<p>Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;</p>

<p>Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;</p>

<p>The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;</p>

<p>The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;</p>

<p>Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;</p>

<p>Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;</p>

<p>“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;</p>

<p>“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."</p>

<p>Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;</p>

<p>"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;</p>


Joel Robinson

Bottega House secures landmark riverfront site in St Lucia 

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<p data-end="157" data-start="0">The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.</p>

<p data-end="459" data-start="159"><a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.</p>

<p data-end="459" data-start="159">[smartcode_project:default project_id=112661 project_image_fid=359603]</p>

<p data-end="651" data-start="461"><a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.</p>

<p data-end="950" data-start="653">Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.</p>

<p data-end="1081" data-start="952">“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.</p>

<p data-end="1081" data-start="952">[smartcode_project:default project_id=112661 project_image_fid=355935]</p>

<p data-end="1307" data-start="1083">Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.</p>

<p data-end="1522" data-start="1309">The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.</p>

<p data-end="1522" data-start="1309">[smartcode_project:default project_id=112661 project_image_fid=361052]</p>

<p data-end="1714" data-start="1524">Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.</p>

<p data-end="1945" data-start="1716">The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.</p>

<p data-end="1945" data-start="1716">[smartcode_project:default project_id=112661 project_image_fid=359607]</p>

<p data-end="2220" data-is-last-node="" data-is-only-node="" data-start="1947">More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.</p>
</section>
</section>

<p>[smartcode_project_cta:default project_id=112661]</p>


SIERA kicks off construction at Northcliffe tower Exhale

<p data-end="320" data-start="79">Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.</p>

<p data-end="638" data-start="322">The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.</p>

<p data-end="864" data-start="640">Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.</p>

<p>[smartcode_project:default project_id=112343 project_image_fid=352689]</p>

<p>Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.</p>

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."</p>

<p>“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.</p>

<p>[smartcode_project:default project_id=112343 project_image_fid=352687]</p>

<p><a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.</p>

<p>“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”</p>

<p>[smartcode_project:default project_id=112343 project_image_fid=352690]</p>

<p>The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.</p>

<p>“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.</p>

<p><a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.</p>

<p>[smartcode_project_cta:default project_id=112343]</p>


Eastern Suburbs buyers snap up ESTE Little Bay apartments

<p data-end="256" data-start="0"><a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.</p>

<p data-end="446" data-start="258">The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.</p>

<p data-end="645" data-is-last-node="" data-is-only-node="" data-start="448">Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.</p>

<p><img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.</p>

<p>The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.</p>

<p>The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”</p>

<p data-end="626" data-start="350">Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.</p>

<p data-end="928" data-start="628">“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”</p>

<p data-end="1147" data-start="930">Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.</p>

<p data-end="1510" data-start="1149">“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”</p>

<p data-end="1510" data-start="1149"><img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" /></p>

<p>&nbsp;</p>

<p>The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.</p>

<p>Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.</p>

<p>The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.</p>

<p>The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.</p>

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<p data-end="305" data-is-last-node="" data-is-only-node="" data-start="0">The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.</p>
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First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

<p style="text-align:start">The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;</p>

<p>The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.</p>

<p>The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.</p>

<p>Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.</p>

<p>The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.</p>

<p>As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.</p>

<p><img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" /></p>

<p>The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.</p>

<p>An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;</p>

<p>The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.</p>

<p>The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;</p>

<p>It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.</p>

<p>Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.</p>

<p>“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.</p>

<p>“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;</p>

<p>Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.</p>

<p>“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.</p>

<p>“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”</p>


Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Brisbane

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<p><span>Melbourne's</span> preliminary weekend clearance rate was 44.1 per cent after 197 reported price results from the 483 scheduled auctions.</p>
<p>The tally included some 193 withdrawn from auction, Domain reported.</p>
<p>It was the second July weekend with the rate in the 40s after the return to lockdown across the capital city. </p>
<p>There were 85 reported online Melbourne auctions, with 60 selling, which was the highest recorded success rate for online to date, Domain research analyst Nicola Powell advised.</p>
<p>Melbourne's top sale was <a href="https://www.realestate.com.au/sold/property-house-vic-kew-133806986" target="_blank">45 Walpole Street, Kew</a> (pictured) which fetched $4.21 million prior to its scheduled online auction.</p>
<p>Melbourne also saw a $3.67 million St Kilda West home.</p>
<p>The four-bedroom, two-bathroom house at 8 York Street was announced on the market at $3.5 million, by the Marshall White Stonnington agent John Bongiorno.</p>
<p>Sydney's preliminary clearance rate on Saturday was 64.6 per cent, after 471 scheduled auctions and 270 reported results. The rate included 77 withdrawn auctions.</p>
<p>The nation's cheapest was the $300,088 pre-auction sale at 15/38 Barrett St, Robertson. It had last sold from $80,000 in 1983.</p>
<p>Brisbane's top sale was just over $1 million when <span>43 Saint Helens Rd, Mitchelton was sold at $1.09 million.</span></p>
<p>Sydney’s highest sale was a four-bedroom, four-bathroom home in Vaucluse, on the market for the first time in 65-years.</p>
<p>It sold for $5,695,000 through Sydney Sotheby’s agent Michael Pallier.</p>
<p>There were five registered bidders for 61 Village High Road.</p>
<p><span>‘The buyer was a local but what drove the price was an expat in Singapore who had never seen the house and had a family member bidding for them. The third bidder, who bid up to $5.5 million, wanted to buy it for his 18-year-old daughter as a long-term hold. He looked at it an hour before the auction.," Pallier told Nine </span>Entertainment.</p>
<p class="indent"><span>Canberra had the country’s highest preliminary clearance rate of 90.6 per cent – reflecting the sale of 29 out of 32 reported auctions by CoreLogic.</span></p>
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j.ballantyne1990-6AQqhLzZaK

