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Queensland Economic Outlook ‘Positive’: Deloitte

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Queensland Economic Outlook

Construction and development appeared healthy to Deloitte’s analysts, who attributed some of Queensland’s strong economic outlook to high levels of interstate migration and international tourism, which have encouraged a growing list of tourism-related construction projects.

Queensland’s international tourist arrivals are expected to remain solid over the forecast period, averaging growth of 4.7 percent out to 2021.

There were reasonable gains in engineering activity in Queensland, and Cross River Rail was in the planning stages.

The report also put a focus on livability and housing affordability. In the midst of the continuing debate over house prices and quality of living, Deloitte reported that Queensland has less cause for concern.

Queensland’s place in the national picture of housing affordability is a comparative advantage. In the midst of a housing price boom, living in Queensland remains more affordable than in the southern states.

While Sydney and Melbourne house prices have experienced year-on year growth in the double digits, Brisbane has experienced a modest 3.5 per cent growth.”

Despite this optimism, Queensland was revealed to be mirroring the national trend, showing a slight decline in outright home ownership and owners who have a mortgage.

Rental stress was recorded to be higher than the national average, with more Queenslanders renting than owning their own home compared to the rest of the country.

“But with a modest decline in rent in the June quarter CPI figures, increasing vacancy rates, and new supply from an easing residential construction boom the conditions could result in Brisbane becoming a renter’s market,” Deloitte said.

Job growth was accelerating in Queensland and while population growth had “bottomed”, it was now back in line with the national average — although it remained below the level experienced in the state five years ago.

In less positive news, CommSec’s latest State of the States report found Queensland’s economic performance had slipped to sixth place, hampered by weak business investment and retail spending.

CommSec chief economist Craig James said that despite a recent surge in residential construction, oversupply is still a concern. Queensland would benefit from increased revenue generated by the state’s gas industry as well as spending that resulted from a rise in employment.

Queensland Treasurer Curtis Pitt defended the state’s ranking saying that the CommSec report understated the state’s performance.

“Most people’s economic indicator is whether they have a job or not and both the DAE and CommSec reports highlight our strong performance in job creation,” Pitt said.

Of Queensland’s population of 4.7 million, more than half were recorded to be living outside of the state’s capital city. Queensland’s south-east corner, including Brisbane, Gold Coast, and Sunshine Coast, saw a growth rate in population twice that of the rest of the state.

Despite Queensland’s size, urbanization has taken hold — 66 percent of the population living within 0.6 percent of Queensland’s total area.

Originally Published: brisbaneinvestor.com.au

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Commercial Property

Suburban Ipswich shopping centre sells for $37m

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Suburban Ipswich shopping centre sells for $37m
CENTRE SOLD: Ipswich Homebase at West Ipswich sold for $36.25 million. Contributed

A SUBURABN Ipswich shopping centre has sold for close to $37 million.

Ipswich Homebase at West Ipswich sold for $36.25 million this week, close to $14 million more than what it sold for five years ago.

The centre is home to Fantastic Furniture, Spotlight, Forty Winks, Chemist Warehouse, T.K. Maxx and IGA supermarket and last sold in February 2013 for $23.5 million.

Sentinel sold the Ipswich Homebase to national property fund manager Primewest.

Sentinel Managing Director Warren Ebert said the sale, one of three nationally, proved as strong incentives for investors.

“The decision to sell is consistent with Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market,” Mr Ebert said.

“The large format retail sector continues to perform, particularly in high-growth, well-established locations such as Ipswich, Dandenong and Nowra. The fact that these centres maintain full occupancy underwrites the interest from high-profile retailers to have exposure in this style of asset, in these locations.”

Sentinel has a total national portfolio of more than 40 assets.

Originally Published: www.qt.com.au

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Commercial Property

Suburban Ipswich shopping centre sells for $37m

Published

on

Suburban Ipswich shopping centre sells for $37m

A SUBURABN Ipswich shopping centre has sold for close to $37 million.

Ipswich Homebase at West Ipswich sold for $36.25 million this week, close to $14 million more than what it sold for five years ago.

The centre is home to Fantastic Furniture, Spotlight, Forty Winks, Chemist Warehouse, T.K. Maxx and IGA supermarket and last sold in February 2013 for $23.5 million.

Sentinel sold the Ipswich Homebase to national property fund manager Primewest.

Sentinel Managing Director Warren Ebert said the sale, one of three nationally, proved as strong incentives for investors.

“The decision to sell is consistent with Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market,” Mr Ebert said.

“The large format retail sector continues to perform, particularly in high-growth, well-established locations such as Ipswich, Dandenong and Nowra. The fact that these centres maintain full occupancy underwrites the interest from high-profile retailers to have exposure in this style of asset, in these locations.”

Sentinel has a total national portfolio of more than 40 assets.

Originally Published: www.qt.com.au

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Commercial Property

Ipswich council will buy another CBD property

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Ipswich council will buy another CBD property

THE Ipswich City Council has given the first green light for its entity, Ipswich City Properties, to proceed with a $5.9 million acquisition of the Ipswich City Plaza.

On Tuesday afternoon councillors agreed to recommend the acquisition of the mixed-use building at 2 Bell Street.

The plaza consists of a lower-level retail complex with office accommodation on the seven upper floors.

It was offered for sale after the appointment of KordaMentha as receivers and managers of the plaza earlier this year.

In a non-binding agreement and subject to a due diligence process, Ipswich City Properties agreed to purchase the site for $5.9 million.

Stamp duty and legal costs are expected to increase the purchase price to about $6.25 million.

A report provided to councillors on the City Management, Finance and Community Engagement Committee noted the gross annual income of the plaza site was $705,343.

With about $575,000 in leasing and financing costs, the property would provide a surplus of $130,000 each year.

Ipswich mayor Andrew Antoniolli said the purchase of City Plaza significantly below market value “represented a once-only opportunity for the city”.

“Its strategic location will only increase in value as the adjacent redevelopment progresses,” he said.

The property is subject to a leasehold tenure and the agreement with head lessor, Queensland Rail, is due to expire in November 2077.

The purchase of the plaza by Ipswich City Properties will be funded through a $75 million loan agreement with the council, which also facilitated the entity’s $50 million purchase of Ipswich City Square in 2009.

Originally Published: www.qt.com.au

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