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Are Stalling Property Prices a Boon for First Home Buyers?

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Are Stalling Property Prices a Boon for First Home Buyers

As the nation’s capital city property prices continue to stall, softer market conditions might present first home buyers the opportunity to take that first step on to the property ladder.

A new First Home Buyers report, released by Domain, reveals the locations offering the lowest entry prices in capital cities across the country.

Are Stalling Property Prices a Boon for First Home Buyers

Entry level prices for houses: Domain

Sydney

Notoriously pricey Sydney may finally offer potential home buyers relief due to its cooling property market.

Strong investor demand has traditionally been a key driver of the Sydney and Melbourne residential markets, but thanks to tightening credit conditions and regulatory changes this demand has significantly dropped off.

Domain’s data scientist Dr Nicola Powell says securing your first home has also been improved by government policies.

“From July 2017 to April 2018 almost 23,000 first home loans were financed in NSW, jumping 76 per cent from the year prior,” she said.

Powell suggests areas such as the Central Coast’s Wyong as a viable first home buyer suburb due to its entry price at $483,000, and Campbelltown which sits 59 kilometres from Sydney’s CBD at $571,000.

“Those looking for something closer to the city centre can consider units in the area of Canterbury, approximately 13 kilometres from the Sydney CBD, with an entry price at $475,000 and a time to save of 4.6 years.”

Are Stalling Property Prices a Boon for First Home Buyers

Melbourne

Homebuyers looking to purchase quickly, Powell suggests areas such as Melton with the entry level price is $424, 000, or Wyndham which sits 36-kilometres from Melbourne’s CBD with its lower entry price of $490,000.

“For house hunters looking to be closer to the CBD, areas like Maribyrnong, approximately nine kilometres from Melbourne’s CBD, are a strong option with unit entry prices at $360,000 and a time to save of 3.7 years.”

Are Stalling Property Prices a Boon for First Home Buyers

Brisbane

Figures show first home buyers have increased in Queensland. The state is home to the most generous First Home Owners’ Grant at $20,000, introduced in 2016 but soon to be reduced to $15,000, available for homes priced under $750,000.

Domain figures show the average time to save a 20 per cent deposit in the greater Brisbane region is 4.17 years, with the lower entry housing prices at $327,000 in Ipswich, $352,000 in Logan and $385,000 for Moreton Bay.

Greater Adelaide and Greater Perth come out on top with some of the lowest entry prices and quickest paths to purchase for houses, nationally. For the unit market, Greater Adelaide, Greater Perth and Greater Hobart offer areas with the lowest entry point and the shortest time for first home buyers to save a deposit.

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Interstate migrants are moving to QLD … but they’re not coming to Brisbane

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Interstate migrants are moving to QLD

Less than 5 per cent of interstate migrants during the 2016-2017 financial year settled in Brisbane, according to data from the ABS. Photo: Glenn Hunt

Interstate migration to Queensland is booming but analysis shows most new residents are bypassing Brisbane for other regions in the Sunshine State.

Buyers’ agency Propertyology analysed ABS data, which showed there were 17,246 internal migrations to Queensland in 2016-17. But out of those, only 846 relocated to Brisbane, which equates to less than 5 per cent.

Propertyology managing director Simon Pressley said the lion’s share went to the Gold Coast, Sunshine Coast, Moreton Bay, Cairns, Ipswich and the Scenic Rim.

Interstate migration to Queensland is strong but ABS figures reveal most of the new residents are relocating to regions outside of Brisbane, such as the Gold Coast.

“We’ve read a lot about interstate migration to Queensland lately and it’s been growing each year, which is great,” he said.

“The thing is, people automatically think Queensland means Brisbane but when you actually look closely at the numbers, they tell a very different story.”

As a proportion of total population growth over 2016-17, the biggest beneficiaries of interstate migration were Tasmania (22.5 per cent) and Queensland (21.9 per cent).

