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Queensland Government’s Focus on Building in the State

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This is an opinion piece by Peter Hyland, Urbis Regional director.

ipwich investor peter-hyland

THE State Government is focused and very serious about scrutinising its needs as both a property owner and tenant.

Tuesday’s unveiling of Premier Campbell Newman’s vision for the revitalisation of the George and William streets government office precinct clearly signals to the broader industry it’s serious about setting an agenda of cultural change in Queensland starting directly with its own centres of control and influence.

The announcement, coupled with last week’s scrapping of the Bowen Hills office precinct project where Queensland Health was previously committed as a tenant, decisively heralds Premier Newman’s needs and expectations of the Government property portfolio.

The new precinct is a shot in the arm for Brisbane’s CBD, with the potential to transform a key city tract, and it should be welcomed as both visionary and confidence-building.

The transition of the Urban Land Development Authority’s power back to local authorities is another example of the State Government moving quickly to walk its talk. The Premier has taken a sensible and measured approach to make good on his election promise.

The ULDA, created to cut through red tape and speed up the approval process to bring affordable product to market, taught important lessons that fast and effective outcomes were possible. However, just as it was appropriate to create the ULDA, with a job well done it’s now also appropriate to transition some of its powers back to local authorities.

While Queensland waits for the outcome of the audit of government finances to discover the state’s true capacity, the property industry eagerly awaits guidance on four key areas of consideration for the Government’s policy makers. These decisions will shape and impact every aspect of the industry for the next decade.

Firstly transport infrastructure, particularly around rail capacity, remains a pressing issue while understanding the new Government’s property requirements as an owner and tenant will influence projects in Ipwich and our major regional centres.

We also urgently need to come to grips with the associated planning issues around the resource boom to ensure the best outcomes for our state’s regions and towns. Finally housing affordability, and its associated ripple effect, will be central to creating the momentum and confidence needed to revitalise Queensland’s property market.

To date the moves have been big and bold but the State Government is not acting impetuously, it is simply seeking to make immediate change.

The property industry expected hard decisions, which would inevitably impact some businesses, but were prepared to accept those with the pay-off of good economic growth and development a key fundamental that underpins a healthy Queensland property sector.

With a string of strong and confident decisions the Queensland Government’s ship has set its course and it would appear there is indeed a captain at the helm.

Originally published on couriermail.com.au on June 1, 2012.

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Opinion

These are the top 3 spots to bag a bargain in Brisbane: Ryder

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These are the top 3 spots to bag a bargain in Brisbane: Ryder

Property analyst Terry Ryder has picked three spots to invest in Brisbane. Picture: Richard Walker.Source:News Corp Australia

WANT to know where to invest in Brisbane that’s both affordable and offers the prospect of price growth? Look no further…

THERE are only three areas in Greater Brisbane that offer affordable real estate with growth potential, according to property analyst Terry Ryder.

The founder of Hotspotting.com.au has identified three precincts where there are plenty of houses well below the median Brisbane house price of around $530,000, close to transport links, shopping and jobs nodes, and with median rental yields in the 5 to 5.5 per cent range.

Here they are:

These are the top 3 spots to bag a bargain in Brisbane: Ryder

Hotspoting.com.au director Terry Ryder at his home in Queensland.Source:News Limited

1. Goodna-Redbank Plains, Ipswich

These suburbs are at the eastern fringe of the Ipswich local government area — the part closest to Brisbane, the motorway and the train line.

They are also close to the Springfield masterplanned community, which has an array of modern facilities, including university campus, hospital and commercial-retail precincts.

“There are numerous big shopping centres and major employment nodes nearby, with the recently announced $5 billion Defence vehicle contract focused on this precinct as a major new jobs creator,” Mr Ryder said.

These are the top 3 spots to bag a bargain in Brisbane: Ryder

Terry Ryder thinks parts of Ipswich would make a good property investment. Picture: Chris McCormack.Source:News Corp Australia

 These are the top 3 spots to bag a bargain in Brisbane: Ryder

Terry Ryder thinks Redbank Plains is a good place to invest in property.Source:News Limited

2. Eagleby-Beenleigh-Woodridge, Logan

Mr Ryder said these older suburbs in Logan had median house prices in the $300,000s and were clustered around the train line and the Pacific Motorway, both of which link central Brisbane to the Gold Coast.

“This is also where there is an impressive shopping offering, including major bulky goods retail, and well-established infrastructure like schools and medical facilities (as well as a surprising number of golf courses).

3. Moreton Bay

The suburbs of Beachmere, Burpengary and Upper Caboolture have experienced double-digit growth in their median house prices in the past year, according to Mr Ryder.

They are all close to major road and rail links, but aren’t as expensive as North Lakes has become.

Even in the Redcliffe Peninsula, where most of the water-focused suburbs are, the median house price is only in the $400,000s.

And the Peninsula now has rail links to central Brisbane, making it an even more appealing prospect.

