With median prices often between 20 to 60 per cent less than houses, it is little wonder that units and townhouses are becoming increasingly popular with buyers. And as these properties are usually located in prime locations – such as the inner city or on the beach – they also offer a lifestyle attractive to many people.
The latest Real Estate Institute of Queensland (REIQ) median unit and townhouse price data reveals the unit and townhouse section of the market is continuing to appeal to buyers across the State. “Queensland is leading the way in the country’s population boom. More than 160,000 people migrated here from interstate in the five years to the end of June 2007 and the Sunshine State continues to record the highest population growth rate – net overseas migration and natural increase – of all states and territories.
“This sustained population growth, coupled with a very solid economy, ensures the state’s residential unit and townhouse market is likely to continue to perform very well.” REIQ chairman Peter McGrath said.
Source: REIQ
A recent news article from www.news.com.au, looking at record high rents across the country quoted APM’s general manager Michael McNamara as saying rents would continue to rise. “Weekly asking rents in all capital cities are at record highs,” he said. Mr McNamara blamed the rent rises on Generation Y hitting their late 20s and moving out of home. “Inner city markets are experiencing rapidly rising rents through the influence of Generation Y,” he said.
He believed Generation Y tenants would rather “pay exorbitant rent in inner city locations than live in what they see as the cultural wasteland of suburbia.” Although the climate was giving renters little relief, it was a good time to be investing in the property market as returns were growing, Mr McNamara said. “Increasing gross rental yields are expected to drive stronger property markets in the eastern capital cities, especially in apartment markets,” he said. “Investors will see stronger investment fundamentals as a reason to prefer property as an asset class”.
The research also found low rental yields in Perth meant its property market was Australia’s most over-valued, with returns on the year a meagre 3.7 per cent, the lowest of all capital cities.
Source: news.com.au
Shortage of housing stock points to further price and rent rises
House prices and rents are tipped to rise further because of the longest downturn in the building industry in 24 years says Westpac senior economist Matthew Hassan
And in its latest housing snapshot, ANZ also predicts that a lack of stock, higher interest rates and builder margin compression will continue to delay recovery, and drive rent and house prices higher.
Master Builders Association chief economist Peter Jones said higher interest rates and poor affordability were preventing the much-needed housing recovery.
“A lack of housing stock and low vacancy rates means there is only one way for rents to move in the next 12 months,” he said.
Source: The Melbourne Age
The Gold Coast is rapidly running out of land, especially in good high growth areas of Coomera and the growth corridor. Peter Gleeson, chief reporter G.C.Bulletin says “Sales of house and land packages and vacant land have dropped to a 5 year low, not because of the shortage of buyers, but because there isn’t enough stock.
Vacant land sales on the Gold Coast plummeted by 24% in the June quarter, while there were only 165 house-and-land packages sold, the lowest since 2002.” According to the quartley Prodap report on the city’s residential land and house market released yesterday the Gold Coast is struggling to keep up with house and land demand.
“The fall in sales volume reflects seriously low developer stock levels, rather than any decline in demand” said the report. We are told constantly by developers that this situation is caused by delays in obtaining council approvals.”
Source: GC BULLETIN