Interstate migrants are moving to QLD

The Sunshine Coast has had an influx of interstate migrants. Photo: Mike Swaine

House prices in the regions with the most internal migrations have mainly increased — house prices on the Sunshine and Gold Coasts have increased by 7.9 per cent and 3.3 per cent respectively over the past 12 months — although Mr Pressley said the correlation between population growth and house price growth was often overstated.

“I know logically it makes sense — if an area has a big surge in population, house prices should go up — but there’s much more to it than that,” he said.

“Jobs growth is a lot more important than population growth, so is wage growth, [and] affordability is also extremely important.”

Interstate migrants are moving to QLD

Moreton Bay’s affordable property prices and relaxed bayside lifestyle are drawing new residents from interstate. Photo: Ray White Redcliffe

REIQ Gold Coast zone chair Andrew Henderson said each of those factors was connected and all had contributed to the Gold Coast’s house price success in recent years.

“Our local economy is strong but it’s also changed. We’re no longer solely reliant on the tourism industry. The diversity of our job offering has changed,” he said.

“With new infrastructure like universities and hospitals, we’ve got people moving here from interstate into jobs who would have never been able to move here 10, 20 years ago.

“So the age of the people we’ve got moving here has also changed. We’ve always had a lot of retirees but we’ve noticed a surge in people in their 20s, 30s and 40s – people moving their whole families up here. Around Mermaid Waters and Clear Island Waters there’s a really strong southern presence.”

Andrew Campbell of Ray White Redcliffe said the influx of interstate migrants buying up locally in the Moreton Bay region had become apparent more recently.

“We noticed a dip in the interstaters for a while but recently they’ve started to come back and it’s about affordability. All the properties around that median price are really moving so quickly,” he said.

Domain Group figures show the median house price in Moreton Bay is $456,000.

“There’s a lot of first-home buyers who fly up here for the weekend from Sydney. They know they can’t afford to buy there so they’re moving here because they see you can buy a house for under $500,000, get the lifestyle and still only have to drive 40 minutes to work in Brisbane,” Mr Campbell said.

But Mr Pressley said interstate migrants were being “pushed” to Queensland, rather “pulled” as they were during the mining boom.

“People have always wanted to come to Queensland because of the good lifestyle, weather and affordable housing,” he said.

“In the past they came for those things but also because we created more jobs year after year than everyone else. Now, we’re not dragging here through job growth, they’re coming here by default.

“To me, that’s why interstate migration hasn’t translated into property prices yet … and that’s why only minimal people have gone to Brisbane.

“I anticipate that in the next 12 months we’re going to see another really strong year of interstate migration into Queensland; if our economy improves, then it could translate to property prices for Brisbane and all over Queensland. Overall though, this is a good news story for Queensland and Brisbane as well. It’s looking positive.”

Source: goldcoastinvestor.com.au

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$10,000 to boost international students numbers in Ipswich

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USQ international students Samikshya Paudel and Nisha Thapa moved to Australia from Nepal to study nursing at the Ipswich campus. They are among a growing group of young people flocking to the city, new data shows.
USQ international students Samikshya Paudel and Nisha Thapa moved to Australia from Nepal to study nursing at the Ipswich campus. They are among a growing group of young people flocking to the city, new data shows.

A RED carpet will be rolled out for international students in a bid to entice youngsters to Ipswich.

The city has been successful in securing a $10,000 grant to better market the city on the international education stage.

International education is already the second biggest export for Queensland, worth about $4.37 billion to the state’s economy.

Ipswich MP Jennifer Howard said more people were visiting Ipswich than ever before.

“We also have some of the best education institutions in the country – it makes sense,” Ms Howard said.

“That’s why we’re investing in international education in Ipswich. We’re making sure Ipswich Regional Education Consortium has the funding it needs to grow our international education sector in years to come.”

Last year, a working group led by Ipswich City Council considered ways to continue driving growth in the international education sector.

The project was funded through the International Education and Training Partnership Fund which aims to encourage the sector to collaborate and work on innovative projects that position Queensland as a world class destination for international students.