These are the top 3 spots to bag a bargain in Brisbane: Ryder

The Moreton Bay Rail link has made the area more appealing to property investors, according to Terry Ryder. Picture: Tara Croser.Source:News Corp Australia

Source: moretoninvestor.com.au

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Opinion

Property tax hikes will hit economy hard

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Property tax hikes will hit economy hard

The state government’s planned property tax increases risk wiping the state off the global investment map, warns Chris Mountford,
executive director of Property Council Queensland.Kevin Farmer

THE state government’s planned property tax increases, due to come into effect on July 1, risk wiping the state off the global investment map.
As the government begins work on the State Budget, the Property Council is ramping up efforts to highlight the hidden effects of the tax hikes.

These tax hikes will increase the cost of doing business, damage Queensland’s economic competitiveness and impact on every Queenslander.

With Queensland preparing to leverage the Commonwealth Games to attract new investment opportunities, these tax increases couldn’t come at a worse time.

Election campaign costings, released in the days prior to the November 2017 state election, revealed the government’s intention to introduce new land tax thresholds for aggregated land holdings with an unimproved value above $10 million.

Individuals, companies and trusts who are within this new threshold will be subjected to a 25% increase in the rate of land tax from July 1.

The government has also committed to increasing the stamp duty surcharge on foreign buyers of residential property from 3% to 7%.

The end result of this decision will be higher business rents, higher costs for new homes and damage to Queensland’s reputation as an investment destination.

Businesses who lease premises from larger landlords can expect additional rental and occupancy costs.

New homebuyers can expect an additional $800-$1000 added to the cost of purchasing a new home.

We once were able to lure investment from interstate and overseas with attractive tax rates, but we now find ourselves uncompetitive with our southern neighbours.

The Property Council is calling for the government to abandon the tax increases and commit to review and modernise Queensland’s property tax framework.

Our current land tax thresholds haven’t been changed in a decade, leading to significant bracket creep as property values have increased dramatically.

We need a simpler, fairer and more attractive property tax system to unlock investment and create jobs.

An all-encompassing review of Queensland’s outdated thresholds and property tax rates needs to be undertaken to put Queensland back on the investment map.

Chris Mountford is executive director of Property Council Queensland.

Source: brisbaneinvestor.com.au

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Opinion

Ipswich house prices on the rise

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Ipswich house prices on the rise

This is according to the latest analysis by RiskWise Property Research which found despite below-average property price growth over the past three months, Ipswich is an attractive destination to home buyers and investors who seek affordable housing. Over the medium to long-term the region is projected to deliver solid returns.

The research house CEO, Doron Peleg, said this would be driven by very affordable dwelling options and ongoing population growth, in particular, by high levels of interstate migration from Sydney and Melbourne.

The $5 billion contract for 211 high-tech armoured vehicles will result in a new multimillion-dollar Centre of Excellence at Redbank and defence jobs for 40 years.

Ipswich Mayor Andrew Antoniolli said the contract would create more than 330 permanent jobs from the outset, build significant opportunities for local businesses and provide associated work with ongoing delivery and maintenance of the vehicles.

“Defence directly contributed to more than 7000 jobs and almost $800 million to the Ipswich economy in 2016-17. But this contract will mean jobs for the next 30 to 40 years, for the life of the contract,” Cr Antoniolli said.

Mr Peleg said with the Queensland Government also allocating $868 million towards infrastructure and road projects in July last year, it was likely to trigger a construction boom which would grow local employment and hence demand for housing.

He said the Ipswich area, which was just 40km west of the Brisbane metropolitan area, enjoyed a stable property market offering both affordability, with a median house price of $371,000, and excellent access to the growing local business areas.

“The Ipswich area did deliver a slightly below average price growth relative to the Greater Brisbane and Australian benchmarks over the past five years,” Mr Peleg said.

“This is likely a result of its geographic distance from central Brisbane and the coastline, where most of the housing demand is centred.

“But that bodes well for those looking for affordability and the area has a house price-to-income ratio of 5.2 which is well below that of Brisbane and the rest of Australia.

“Also, lending restrictions and the potential recommendations of the Banking Royal Commission that are likely to result in lower borrowing capacity, are likely to increase the demand for Ipswich property.”

Mr Peleg said the region had a high median rental return of 5.2 per cent for houses and 5.8 for units which surpassed both the Greater Brisbane and Australian medians and could be attributed to the “very low” median property price combined with the ongoing demand for rental properties across Ipswich.

He expected them to remain at a consistent level over the short to medium-term.

“However, it is worth noting that units, with an extremely affordable median price of $280,000, do carry a higher level of risk, particularly in the short-term due to high additional supply levels,” he said.

“The Ipswich area delivered lower capital growth for units than for houses over the past five years. We believe given the high supply levels expected over the next 24 months, it is likely the area will continue its poor price growth trajectory.”

Another 2,683 new units will be added to the local property market over the next 24 months which is an increase of 39.1 per cent to the existing supply and sits well above the number for Greater Brisbane.

Mr Peleg said this level of supply should be treated with “high caution” and was likely to slow the market for units over the short to medium term.

Visit www.riskwiseproperty.com.au

RiskWise Property Research was formed in 2016 with the goal of providing property risk advise and research services to help its clients make informed purchasing decisions.

Its goal is to provide private investors, home buyers, property professionals and institutional clients with detailed risk information to support smarter decision making. Its vision is to be a global leader in property risk rating and research helping its clients to achieve deeper risk insights so they can make smarter property investment decisions.

Source: www.miragenews.com

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