FAMILIES are lining up to beat interstate and international property investors at their own game.
They’re cashed up and ready to pounce on homes in Ipswich suburbs within hours of them hitting the market and investors from other parts of the country don’t stand a chance.
Real estate agents in Springfield, Springfield Lakes, Camira and Augustine Heights have lists of contacts saved in their phones for local Ipswich families who want a slice of the suburbs.
In some instances, homes are under offer within three hours of hitting the market.
Close to 10,000 families already call the in-demand suburbs home and thousands more want in on the action.
The lucky buyers are not from interstate. They aren’t buying to invest or rent, but they want two living spaces, more than one bathroom and enough bedrooms for all their children.
McGrath sales agent Clare May said it was a supply and demand situation that has led to some families who weren’t quick enough missing out on their dream home.
“There seems to be a lot of families that want to move into the greater Springfield area and what we’re finding is we are having a large number of open homes but multiple offers,” Ms May said.
“Properties are coming on to the market and before we can even advertise them. We’ve already had multiple views. We have a large amount of buyers, literally lists of buyers, who are waiting for properties.
“We had a home go under contract within three hours of the property being listed. The ink was still wet on the forms and buyers were already going through.”
The exodus is occurring for families who already call the city home but want bigger homes in expanding suburbs.
Ms May said the great Australian dream of a big backyard had been foregone for expansive homes with extra space for families to spread out – and the price tag to match.
“We’ve got the lagoon, we’ve got Robelle Domain, wherever you live within the greater Springfield region, you can walk to a park.
“The idea of having a larger block isn’t necessarily as appealing as it used to be, it’s more the big house,” Ms May said.
“The prices have been going up. We’ve seen a large amount of properties listed for sale between the $700,000 and $750,000 mark which is quite unusual for somewhere like Springfield Lakes. Recently. we’ve had a number of higher-priced properties that have been listed and record sales recorded.
“These sales have become more and more popular. You wouldn’t necessarily expect to have as many people through open homes looking at that price because they would normally look at somewhere like Brookwater.”
She said the majority of blocks in Camira were almost double the size of the average 550sq m blocks in Springfield Lakes.
“Camira is a bit better for block sizes so we are finding most of the buyers we are selling to in Camira are from Springfield Lakes and are re-locating to Camira for the bigger blocks.
“People do not want not to live quite as close to their neighbours,” Ms May said.
Realtors can’t keep up with demand
THERE are more buyers than there are homes in Springfield, with real estate agents putting buyers on speed dial.
Cashed-up families want to see homes the moment they go on the market and those most desperate are willing to go to extreme measures to snap up a home.
McGrath sales agent Clare May said homes are out of stock
“I look at what stock there is in the whole greater Springfield region and there is not enough. The trend has been increasing and I think it will continue to increase,” she said.
“I don’t think it’s going to slow down. I think it’s going to continue to grow because it’s supply and demand.”
Ms May said major housing developments that injected thousands of homes into the market did little to curb the supply shortage.
“Some people don’t want spanking new houses – they want to buy something that is established and has got trees and the neighbourhood.
“Who would not like to be in a satellite city like Springfield.
“I think it will get to a point it’s so big it will have to be recognised as a city.
“I don’t think it will curb the under-supply.
“From a sales perspective, people are always looking to move and re-locate. They are looking for a good area, community, space and activities they don’t have to travel for.”
Resident loves city switch
MUM Signe Langi is one of the lucky ones who has already finished building her dream home at Springfield.
Last week marked a year since Signe and her family moved into their home they love it.
She wasn’t surprised to hear property in her area was in high demand.
“We bought a property in Springfield and finished building a year ago,” Signe said.
“We really love it.”
Signe moved from Oxley with her daughter and partner.
The pair were ready to buy and looked in their local area but found the price didn’t match the quality they wanted.
“We looked at a lot of places at Oxley,” Signe said.
“A lot of them were older homes and we wanted something more modern.”
When they found the estate they wanted to build in, the pair made an application and a few months later found out they had been approved for their preferred block.
Signe works in Ipswich but didn’t want to be too far out from Brisbane either.
She and her partner settled on Springfield, deciding it was a happy medium.
The family loves the community feel and Signe, an avid walker, enjoys bypassing the lakes while out for a stroll.
“We’ve been to Robelle Domain for Christmas in the Park.
“We like all the outdoor spaces for families.
“Most of our neighbours are owner occupiers.” –Helen Spelitis
Originally Published: www.qt.com.au
Queensland Budget 2018: What it Means for the Property Industry
This year’s budget focused on infrastructure, tourism and mining funding.
Property investors will also be met with a 0.5 per cent increase in the land tax rate for aggregated holdings above $10 million, as well as an increase in the additional foreign acquirer duty from 3 per cent to 7 per cent.
The government also announced it will cut back the first home owners’ grant.
So what does the state budget mean for the property industry?
Here is what you need to know.
Additional Foreign Acquirer Duty
Aligning with states nationwide, the Queensland government announced an increased rate for additional foreign acquirer duty.
The AFAD is an additional tax on relevant transactions that are liable for transfer duty, landholder duty or corporate trustee duty which involve a foreign person directly or indirectly acquiring certain types of residential land in Queensland by foreign persons.
The duty will rise from 3 per cent to 7 per cent and is forecasted to result in an increased revenue of $33 million per annum.
The state government will dedicate $4.217 billion to transport and roads.
The Sunshine State’s long-awaited duplication of the Sunshine Coast rail line received $161 million.
