Top 20 Brisbane growth suburbs of the decade: Terry Ryder

Brisbane’s market has been busy recently, without delivering strong capital growth. It has in common with most of the nation’s capital cities a reluctance to join Sydney in a property boom.

It’s overdue for a period of growth because it’s been an under-achiever in the recent past. It ranks fifth among the eight state and territory capitals for long-term capital growth, well behind (in order of ranking) Perth, Melbourne, Darwin and Sydney.

Based on Domain figures for the average annual growth in median prices over the past 10 years, the top 20 suburbs in Perth all have growth rates between 9% and 10% per year. Brisbane’s top 20, bar one, are between 6% and 7% per year.

Brisbane averages have been dragged down by poor performance in the past four years. City markets took time to recover from the floods of early 2011. In the years since, Perth, Darwin, Sydney and Melbourne have all had periods of price growth ranging from solid to strong, but Brisbane has yet to join the growth party.

Parts of the Brisbane metropolitan area have out-performed, but the average citywide performance has been lukewarm.

Looking at the figures describing growth rates for the past 10 years, Brisbane currently has only one suburb with a growth rate above 7% (Hendra, which averages 7.6%). All of the other Top 20 suburbs have long-term growth rates between 6.0% and 6.9%.

The leading precinct is Brisbane Northside – the northern suburbs of the Brisbane City Council area – which provides the top four suburbs and six of the top 10. This area is prominent in terms of capital growth rates because it led the upturn in sales activity in the city market in 2013 and 2014 – and many suburbs have recorded double-digit annual price growth in the past 12 months, lifting their long-term growth rates.

The Brisbane Northside suburbs, and indeed most of the suburbs on the Top 20 list, represent Brisbane’s middle market. The 12 most expensive suburbs in the Brisbane region have median house prices in the range from $900,000 to $1.2 million. The middle market is the next tier below that – and that’s the market that leads on capital growth rates.

All but one of the Top 20 have median prices below $900,000. Fourteen of the Top 20 have median prices in the $600,000s and $700,000s. There are currently no bottom-end suburbs on the list – only two have medians below $600,000.

I expect a different result a year from now, as many of the cheaper markets are now rising across the Brisbane metropolitan area and are likely to experience good price growth, lifting their long-term growth rates.

Brisbane’s most expensive suburbs have been mediocre performers – only one of the 12 priciest suburbs features on the Top 20 list for capital growth rates. Only four of them have capital growth rates above 6%.

The worst performing precinct has been the Moreton Bay Regional Council area in the far north of the Greater Brisbane area. Seven of the Bottom 20 suburbs are located there. This may change in the near future, as this precinct is one of the areas with elevated sales activity, as the momentum ripples out from the neighbouring Brisbane Northside precinct.

BRISBANE TOP 20 – ANNUAL GROWTH % OVER 10 YEARS

No. SUBURB MUNICIPALITY   MEDIAN GROWTH RATE %
1 Hendra Brisbane-North  $815,000     7.6
2 Newmarket Brisbane-North  $740,000     6.9
3 Gordon Park Brisbane-North  $700,000     6.8
4 Northgate Brisbane-North  $610,000     6.7
5 Paddington Brisbane-Inner  $865,000     6.6
6 Cannon Hill Brisbane-East  $705,000     6.5
7 Lutwyche Brisbane-North  $697,000     6.5
8 Doolandella Brisbane-South  $460,000     6.3
9 Gaythorne Brisbane-North  $618,000     6.3
10 Bardon Brisbane-West  $840,000     6.2
11 Fig Tree Pocket Brisbane-West  $934,000     6.2
12 Holland Park Brisbane-South  $619,000     6.2
13 Woolloongabba Brisbane-Inner  $645,000     6.2
14 Camp Hill Brisbane-South  $748,000     6.1
15 Fairfield Brisbane-South  $678,000     6.1
16 Upper Mt Gravatt Brisbane-South  $550,000     6.1
17 Albion Brisbane-North  $687,000     6.0
18 Eight Mile Plains Brisbane-South  $619,000     6.0
19 Norman Park Brisbane-East  $760,000     6.0
20 Seven Hills Brisbane-East  $618,000     6.0

TERRY RYDER is the founder of hotspotting.com.au. You can  email him or follow him on Twitter. 

