Seems that Brisbane’s prestige residential market might be sparking an interest with an increasing number of property buyers at the moment, with recent statistics showing that the sale of houses and units worth between $1m and $2m in the Brisbane area is on the rise.

According to a recent editorial in The Australian, figures supplied to The Weekend Australian (by CoreLogic RP Data) show that houses and units worth between $1m and $2m rose from 1.8 per cent to 2.1 per cent of all sales.

Meanwhile, the $2m-plus price bracket remained the same as last year at 0.9 per cent of the market from 326 sales – the same as last year.

“2017 could be an exceptional year if the stockmarket is strong and we don’t see the jumping at shadows we did at the end of the year,” he says.

“If you look at the value that is offered in that $2m­$3m range, compared to Sydney and Melbourne, Brisbane is phenomenal value”.

Principal of HS Brisbane Property, Hannah Schuhmann agrees with Gross, saying that she feels the appeal in Brisbane’s CBD property is incomparable with other states, particularly when it comes to what you get for your money.

“Brisbane offers a similar cosmopolitan lifestyle to Victoria and Sydney but for a fraction of the cost – especially when looking at buying a unit in the heart of the CBD.

Schuhmann says she has also recently noticed an increase in the number of enquiries to purchase property in Brisbane within the $1m to $2m range.”

“What has surprised me more than anything though is the increasing number of people that have over $1m to spend,” says Schuhmann.

Schuhmann says that the interest is not just coming from local buyers.

“We are seeing a vast increase in the number of enquiries coming from Sydney investors looking to purchase property between $1m and $2m in Brisbane.”

Like Schuhmann, it is the great hope of the Queensland property industry that more and more southerners realise the value in Brisbane’s year-round sunny climate and relaxed way of life.

Many of whom would realistically be able to purchase a multi-million-dollar house close to the city and still have change from the sale of their Sydney mansion to pour into their retirement fund.

At HSBP we have worked with many sellers in the CBD that fall within the $1m and $2m price range in the past, and achieved great outcomes.

For more information or to book an appointment, contact the team at HSBP on 0419 782 133.

In last week’s article we focused on how the interstate migration numbers for Queensland are on the up. With many new buyers coming from Sydney to Brisbane due to pricing disparity between the two cities. If you recall, Propertyology buyers’ agent and market researcher, Simon Pressley, said, “If Queensland can get its act together with a confident economy, we’ve got the foundation for a boom.”

Yes, a BOOM! Keep that, along with the words ‘confident economy’ in the forefront of your mind when you read this week’s article…

Earlier this month Brisbane Council adopted the City Centre Neighbourhood Plan which is set to become effective on Friday 24 March 2017. This plan, in accordance with theSustainable Planning Act 2009, is set to translate some of the strategies of the Brisbane City Centre Master Plan 2014 into more specific rules for development.

According to Brisbane City Council, The City Centre Neighbourhood Plan seeks to be simple and streamlined, with an ongoing intention to:

1. accommodate growth and economic development
2. encourage sustainable and subtropical design
3. promote good design that responds to its urban context
4. create vibrant, high quality, and pedestrian-scale streetscapes framed by low-scale permeable ‘street buildings’
5. deliver laneways, arcades and small scale spaces to improve public realm and pedestrian permeability.

Some of the world-class development precincts on Brisbane’s radar include projects like Quay Street, Queen’s Wharf and Howard Smith Wharves.

The River Precinct is set to totally transform over the coming years as the City Centre Neighbourhood Plan guides the design of buildings to optimise public space and access to the riverfront, and also seeks the delivery of improved Riverwalk infrastructure.

It is anticipated that the Brisbane CBD will grow significantly over the next 20 years. So much so, demand for 800,000 square metres of floor space likely to translate into around 50 new towers.

This equation is obvious. It means a significant increase in workers, residents, shoppers and visitors. Which, according to the www.theurbandeveloper.com will drive a further 80 per cent increase in public transport journeys and a doubling of pedestrian trips in the City Centre. Hello Brisbane!

Now let us shift the focus back to last week’s editorial when Simon Pressley said those magic words – ‘boom’. And when Real Estate Institute of Queensland chairman, Rob Honeycombe agreed with him, also saying that Queensland’s employment fortunes are on the improve, which, along with housing affordability, will underpin future strong interstate migration growth into the state.

Looking at the Council’s plans, which aim to deliver a coordinated strategy towards guiding future development, transport and public space investments in Brisbane’s city centre over the next 20 years.

Seems if these two men are right, then watch out world - Brisbane is coming! And as Brisbane CBD amps up its local economy, investors take note; this is one giant opportunity you need to get a hold of, and FAST. 

You do the math…

On one hand you have a city bettering itself through strong city developments and billion-dollar infrastructures. Thus creating more jobs, increasingly greater lifestyle opportunities and a stronger economic outlook. Then, on the other hand, you have low property prices in comparison to fellow Australian cities, as referred to in last week’s article.