Federal data for 2017 showed Ipswich’s international education market grew by 39.2 per cent with most of Ipswich’s international student enrolments coming from China and India.

University of Southern Queensland student Samikshya Paudel moved to Australia from Nepal in February 2017.

She’s in her second year of studying a bachelor of nursing at USQ Ipswich.

Samikshya said Australia offered a safe environment to study where people at her campus were friendly and the staff supportive.

“I chose to study nursing because it’s a good profession that you can learn every skill from communication to leadership,” Samikshya said, in June when new figures on international students were released.

“After university my plan is to return to my home country and apply the skills I have learnt at USQ to help people in my country.”

Today, Tourism Industry Development Minister and Ministerial Champion for International Education Kate Jones said the $10,000 in funding for Ipswich Regional Education Consortium was part of a wider Study Queensland campaign.

Ms Jones said Study Queensland’s ‘Start here. Go anywhere’ campaign was devised after months of market research to discover what motivates students to choose Queensland above other states.

“More students from across the globe are choosing to travel to Queensland every year and our international education industry has grown by around 12 per cent in the last year.

“But we know we can do more to support the student experience and ensure sustained growth in the future. This campaign is all about capitalising on our great foundation to increase our share of the international education market.

“International education currently supports around 19,000 jobs across the state. With this new campaign, we hope to grow this industry to support an extra 6800 jobs by 2026.

“That’s why we’re investing more than $25 million in this space to grow our international education sector.”

Source: www.qt.com.au

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Where to invest: Palm Beach, Noosaville, Loganlea among QLD’s most affordable growth suburbs

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Where to invest: Palm Beach, Noosaville, Loganlea among QLD’s most affordable growth suburbs

Andrew Galloway is selling his investment property in Loganlea, which has been identified as one of Queensland’s most affordable growth suburbs. Image: AAP/John Gass.Source:News Limited

THESE are the best performing cheapie suburbs in Queensland. Find out which areas buyers on a budget should be targeting.

QUEENSLAND’S best growth suburbs for buyers on a budget are in lifestyle locations and affordable hot spots in Brisbane’s backyard, a new report has revealed.

For an investment property under $500,000 and with good capital growth prospects, look no further than Palm Beach on the Gold Coast, Noosaville on the Sunshine Coast and Loganlea, south of Brisbane, where values have increased by up to 20 per cent in 12 months.

The Top Affordable Suburbs Report, released by researcher CoreLogic, identifies suburbs where property values are below half a million dollars and have shown strong capital growth.

These suburbs are good targets for entry-level buyers, offering affordable real estate, improving infrastructure and strong track records that suggest ongoing strength.

Palm Beach holds the number one spot as the most affordable for capital growth in the state, according to the report.

Unit values in the beachside enclave have jumped 20.2 per cent in the past 12 months and more than 52 per cent in five years to a $471,758 median.

But you can still snap up a two-bedroom apartment a few streets back from the beach there for $379,000.

Where to invest: Palm Beach, Noosaville, Loganlea among QLD’s most affordable growth suburbs

This two-bedroom apartment at 3/2 Brooke Ave, Palm Beach, is for sale for $379,000.Source:Supplied

Where to invest: Palm Beach, Noosaville, Loganlea among QLD’s most affordable growth suburbs

This two-bedroom apartment at 3/2 Brooke Ave, Palm Beach, is for sale for $379,000.Source:Supplied

Where to invest: Palm Beach, Noosaville, Loganlea among QLD’s most affordable growth suburbs

Inside the apartment at 3/2 Brooke Ave, Palm Beach.Source:Supplied

After Palm Beach, the second most affordable growth suburb in the state is Noosaville on the Sunshine Coast, where unit values have gained more than 14 per cent in the past year to reach $486,468.

Alexandra Headland is also in the top 10 list compiled by CoreLogic, with units in the beachside suburb increasing in value by more than 12 per cent in a year.

But you can still get a two-bedroom unit with ocean views in the suburb for $429,000.