How to get the address of a property when it is not listed

Hello all, following on from my previous article on “Secret tip: How to get unlisted property prices from www.RealEstate.com.au”, I received a lot of positive feedback from people who now take advantage of that trick on a daily basis – saving them heaps of time. Just one small update on this handy tip, RealEstate.com.au now also have their “Premium Properties” – and this trick doesn’t work on those ones.

I have another handy tip for you this month! This tip is “How to get the address of a property when it is not listed” and you’ll need this when those dastardly real estate agents don’t disclose all the information to you in the advertisement, because they want you to call them – so they can get all your personal details first and hook you into their database. It must be the second most annoying thing when doing research and due diligence on properties – when agents don’t disclose the actual address of the property! You know what I’m talking about – “Address Withheld” or “Address available on request”. Bluurgghh! Vomit!

1

Well, you’re all lucky that I have a nerdy background in IT. You may have heard the phrase “Google is your friend” – and it’s definitely true in this case. Google has a feature that not too many people use – or are even aware of. Did you know that much like its highly effective “text” search engine – they also have an “image” search engine? It’s hidden away at the top-right of the screen.

2

Go on, click it now. You’ll then be taken to the Google Images search screen – where you can search for an “image”.

3

Clicking on the little “camera” icon will present you with an option to search for an image by a given URL; OR you can upload an image to search on if you’ve already downloaded one previously.

4

For the purpose of this exercise, we’ll search by URL (Paste image URL).

First, though we need to get the URL of the image we want to search for. Going back to the original RealEstate.com.au advert above, all you need to do is RIGHT-CLICK on the main photo of the house and select “Copy Image Location”. (Note: I am using the FireFox browser here. If you’re using Chrome choose “Copy Image URL”. If you’re using Internet Explorer – just don’t!)

5

When you select “Copy Image Location” – nothing will appear to happen. Don’t worry – it’s not black magic or hocus pocus. All that’s happened is that you’ve copied the actual URL of that image into your clipboard – ready for pasting!

Now, we flip back to Google Image search, and PASTE the URL of the image into the search box.

6

The image URL from RealEsate.com.au will often be really really really long – full of “gobbledygook” as my 7 year old daughter would say.

Now, all you need to do is hit the “Search by image” button – and let the power of Google do its thing. Now this bit IS magic and full of hocus pocus! Google will come back with some websites that use that same image – it is a bit hit’n’miss at times.

7

What you need to do here, is the click through those websites, and hope that one of them have the actual address of this property listed.

In my case, clicking in the top URL goes to Homely, with the FULL ADDRESS SHOWN!!

8

And that my friends, is how you can find out the address of a property when it has not been disclosed by those pesky agents!

If you have any other great tips, please share them!

Onwards and upwards!

Author: Steven Tein, Co-Invest Australia
http://www.Co-Invest.com.au

 

 

2000 more Queensland jobs with new mine approval: Moranbah

A NEW Central Queensland mine project will be allowed to employ fly-in, fly-out workers as well as locals under strict workforce requirements.

The Coordinator-General has approved BHP Mitsubishi Alliance’s Red Hill Mining project north of Moranbah.

Mines Minister Dr Anthony Lynham said the BMA proposal would create 2000 construction jobs and 1500 operational jobs at peak production.

The Coordinator-General’s requirements forbid a 100% FIFO workforce, stipulate people from all regions can apply for jobs and calls for detailed and regular reporting on workforce composition and operations, along with an audit of existing housing capacity.

BMA intended to use a 100% FIFO workforce for Red Hill, following a track laid by its Daunia and Caval Ridge mines.

An end to 100% FIFO workforces was signalled by the former LNP Government following an intense campaign by Australian Regional Media, the publisher of this website.