Melbourne auction weakness remains while Brisbane comes up the cheapest

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<p><span>With restrictions easing on 15 May, Queensland saw relaxations for the real estate industry, according to the latest Herron Todd White (HTW) residential report. </span></p>
<p><span>The valuation firm took a look at how a budget of $700,000 could be invested in property markets across the nation. </span></p>
<p><span>"There’s plenty to dig into for this month’s topic but first, a quick update on how our market is tracking," the valuation firm said. </span></p>
<p><span>In-house auctions can now be conducted with ten members of the public present and a maximum of three agency representatives running the auction. </span></p>
<p><span>Open home inspections can be carried out with a maximum of ten people allowed access. Names, addresses and mobile numbers must be taken by agency staff of any attendees for contact tracing purposes too.</span></p>
<p><span>"The easing of restrictions has seen an increase in listings and more activity at open homes. We have, however, yet to see evidence of changing transaction volumes or price movements. </span></p>
<p><span>"That said, it is worth noting that Brisbane’s economy remains well placed for the future given the state’s low infection rate and slow-but-steady opening of businesses," the valuation firm said. </span></p>
<p><span>"We note with some interest that subject to there being no second wave of infection, analysts remain optimistic of Brisbane’s property market remaining stable and likely for long-term recovery from this point on," the valuation firm said. </span></p>
<p><span>"So, how should you spend that lazy $700,000?</span></p>
<p><span>"First up, let’s talk about who is buying at this price point. We are seeing activity from owner-occupiers, investors, upgraders, families and some first homeowners.</span></p>
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<p><span>"That’s right! Pretty much every buyer type is represented in some form," the valuation firm continued. </span></p>
<p><span>Next, let’s see where you might spend this handsome chunk of change.  </span>$700,000 will get you within reasonable proximity of the CBD, the report noted. </p>
<p><span>For example, the desirable northern suburbs of Hendra, Wooloowin and Clayfield all have entry- level pre- and post-war dwellings on 405 square metres in secondary locations within this price point. </span></p>
<p><span>"If you want to be within these desirable addresses and need something a bit newer, consider a new or near-new townhouse with three-to-four bedroom, two-bathroom, two-car accommodation," the valuation  firm said. </span></p>
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<p><span>In locations such as Gordon Park, Stafford and Kedron, a detached dwelling on 405 square metres would be a good option. </span></p>
<p><span>"In fact, we consider this a very strong market sector at present with good capital growth potential. If you have the money and are keen to invest, put these suburbs on your shortlist," the valuation firm said. </span></p>
<p><span>Windsor, Wilston and Newmarket are well-serviced, inner-north addresses popular with families. There are some stunning residences here, however at this price point you’re likely to buy a modern townhouse that will have good value growth potential over the long term, the report noted. </span></p>
<p><span>Heading south and the Carina and Carindale areas provide opportunity. A 1970 to 1980 </span>high-set style dwelling with three-bedroom, one-bathroom accommodation and in good condition will be within your price range.</p>
<p>"If you need another bedroom, it’s still possible to buy at $700,000, but you might need to settle for a secondary position," the valuation firm said. </p>
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<p><span>"Other addresses south of the river and within striking distance of this price point are Coorparoo, Camp Hill and Hawthorne, but you may have to settle for something on a busy road or small lot and you’re likely to find just two-bedders within the budget. Suffice it to say, you’re looking for an eager seller if this is your patch and price point," the valuation firm said. </span></p>
<p><span>As mentioned earlier, the Coronavirus crisis has not resulted in a measurable fall in property prices across the Brisbane market generally and $700,000 is a solid value band, the report noted. </span></p>
<p><span>As such, don’t expect to score a bargain due to the pandemic. A lack of listings means buyer choice is limited. In addition, many properties are trading off-market.</span></p>
<p><span>"So, what might offer excellent bang-for-buck at $700,000 in Brisbane?</span></p>
<p><span>"Our advice is usually to purchase as close as possible to the CBD for your budget. And in most cases, choose detached housing over and above attached housing and units. But at $700,000, your options are limited when it comes to suburbs within a five-kilometre radius of town," the valuation firm said. </span></p>
<p><span>As such, choose fringe to mid-ring suburbs within close proximity to school catchments, amenities and public transport. You will also get larger housing lots for your budget in suburbs a bit further out, the report noted. </span></p>
<p><span>"Our initial thoughts at this price point would be a reasonable quality home in Carina or Wynnum. Something on a circa 600 square metre allotment with an older highset dwelling to a good standard," the valuation firm said. </span></p>
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<p><span>Gordon Park, Stafford and Kedron and their detached dwellings on 405 square metre lots are good options too. This is a buoyant part of the market at the moment and has good potential to achieve capital growth.</span></p>
<p><span>A current listing is a three bedroom house in Kedron with a price guide of $649,000.</span></p>
<p>Set on a 415sqm block, the <a href="https://www.realestate.com.au/property-house-qld-kedron-133701926" target="_blank">12 Howell Street</a> home (pictured below) comprises three bedrooms, open plan living and dining space, covered deck and double garage. </p>
<p><span>It is situated within walking distance to local schools, shops and cafes. </span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/13/kedron.jpg" alt=""></span></p>
<p><span>Also – for cash flow investors, have a look in the mid-to-fringe areas for duplex, dual occupancy or multi-unit/flat properties. These structures are still available within the dollar amount and the gross returns can be very strong.</span></p>
<p><span>"If you have your heart set on buying an apartment, then act with caution," the valuation firm said. </span></p>
<p><span>New apartments in mid-ring localities as well as investment product throughout Brisbane should be viewed as medium-to-high risk even though they offer a lower price point in comparison </span>to single unit dwellings. There’s still a large supply hanging over from previous years’ excess development and a softening in values is evident for off-the-plan purchases.</p>
<p><span>In short, capital growth in investor style units is highly unlikely in the short term, the report suggested. </span></p>
<p>For example,<a href="https://www.realestate.com.au/sold/property-apartment-qld-cannon+hill-132163162" target="_blank"> Unit 511/22 Andrews Street, Cannon Hill </a>(pictured below) just sold for $375,000.</p>
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<p><span> It was previously </span>purchased for $417,500 in October 2017. That’s a pretty hefty discount of 9.7 per cent over an almost three-year period, the report noted. </p>
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<p><span>Instead of new, consider an older apartment with renovation potential in a good location with transport and amenities nearby.</span></p>
<p><span>Finally, $700,000 invested in Brisbane property will probably achieve a gross rental yield of around four to five per cent. </span></p>
<p><span>For example, detached houses and townhouses in Gordon Park, Stafford and Kedron achieve circa $550 per week.</span></p>
<p><span>"The future of property at this price point looks stable over the next couple of market cycles, although caution is required in the short-to-mid term under current market conditions. There’s still too much uncertainty out there at present," the valuation firm said. </span></p>
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What a lazy $700,000 can buy in Brisbane: HTW residential 

