A pre-election promise by the Liberal’s will see first home buyers able to get into the market sooner than before.

The main features of the policy include:

•  Reduce the deposit required to 5% of the purchase price
•  Savings of approx. $10,000 in relation to mortgage lenders insurance
•  A boost in competition with small lenders to be prioritised 

The First Home Loan Deposit Scheme will commence on 1 January 2020 and will be available to people who earn less than $125,000 annually, or $200,000 for couples. The value of homes that can be purchased will vary from different regions. 

The Real Estate Institute of Australia (REIQ) supports the initiative, with REIQ CEO Antonia Mercorella indicating the approach for this segment of the market is the right one.

“The initiative offers help in a meaningful way to those seeking to get their foot in the door of their first home and doesn’t cause detriment to other sectors of the market. This is a policy that was drafted with the many moving parts of the property market in mind,” Ms Mercorella said.

The Finance Brokers Association of Australia (FBAA) has also welcomed the policy. 

“Brokers welcome the First Home Loan Deposit Scheme and other policies aimed at giving the property sector a boost. We will certainly do our part to boost competition and be ready to assist when the policy comes into play in January next year,” said FBAA managing director Peter White.

With every government policy, there are some that oppose. The ABC reported that some economists predict the scheme could be ‘irrelevant’ and ‘ineffective.’ The initiative is capped at 10,000 borrowers.

Hannah Schuhmann anticipates this new initiative will increase interest in CBD apartments – an affordable option where buyers can get great value for money. Currently, there are a range of units available from $300,000 - $500,000 which occupy key CBD locations. 

It’s hard to forget the incredible announcement when Sydney won the bid to host the 2000 Olympics! Will it be South-East Queensland’s turn in 2032?

A potential bid to host the 2032 Olympics is gathering momentum, with LNP deputy leader Tim Mander jumping on the bandwagon after once labelling the suggestion a “pie in the sky idea,” reports brisbanetimes.com.au. 

With the Queensland economy at the forefront of Mr Mander’s change of heart, he also suggested the infrastructure benefits from hosting games in the south-east corner would actually help to “bust congestion.”  

The Council of Mayors SEQ conducted an initial feasibility study with the results showing an operating budget of $5.3 billion; $1.7 billion of this would be contributed by the International Olympic Committee and $2.7 billion of domestic revenue, which would leave a $900 million net cost. In comparison, the Gold Coast Commonwealth Games in 2018 had a $1.2 billion net cost. On the up side, the predicted economic uplift to the region is estimated at $22 billion. 

In an untraditional move, the proposal by SEQ Mayors suggested the games be spread across various regions of the south-east including Brisbane, the Gold Coast, Sunshine Coast and inland. It is predicted the games would bring an additional 100,000 visitors to the area plus the 10,000+ athletes.

Earlier this month, Queensland Premier Annastacia Palaszczuk met with International Olympic Committee president Thomas Bach. The Australian reported Mr Bach dismissed the idea it is too soon for Australia to host another Olympics after Sydney. 

The decision to make a formal bid does not have to be confirmed until next year, but state and federal governments will need to make a decision earlier as to whether they will support it and at what level. 

Australian Olympic Committee president John Coates told the publication the feasibility study that has already been done is a great step in the right direction and they are very pleased with preparation thus far. 

“The feasibility study that has been undertaken over the last two years addressed much of that dialogue we have been encouraging,” said Mr Coates. 

An opinion piece written for brisbanedevelopment.com said the Olympic bid should be perused “not because of potential sporting achievements or international recognition, but because of the injection of infrastructure funds that we would otherwise not receive.”

Interestingly, The Australian reported earlier this month that the south-east has the potential to run a “cost-neutral games” with regards to operational expenses. This contradicts the original research conducted by the Mayors’ with an outcome of $900 million in operating expenses.

The inner Brisbane apartment market is predicted to stabilise and steadily improve this year and into 2020, reports www.theurbandeveloper.com.

JLL have released their 1Q 2019 report and the results show supply is dropping off and expected to level out throughout the year. This will result in Brisbane CBD being able to “recover strongly over the medium-term.”

The key market indicators are strong, with approvals for apartments dropping by almost 50% year-on-year to February this year, and sales volumes to the end of December last year have dropped by 6.5% as stock is starting to condense. Rents of 3 bedroom units are proving to be the strong performer, with a 3.8% increase to $675 per week as at December 2018.

Head of Research at JLL told urbandeveloper.com indicated demand for Brisbane apartments will continue with population growth, and interstate migration will play a big role in this. 

