, planned construction and retail sales trends continue to weaken, and wages growth and inflation are at record low levels.
Full-time jobs are falling and the dollar continues to track at higher than desirable levels despite higher interests rates in the United States.
Housing markets have started the year positively with strong home auction clearance rates in Sydney and Melbourne. Most capitals reported solid house price growth at the end of 2016.
With the latest economic data still mixed, rate cuts remain likely soon unless the economy improves and regardless of continuing strength in the Sydney and Melbourne housing markets.
For more information, please visit https://www.domain.com.au/news/rates-on-hold-as-housing-markets-remain-strong-20170206-gu70oo/
February 6, 2017
by Platform Research
Properties under $1 million will make up Brisbane’s fastest growing market this year, agents say.
Place CEO Damian Hackett said he expected substantial growth in the $500,000 to $800,000 housing market, with middle city suburbs leading the way.
“The dramatic increase in property prices in Sydney and Melbourne over the past few years has dried up affordable investment housing stock,” he said.
“We predict there will be rising competition in Brisbane as interstate investors look to the city for prospects.”
Mr Hackett said his office was fielding a lot of inquiries from buyers’ agent down south.
“It’s been well documented that the inner city suburbs are in demand and they will continue to do very well – but it’s that next ring out that’s now attractive and increasing demand,” he said. “The mid to outer ring is where affordability lies.
“If investors are looking for capital growth, anything in that $500,000 to $600,000 price bracket is going to do well.
“If you can get something on a block of land as close as possible to the CBD and close to infrastructure (shops, transport), you’ll do well.”
For more information, please visit https://www.domain.com.au/news/interstate-investors-set-to-flock-to-to-brisbanes-middle-ring-suburbs-20170203-gu3qbq/
February 3, 2017
by Platform Research
A development application has been submitted for the refurbishment of the tired Lutwyche City shopping centre by the new owners Abacus Property Group and Zenonos Group who in 2015 bought the centre for $65 million.
The proposed refurbishment consists of the following changes:
A new 3,400sqm Woolworths supermarket
Extension to exterior building footprint
Internal re-orientation of tenancies
A new child care centre, health care services, retail tenancies and office space
New delivery and loading facilities
Public realm improvements and landscaping
Centre refurbishment and improved facade presentation
Designed by Ignite Architects, the refurbishment also includes the development of a number of tenancies overlooking Chalk Street which incorporates a long balcony running parallel to Chalk Street.
The Lutwyche-Wooloowin area has a total of 36 new residential apartment developments either recently completed, under construction or about to commence marketing which equates to well over 1,000 new apartments for the immediate area.
Due to the recently completed busway station infrastructure as well as lower than average apartment price points, there are been a dramatic influx of younger demographic to the Lutwyche area which has created new retail demand.
For more information, please visit https://brisbanedevelopment.com/major-refurbishment-planned-for-lutwyche-city/
February 3, 2017
by Platform Research
It’s a land of milk and honey for bouncing babies in Ipswich’s eastern suburbs.
The figures are in and now available on the State Government’s open data website and Ipswich postcode 4300 – which takes in suburbs including Springfield, Goodna, Gailes, Camira, Bellbird Park and Brookwater – is third highest in the state for babies born by local mothers with 1091 births in 2016.
That is behind the Toowoomba and Mackay with 1467 and 1163 respectively.
Ipswich postcode 4305 was fifth with 940 births.
The average age of a suburb like Springfield for instance is 28, compared to the national average of 37.
Springfield’s Melanie Zambelli’s 11-month-old daughter Serena was one of the 1091 births. Ms Zambelli and her husband Michael also have a son turning two next weekend and a five-year-old daughter.
The couple has lived in Springfield for six years and Ms Zambelli said it was a place that had plenty of attractions for young couples with children and those planning to add to their families.
“This is just a very good area that is very well set up with plenty of doctors and everything nearby that you need,” she said.
“There are good schools nearby and we send our daughter to St Francis Xavier School at Goodna which is just 10 minutes down the road.
“I find going to Orion Central to be one of the better shopping centres to go to.
“We have a lot of parks and playgroups that get us out in the community and we are a part of the new Catholic parish in Springfield, Our Lady of the Southern Cross.”
Raine and Horne sales and projects director Chris Booth, whose company has offices in both Goodna and Springfield, wasn’t surprised by the birth figures and said there were several reasons why he was selling plenty of homes to young families in the 4300 postcode.
While acknowledging the different demographics of suburbs such as Goodna and Springfield, he said both offered good value compared to Brisbane and access to train travel with work.
“Young families are being out-priced in the inner suburbs of Brisbane so they are looking at options to move those market places,” he said.
For more information, please visit http://www.qt.com.au/news/revealed-the-ipswich-suburbs-attracting-young-fami/3137577/
February 2, 2017
by Platform Research