Friday 20th July 2007 was an exciting day at Robina. The Federal Minister for Vocational & Further Education, the Hon. Andrew Robb AO MP turned the first sod of soil on the new Scottsdale Drive site for the Australian Technical College – Gold Coast. This College is part of a National Federal Government initiative to establish 28 such facilities around Australia to assist and support trades training for the youth of Australia.
This $10 million investment further indicates the appeal of Robina as a major Commercial hub in South East Queensland’s development.
Source: Robina Land Corp
A CHRONIC shortage of housing will continue to push up already soaring rental prices throughout Australia for the next few years. Amid fears that election spending could fuel an interest rate rise, a report to be released today warns that construction of homes is expected to be well below underlying demand for a fourth consecutive year and will remain so until 2009-10. It also says that while a recovery in dwelling construction is “on the horizon”, it will be slowed by poor housing affordability.
But according to the annual study by industry analyst BIS Shrapnel, the recovery has already begun in southeast Queensland, with construction of houses up 7 per cent last financial year. “That recovery is leading the nation. It’s happening well ahead of the rest of the country and not before time,” BIS Shrapnel senior manager Jason Anderson said.
Home construction in southeast Queensland was forecast to rise another 5 per cent in 2007-08, but Mr Anderson said it was “still not enough”. He said there was a demand for about 44,000 new homes in Queensland each year but last year only 39,000 were built.
Source: The Courier Mail
Demand for residential investment property is set to strengthen as seasoned investors who may have quit the market to take advantage of the superannuation contribution incentive are keen to return, a survey shows.
Wizard Home Loans says the number of Australians planning to buy residential investment property in the next 12 months jumped by 13 per cent to 878,000 in the March quarter, up from 779,000 in the December quarter.
The number of intending residential investment property buyers in Queensland rose by 32 per cent to 208,000 during the March quarter, up from 158,000 in the three months to December.
Wizard said this was almost double the level of 18 months ago after a series of consistent increases.
“This suggests intending property investors are a healthy mix of first-time investors and more seasoned investors who may have quit property to take advantage of the superannuation contribution incentive and are now keen to get back in the market,” Wizard chairman Mark Bouris said.
“With property returning as a key asset class in the investment portfolio, it’s fair to say the chasm between demand and supply will be a key factor affecting the future vibrancy of Australia’s property investment market,” Mr Bouris said.
Source: Sydney Morning Herald
The Cairns property market has finally moved beyond it’s old boom and bust habits. The metropolitan area has a residential population of 130,000 plus around 14,000 Australian visitors and another 11,000 international tourists at any given time. Unemployment is just 2.6% and the median price of land grew 45% last year… “The market is now on a steady upward path”… “We just cannot put up housing fast enough to cater for the population growth”.
Source: Australian Financial Review
If you think rents are high now, this could shock you: one property expert thinks most landlords are undercharging.
While prices have been on the climb, Rental Express director Chris Rolls said many landlords have a lack of marketing information and were charging too little – not too much.
When changes to superannuation laws were announced, a wave of investors sold their properties and shifted the proceeds into superannuation – tax-free.
That mass exodus, coupled with soaring property values, spiralling vacancy rates and increased demand makes the market very attractive for investors.
However many haven’t realised just how attractive, Mr Rolls said.
“Many agents and owners live by a standard rent increase of $5 or $10 per week each time the lease expires,” he said.
“This just doesn’t make sense in a market where rental prices are increasing by up to 15 per cent annually.”
In one instance, Rental Express took over the management of four one-bedroom flats in Kelvin Grove that rented for $160 per week.On one unit they increased the rent to $200 per week, and to $180 on the others. “That’s an extra $5200 per year of income for the owner,” Mr Rolls said. Owners are getting a better return on their investments than in the past 10 years, and the trend was expected to continue, he said.
HowMuchRent.com.au is an independent valuation resource that calculates expected rental income.
THE Gold Coast property roller-coaster has hit new highs with house prices skyrocketing a staggering 7.9 per cent in just five months.
New research shows that southeast Queensland has soared beyond the price boundaries of its southern neighbours, with Sydney recording a lacklustre 1.4 per cent growth by comparison.
Rismark International head of research Dr Matthew Hardman said the report, conducted in conjunction with RP Data, proved that investors could not go past the Coast when it came to capital gains.
Source: GC Bulletin
HOUSING affordability on the Gold Coast is now only slightly better than in the inner city or North Shore of Sydney, a new report reveals. The report, tabled at a Urban Development Institute of Australia seminar yesterday, showed that median house prices across the Gold Coast rose by an average of 104 per cent between 2000 and 2005. The average house price is now more than $400,000 and the average rent on a four bedroom home is $380 a week.
Source: The Courier Mail
Success of Easy T Centre sparks new development with more space.
A NEW $200 million business hub at Robina is set to complement the existing town centre retail and business district. The business centre will be developed in the next decade and will include dining, retail, commercial, showroom and light industry space.
It will be developed on 10 hectares around the junction of Christine Avenue and Scottsdale Drive, the site of the Easy T Centre – a popular retail, dining and healthcare precinct – and will encompass the Robina Automall and the Dog and Parrot tavern.The automall, home to Robina Holden, will accommodate the Gold Coast’s Grand Motors Mercedes dealership.Grand Motors has invested $15 million in the development of extensive showroom and workshop facilities and will relocate its Mercedes dealership from Southport on completion – in a matter of weeks.
Source: GC Business News
The cartoon from todays paper says it all. We are on level 5 water restrictions but the subject matter is the shortage of available land and the skyrocketing prices.
The caption reads – “WHAT WATER? THIS IS DIRT .. THERE IS A LAND SHORTAGE , YOU KNOW”
Prices likely to soar as land runs out. The Gold Coast has less than three months supply of vacant land available sparking fears that house prices and rents will soar to record levels. Rents are already the highest in Queensland rising an average of 10% over the last year – 4 times the CPI. The reports author, Bill Morris of the Midwood Report, said that prices were set to increase into 2008-2009 and demand will exceed supply applying more pressure.
Source: Gold Coast Bulletin
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