The project involves construction of a new underground coal mine and expansion of the existing Broadmeadow and Goonyella-Riverside coal mines.

Dr Lynham said it would increase coal output from about 18 million to up to 32.5 million tonnes a year at the mining complex centred on Goonyella-Riverside.

The approval comes as a Queensland parliamentary inquiry investigates FIFO and drive-in, drive-out practices in regional Queensland.

“This development will provide a valuable job boost in Central Queensland regional communities and businesses, as well as the rest of the state,” Dr Lynham said.

“But it’s also critical that development takes into account the economic and social impact of 100% FIFO on resource communities.

“The Coordinator-General’s conditions represent a whole new approach to dealing with this workforce issue.”

He said the Coordinator-General had found that BMA’s EIS addressed the predicted outcomes, and he has set conditions to avoid, mitigate or offset these impacts, including groundwater, ecology, surface water, land impacts, traffic and transport, noise and air quality.

“The proposal now enters the next stage, which involves environmental authorities, public consultation, and potentially Land Court hearings,” Dr Lynham said.

Junior miner Atlas Iron to restart production at Mt Webber

Junior miner Atlas Iron will restart production at its Mt Webber mine in Western Australia’s Pilbara in July.

It expects the Mt Webber project to produce 6 million tonnes of iron ore per year for more than eight years.

In a statement issued by the ASX, Atlas said it would pay its contractor BCG Contracting between $17.1 million and $19.6 million in shares and cash to cover the termination costs of its Wodgina mining contract.

It will also cover the suspension, remobilisation and other costs for the Mount Webber mine.

Under the revised agreements, Atlas and BCG are aiming for cost savings of between 10 and 12 per cent, meaning the company’s break-even price would be approximately $US50 per dry metric tonne of iron ore.

That is compared to today’s market ore price of $US61.50.

Last month, Atlas announced it had reached a deal with its contractors to allow it to bring its three Pilbara mines back into production, after the tumbling iron ore price forced the company to halt production in April.

It also accepted a royalty relief package from the West Australian Government worth $12.5 million.

By Irena Ceranic
http://www.abc.net.au/news/2015-06-02/junior-miner-atlas-iron-to-restart-production-at-mt-webber/6516180

 

Fly-in, fly-out review to meet leaders in Mackay, Moranbah

A second review into fly-in, fly-out (FIFO) work practices in the mining industry will hold hearings in central Queensland this week.

Isaac regional council Mayor Anne Baker is part of a four-member panel looking at the use of the practice for mines which are located near a town.

The panel has already done interviews in Brisbane and will meet local representatives from councils, unions and businesses in Mackay today, and in Moranbah tomorrow.

Councillor Baker said so far the talks had been “robust”.

“What I can say is they have all been very open and there’s lots of information and we need to take all of the information on board and not pre-empt or form any position before we’ve got everything and we’ve met with all stakeholders and make an informed decision at the end,” she said.

Cr Baker said the discussions had been open and informative.

“From my perspective it’s very healthy for people to have different opinions and it’s just as healthy to be able to air those opinions and work towards formalising a healthy recommendation for everybody,” she said.

By Melissa Maddison
http://www.abc.net.au/news/2015-06-01/second-fifo-inquiry-to-hold-central-qld-hearings/6511054

Don’t be fooled: mining towns can make great investments

I feel quite strongly that mining towns get an unfair rap in the media at times – people make flippant comments with irresponsible disregard of evidence.

During commodity price downturns like now, the uneducated often throw out the old “mining towns are bad investments” line. However, the evidence suggests that over the longer term some Queensland mining towns have performed significantly better than Brisbane.

While the property market of Queensland’s capital city is currently performing strongly, falling commodity prices have been the primary cause of property markets in traditional mining towns experiencing double-digit declines in value. The biggest pain has been felt in the central Queensland shire of Isaac, which consists of Moranbah and Dysart.