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<p><span>Brisbane saw a fall in the incidence of profit-making resales in the March quarter, comprising 87 per cent of these transactions. This is down from 88 per cent in the December quarter, and 88.4 per cent in the March 2019 quarter.</span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
<p><span>The house market continued to show strong returns relative to the unit market. Over the quarter, 94.6 per cent of houses saw a nominal gain compared with 63.8 per cent of units. This is due to the ongoing, divergent capital growth performance between houses and units. In the 5 years to March 2020 annualised growth across Brisbane houses was 2.7 per cent, compared to</span><span> </span><span>-0.8 per cent in units.</span></p>
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<p><span>These conditions also inform the loss making sales seen across the Brisbane Council Region. In the March quarter, 15.1 per cent of resales saw a loss. Of these loss-making sales, 88.3 per cent were units. It is also noteworthy that across the Brisbane council region, 66.0 per cent of loss making sales had been held by investors.</span></p>
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<p><span>Interestingly, the area with the highest portion of loss making sales was the Lockyer Valley Council region. This portion is off a small base, with only 21 sales in the quarter seeing a nominal decline at resale. Most of these were houses, and had a relatively lengthy median hold period of 9.7 years. However, the median loss on these properties was also relatively small, at $20,000.</span></p>
<p><span>While dwelling market demand may continue to be impacted by COVID-19, a bright spot for ongoing demand in the Queensland market is interstate migration. Over the past few years, Queensland has been the largest recipient of interstate migrants, who typically come from New South Wales or Victoria. The imposed lock down which has seen many adapt to working from home could create added demand for South East Queensland property from owner occupiers as demand returns to the economy. This is because SEQ offers a far more affordable housing price point compared with those in Sydney and Melbourne, and may have greater lifestyle appeal for some.</span></p>
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<p><span>Source: CoreLogic Pain and Gain March Quarter 2020 report.</span></p>
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Brisbane sees a fall in the profit-making resales: CoreLogic Pain & Gain 

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<p>Brisbane house and unit rents fell over the June quarter, although rents remained flat over the year, according to the June quarterly rental report from Domain.</p>
<p>While the Brisbane rental market has not been as impacted compared to other cities, international border closures, plummeting foreign student numbers, job losses and pay cuts have still made their mark, with Brisbane’s CBD particularly exposed to reduced rental demand.</p>
<p>The number of advertised rentals jumped from March to June and more landlords have cut asking rents.</p>
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<p><em>June 2020 QoQ change for Brisbane rental prices</em></p>
<p><span>“Brisbane house and unit rents fell over the June quarter, although rents held steady over the year. The rental market is fragmented across Brisbane’s regions. House rents in higher priced areas weakened, while prices in more affordable areas were steady in their asking rent. Units in Brisbane city had the steepest quarterly fall while several areas remained stable or marginally increased.”</span><br><br><span>“Brisbane’s vacancy rate has nudged higher compared to last year, despite this the number of advertised rentals are shrinking from the time of the city’s construction boom. It stems from the recent reduced demand temporarily lifting the number of available rentals. To date, the Brisbane rental market has not been as affected compared to other capitals, but international border closures, plummeting foreign student numbers, job losses and pay cuts have had an impact. Brisbane’s CBD is particularly exposed to the reduced demand, with advertised rentals jumping from March to June and more landlords cutting asking rents.” </span><br><br>“Sunshine Coast rents remain at record highs, with houses at $500 a week, steady from last quarter and units at $410 a week which have held at this high for a year. The Gold Coast is a two-speed rental market: house rents remain at a high of $520 but unit rents dropped over the quarter and year, marking the first annual fall since 2013. Gold Coast unit prices are likely to be more exposed to a drop in international tourism,” said Domain Senior Research Analyst, Dr Nicola Powell.</p>
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Brisbane rental market not his as hard as other cities: Domain

