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Leasing conditions and investment improving for 2014

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Colliers International indicate that Australia’s property sector will see a return to more positive conditions in leasing markets and further confidence in the investment market in 2014.Ipswich Investor, Investment properties, Property Management, Real Estate Ipswich, Mortgage Broker Ipswich, Ipswich property market, Ipswich Rental Properties, interest rates, interest rate cut

  • Colliers International Chief Executive Officer, Australia and New Zealand, John Kenny said strong investment conditions had been the defining feature of the Australian property market in 2013, with Australian property continuing to attract increasing capital from both Australian and offshore investors.
  • “Our market has been considered a safe haven with low interest rates and attractive yields continuing to attract international investors and providing solid investment conditions for local investors”, said Mr Kenny.
  • Colliers International found that heading into 2014 there are a number of factors which will lead to continued confidence in the investment proper markets and an improvement in demand for business premises across office, retail and industrial and will have high employment impacts.
  • “This includes an ongoing improvement in global conditions, the strong recent return of confidence in the housing market and increasing business confidence on the back of improvements to consumer confidence”, said Mr Kenny.
  • “As consumers begin to move away from high levels of cautiousness and move to increasing their spending, this is likely to lead to greater business activity and higher levels of business investment.”
  • Nerida Conisbee, Colliers International National Director of Research, said 2014 would see a continuing shift in buyer profile within Australia’s property market.
  • Ms Conisbee found that the offshore investors have been experiencing the strongest growth over the past five years and in 2012 accounted for more than half of all direct purchases by volume. In 2012 local investors re-entered the market and by November 2013 accounted for more than 70 per cent of total direct sales.
  • “By the end of October, this group accounted for $4.3billion of total transactions. This is higher than what was experienced in 2007 prior to the global economic downturn, and more than double the 2012 level” said Ms Conisbee.
  • Colliers International found that the improving conditions overseas have started to influence investment in Australian REITs and will directly impact property over the next 12 months.
  • “Earlier this year, there was a lot of offshore capital flowing in however at present, there appears to be a shift back to other markets, particularly the US and Europe,” Ms Conisbee said.
  • “Offshore buyers are, however, still active although there are a number of changes that are occurring to the types of buyers targeting Australia. The majority of offshore money has been coming from Singapore, Hong Kong, Europe and North America. Australia remains attractive and in some ways is becoming more so for a new emerging group of investors.”
  • Colliers International also found that the key player of international investing was China and large capital also coming from South Korea.
  • “Chinese investors have been very active in the residential space this year and this trend is now starting to spill into the commercial property market,” Ms Consibee said.
  • “In 2013 the amount of Chinese direct investment in commercial property stands at $871million (to the end of November), which represents a rapid increase from 2007 when just $17million was recorded.  This was boosted significantly by the sale of Centennial Plaza in Sydney in November which was one of several transactions completed that month involving a Chinese purchaser.”
  • Colliers International saw significant Chinese purchases in Australia during 2013. These sales include; Centennial Plaza (260, 280 and 300 Elizabeth Street, Sydney): Sold on behalf of Investa Property Group to Invesco (on behalf of Chinese Investment Corporation), for $305 million. The largest direct property transaction in the Sydney CBD this year, which was brokered by Colliers International, and; 229-234 Franklin Street, Melbourne: Sold for $17 million to a private Chinese investor by Colliers International on behalf of Jimmy Goh.
  • It was primarily privately-owned companies and private investor groups that had risen significantly, including HNA Group, Ridong Group, Dongrun Investment Group and Maville Group.
  • “We can expect to hear more of these groups over the next decade as changes to regulations surrounding investment into property by Chinese investors is expected to lead to significant amounts of capital entering Australia.
  • “We are also seeing waves of capital from South Korea, where the nation’s huge pension system is actively investing in property globally.
  • “It is likely that pension funds will continue to increase their investment in Australian property, both local superannuation funds, and offshore groups. Malaysian investors are also expected to become more active, particularly from the huge amounts of personal wealth in that country.”
  • Colliers International forecasts for leasing markets in 2014 were cautiously optimistic as the improved business confidence and better economic conditions offshore will improve the housing market and return consumer confidence and will see a recovery in rent across all sectors.