A typical house was worth $580,000 in December 2012 and has since declined in value to $237,500 over the two years (a decline of 36 per cent per annum). At the peak of the market in 2012, houses were rented for $1,350 per week. Today that same property would be rented for $320 per week.

Emerald median values have declined by an average of 15.3 per cent per annum over the last two years. Rental vacancy rates in Emerald are currently over eight per cent so rents have fallen from $700 per week (2012) to $270 per week.

The regional hub of Mackay provides a majority of goods and services to the coal face. In addition to a 33 per cent reduction in coal prices over the last two years, Mackay has built more properties than demand required. Median property values have declined by an average of three per cent per annum over the last two years. Rents have fallen from $500 per week to $380 per week.

In the far north west of the state, Mount Isa median values have remained unchanged. Mount Isa has a diverse range of minerals which it mines, whereas central Queensland is predominantly coal. Meanwhile, Brisbane median property values have increased by an average of 6.6 per cent per annum over the last two years.

In spite of Queensland’s recent mining town doldrums, the fact of the matter is that these markets have significantly outperformed Brisbane over the long term. Astute investors would be aware that property is a long-term asset class.

Over the 14 years since the turn of the century, which includes the recent downturn, Moranbah’s median property value has grown by an average of 14.8 per cent per annum compared to Brisbane’s 7.8 per cent. Emerald (10.9 per cent per annum), Mount Isa (8.5 per cent) and Mackay (8.5 per cent) have also performed better than the state’s capital city.

It wasn’t that long ago when the likes of Brisbane, Gold Coast and Sunshine Coast were having downturns of their own and the mining towns were setting record highs.

Investing in these locations is not for the faint-hearted. Timing is significantly more important when investing in locations where specific industries have such a significant impact on demand for housing. Often, the smart decision is to do the opposite to what the masses are doing. In the words of the world’s most famous investor, Warren Buffet: “The time to be fearful is when everyone else is greedy. The time to be greedy is when everyone else is fearful.”

A sophisticated property investor who purchased in Moranbah in late 2004 would have paid $150,000 for a three-bedroom house. Even with the recent downturn, the current value of $237,500 still represents 4.7 per cent average annual growth over the last 10 years, which is only slightly below Brisbane’s 5.0 per cent.

An investor who did purchase in Moranbah in 2004 and sold at the market peak of $580,000 in late 2012 would have made a massive 18.4 per cent average annual growth over those eight years. That’s roughly three times better than what anyone could have achieved in any capital city. Let me spell it out for you. A $15,000 deposit (10 per cent) paid on a Moranbah property in 2004 would have become $430,000 equity over eight years. Extraordinary!

On sheer numbers alone, one could argue a very good case that now is a good time to buy in Moranbah. An investor could pick the best property of the litter with no real competition, pay only $240,000, and rent it out for $320 per week. That 7.2 per cent rental yield is far superior to anything that any capital will offer.

Propertyology’s research suggests that an upswing in coal-related locations is on the horizon. Lower labour costs and the lower Australian dollar have improved the viability for mining giants such as BHP and Rio Tinto.

There are multiple new mining projects in the approval pipeline throughout Queensland and the Hunter Valley. The untapped Galilee Basin is the biggest coal province in the world. Propertyology’s research has calculated five large mines with combined project values of $53 billion having potential for up to 31,500 new jobs if they all proceed. Emerald, Mackay and Brisbane will be the biggest beneficiaries.

By Simon Pressley

http://www.rebonline.com.au/blog/9083-don-t-be-fooled-mining-towns-can-make-great-investments

Capital Gains Tax (CGT) Upon Death

Here’s a great question and answer from Margaret Lomas (Destiny) email thread regarding CGT and PPRs.

Question:

Hello Margaret,

I was reading about CGT on principal residences and I was wondering if CGT is applicable on an elderly parent’s home after they have moved to a nursing home. If the home is rented out to pay for the ongoing expenses of nursing care, is CGT applicable after she has passed and the home sold. Alternatively, if a family member lives in the home until such time as she passes is capital gains also applicable.