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<p>Buyer demand for <a href="/developments/brisbane-qld">Brisbane</a> houses has returned to levels pre-crisis over recent weeks with dozens of people at some open homes.</p>

<p>Negotiations for strategically placed properties are much tougher than they were with more buyers competing over a low volume of listings.</p>

<p>During the peak of the <a href="/expert-insights/buying/how-will-the-coronavirus-impact-australia-s-property-market">coronavirus pandemic</a>, we remained active in middle-ring locations that offer houses around the $400,000 to $500,000 mark, and mostly had the pick of the crop. Now, listings are still constrained, but the number of active buyers has surged two- to three-fold compared to March and April. In fact, we have seen up to 30 groups going through just one open home because of the lack of stock with <a href="/guides/how-to-buy-a-house-in-2021-a-guide-for-first-time-home-buyers">first home buyers </a>and owner-occupiers as the most common buyer type. </p>

<p>This state of play is reflected in the latest data and analysis by the Real Estate Institute of Queensland (REIQ). The <a href="https://www.reiq.com/whitepapers/queensland-market-monitor/">REIQ’s Queensland Market Monitor </a>(QMM), released on Friday, found that the Sunshine State property market was in fine shape during the first three months of the year. According to the QMM, Brisbane’s median house price increased 0.7% over the March quarter and had strengthened by 1.5% over the year ending in March as well. Greater Brisbane’s market – including the Logan, Moreton Bay, Ipswich, and Redlands regions – was also performing well, posting median house price growth of 1% over the year as well.<br><br><strong>Temporary pause </strong><br><br>
Local experts interviewed for the analysis say the Brisbane market, as well as all other major markets, took a breather in April as peak virus uncertainty hit the state. However, by May, green shoots of confidence and improved consumer sentiment had started to appear. This market resurgence continued into June, which is what we are currently witnessing on the ground in Brisbane.</p>

<p>It seems that owner-occupiers and first home buyers with the means to purchase are attempting to do so. First-time buyers, in particular, are active in those suburbs that still have affordable <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">investment-grade </a>housing.</p>

<p>A few months ago, when asked by the media how the Brisbane market was faring, I said properties were achieving their listing prices but there wasn’t the fight from buyers to push prices much higher. Fast forward a few months, though, and that situation has started to change, mostly because of the continued reduced stock levels.</p>

<p><a href="https://www.corelogic.com.au/research/monthly-indices">CoreLogic’s Home Value Index</a> found that median house values in Brisbane stayed stable in June and had increased by 1.9% since the start of the year – a result superior to Melbourne over the same period.</p>

<p>But I wouldn’t say it’s a seller’s market by any stretch.</p>

<p>That’s because, while there are definitely more buyers out there, most of them don’t seem to have any sense of urgency. Mostly, because they believe there will be a significant property price slump come September when the <a href="https://www.ato.gov.au/general/jobkeeper-payment/">JobKeeper</a> payments are wound back as well as mortgage repayment pauses.</p>

<p><strong>Long-term focus</strong><br><br>
Personally and professionally, I don’t believe the Brisbane market will experience any major impact from the ending of these initiatives.</p>

<p>Lenders will not want a flood of mortgagee sales for starters, so they will work with customers experiencing financial distress to prevent such a thing happening by extending repayment holidays or reductions.</p>

<p>That said, it is almost a moot point because savvy property buyers and investors always purchase when <a href="/news/debunking-the-bad-market-myth">conditions</a> are right for them, including when there are market opportunities. They also understand that to create property wealth, they need to hold their investment properties for the long-term, so it is irrelevant to them what may or may not happen in September.</p>

<p>With interest rates so low, and with a reduced volume of buyers compared to the average currently in the market, there has never been a better time to secure a holding in Brisbane in my opinion.</p>

<p>Not only does the sunshine state capital offer affordable house prices, but rental yields are also usually much higher than in southern states.</p>

<p>Thus, I’m picking that interstate migration into Queensland will start to soar once borders are reopened as more people opt to <a href="/guides/covid-19-how-to-adapt-to-working-from-home">work from home</a> from one of the most beautiful places in the world.</p>
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Demand for Brisbane Property Soaring