“Increased jobs growth and infrastructure spending are expected to continue to support this growth cycle.” 

“As the market rebalances, supply levels will continue to contract over the next 12-24 months. Prices are expected to steadily improve and stabilise into 2020,” Warner said.

2016 saw the peak in apartment supply, with figures for 2019 expected to come out at around 40% the total of 2018. 

Moody’s Analytics have predicted the Brisbane CBD apartment market will “outperform the rest of the nation over the next two years,” forecasting 1% growth this year, followed by  5.8% growth in 2020, reports realestate.com.au. 

Hannah Schuhmann said the rumblings within the market signal a great time to buy a CBD. In a common mistake, buyers wait too long and prices take off, or they miss out on that perfect apartment trying to ‘time’ the market. 

In big luxury hotel news for the city, a brand new Hyatt hotel will call a new $600 million Woollongabba precinct home, reports brisbanetime.com.au. 

The Hyatt Place Brisbane hotel is scheduled to open in 2023, and will hold a strategic position close to the planned Cross River Rail. The hotel will include 170 rooms, rooftop bar and pool, café, gym and 24-hour food market. 

The hotel will be part of the South City Square development, a collaboration between Pellicano and Perri Projects. When complete, the mixed-use lifestyle precinct will be home to a Woolworths, childcare centre, cinema, offices, retail, and residential apartments. Construction on the project began in 2016, with development to be completed in stages. 

Pellicano development manager for Queensland Michael Kent said the agreement is ‘absolutely huge’ for the development and also the city. 

"It just again continues to reinforce the positive growth of Brisbane and its attractions to global businesses such as Hyatt," he said

Lord mayor Adrian Schrinner is confident this move by Hyatt shows how far Brisbane has come. 

“Brisbane has emerged as Australia’s new world city, however, just five years ago we were forgoing 121,000 visitors every year as a result of a shortage in internationally recognised, full-service hotel rooms,” Mr Schrinner said.

“For the first time in a decade, the city now offers a wide range of new luxury accommodation options, supporting our $7.5 billion tourism industry and record visitation to the city.”

Hannah Schuhmann said this wave of new 4 and 5 star luxury hotels, many being global brands, is a great sign for Brisbane. Tourism numbers and expenditure is strong, plus with huge projects on the horizon including Queens Wharf, Cross River Rail, and the Brisbane Quarter to name but a few, we are well on our way to being a World City!

Big infrastructure projects in the pipeline are set to give Brisbane a step-up to the world stage. 

Brisbanetimes.com.au has reported that by 2026, over $17 billion worth of new infrastructure is expected to be delivered to the city, which will include over 13 hectare of open space across five precincts, plus additional space that will be added as part of the $5.4 billion Cross River Rail project. 

The latest news from these huge Brisbane projects includes the appointment of contractors for works of the $3.8 billion Queens Wharf Development and the $5.4 billion Cross River Rail, and commencement of construction for the new $158 million International Cruise Terminal.

Queens Wharf

In the latest announcement, Multiplex has been awarded the major building works contract for the $3.8 billion Queens Wharf Development. The contract still requires finalisation and State Government approval. The paperwork is set to be completed quickly, as initial works and shell of the integrated resort and ‘Sky Deck,’ which will sit 100m above street level, are due to commence in the coming months.  

The contract is a huge win for the company, which will be responsible for approximately 370,000 sqm of floor area and 105,000sqm of glazed façade.

The first stages of the integrated resort development are expected to be completed in late 2022. 

International Cruise Terminal

Construction has officially commenced on Brisbane’s new $158 million International Cruise Terminal. The new terminal will ensure larger, and greater numbers of ships can dock in Brisbane. This will provide a great economic boost to the City as the industry is estimated to be worth more than a billion dollars in the next few years.  

To view the fly-through of the project, visit  https://www.youtube.com/watch?time_continue=2&v=Nt2lKVnTEyo 

Cross River Rail

Earlier this month, the State Government announced the companies that were awarded contracts to build the $5.4 billion Cross River Rail Project. The PULSE consortium will be responsible Tunnel, Stations and Development (TSD), UNITY Alliance will be responsible for the Rail, Integration and Systems (RIS), and Hitachi Rail STS will be responsible for the European Train Control System (ETCS). 

Premier Annastacia Palaszczuk said the Cross River Rail will create 7,700 jobs, and refers to the infrastructure development as a “megaproject” that is a “defining moment for Queensland.”

Hannah Schuhmann is confident these major projects are all steps in the right direction for Brisbane to morph into an attractive World City within the next 5 years.