Regards,

Katherine

Answer:

Hi Katherine,

Capital gains tax is a complicated issue, and I wanted to be sure I got this right for you, so I called my Property Success resident tax expert, Ian Rodrigues, and checked that my understanding around this was correct. Here is what he had to say:

  • If you own a Principal Place of Residence (PPOR) from which you are absent and you rent it out, you have a 6 year period where you can have an exemption from CGT, as long as you don’t claim another PPOR exemption.
  • If you don’t rent it out, the amount of time that you can claim that exemption is unlimited. This would mean that, as long as the period did not exceed 6 years, renting it out in order to help pay those expenses would be OK.
  • Once she passes the status of your mother’s CGT position shifts to those who inherit – if it is still considered her PPOR then the CGT status transfers, and the beneficiaries have 2 years to sell before they incur CGT.

If a family member lived there, and it was to simply take care of the place for your mother, and not a market based arrangement on the same terms as a third party tenant, then this would likely be considered to be the same as if no one lived there.

Of course, if your mother bought the property prior to 19 September, 1985, then all of the above is moot – it’s a pre CGT asset anyway and no CGT applies in any circumstance.

Always check with a good accountant or even the tax office itself though, to ensure that your own situation is covered by these rules. It’s quite easy to get a private ruling in the event that no one seems sure and that way, you have it all in writing!

Kind regards,

Margaret

Mining towns make rich list, Tieri on top

THE PEOPLE in Moranbah and Tieri are the most cashed up in Queensland.

That’s according to data released recently by the Australian Taxation Office which showed during the 2012-13 financial year the average Tieri resident earned $100,833 a year, the highest in the state.

Moranbah came in third on the list, with the average person getting $89,211.

Although the data was taken at the mining boom’s peak, Central Highlands Regional Councillor Peter Maundrell believed the data would be similar today because of Tieri’s uniquely uniform demographic.

“I’m sure the data would be similar this financial year,” he said.

“But most people in Tieri are young people with high paying jobs, you don’t have that cross section (of different demographics) you get in a normal town.

“It is owned by a mining company, it’s not your typical country town.”

Central Highlands Mayor Peter Maguire said Tieri had been on the rich list for the last 10-15 years.

“It’s a small town that doesn’t have many facilities,” he said.

“So I’m sure with so many people there earning such a high disposable income, the other surrounding towns in the region would benefit.”

Isaac Regional Council Mayor Anne Baker said while Moranbah might have one of the highest disposable incomes it was an affordable place to live.

And despite the money reported to be in town, the council was starting up a program designed to support local business owners.

May Downs and Middlemount came in sixth with people getting $86,674 while the rest of the top 10 were made of Brisbane’s richest suburbs.

Barney View area, south of Beaudesert, had the poorest residents who on average earned only $30,296 annually.

The top five richest suburbs (2012-2013 financial year)

Tieri: $100,833 average income

Ascot, Hamilton, Hamilton Central (Brisbane): $96,404

Moranbah: $88,829

Balmoral, Bulimba, Hawthorne: $88,829

Bardon: $87,920

Source: The Australia Taxation Office

Mackay Mining town ‘recovering’

Despite continuing reports that mining town property markets are declining, a number of stakeholders are claiming Queensland’s Mackay has turned a corner and is experiencing a “surge”.

On the back of a report by the Real Estate Institute of Queensland (REIQ), issued on 9 March 2015, Total Property Group has claimed that confidence is returning to the mining town market. Total Property Group managing director Adrian Parsons said this was reflected in rising interest in the group’s new master-planned estate, Somerset Park, located in Andergrove, Mackay.

The group cited various sections of the REIQ’s December Quarter 2014 Queensland Market Monitor report to illustrate that “Mackay has moved past the bottom of the housing market cycle towards recovery”.

“The report states Mackay has turned a corner since the beginning of 2015 on the back of improved local confidence, with multiple applications received for rental listings and multiple offers on sales,” Total Property Group said in a statement.