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<p>The initial stages of the COVID-19 crisis caused many sellers to shut up shop and batten down the hatches, according to the latest Herron Todd White (HTW) residential report. </p>
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<p>The valuation firm suggests in locations across the nation, the downtime delivered by isolation has spurned on owners looking to improve their assets through maintenance and upgrade. This month’s HTW report highlights where renovations are on the rise and the price points and outcomes those markets can expect.</p>
<p><span>"First up – let’s address the current state of play under COVID," the valuation firm said. </span></p>
<p><span>The report notes some buyers believed they were about to snatch up outrageously good deals.</span></p>
<p><span>The market then settled quickly into a standoff where potential purchasers came up against a lack of stock. As such, transaction numbers dropped dramatically, but prices didn’t.</span></p>
<p><span>Now, three and half months in, the state of play is established. There is a still a wait-and-see approach being taken by owners, so buyers don’t have a heap to choose from. Prices are softer across many markets but they didn’t plummet like some may have predicted.</span></p>
<p><span>"Of course, this is an evolving situation. As we move through the machinations of the economy over the next six months - with politics, employment, finance, immigration and trade all playing their parts - thing could be turned on their head. It’s a case of wait, watch and see.</span></p>
<p><span>"Of course, the crisis has delivered us something that was in short supply for the average Aussie family – time," the valuation firm said. </span></p>
<p><span>Requests from leadership that we stay in and keep each other safe had many running to Netflix and home offices, but there was also a fair proportion of the population who used the opportunity to tackle odd jobs around the house.</span></p>
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<p><span>"Skip bins and Bunnings lines revealed that when presented with the chance to do nothing, many of us actually want to do something productive.</span></p>
<p><span>"That said, most of what we’ve seen around the suburbs was maintenance," the </span>valuation firm said. </p>
<p><span>In Brisbane at least, demand for more extensive building and renovation work looks to have slowed, the report noted. </span></p>
<p><span>Many households stepped through the uncertainty of March and April making plans to ensure that, over the foreseeable future, food would be on the table and a roof would stay overhead. Being frivolous with available cash could be hazardous with unemployment on the rise.</span></p>
<p><span>"As such, we generally observed a slowdown in substantive renovation and construction projects – particularly any ventures that involved signing a contract with a builder or tradesperson.</span></p>
<p><span>"But, as has been said many times before, you need to dig below these broad market generalisations and understand the nuances, because opportunity can be found at certain price points, property types and locations," the valuation firm said. </span></p>
<p><span>For example, prestige property is seeing relatively more renovation upgrades than homes in the affordable price sector.</span></p>
<p><span>The report notes renos of inner-city holdings at the upper-price </span>level have been mostly unaffected by the current environment. Owners are comparatively cashed up and willing to keep spending.</p>
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<p><span>"There’s plenty of reasons why. For starters, the lowest interest rates in living memory are enabling those with good financial standing to get access to cheap money," the valuation firm said. </span></p>
<p><span>In addition, the building industry has become relatively competitive under the COVID regime. Tradespeople are hungry for work and head contractors are willing to compete on price so as to secure a pipeline of projects.</span></p>
<p><span>"The flipside in Brisbane is the investor market. We aren’t seeing landlords looking to spend sums upgrading homes beyond what’s necessary at this stage," the valuation firm said. </span></p>
<p><span>There’s an expectation the rental market will continue to fall in favour of tenants with rising vacancies and falling rents, so investors are wanting to ensure they don’t spend too big too early.</span></p>
<p><span>"One thing that may well stimulate the desire for upgrades among homeowners is the work-from- home phenomena.</span></p>
<p><span>"It’s become evident many of us can operate productively from a home office. It’s also entirely possible on the other side of this event, employers will look for ways to reduce their office footprint, hoping to cut lease costs and improve the bottom </span>line," the valuation firm said. </p>
<p>The outcome may well be property owners seeking ways to adapt their current living space in order to improve their work environment.</p>
<p>Creating a work area that can be shut off from the family space will become an essential element of any home. Even if existing owners don’t look to create that for their own use, a good home office will be a feature in future real estate listings.</p>
<p>If there’s an efficient, cost-effective way to establish an office, then vendors will want to do this prior to selling.</p>
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<p><span>"And so on to locations if you do have a hankering for a renovation project. We’ve looked at a couple of options that might fit the bill," the valuation firm said. </span></p>
<p>For example this one at 17 Hockings Street, Clayfield (pictured below) sold mid-2019 for $660,000 as a renovation project that required a heap of TLC.</p>
<p><span>"No doubt the original features will come up a treat," the valuation firm said. </span></p>
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<p><span>The inner-west suburbs of Paddington, Auchenflower, Bardon and Toowong have been rife with renovation opportunities for decades.</span></p>
<p><span> In fact, there have been a few Brisbane builders who’ve grown their fortunes by concentrating solely on these locations and completing beautiful, multi- million dollar do-ups.</span></p>
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<p><span>For example, this house at 12 Carey Street, Bardon (pictured below) was sold way back in October 2017 for $770,000.</span></p>
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<p><span>It received an extensive upgrade to become an ultra-modern four-bed, three-bath, two car home (pictured below) that was purchased in March 2020 for $1.552 million.</span></p>
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<p><span>Family friendly addresses such as The Gap: provide opportunity for those with a tighter budget. </span>Renovatable home are available at the high-$500,000s price point.</p>
<p><span>"For those with a little more to spend, an address such as Ashgrove will set you back closer to $700,000-plus for a home with potential," the valuation firm said. </span></p>
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<p><span>A perennial favourite for fixer-uppers is Petrie Terrace and Spring Hill. There are some raw homes on tiny lots for over $600,000, but it’s all about location here. </span></p>
<p><span>The report notes these suburbs are literally walking distance to the centre of town as well as entertainment and retail precincts. </span>And the results can be spectacular.</p>
<p>For example, a renovated home at 35 Sheriff Street, Petrie Terrace (pictured below) sold in November 2019 for $1,193,888. It’s on 228 square metres of land and provides four-bed, three-bath, three-car accommodation.</p>
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<p><span>"Looking a bit further out and Wavell Heights has good options with very basic renovators in average positions fetching between $550,000 and $600,000 – but you need to be fast as they sell quickly," the valuation firm said. </span></p>
<p><span> Other homes in Wavell Heights that’re in quieter positions with ready access to facilities are fetching between $600,000 and $700,000 for a renovation prospect. </span></p>
<p><span>In these instances, smart renovation work will yield an end value above $1 million.</span></p>
<p><span>For more budget conscious renovation prospects, head a bit further up Gympie Road and check out Aspley and Bracken Ridge where a renovatable </span>home can be purchased in the $500,000s. This area appeals to first home buyers and project- oriented builders.</p>
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<p><span>"A quick tip – make sure you check the town planning guidelines and building codes before proceeding. </span></p>
<p><span>"The renovation options for Brisbane property can be limited by heritage and traditional-character overlays, building heights, setbacks, noise and flooding issues and other designations... and they can be property specific. Just because a neighbour is able to get certain works approved doesn’t necessarily mean you can," the valuation firm said. </span></p>
<p><span>"Finally, while the level of future renovation activity remains generally uncertain, falling sale numbers under current market conditions in the wake of COVID may well fuel a rise in renos, however this will be dependent on indicators such as general confidence in the market, affordability, unemployment and economic conditions." </span></p>
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Brisbane prestige property renovation least affected by COVID-19: HTW residential 

