Market Overview - QLD
Mark Creevey Matt Fritzsche Tony Williams RayWhite | Special Projects
Q. What are the key market trends occurring throughout 2022 in your region? A. We have witnessed a number of key trends that have contributed to shape our market throughout 2022. These include - Continued strong interstatemigration driving demand for varying forms of residential product - Significant improvement in regional markets - An undersupply of future suitably zoned development land across SEQld - Substantial lot revenue growth throughout SEQ residential land estates - Severe shortage of future land supply in key growth corridors of SEQ - Increase in the cost of construction Q. What have been the fundamental drivers of demand amongst buyers? A. - Improved rental returns (decreasing vacancies and increasing rents) with vacancy rates now a key political talking point into 2022 - Interstate buyers seeking a safe dormitory in Qld in the event of future lockdowns, primarily fromSydney andMelbourne - Relative affordability of South East Queenslandwhen compared to our southern counterparts driving the potential for capital gains - Work fromhome phenomenon resulting in people seeking alternative housing options more isolated from themetropolitan regions and an increased focus on lifestyle and desire for space - Limited availability of stock onmarket (supply) in South East Queensland, with demandwell outweighing supply - Fear of Missing Out
Q.What are your expectations for the commercial property market over the next twelve months? A. Whilst the inevitable increases in interest rates may impact on borrowing capacity to some degree our expectation is that the underlying demand throughmigration and current supply constraints is likely to see continued growth in value particularly greenfield landmarkets. The arbitrage in growth in the established housingmarket v’s the apartment market we expect will see continued growth in apartment values when combinedwith current conditions in the rental market particularly if construction costs stabilise. Q. Talk us through the most significant deals you have transacted thus far in 2021. A. Dec 2021 Upper Coomera - 196 lot estate (SOLD: Price Confidential) Dec 2021 Gleneagle - 500 lot estate (SOLD: $15,800,000) Dec 2021 NewBeith - 2000+ Lot Land Estate (SOLD: $80,000,000) Dec 2021 Deebing Heights - 892 Lot Estate (SOLD: Price Confidential) Oct 2021 Waterlea Land Estate, Walloon - Balance of Estate with 1393 Lots Remaining (SOLD: $65,500,000) Aug 2021 Fernvale Downs, Fernvale - 1447 Approved Subdivision (SOLD: $33,500,000)
Q. Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years?
A. We have seen strong interest from small, mediumand large private developers and building companies through to institutional and corporate groups. The biggest shift in themarket has been the significant increase in motivation from interstate groups to either expand upon existing holdings or tomake an entry into the SEQld or broader Qldmarket. Q. What types of assets are most in-demand given the current environment? A. Residential subdivision sites driven by consumer demand and record sales levels. There exists both a significant shortfall in viable opportunities and forward supply of development land in contrast to the increasing volume of active buyers in themarket. Q. Howwould you evaluate the impact of the past eighteen months in your local market? A. A range of factors including Covid-19, HomeBuilder, strong interstatemigration, record low interest rates and other items has fuelled an exceptionally strong residential property market resulting in some of the strongest year or year increases in values on record.This has seen supply diminish and prices spike sharply.
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