The Queensland Government has been urged to extend its build-to-rent scheme to the suburbs to help with the rental shortage crisis. Developer Kent Leicester of KDL Property Group warns that Queensland will struggle to meet chronic shortfalls in housing unless new initiatives are introduced to boost supply. He says this could include extending the inner-city apartment-based build-to-rent scheme further afield to include houses in outer suburbs to increase rentals. “It’s widely known there are simply not enough rental properties available and those that are on the market are priced out of many people’s reach” Leicester says. “In Queensland, the State Government has so far approved only a few build-to-rent developments, which are apartment projects in inner Brisbane. “We need not just apartments but more house-and[1]land projects in the outer suburbs of Brisbane and on the Gold Coast and Sunshine Coast to boost the supply of affordable rental housing where it is most needed.”
Super-tower Planned For Gold Coast
Plans have been revealed to build a 100-storey super-tower on the Gold Coast. A Melbourne consortium is expected to lodge plans with the Gold Coast City Council to build what would be Australia’s tallest tower in Southport. The $400m two-tower project, is earmarked for a site on Park Lane next to the Southport Bowls Club. It will include a second 60-storey tower. The larger 100-storey tower would incorporate 197 units, while the smaller tower is designed to be an office building with more than 12,000m2 of commercial space. The two buildings will be linked on the 22nd level by a three-storey skybridge which will include a restaurant, function space and public bar. The consortium behind the project includes fund manager Payton Group, architects BKK, town planning firm Urbis and engineering consultancy Van der Meer. Gold Coast councillor Brooke Patterson says the area needs a development with great architecture, and which makes a positive contribution to self-sustainability
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“Those forecasts take me back to April 2020, when there was panic selling and predictions property prices would drop 30% because of the pandemic. They didn’t – and instead home values rose more than 35% over the next two years as demand for real estate surged.”
Personal Finance writer for The Australian Anthony Keane, urging consumers to ignore doomsday forecasts
Mortgage Arrears Drop To Record Low
The high employment rate means mortgage arrears are at their lowest levels in two decades. Analysis by Fitch Ratings shows Australia’s 30-day mortgage arrears fell to 0.82% in the three months to June 30, the lowest level since tracking began in 2002. The 90-day mortgage arrears fell to just 0.4% quarter-on-quarter in June. HSBC chief economist Paul Bloxham does not expect those levels to increase substantially on the back of rising interest rates. He says banks have strong lending standards which ensure borrowers have a significant buffer to meet interest rate rises. “The RBA suggests that a 300 basis points rise in rates would not change overall mortgage repayments for around 35% of borrowers,” he says. “However, the same work shows that around 30% of borrowers will face a sharp rise of over 40% in their repayments.” Fitch predicts house prices will fall in 2022 but owners will still come out on top because of the strong growth in previous years.
Homes Still Selling Fast In Many Areas
A large family home in the suburbs continues to be popular, with new data showing those types of houses sell faster than others. PropTrack says 90% of the fastest-selling houses in the 12 months to the end of June were three[1]bedroom homes in suburbs with a median price of less than $1 million. It says three-bedroom houses in Sydney’s Camden South ($764,500) are selling within 14 days on average while in Gordon ($727,500) in Canberra and New Town ($945,000) in Hobart houses sell on average in 16 days. Houses sell faster than units in most suburbs although in Manly Vale on Sydney’s Northern Beaches one-bedroom or two-bedroom units sell on average within 18 days. PropTrack senior economist Eleanor Creagh predicts more properties will be listed for sale in the coming weeks. “Spring is a popular time for vendors to sell,” she says. “As we head through September, we are likely to see an increase in the number of properties hitting the market”
Price Gloom Shouldn’t Spell Doom
Property owners shouldn’t worry about dire predictions that prices will drop, according to Personal Finance writer for The Australian, Anthony Keane. Keane says while there is a lot of bad news being peddled as prices ease, there are many reasons to remain positive about the longer-term outlook for property. He says major bank economists are tipping that real estate prices will drop by 15-20% by the end of next year but he does not believe that will happen. “Those forecasts take me back to April 2020, when there was panic selling and predictions property prices would drop 30% because of the pandemic,” he says. “They didn’t – and instead home values rose more than 35% over the next two years as demand for real estate surged.” Keane says real estate has proven its resilience many times. “Since 2000 we’ve witnessed wars, a pandemic, stock market collapses and a global financial crisis, yet home prices are much higher than two decades ago.”