We think the answer is simple and, as Pressley says, may possibly spell B-O-O-M.

If, like Pressley and Honeycombe, you see a bright future ahead for the Queensland property market, then you need to schedule a meeting with Brisbane’s local property experts. At HSBP we can help you find out more information about some of the exclusive and lucrative buyer and investment opportunities currently available right here in the heart of the Brisbane CBD.

To book an appointment, contact the HSBP team on 0419 782 133.

The Domain Group rental and house price report is in for the 2016 December quarter… and seems that Brisbane property buyers have a lot to smile about, given the report revealed that the median cost of property in Brisbane is now almost half that of its Sydney equivalent. Guess it comes as no surprise then that more and more people are opting to migrate north to sunny Brisbane. From housing costs to the local economy, we tap into some key factors as to why.

Here at HSBP we have seen the writing on the wall for some time; for us Brisbane seems like the obvious choice for Australian investors. But, like we tell our clients, research is an imperative part of being well-informed. So we did our research. The numbers told the story. Our original opinion remains – Brisbane is still the obvious choice when it comes to property investment.

In fact, looking at other recent articles, it seems that other investors are now starting to catch on – especially Sydney! Why would they not, given that the median house price in Sydney is almost double that here in Brisbane.

According to the Domain Group report for the recent December quarter, current median house prices for both cities are as follows:

•  Sydney’s median house price is $1.1 million
•  Brisbane’s median house price is $540,000

Why such a big difference in two Australian cities? According to an editorial on domain.com.au Real Estate Institute of Queensland chairman, Rob Honeycombe says the economic performance of New South Wales over Queensland in recent years was partly responsible for the huge price differential.

Honeycombe also said that as a result of Sydney’s ongoing property prices increasing, Queensland has been a long and happy recipient of strong interstate migration. A trend he feels was likely to continue given the property price disparity between the two states.

In fact, population figures for the June quarter 2016 show that interstate migration into Queensland is already on the rise. With the latest quarterly interstate migration increase of 3,328 proving the highest since December 2008, according to recent analysis by Propertyology.

Where are the buyers coming from? Seems that Sydney investors know a good thing when they see it, as it appears that a lot of this migration activity is coming straight from New South Wales.

Principal of HS Brisbane Property, Hannah Schuhmann says they too have noticed an increase in the number of enquiries coming from Sydney investors looking to purchase property in Brisbane.

“A growing percentage of our buyer enquiries are coming from Sydney-based investors,” she said.

According to Propertyology buyers’ agent and market researcher, Simon Pressley, the sunshine state recorded three consecutive quarters of interstate migration growth.

In fact, recent Propertology research indicates that more than 3000 are shifting to Queensland every three months, meanwhile New South Wales recorded the opposite with three quarters of constant declines. This speaks volumes when it comes to interstate migration numbers.

Pressley feels that the main reason they’d be leaving NSW is because of housing affordability.

He said there are clearly plenty of jobs in Sydney but housing affordability seems to be turning some people away.

“If Queensland can get its act together with a confident economy, we’ve got the foundation for a boom.”

Honeycombe agrees, saying that Queensland’s employment fortunes are on the improve, which, along with housing affordability, will underpin future strong interstate migration growth into the state.

“The house price gap is just too large… people can save so much money by making that move, and that’s going to start to become very attractive for those who either already own a home in Sydney or who are weighing up the option of buying in Sydney,” he said.

Along with Honeycombe, Pressley and the current reports, we know all too well that Brisbane’s property prices are attracting an increase in the number of property buyers from interstate.

With more and more people (both investors and tenants) moving to Brisbane to chase work, employment opportunities and increased lifestyle benefits… as well as lower property prices, now is a great time to consider buying that dream apartment in the heart of the Brisbane CBD.

For more information or to schedule an appointment, contact the HSBP team on 0419 782 133.

Earlier this month, Peter Switzer wrote an article on www.switzer.com.au titled “27 economists surveyed say 2 rate cuts are coming!” And in true Switzer style he provided more than enough facts to back up his argument. Here’s what he had to say when it comes to growth, rate cuts and why he feels there are better economic times ahead.

Let us first start with interest rate cuts…

Interest rate cuts

Many economists are expecting that we will see a rate cut after the middle of the year… some even believe we have a couple of cuts to come. This is no big surprise.

As Switzer puts it though, if this is the case, then our Reserve Bank of Australia cash rate could potentially go from 1.5 per cent to 1 per cent. This will then reduce both fixed and variable rates of interest. Plus, given that the US is expecting several interest rate rises this year it could very well see our dollar go down as well. So Switzer says.

Growth for 2017 (predicted to be 3 per cent)

Now let us focus on the growth predictions for the year. Peter writes that in his experience he finds that the crowd can often be too bullish or too bearish…

“I look for those economists with a good individual track record and then link it to some indicators I have found to be reliable,” writes Switzer.