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<p><span>The quick progress of COVID-19 has brought swift ramifications for the real estate industry, according to a recent Herron Todd White (HTW) residential report. </span></p>
<div><span>The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.</span></div>
<p><span>"No open homes, no in-room auctions. In short, professionals are having to adapt quickly to ensure the economic wheels keep turning.</span></p>
<p><span>"It would come as no surprise that the overriding element at present is the medical, social and economic fallout from virus control measures," the valuation firm said. </span></p>
<p><span>"In Brisbane, the full effect is still to play out, but we can at least take some comfort in not having to deal with population densities like Sydney and Melbourne. A small blessing for the Sunshine State," the valuation firm commented. </span></p>
<p><span>"For the sake of this month’s submission, let’s look beyond COVID-19 and set aside the economic downturn and recovery period to some degree (as we’re not certain as yet how long this challenging time will last)."</span></p>
<p><span>"So, what are the elements that traditionally drive the Brisbane market and how might they look in the future?</span></p>
<p><span>"The metrics and measures we’ve customarily watched as Brisbane property indicators have included the general economic outlook (nationally and locally), employment numbers and job security, </span>interstate migration, wage growth, interest rate movements, local, state and national elections and the availability of finance," the valuation firm said. </p>
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<p><span>It’s a complex dance of interaction between these components that sets the level in terms of activity and price growth potential.</span></p>
<p><span>"To give some perspective, 2019 saw a somewhat challenging start in the first half of the year with a number of headwinds. These included the banking royal commission that led to a redefining of lending policies by financiers. There were mid-year elections plus a feel that southern markets had overheated as well.</span></p>
<p><span>"We were also struggling to get our Queensland unemployment rate lower. </span>All these elements contributed to our unimpressive residential market performance and general confidence," the valuation firm said. </p>
<p><span>Then, the second half of 2019 saw a market back on the rise.</span></p>
<p><span> There was an increase in confidence as lending restrictions were loosened, Brisbane’s major infrastructure projects got underway </span>in earnest and interstate migration numbers continued to improve.</p>
<p><span>It was, for all intents and purposes, looking like a very promising 2020 before the handbrake was applied by the pandemic, the report said. </span></p>
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<p><span>"Of course, once we pass through this time of uncertainty, Brisbane property operators will be looking overall for leading indicators such as employment and wages growth," the valuation firm said. </span></p>
<p><span>The report suggests there will no doubt be an appetite for infrastructure projects to be back on track and, as mentioned, that all important net interstate migration number.</span></p>
<p><span>For those interested in some nuances, there are different drivers for different buyer types.</span></p>
<p><span>For example, first home buyers in Brisbane are traditionally stimulated by affordability, the level of competition from investors, first home buyer’s grant and stamp duty incentives, interest rate reductions and the ability to save for deposits and get finance. </span></p>
<p><span>Some of these measures won’t be applicable in the immediate wake of COVID-19, e.g. interest rate falls. That said, when markets return to normalcy, this list of drivers will be applicable.</span></p>
<p><span>For upgraders, interest rate reductions have been a keen driver of markets. The ability to draw on built up equity and borrow at a competitive rate has prompted many to act in the past. Of course, with rates being used as a lever to stimulate </span>the economy at the moment, their ability to substantially drive the upgrader sector post- COVID-19 will be some time off, the report noted.</p>
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<p><span>Empty nesters who’d been looking to downsize and move closer to the city were, in the past, driven by the improvement of lifestyle factors. This would include the development or upgrade of community- centric hubs such as cafés and restaurants. </span></p>
<p><span>Those who are self-funded can also be prompted to </span>move in response to available property types – in particular high-end apartment accommodation – where they can enjoy a comfortable, low- maintenance lifestyle with the ability to lock-and- leave for travel. Again, elements that may be some way off after the crisis passes and we’re on the road to recovery.</p>
<p><span>"Local drivers by property type aren’t particular to Brisbane. What traditionally applies here could well apply to most capitals on the eastern seaboard," the valuation firm said. </span></p>
<p><span>For units, the influence of oversupply and undersupply is paramount. Brisbane saw the fallout of new build oversupply during 2017 to 2019 as off-the-plan product came to completion.</span></p>
<p><span> Many revaluations were coming in below the original purchase price. </span></p>
<p><span>"During 2019, we were seeing a pick- up in absorption of this oversupply, but the post- 2020 market is more uncertain at this stage," the valuation firm said. </span></p>
<p><span>The thing to keep in mind regarding apartments is that good quality stock which appeals to owner- occupiers is often well received, the report added. </span></p>
<p><span>It’s this type of unit that will receive increased buyer interest post-2020. This includes units of good size and with a practical floorplan within close proximity of desirable hot spots. </span></p>
<p><span>In comparison, typical investor style apartments in secondary locations will have less growth potential.</span></p>
<p><span>A two bedroom apartment situated in the Brisbane CBD was sold for $477,000 in April.</span></p>
<p>The 145sqm apartment at <a href="https://www.realestate.com.au/sold/property-apartment-qld-brisbane+city-127595854" target="_blank">405/108 Albert Street </a>(pictured below) features a large fully enclosed courtyard with lush surroundings. </p>
<p><span>The home comprises two bedrooms, two bathrooms, modern kitchen, secure car park and storage cage. </span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/11/brisbane%20.jpg" alt=""></span></p>
<p><span>Similarly, townhouses within the inner city have performed well in comparison to those positioned in outer-lying suburbs. </span>That said, performance can be project specific.</p>
<p><span>Broadly speaking, well located, quality townhouse projects catering </span>to the owner-occupier market have performed better, with stronger demand and value levels that are more resilient.</p>
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<p><span>A current listing is a Paddington townhouse priced over $699,000.</span></p>
<p>The three bedroom, two bathroom townhouse is situated at <a href="https://www.realestate.com.au/property-townhouse-qld-paddington-133105886" target="_blank">1/23 Royal Street </a>(pictured below).</p>
<p><span>It features open plan dining, modern kitchen, living room, private courtyard and garden area. </span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/11/paddo.jpg" alt=""></span></p>
<p><span>And of course, detached housing is the stalwart sector. Houses closer to the city tend to retain and grow in value better than those located further on the fringe. High demand and limited stock is the equation that’s driven this traditionally, the report noted. </span></p>
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<div><span style="text-decoration: underline;"><em>Note regards COVID-19</em></span></div>
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<span><em>This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks.</em></span><em><br></em>
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<div><span><em>This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.</em></span></div>
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Brisbane unit market remains uncertain during COVID-19 pandemic: HTW residential 

