Location: Bli Bli, Sunshine Coast, Queensland, Australia
Posts: 33
Queensland house prices to come down in the future?
BLIGH GREENFIELD STUDY REVEALS LAND, LOTS OF LAND
Premier Anna Bligh has announced the State Government would fast-track planning for development of 17 greenfield sites in South-East Queensland, as part of its plan to tackle housing affordability.
Ms Bligh said while the Government was limited in its ability to influence housing prices, she was determined to do everything possible to tackle the issue of affordability.
"I want the Australian dream to be alive and well here in Queensland, particularly for young people wanting to own their first home.
"I want to see land being turned into new homes for Queenslanders as quickly as humanly possible and this investigation looked at 42 greenfield areas - containing more than 40,000ha of undeveloped land.
"As a result - the Government will remove any regulatory hurdles slowing the development process on 12 sites:
• Maroochydore, Meridian Plains, on the Sunshine Coast;
• Market Drive and North Lakes in Moreton Bay;
• Upper Kedron and Rochedale in Brisbane;
• Coomera and Helensvale on the Gold Coast;
• Springfield and Redbank Plains in Ipswich; and
• Kinross Road and South-East Thornlands in Redlands.
Location: Coombabah, Gold Coast from Oldham, Gtr Manchester
Posts: 1,036
Keep reading conflicting reports on house prices; one article says the prices are going to fall, another thing we read says they are going to continue climbing! It's hard to know what to do, whether to buy now or hold on!
Thanks for the article though; once again half heard it on the news! Guess this land release, viewed with further possible interest rises, may mean a slowdown at least, if not a drop?
Oh for a crystal ball
Jo x
Well, my partner and I just bought a house yesterday!
We're up on the Sunshine Coast and we decided that if we bought in a desirable area, and we intend to have the house for a few years (at least 5 we think) - we'd be right in the long term.
It's in Buderim and in the Mountain Creek School zone (which people seem to want), so we figured the absolute worst that could possibly happen is that in 5 years time it's worth the same money! The market has slowed up here, but the houses that are priced realistically and are good quality / finish still seem to sell within a week or two.
Prices might slide a bit in the near term because of interest rates, but with Queensland's underlying mineral wealth and all the cash in the economy it'll take a fair bit to cause a crash. Although we are near one of the land releases, we don't feel the effect will be huge. Someone wanting to buy on a mass land release and someone wanting to buy in an established and popular suburb with good schools are in two different markets. So we hope our investment will be relatively safe for us.
Well, that's our theory. We just wanted our own home, have got it about $30k cheaper than we would have done in a busy market, and are very happy. Whatever happens, you only lose money if you are forced to sell in an inclement housing market. We have bought a house that will be affordable to us regardless of any future interest rates, and I think that is key at this stage.
On the other hand, bank interest is good right now so if you have a nice wee deposit, you'll still be making money!!
Location: Bli Bli, Sunshine Coast, Queensland, Australia
Posts: 33
Quote:
Originally Posted by KirstyM
Well, my partner and I just bought a house yesterday!
We're up on the Sunshine Coast and we decided that if we bought in a desirable area, and we intend to have the house for a few years (at least 5 we think) - we'd be right in the long term.
It's in Buderim and in the Mountain Creek School zone (which people seem to want), so we figured the absolute worst that could possibly happen is that in 5 years time it's worth the same money! The market has slowed up here, but the houses that are priced realistically and are good quality / finish still seem to sell within a week or two.
Prices might slide a bit in the near term because of interest rates, but with Queensland's underlying mineral wealth and all the cash in the economy it'll take a fair bit to cause a crash. Although we are near one of the land releases, we don't feel the effect will be huge. Someone wanting to buy on a mass land release and someone wanting to buy in an established and popular suburb with good schools are in two different markets. So we hope our investment will be relatively safe for us.
Well, that's our theory. We just wanted our own home, have got it about $30k cheaper than we would have done in a busy market, and are very happy. Whatever happens, you only lose money if you are forced to sell in an inclement housing market. We have bought a house that will be affordable to us regardless of any future interest rates, and I think that is key at this stage.
On the other hand, bank interest is good right now so if you have a nice wee deposit, you'll still be making money!!
Well done and totally agree with you,here is a newsletter from a local real estate agent which I have received:
What is really happening in our market place?
As the REIQ spokes person I have just received the latest house sales results for the quarter.
Given the quieter markets in many other areas of the state, the Sunshine Coast performed quite well over the March quarter.
The median price in Maroochy is up 1.2% to $456,000 for the quarter. The change for the year shows an increase of 14% with the 5 year increase being 82.9%. Caloundra and Noosa both show similar growth overall.
While there has been a slowing of demand and enquiry, we are certainly not seeing any great drops in the market. The Sunshine Coast market is underpinned by high migration and is still BUMPING along quite nicely with buyers just biding their time a bit more.
I attended a breakfast meeting last week for the Institute of Company Directors & the guest speaker was Michael Workman, a top economist with the Commonwealth Bank. He said we would in no way be affected by what is happening in the U.S. real estate market. He also predicted most house prices won’t be going up while the mortgage rate is 9.5% unless they are in extraordinary locations. He then added such as here “such as here.” ie the Sunshine Coast.
The growth rate of the Sunshine Coast proves we are in an extraordinary location. He also predicted rents rising by 10% p.a. over the next few years. The rise started last year & will continue until at least 2010. People will continue to rent while the interest rates are high. The demand for rental properties in our office is insatiable, as our vacancy factor of under 1% shows.
MY ADVICE: Now is the ideal market to get moving if you want to upgrade. Buy & sell in the same market always. Wise investors should be getting in now & buying to take advantage of the rental demand and increasing rental prices. Look carefully at the type of property most suitable for good tenants (speak to me about this). Don’t just buy anything that is cheap, quality tenants require quality properties. Balance rental returns with the prime capital growth areas.
I'm glad you agree! It took us a good few weeks of watching the market, what was selling, what wasn't etc to build our confidence.
Now we have bought... we feel great. For us, I think part of really getting settled in properly will be owning our own home. We're renting right now and I must confess we feel a bit "disjointed" as we're used to owning our space.
Location: Bli Bli, Sunshine Coast, Queensland, Australia
Posts: 33
Quote:
Originally Posted by KirstyM
I'm glad you agree! It took us a good few weeks of watching the market, what was selling, what wasn't etc to build our confidence.
Now we have bought... we feel great. For us, I think part of really getting settled in properly will be owning our own home. We're renting right now and I must confess we feel a bit "disjointed" as we're used to owning our space.
hurahh!!
I know what you mean we are building and still about 7 weeks away, can't wait to get some space again!!!!
I feel like giving them a hand!!!!!!!!