 

 

Original article published at www.theurbandeveloper.com  16/12/2013

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Queensland’s population hits 5 million people today

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Queensland's population hits 5 million people today
PHOTO: Is this Queensland’s 5 millionth person? Cordy Kerr-Kennedy was born yesterday in Townsville. (ABC News: Mark Jeffery)

Queensland’s population has tipped the 5 million mark today, Premier Annastacia Palaszczuk has told State Parliament.

Ms Palaszczuk said several expectant families were on standby to welcome the state’s five-millionth resident.

“Somewhere today a brand new mum and dad will be eager to meet their new arrival,” she told the house.

“The whole family will want to know: is it a boy or is it a girl? And the doctor will say, ‘congratulations, it’s a Queenslander’.”

Ms Palaszczuk said the two main drivers of the increase were migration growth, particularly from New South Wales, and from 60,000 babies being born in the past year.

Queensland's population hits 5 million people today
PHOTO:
 The state’s five-millionth resident was born today.(ABC North Queensland: Nathalie Fernbach)

“Overseas and interstate migration is up by 50,000 people in the past year, 19,000 came from interstate … more than 12,000, or 230 a week, move from New South Wales to Queensland,” she said.

ABS data also revealed the fastest and largest-growing area in Queensland in 2016-17 was Pimpama on the Gold Coast, which grew by 3,000 people.

Large growth also occurred in Jimboomba on Brisbane’s south side and in North Lakes — a suburb north of the city — which both increased by 2,100 people.

Coomera on the Gold Coast and Springfield Lakes in Ipswich also experienced large growth up 1,400 people.

The State Government’s population counter gives a “synthetic estimate” of the number of current Queenslanders, assuming a total population increase of one person every 6 minutes and 22 seconds.

Earlier this year the Australian Bureau of Statistics (ABS) said Queensland’s population was growing at 1.7 per cent and was projected to tick over to 5 million in May.

ABS data released in March also revealed Brisbane was one of the country’s fastest-growing cities and had increased by 48,000 in 2017, hitting 2.4 million people.

Queensland's population hits 5 million people today
PHOTO: The ABS estimated Queensland’s population was growing 1.7 per cent a year. (AAP: Dan Peled)

ABS demography director Anthony Grubb said the state’s population had “come a long way” in the last century.

“In 1901 the population was half a million; a tenth of what it is today… it took 37 years to hit the 1 million milestone in 1938 and another 36 years to reach 2 million in 1974,” he said.

But Mr Grubb said population growth “picked up the pace” after that, taking just 18 years to reach 3 million then only another 14 years to hit 4 million in 2006.

Queensland could be leading growth state in future

Population demographer Dr Elin Charles-Edwards said although Queensland is not currently the fastest growing state, it is possible it could top the leader board later down the track.

‘Not in the short-term, but Queensland is coming up off a relatively subdued growth so perhaps we might be entering an era of more rapid growth,” she said.

Dr Charles-Edwards said the challenges that generally come with increased population could be managed in Queensland.

“As long as we keep up and don’t take our eye off the ball we can continue to absorb quite high levels of growth… but really it’s keeping up with the infrastructure that’s the key challenge,” she said.

Dr Charles-Edwards said it was important to note some parts of the state, particularly in western Queensland, were experiencing population decline.

“While the south-east corner is growing and also many Indigenous communities are growing, other parts of the state are shrinking,” she said.

“Perhaps we could do more to encourage people to move outside the south-east corner.

“If we were able to work out some way to decentralise our population, growth a little bit further up into the northern regional centres, I think that would benefit the growth of south-east Queensland.”

Source: brisbaneinvestor.com.au

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APRA to end cap on property investor loan growth

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APRA to end cap on property investor loan growth

APRA is removing the 10 per cent ‘speed limit’ on investor loan growth.
Photo: Louise Kennerley


The banking regulator is axing a 10 per cent speed limit on bank lending to property investors, saying the cap has served its purpose and improved credit standards.

With Sydney house prices falling and credit growth slowing, the Australian Prudential Regulation Authority on Thursday said it would remove the cap for bank boards that could prove they had been following its guidelines on prudent lending.

In late 2014, amid a surge in borrowing by property investors and rapid house price growth, APRA took the rare step of setting a 10 per cent limit on the annual growth in banks’ housing investor loan portfolios.

The measure has rocked the mortgage market in recent years, prompting banks to jack up interest rates for housing investors, and demand borrowers stump up bigger deposits.

But on Thursday, APRA chairman Wayne Byres said it was prepared to remove the measure because there had been an improvement in lending standards and a slowdown in credit growth.

