The Domain House Price Report reveals that SouthEast Queensland’s coastal hotspots continue to reap the benefits of an exodus from the big cities, with the Gold Coast clocking a record high median price of $749,950, following a 15.4% annual jump. Across the Gold Coast, Broadbeach and Burleigh recorded the biggest annual price hikes, with prices rising 27% over the past year. Domain senior research analyst Nicola Powell says the figures demonstrate the compelling pull of lifestyle precincts as more and more Aussies work remotely and can swap the concrete jungle for less traffic and more sand. “The Gold and Sunshine coasts continue to be standout performers,” Powell says. “South-East Queensland’s market has become increasingly popular with interstate buyers and the number of Australians relocating to Queensland is at its highest level since 2006.” Harcourts Coastal Group sales director Rob Forde says their team has clocked up an astonishing quarter on the Gold Coast with southern buyers fuelling price growth.
Qld Building Through The Roof
One in five homes built or renovated using cash from the Federal Government’s HomeBuilder scheme is in Queensland, new figures have revealed, with the construction sector warning of worker shortages. A total of 21,871 new homes are being built and 4,422 renovations are being done through the HomeBuilder scheme. The number of homes being built in Queensland through the scheme eclipses that of NSW (16,266) and is more than those of South Australia, Tasmania, ACT and the NT combined. The success of the scheme and low interest rates has created a domino effect, according to Master Builders Queensland deputy chief executive Paul Bidwell. The scheme has created a flurry of activity which has led to demand outstripping supply and creating “massive” trade and supply shortages. “You can’t get a roofing contractor for love or money,” Bidwell says. “It’s a dark underbelly of HomeBuilder. The property market is going ballistic. It’s a perfect storm of conditions which are impacting the industry.
Quote of the Week
“House prices are up 8% already this year based on CoreLogic numbers. There’s another 2% coming in May alone. As this year settles down, we’re going to see house price growth at 15% or 20% in some cities.” Shane Oliver, chief economist of AMP Capital
Buyers Eye Off-the-plan Projects
Sentiment towards off-the-plan properties is improving, with the number of online searches rising four-fold in some areas over the past three months as government incentives entice first-home buyers to the sector. Moreton Bay in Brisbane’s north and Riverstone in Sydney’s north-west are the most popular, racking up 340% increases in the number of buyers searching for off-the-plan properties, new Domain data shows. Mark Bainey, chief executive of Capio Group, says demand for medium-density off-the-plan developments outside the CBDs has rocketed, with buyers paying record prices for townhouses and bigger apartments. Government concessions have helped to improve sentiment towards the sector, says Nicola Powell, Domain’s senior research analyst. FHBs in NSW and Victoria get $10,000 for new homes and stamp duty discounts, while Queensland offers $15,000 to FHBs of a new home. “I think the affordability of the outer suburbs has also been a lure for buyers to move to these new developing areas, particularly with the ability to work from home,” says Powell.