When it comes to growth figures for 2017, Switzer says that the consensus seems to sit at around 2.4 per cent.

According to Peter, this is what the experts are tipping; Treasury thinks we will grow at 3 per cent, while HSBC’s Paul Bloxham tips 3.4 per cent. ANZ’s Richard Yetsenga has 3.3 per cent but five others agree with 3 per cent, including Westpac’s Bill Evans and NAB’s Riki Polygenis – and the man himself, Peter Switzer.

Although, Peter did write that he could be tempted to tip a tad higher.

“I think President Trump’s pro-growth and the world’s low interest rates make me argue with the pessimists, with our terms of trade spiking higher. Recently, we recorded the best trade surplus ever, which CBA economists say will add 0.8 per cent to growth alone,” writes Switzer.

When it comes to the year ahead, he says that growth is the key, and if it’s 3 per cent or so then inflation kicks and rates don’t need to go lower.

Better economic times ahead

Here are just five (of nine) statistics that Mr Switzer says are good indicators for better economic times ahead:

1. The NAB business conditions index surged from +5.7 points to +11.4 points in December, a 6-month high.
2.  The business confidence index rose from +5.5 points to +5.7 points.
3.  The index of trading conditions in the NAB survey rose from +9.8 points to +20 points (a 9-year high); profitability rose from +5.7 points to +14.3 points (a two-year high). That looks like great news!
4.  The CoreLogic Home Value Index of capital city home prices rose by 0.7 per cent in January and was up 10.7 per cent over the year. Prices rose in seven of the eight capital cities, with Hobart up the most (up 1.4 per cent). Regional house prices rose by 1.1 per cent in December.
5.  Australia’s annual exports to China lifted from $76.2 billion to US$80.2 billion in the year to December – a 23-month high and up 6.6 per cent on a year. 

What this all means for investors

Sure we might see another drop (or possibly even two) but overall Peter predicts that rates will stay put for the majority of the year ahead.

“I’m betting that rates don’t move for most of 2017 and growth is better than 2.4 per cent and our dollar goes higher before falling as the US Federal Reserve raises interest rates.”

Further rate cuts. A predicted three per cent growth on the horizon. And that is just for Australia! When you focus in on what is happening right here on our doorstep, Brisbane’s economy is going from strength to strength thanks to all of the major million-dollar development projects underway.

It quickly all adds up (projected growth, strong economy, rate cuts) … when you look at it like that, what a year 2017 should be for property investors.

If, like us, and industry expert Peter Switzer, you feel that 2017 will be a good year for economic growth, now may be the perfect time to explore new investment opportunities - especially here in the heart of the Brisbane CBD.

For more information or to schedule an appointment, contact the HSBP team on0419 782 133.

As an investor, one of the biggest advantages that comes with buying an investment property in the Brisbane CBD is that it means that nothing is too far away for tenants. This includes some of the best education facilities, schools and universities. So when we heard that the University of Queensland (OQ) is set to open a new inner-city postgraduate campus in a heritage-listed building on Queen Street, here in Brisbane, we could not be happier.

A couple of weeks ago the University of Queensland submitted plans to Brisbane City Council to convert the top two storeys of the old Custom Credit House into an "educational establishment" for its CBD campus.

A UQ spokeswoman confirmed the Faculty of Business, Economics and Law had leased the site, which (according to a recent editorial on  http://www.brisbanetimes.com.au) is set to target post-graduate business students.

The university's town planner for the project, Graham Clegg of Clegg Town Planning, said in his application letter to the council that level six of the building would consist of a "teaching facility" for MBA and executive education programs, along with office space. While level seven would be "used for alumni and advancement related activities", according to Mr Clegg.

"The chancellor's office and (executive) support staff would be located on this floor to be able to engage with alumni and VIP guests," he said.

Mr Clegg also said that UQ's proposed facility would be built within the existing space of levels six and seven of Brisbane’s Custom Credit House. 

"The proposal is for occupation of part of the premises only (levels six and seven) and no new or additional gross floor area is proposed and no other floors within the building will be impacted by the proposal," he said.

Home to some of Queensland’s most respected universities, like the highly reputable University of Queensland, plus a number of colleges and other well-respected education facilities, it is no wonder why so many property investors (local and foreign) are leaning favourably towards buying apartments in the Brisbane CBD. 

Principal of HS Brisbane Property, Hannah Schuhmann says that foreign investors love buying high-rise apartments; this is especially the case when it comes to Asian students and families.

“We tend to see a lot of families of Asian students buying apartments in the Brisbane CBD so that their children can live there and be within close proximity to university or college while completing their studies.”

Here at HSBP we are extremely fortunate to have the Brisbane CBD right on our doorstep, as it is a golden hub for any astute investor… or student-tenant for that matter.

For more information on investing in the Brisbane CBD or to find out which of our current properties are best suited to your target demographic, such as students, speak to Hannah and the professional team at HSBP on 0419 782 133.