“The temporary benchmark on investor loan growth has served its purpose. Lending growth has moderated, standards have been lifted and oversight has improved,” Mr Byres

Even so, the regulator will retain a separate 2017 policy that requires banks to limit their new interest-only lending to less than 30 per cent of all new home loan approvals.

APRA also said there was “more to do” in improving other aspects of banks’ lending, including how they assessed borrowers’ expenses, their existing debts, and the approval of loans that fell outside of banks’ formal lending policies.

APRA said it expected banks to introduce limits on the proportion of new lending that could be done at “very high” debt-to-income levels.

“In the current environment, APRA supervisors will continue to closely monitor any changes in lending standards,” Mr Byres said.

“The benchmark on interest-only lending will also continue to apply. APRA will consider the need for further changes to its approach as conditions evolve, in consultation with the other members of the Council of Financial Regulators.”

Source: brisbaneinvestor.com.au

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Brisbane’s population picks up, but more people moving to Pimpama

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Brisbane’s population picks up, but more people moving to Pimpama

Brisbane’s population hit 2.4 million in June 2017, according to ABS figures.Source:Supplied

BRISBANE is back among Australia’s fastest-growing cities thanks to a growth spurt, but more people are flocking to areas outside the state’s capital.

New figures from the Australian Bureau of Statistics show the city’s population grew by 48,000 in the year to June 2017 to hit 2.4 million — the fastest rate of growth in four years.

Brisbane’s population picks up, but more people moving to Pimpama

Suburban homes in Brisbane’s southwest.Source:News Corp Australia

In Brisbane, net overseas migration was the biggest contributor to the surge, with 38 per cent of the population growth coming from overseas.

Births accounted for 37 per cent of the growth, while interstate migration accounted for 25 per cent.

The fastest and largest-growing area in Queensland is Pimpama on the Gold Coast, which grew by 3000 people or 31 per cent in 2016-17.

Brisbane’s population picks up, but more people moving to Pimpama
An aerial shot of Pimpama on the northern end of the Gold Coast. Picture: skyepicsaerialphotography.Source:Supplied

Net internal migration was the main driver of growth, accounting for almost 90 per cent of population change.

Other areas to experience significant population growth include Jimboomba on the southern outskirts of Brisbane, North Lakes-Mango Hill in the Moreton Bay region, Coomera on the Gold Coast and Springfield Lakes in Ipswich.

 Brisbane’s population picks up, but more people moving to Pimpama

Springfield Lakes has experienced strong population growth, according to the ABS.Source:News Limited

Ripley in Ipswich, the inner Brisbane suburb of Newstead and Peregian Springs on the Sunshine Coast were the fastest growing areas in the state in 2016-17.

ABS demography director Anthony Grubb said the latest population estimates were the first to include data on the components driving population growth in capital cities and regions.

“It is now possible to not only see how much population is changing in an area, but to understand why this change is occurring”, he said.

Michael Matusik, director of independent property advisory Matusik Property Insights, believes Queensland’s improving population growth should impact house prices, but it hadn’t so far because the state’s economy also needed to improve.

Brisbane’s population picks up, but more people moving to Pimpama

Houses in Ipswich, where areas like Springfield and Ripley are experiencing strong population growth.Source:News Limited

Mr Matusik told The Courier-Mail Pimpama’s population was growing at a rate he didn’t believe was sustainable.

“It’s a reflection of where land supply is on the Gold Coast at the moment and I think that will calm down,” he said.

“But if the Gold Coast is going to continue expanding, those areas will become more like North Lakes in due course.”

Sydney’s population grew by just over 100,000 people in one year for the first time, taking that city’s total numbers to 5.1 million.

Australia’s big east coast cities carried most of the growth — Melbourne, Sydney and Brisbane accounted for over 70 per cent of Australia’s population increase.

Darwin, Adelaide and Perth grew at 1 per cent or less.

TOP FIVE POPULATION GROWTH AREAS IN QLD

Suburb Population change 2016-17 Population as at June 30, 2017

1. Pimpama, Gold Coast 30.8% 12,586

2. Jimboomba 7.9% 28,639

3. North Lakes-Mango Hill 6.7% 33,225

4. Coomera 10.3% 15,227

5. Springfield Lakes 8.7% 17,468

(Source: ABS)

Source: www.news.com.au

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