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<p>The Brisbane industrial property market started 2020 with a bright outlook as the favoured commercial asset class however the COVID19 pandemic has upended all previous predictions, according to the latest report from valuation firm Herron Todd White.</p>
<p>“Over the past two years, the industrial market experienced firming yields across prime assets supported by solid purchaser demand and the low interest rate environment, however with the outbreak of Coronavirus, the global economy is in uncertain times and there are likely to be significant impacts on the Australian property market,” said the firm in their April Month-in-Review report.</p>
<p>Discussions with leading industrial agents suggests that sales activity has slowed significantly, with some reporting all of their current stock being removed from the market and existing leasing negotiations being deferred for three months or ceasing all together.</p>
<p>Of the properties that have remained on the market, the report says that weaker buyer demand and extended selling periods have set in with some vendors even accepting softer than expected yields to incentivise would-be purchasers back to the discussion table.</p>
<p>The firm found that increased incentives are being offered in the form of rent free periods, however this does not yet appear to be having a noticeable affect on the drop off in transactions.</p>
<p>“As with the pre Coronavirus climate, the most active segment of the market will continue to be transport and logistics with tenants gravitating towards modern properties with good access to motorways,” the report found.</p>
<p>“The full effects of this global pandemic are still somewhat unknown, but despite this, the fundamentals that positioned the Brisbane industrial market for a strong 2020 are still there, albeit in the background.”</p>
<p>“Once we can all return to a somewhat normal environment, the Brisbane industrial market will no doubt be appealing based on those underlying factors of a low interest rate environment, lack of supply of quality, investment grade assets and the availability of capital,” the report concluded.</p>
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How Brisbane’s commercial market has fared during the coronavirus pandemic: HTW

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<p>Retail continues to be the most challenging sector of the property market in Brisbane, according to the latest report from valuation firm Herron Todd White.</p>
<p>“An emerging reality is that there is simply too much retail available across Brisbane to service relatively flat levels of tenant demand. The oversupply is exacerbated by the ongoing growth and sophistication of the online environment and the significant cost advantages that online retailers enjoy compared to bricks and mortar retailers,” said the firm.</p>
<p>The March report found that there is an increasing level of vacancy in areas previously considered as prime and a much greater level of focus on convenience, parking and exposure.</p>
<p>"This is causing a greater level of differentiation between prime and second tier properties which is evidenced in both rents and yields. Issues such as decreasing availability of parking, the growth of delivery services and the higher costs of living generally have eaten into the profitability of a number of café precincts in the inner suburbs of Brisbane," they said. </p>
<p>Previously strong locations such as Bulimba, Nundah, Portside, Given Terrace, Racecourse Road, Park Road, Stones Corner, Coorparoo and Windsor in particular are seeing higher levels of vacancy and increasing levels of tenant turnover.</p>
<p>For some of these precincts, recovery is likely to take many years. On the investment front, buyers are increasingly aware of the retail headwinds and have become increasingly cautious.</p>
<p>They are more closely examining lease covenants, lettability and sustainability of rent levels before committing to purchase.</p>
<p>Coupled with this, the inability to replace strong retail assets is leading to a diminishing supply of good quality stock for sale and lower levels of sales accordingly.</p>
<p>As a result of this caution there is a clear divergence in yields emerging between good quality, well leased property and those with greater cash flow uncertainty.</p>
<p>For prime sub $5 million investment properties, yields have continued to tighten whilst yields for second tier properties are stagnant at best. For strong convenience retail properties, yields are generally in the 6% to 7% range but may achieve under 6% for strong well leased inner-city properties.</p>
<p>Good quality neighbourhood centres anchored by Coles and Woolworths are highly sought after with investment yields holding in the 5.75% to 6.75% range.</p>
<p>These centres are considered to be reasonably recession and future- proof. For sub-regional shopping centres, there are more sellers than buyers at the present time and markets are continuing to soften.</p>
<p>"The exposure of these centres to fashion and discretionary retailers is a significant drag on rents and saleability, however these market conditions open up opportunities and there are private investors scouring the market for opportunities to purchase and value add," the report found. </p>
<p>There is however still the potential for ongoing diminution in rent levels for existing tenancies, and buyers are very cautious. Yields for these centres are showing a wide range and now touching over 8% for second tier properties.</p>
<p>In the CBD retail markets, conditions remain soft albeit that there is long term optimism in the market due to the major infrastructure projects underway.</p>
<p>Rents across all retail classes are stagnant at best and incentives are increasing, particularly where there is significant vacancy. The headwinds in retail are likely to be long term, with the likelihood of further pain.</p>
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Brisbane retail continues to struggle: HTW Commercial

