Brisbane: Mediocre Growth, Low Confidence, Beware Logan ...

Correct..lots of people buying large blocks with the hope rezoning. Very dangerous...the developers in the govt's ear about how that will affect them on the new estates further down. I can't see urban renewal here as there is quite a bit of land around there.

 

Interesting thread, I have not purchased in Brisbane, I hope in 6 months time you can all tell me I stuffed up and should have jumped in. Till then I will be watching and waiting.

MTR

 

As a developer one thing I know unless the sites are currently on the table and earmarked for zoning its just a pipe dream and a nice marketing ploy the agents like to use.

 

Let me get this right...are people buying the larger lots of land on the basis of it being rezoned?

I know that PEET, Stockland, Villaworld will be influencing the govt to ensure that rezoning does not happen as they have some large estates there. Though in the BCC...there is more rezoning happening.

This is what I mean by the approach in Brisbane is different to Sydney, Melbourne and Perth for that matter...

 

If that's the case then the strategy to buy IP in Brisbane outer ring (Logan and Ipswich) is to get the maximum land size rather than the number of bedroom ?

 

Don't worry mate, you're not alone.
I almost bought myself in Park Ridge ....

 

I think we are on the same page.. I'm buying at the right stage in a city cycle in a rising market as well.

 

A 4 br in the outer suburbs is the best decision...land size is not going to be as significant on older properties as most will be over 500sqm.

The resale is going to be better on a 4 brm as they are rarer and more in demand.

The minimum should be a 3 brm...double garage and 2 baths

 

You were very optimistic in other threads about Brisbane, though?

 

I expect some buyers would be buying for land bank, but I don't like this strategy,

Was I? I think there are parts of Brisbane that have moved, some members have mentioned on here, I think its north Brissy.

Logan 70% are investors driving this market, that is a worry, I guess its dependent on when you jumped in.

We are not getting the same type of hype that Syd, Melb or Perth got? yes, lots of threads on Brissy......but no one has mentioned huge % growth that we have seen in the other rising markets. Maybe I am the only one that sees this, as I said fool me if I missed out.

I am sitting and watching, QLD a different beast as mentioned on this forum. I am no expert when it comes to Brissy, only purchased one in QLD and sold out 18 months ago.

Challenging times ahead property Australia wide, as interest rates are on the rise.

We should review this thread in another 6 months

MTR

 

No mate.... @MTR is not convinced on Brissie...she is love with Melbourne though!!

She has a point.....building is very expensive is Qld and NSW compared to VIC and WA....one of the reasons....

 

The 3 year figures are remarkably similar. Regarding the 12month figures one appears to be as of 09/15 while for the 4.56% figure its not clear? It probably captures more/some of the 2014 calendar year figure most likely.
For what its worth I don't think a 03 boom is likely at all as there are too many headwinds and a little too much caution but growth is.
Consistent growth with a decent yield will make you money, sitting on the sidelines won't.

 

Many thanks Sash,
I now learn a lot from your sharing mate.

Keep up the news and sharing on your investing analysis, it is truly invaluable.

 

The funny thing is Brisbane's been a buyers market for years. 2010-2014 and never more so than in 2012.

 

Almost bought? Shame.

 

Infrastructure costs for developing in Brisbane is very costly, last time I did numbers on a project was around 120k, it turned me off big time. Just had a quick look at my infrastructure costs for my Melb projects at around $25K, will make a big difference to your bottom line.

Only sticking to Melb because I think I can do ongoing developments lower end even if markets fall, relatively low risk, at least I think so.

 

What goes up too fast is likely to hit some poor sucker on the head on the way back to earth.
I don't have anything in Logan so no anecdotal evidence but in BCC area- Sunnybank mid 90s purchase- bank val 2008 380k, 2015 625k

 

Thanks Michael.
Your report, to me, underscores a point that a few on this forum have made; namely logan being more investor led and thus more sensitive to changes in interest rates, resulting in higher price volatility and more capital risk.

 

funny someone mentioned marsden. In case you folks didn't catch the news....

Body found at Pimpama River identified as missing schoolgirl

Looks like there's a murderer on the prowl in Logan! (sorry no fear mongering intended)

 

Crime happens anywhere mate.
So yea is there any website in QLD that shows crime map like in NSW BOCSAR page ?