The Toowoomba Second Range Crossing project received $543.3 million, a route to the north of Toowoomba from Helidon to the Gore Highway.
Brisbane’s Cross River Rail received $733 million to go toward the $5.4 billion project. The federal government failed to pledge any assistance towards the Cross River Rail project earlier this year leaving the state government to foot the bill.
There’s also $487 million over four years for upgrades to the M1 on Brisbane’s south and on the Gold Coast.
First Home Buyers Grant Slashed
First home buyers have come to expect a $20,000 starter grant since 2016 will now see it cut to $15,000 if they buy a house from July onwards.
The $5,000 boost had been added to the grant in 2016 by former Treasurer Curtis Pitt, with the measure supposed to be in place for just one year.
It was extended twice in six-months until the end of 2017 and then to June of this year.
Land Tax Increase
Under the new taxes introduced in Tuesday’s budget, foreign landowners with more than $10 million worth of landholdings will now be in line for a 0.5 per cent increased rate of land tax.
Individuals with properties worth more than $10 million will now incur an additional rate of 2.25 per cent (or 2.5% for trusts or companies) for every dollar of taxable value over $10 million.
This is expected to bring in $71 million in revenue in its first year, with a projected 11 per cent increase in 2018-19 land tax revenue.
Ipswich’s top 5 growth hotspots
REDBANK Plains has again topped the council’s list for the fastest growing suburb in Ipswich.
According to Ipswich City Council’s latest Planning and Development report 21,520 people now call Redbank Plains home.
In just three months, between December and March, 354 new residents moved in, the report states.
Spring Mountain, South Ripley, Collingwood Park and Bellbird Park were the next fastest growing.
Last year, 640 new homes were built in the Redbank Plains, 421 new lots were created and 346 more were approved for construction.
A new $20million food precinct, including US giants Krispy Kreme and Carl’s Jnr opened in December along Redbank Plains Rd.
In 2016, the Town Square shopping centre underwent a major $75 million expansion, adding 50 new retail tenancies, the new Pig and Whistle pub and created more than 1300 new carparks.
In February last year, the shopping centre sold to Singaporean real estate investment manager Rockworth Capital Partners for a whopping $160 million.
Ipswich City Council invested $85 million in the upgrade of Redbank Plains Rd to cater for population growth, recognising the demand for travel would continue to increase along what has become one of the most important roads for the economic prosperity for the city.
A new Catholic primary school is also due to open in Redbank Plains in 2020.
Top 5 Ipswich growth suburbs
- Population: 21,520
- Increase: 354
- Population: 300
- Increase: 182
- Population: 2,187
- Increase: 154
- Population: 7,598
- Increase: 143
- Population: 7,718
- Increase: 135
Foreign investment in Australia’s housing market collapses: FIRB
The FIRB has revealed a fall in foreign investment in new apartments in Australia.Source:Supplied
FOREIGN investment in Australia’s housing market has fallen, amid waning investor appetite and tighter lending standards.
OFFICIAL data has confirmed a collapse in approvals for foreign investment in Australia’s housing market, amid waning investor appetite, higher charges and tighter lending standards.
The Foreign Investment Review Board’s annual report reveals a 67 per cent fall in residential real estate approvals last financial year — down from 40,149 approvals to 13,198.
The value of FIRB approvals also plunged, from $72.4 billion to $25.2 billion in fiscal 2017.
The report reveals 18 per cent of approvals to foreigners were for residential real estate in Queensland in 2016-17.
Victoria and New South Wales remained the favourite destination for investment, accounting for nearly three-quarters of all approvals granted.
The FIRB said a significant factor contributing to the reduction in approvals was the introduction of application fees from December 2015.
“The introduction of fees resulted in investors only applying for properties they intend to purchase,” the report said
“Prior to the introduction of fees, individuals often made several applications earlier in the process when considering multiple properties, even though they might have only ended up purchasing a single property.
“This suggests that the resulting reduction in approvals may not imply a corresponding a reduction in actual investment in residential real estate. That is, the actual decline is likely to be lower than implied by the data.”
Along with the introduction of state-based taxes on foreign investors, the FIRB said weaker demand from China was another factor behind the decline in approvals granted.
Investment in new apartments from mainland Chinese investors dropped significantly in 2016-17.
AllenWargent Property Buyers chief executive Pete Wargent said the figures would have some significant impacts on the new apartment sector, construction trends, and the broader economy — especially in Sydney.
Mr Wargent said he expected Sydney to experience the greatest number of failed apartment projects, with increasing signs of discounting on new apartments.
“Perhaps this was an inevitable end-game for this cycle, where development has been too much skewed towards apartments for investors, and too little towards the types of medium-density dwellings that people want to reside in,” he wrote in his blog.
But Chinese international real estate website Juwai.com chief executive Carrie Law played down the reported decline in Chinese demand.
Ms Law said that in the second half of 2016, Chinese buyers were investing in Australian real estate at an almost irrational pace.
“It was like money falling from heaven for vendors and developers,” Ms Law said.
“In early 2017, capital controls, financing restrictions, and foreign buyer taxes reduced Chinese investment to more reasonable levels.
“Since November 2017, we seem to have entered a period of more sustainable long-term growth.”
Ms Law said Chinese buying enquiries for Australian property in March were 5.7 per cent higher than the month before and in April they were 22.3 per cent higher.
“Unfortunately, this year’s FIRB data is not directly comparable to that of prior years, due the change in regulations and buyer behavior,” she said.
“The big declines are partly due to lower demand, and mostly due to the changed application fees.”