GOLD MINE FOUND IN BRISBANE BACKYARD

Where to invest: Palm Beach, Noosaville, Loganlea among QLD’s most affordable growth suburbs

This two-bedroom unit in Camfield St, Alexandra Headland, is available for $429,000.Source:Supplied

Where to invest: Palm Beach, Noosaville, Loganlea among QLD’s most affordable growth suburbs

This Alexandra Headland apartment is for sale for $429,000.Source:Supplied

CoreLogic senior research analyst Cameron Kusher said first home buyers were still active in Queensland and the more affordable end of the market was not facing the same pressures as the more expensive suburbs, which explained why suburbs like Loganlea, Ripley and Jimboomba were performing well.

“We are finding the lower end of the housing market is the higher value stock — even in Brisbane,” he said.

“We might not see the same gains over the next 12 months or three years, but there’s still going to be demand in these affordable markets.”

The latest CoreLogic home value figures reveal a strengthening of affordable and lifestyle locations, particularly on the Sunshine Coast, which recorded a 5.5 per cent increase in home values in the past financial year.

HOME FIT FOR HARRY AND MEGHAN

Where to invest: Palm Beach, Noosaville, Loganlea among QLD’s most affordable growth suburbs

Waterfront properties at Witta Circle in Noosa Heads on the Sunshine Coast.Source:News Corp Australia

Mr Kusher said the Gold Coast housing market was starting to cool off, but demand was still strong for the Sunshine Coast.

“These people from Sydney and Melbourne who want to buy a holiday property are looking at these areas and seeing pretty good value,” Mr Kusher said.

“I think that’s where the buyers are coming from.”

In Loganlea, about 25km south of Brisbane, house values have increased more than 14 per cent in the past year to a still very affordable $391,469.

Andrew Galloway is selling his investment property, which is on the market for just $339,000.

The four-bedroom, two-bathroom brick house at 10 Starling St, Loganlea, has been returning about $345 a week in rent.

Where to invest: Palm Beach, Noosaville, Loganlea among QLD’s most affordable growth suburbs

This four-bedroom house at 10 Starling St, Loganlea, is on the market for just $339,000.Source:Supplied

Where to invest: Palm Beach, Noosaville, Loganlea among QLD’s most affordable growth suburbs

Inside the house at 10 Starling St, Loganlea.Source:Supplied

Mr Galloway said the property had recorded solid capital growth in the past 11 years he had owned it and he had decided to take advantage of that.

“I think it’s achieved the capital gain it’s going to achieve in the time frame I’m going to have it,” he said.

Mr Galloway said he had noticed gentrification in and around the street in the past decade, which had made it more appealing.

Selling agent Pamela Anemaat of Raine & Horne Beenleigh said there had been an increase in large blocks in the suburb being subdivided by developers offering house and land packages, which had helped generate interest, particularly from first home buyers.

Mrs Anemaat said Loganlea was also popular suburb for investors because it was a high rental area and still so affordable.

“It is a feast for southern buyers, and they are moving up here and purchasing up here because they just can’t afford to buy a new home down there,” she said.

QLD’S 10 BEST PERFORMING AFFORDABLE SUBURBS

Suburb Property type Median value Value change Value change

12 mths 5 yrs

1. Palm Beach Units $471,758 20.2% 52.2%

2. Noosaville Units $486,468 14.4% 36.9%

3. Loganlea Houses $391,469 14.3% 43.8%

4. Mudgeeraba Units $399,637 13% 37.8%

5. Alexandra Headland Units $397,297 12% 36.6%

6. Ningi Houses $458,469 9.2% 11%

7. Jimboomba Houses $494,933 9.1% 22.1%

8. Ripley Houses $391,736 8.7% 23.9%

9. Elanora Units $372,760 8.6% 29.7%

10. Narangba Houses $493,418 8.3% 26.9%

(Source: CoreLogic, based on data to March 2018)

Source: brisbaneinvestor.com.au

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