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<p>EXPERT OBSERVER</p>
<p>The Brisbane market is showing meaningful improvement and appears ready for a long overdue boom. Every statistic that matters depicts uplift in the Brisbane market and prices are expected to rise in 2020.</p>
<p>Many commentators have forecast a Brisbane boom in recent years, though many were simply assuming that the Queensland capital would follow the lead of Melbourne and Sydney. Brisbane, however, has lacked the core growth drivers that boosted markets in the two biggest cities.</p>
<p>But, increasingly, growth parameters are lining up for Brisbane. Population data is favourable, the affordability comparison is helpful, surveyed investors say they are targeting Brisbane – and the major piece of the puzzle previously missing, infrastructure spending, is starting to happen.</p>
<p>I have commented in the past: “Brisbane is like a car where the engine is revving but it can’t move forward because the handbrake is on.” Perhaps the handbrake has been released - a growing number of analysts are tipping good price growth in Brisbane this year (including Domain, BIS Shrapnel and Westpac) and I tend to agree.</p>
<p>My Autumn 2020 survey of sales activity reveals 37 suburbs with rising buyer demand, the second best result for Brisbane in the past three years – and almost double the number six months earlier. There has also been a marked decline in the number of problem locations (those classified as declining or danger markets).</p>
<p>Vacancy rates continue to improve, though there are still areas of weakness, and 43% of Brisbane suburbs have delivered annual growth in their median house prices, including double-digit uplift in the strongest areas.</p>
<p>There is particular strength in the northern suburbs of Brisbane – the Brisbane North precinct and the Moreton Bay LGA jointly account for 21 of the 37 suburbs ranked as rising markets. The southside has many of the struggling markets and Brisbane’s inner-city, while improving, still has its problems.</p>
<p>The Brisbane North precinct and its neighbour Moreton Bay Region are the standouts, as they have been in our surveys in the past.</p>
<p>Brisbane North has 13 suburbs classified as rising markets, another 24 suburbs with steady sales activity and none ranked as declining or danger markets.</p>
<p>The uplift in sales activity is producing solid price growth in many of these suburbs, well above the average for the Brisbane metro area. Kedron has recorded annual rises in its median prices for both houses (up 6%) and apartments (up 11%), while Windsor is up 22% for houses and 6% for apartments.</p>
<p>Newmarket’s median house price is up 16%, Northgate has risen 14%, while Stafford, Nudgee and Geebung have all increased between 6% and 8%.</p>
<p>The Moreton Bay Region LGA has regularly been the best-performing Brisbane market, boosted by affordability, good infrastructure and proximity to employment nodes. It’s been overtaken by Brisbane North in the latest survey, but remains a significant market.</p>
<p>The February 2020 opening of a new university campus will boost demand in nearby suburbs like Petrie and Lawnton (Petrie is already rated a rising market and is likely to get stronger as the campus effect clicks in).</p>
<p>Other precincts have some growth markets: Brisbane-east, Brisbane-south and Brisbane-inner each has four suburbs with rising sales activity. Currently these are out-numbered by plateau markets, but I expect that to change as the year rolls on.</p>
<p>The Brisbane-inner precinct is a confusion of suburbs with contrasting rankings: the 22 ranked suburbs in my Autumn 2020 survey include 4 rising, 7 plateau, 1 consistency, 7 declining and 3 danger. The danger markets (Albion, Fortitude Valley and Kelvin Grove) are those where sales activity has dropped markedly, prices are down and vacancy rates remain high. This, however, is an improvement – 18 months ago the Brisbane-inner precinct had 12 suburbs classified as danger markets.</p>
<p>It’s noteworthy that many of the Brisbane locations with solid median price growth in the past year are situated towards the upper end of the market. They include Hamilton ($1,560,000, up 11%), Balmoral ($1,050,000, up 7%), Indooroopilly ($950,000, up 12%), Newmarket ($950,000, up 16%), Rochedale ($1,035,000, up 7%), Sherwood ($935,000, up 7%), Toowong ($890,000, up 10%) and Windsor ($940,000, up 22%).</p>
<p>Inner-city Highgate Hill stands out with good median price both for houses (up 8%) and apartments (up 10%).</p>
<p>Usually, up-cycles in capital city property markets begin at the top end and ripple out from there.</p>
<p><strong>TERRY RYDER</strong> <em>is the founder of hotspotting.com.au </em><br><em>ryder@hotspotting.com.au</em><br><em>twitter.com/hotspotting</em></p>
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