REIQ zone chairman for the Mackay district Peter McFarlane added that he had seen a distinct improvement in the local market in 2015. He attributed the positive progress to increased confidence in employment, record-low interest rates and improved housing affordability.

“We have the lowest interest rates Australia has ever seen and the housing affordability of three to four years ago,” he said.

“Employment in the Bowen Basin mining sector is more secure as it moves from the construction phase to production phase, and we are seeing coal production increasing.

“We are now exporting more coal off the coast of Mackay, and overall there is a growing level of confidence in the region.”

Mr McFarlane said these factors have led to more activity in the sales arena and a boost to the rental market.

“We are seeing first home buyers purchasing existing houses in the $350,000 to $400,000 bracket and the sellers of those homes upgrading to other properties and creating a secondary buying market in the $500,000-plus bracket.”

Mr McFarlane said even though rental vacancy rates were at 10.3 per cent in December, he expects “they will be significantly down at the end of the first quarter of 2015”.

Somerset Park developer Jim Relph of Trinity Property Consultants said Mackay would continue to benefit from the mining sector.

“Mining employment is secure in the Bowen Basin and major mining developments in the Galilee Basin have received the support of new Queensland premier Annastacia Palaszczuk.

“The Queensland Labor government announced an agreement with Adani and GVK Hancock regarding a proposal for expansion of the Abbot Point Coal Terminal – an important step towards putting necessary infrastructure for these mines in place,” the premier said.

“Queensland Resources Council data shows a spike in coal exports in 2014, reaffirming the importance of the coal industry to Mackay’s strong economic future.

“Mackay is also gateway to the Whitsundays, offering a desirable lifestyle and beautiful coastal and rainforest hinterland environments.”

Pilbara Residential Housing & Land Snapshot – Ending Dec 2014

Here’s the latest report (ending December 2014) by the Government of West Australia showing the Pilbara Residential Housing & Land Snapshot.

Here’s a quick summary:

Observations from this edition of the Pilbara Housing & Land Snapshot are:

The Pilbara:

  • In all three major towns the average advertised residential rental price dropped for the fifth consecutive quarter.

Port and South Hedland:

  • Port Hedland’s average advertised rental price dropped for a ninth consecutive quarter from an all-time high of $2,544 per week during the September 2012 quarter to a seven year low of $1,153 per week in the latest quarter.
  • South Hedland’s average advertised rental price decreased by $194 to $965 per week, which is the lowest average weekly rental price since the June 2008 quarter.
  • For the ninth consecutive quarter the average advertised ‘for sale’ price of properties in Port and South Hedland dropped.
  • Port Hedland’s average advertised ‘for sale’ price of $775,238 in the latest quarter is at its lowest since the March 2007 figures.
  • South Hedland’s December 2014 average advertised ‘for sale’ price of $660,005 is the lowest it’s been since the September 2009 quarter.

Karratha:

  • Karratha’s average advertised weekly rental has dropped for the 13th consecutive quarter, down from $1,784 in the September 2011 quarter to $820 in the latest quarter. Karratha’s average rental price remains the cheapest across the major Pilbara towns since the beginning of 2012.
  • The average advertised ‘for sale’ price of $593,803 in Karratha, showed an increase of $3,802 for the 213 properties listed during the quarter, the first such increase in average advertised ‘for sale’ price for six quarters.
  • The 13 residential lots were advertised in the last quarter in Karratha, with an average advertised price of $278,400, represents the lowest average ‘for sale’ price since 103 residential lots were advertised in December 2010 at an average price of $220,365.

Newman:

  • The average advertised rental price of $892 per week is the lowest since record keeping commenced in Newman in 2008, and the first time below the $1,000 per week mark.
  • The average residential ‘for sale’ price of $626,036 is at its lowest since the March 2010 quarter.
  • Newman continues to have the highest number of advertised residential lots ‘for sale’ in the Pilbara, with 34 lots advertised in the last quarter with an average ‘for sale’ price of $271,088.

You can also download the full report – Pilbara Residential Housing & Land Snapshot – Ending Dec 2014.