New post added at - Bumper year for Queensland Jan 13, 2015 The real estate market in regional Queensland will enjoy stronger market conditions in 2015, according to leading property group Raine & Horne. Steve Worrad, General Manager Queensland, Raine & Horne, said: “Market conditions are improving in Brisbane and on the Gold Coast, and now the smart money is starting to chase further afield for the prospects of capital growth and decent yields in other regional centres. “Major hubs such as Toowoomba are set to benefit from major infrastructure improvements, while smaller centres such as Woodford and Kingaroy will enjoy the benefits of factors such as lower interest rates and the breaking drought. “Once we get past the Queensland election, which was called by the Premier this afternoon for January 31, homeowners and investors considering the sale of a regional property in Queensland can expect excellent selling conditions in 2015.” Toowoomba Andrew Lynch, Principal of Raine & Horne Toowoomba is predicting that the recent launch of the Brisbane West Wellcamp Airport will have a dramatic impact on the economy and real estate markets in the western Queensland town. “The airport, which supports large passenger aircrafts, is a first for Toowoomba and will prove a massive boost for tourism and business,” said Lynch. “As it stands, Toowoomba is a multi-industry town with strong service and healthcare businesses and a robust agricultural sector. It is also a strong education hub with the University of Southern Queensland (USQ) and the private schools led by Toowoomba Prep and Toowoomba Grammar employing hundreds of locals. “The airport will magnify Toowoomba’s excellent economic prospects as a regional hub by bringing more businesses, tourists and investors to the town, which in turn will underpin real estate values and rental yields.” Since the November launch of Wellcamp Airport, a number of large commercial developments in Charlton on the western side of Toowoomba have attracted enquiries from businesses considering relocating from Brisbane, according to Mr Lynch. “Significantly, Charlton is not far from the airport,” said Lynch, who is predicting the residential market in greater Toowoomba will grow by between 5 percent and 8 percent in 2015. “It will be higher in some suburbs such as Rangeville and Centenary Heights, which are tightly-held locations on the eastern side of Toowoomba, which is popular with owner-occupiers. “The median price range in Rangeville and Centenary Heights is around AUD$ $ 400,000 and properties are selling like hotcakes.” To illustrate the point, Lynch sold 10 Karyn Street, Centenary Heights for AUD$ $ 400,000 in days. “Another agent predicted the property would sell for AUD$ $ 365,000, however we had interest from 23 parties and multiple offers pushed the price to AUD$ 400,000,” he added. Likewise, new developments close to USQ, on the town’s west side, are proving popular with yield-hungry investors. “Suburbs to watch include Darling Heights which is very close to USQ and shops, while the shortage of housing in that area, rental yields of 5 percent are very achievable. “Brand new four bedroom homes with double garages in Darling Heights are selling for AUD$ 460,000 and renting for between AUD$ 480 and AUD$ 490 week. “Throw in the depreciation benefits of owning a new investment, and a residential property in Darling Heights will stack up in 2015,” said Lynch. Moreton Bay In the past, the Moreton Bay region has attracted a significant number of investors, although Jill Garth, Principal of Raine & Horne Woodford, is reporting the re-emergence of first time buyers due to lower interest rates. “While the Woodford market has previously been dominated by investors, there is a noticeable trend towards young couples and a re-emergence of first home buyers,” said Garth. “There is a definite and clear shift in the demographics of the area, which was once a very aged population. The more recent call for further interest rate cuts is also fuelling activity. According to Garth, Raine & Horne Woodford’s last three sales were made by young working couples either buying a first home or an investment property. This includes the sale of 27 Durundur Street, Woodford , a four-bedroom post war Queenslander, which is built on a big 1,200 sqm block. “It went under contract for AUD$ 320,000 after just 20 days on the market,” said Garth, who declared that the Woodford real estate market has bottomed. “This assessment is based on increasing stock turnover, as buyers seek to enter the market in increasing numbers ahead of any further price rises.” Low interest rates and strong rents are also giving investors a rare opportunity to positively or neutrally gear an investment property in Woodford, according to Garth. “Yield-hungry property investors will enter the market in greater numbers in 2015, as prices bottom out and rental growth continues,” she added. “Raine & Horne Woodford has listed a three-bedroom home on a 1/4 acre that is rented for AUD$ 280 per week with an asking price of AUD$ 239,000. This represents a healthy rental yield of 6.2 percent.” South Burnett region An increase in rainfall bodes well for real estate markets in the South Burnett region, which is 2.5 hours north west of Brisbane, according to John Allery, Co-Principal of Raine & Horne Kingaroy. “If the rain continues, the business and real estate prospects for the region look very good in 2015,” said Allery. Famous for peanuts, Kingaroy has a diversified economy, according to Allery, which helps to make the town resilient to the ravages of drought. “We have one of the most significant pork abattoirs in Australia, Swickers Kingaroy Bacon Factory, which employs 500 people. This in turn supports a number of major piggeries in the area, along with the grain producers, which provide feed to the piggeries,” he said. “There is also the Stanwell Power Station that employs about 450 locals, as well as the ancillary businesses which support its operations.” Despite Kingaroy’s economic diversity, real estate affordability is a by-product of the 2014 drought according to Allery, who is tipping property values could appreciate by as much as 5 percent in 2015. “It’s a great buying market, with some investors starting to make their presence felt,” said Allery, who confirmed that entry-level homes in Kingaroy are available for less than AUD$ 200,000. “Good, solid three-bedroom wooden houses start from AUD$ 190,000 in Kingaroy, with weekly rents of AUD$ 220 achievable,” said said. “Meanwhile a four-bedroom, two-bathroom home such as 19 Reservoir Street, Kingaroy (pictured), which sell for around AUD$ 350,000, are proving popular with upgraders.” Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email [email protected] Related Articles: 3-month SIBOR rise expected: experts More housing units could be built in Bedok Homebuyers prefer lower property prices instead of freebies CCR homes to see biggest price decline in Q1 2015 6 New Year resolutions for landlords Post A Comment
Posted on: Tue, 13 Jan 2015 02:32:37 +0000
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