Join Australia's most dynamic and respected property investment community

QLD Cleveland vacancy rates and ongoing construction

Discussion in 'Where to Buy' started by Observer, 13th Aug, 2015.

  1. Observer

    Observer Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    224
    Location:
    Sydney
    Hello all,

    I'm considering Cleveland Qld for buying a townhouse. However, I've noticed that the current vacancy rates are quite high (around 2.5-3%). Does anyone familiar with the area know if it's normal for that area? Is this just seasonal thing as I assume the vacancy rate must be lower in summer?

    I've also noticed that there is quite a lot of construction going at the moment (in particular units and townhouses) which seems to have negative impact on the rent rates and prices.
     
  2. Heinz57

    Heinz57 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    493
    Location:
    Brisbane
    I have staff who live in that area tell stories of long wait lists, shortages of good property and fairly cut throat methods of obtaining rentals. So I am surprised at the vacancy rate even being that high. Having said that, 3% isn't that bad.

    I don't think seasonality would come into it as it's not the sort of place you would go for your holidays?
     
  3. Observer

    Observer Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    224
    Location:
    Sydney
    Do they commute to Brisbane CBD for work? I'm considering if it is critical for the IP to be closer to the train station.

    What are everyone thoughts on Cleveland CG perspectives? I reckon with the harbour development in the pipeline the place is set to experience some CG in future.
     
  4. Bran

    Bran Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    3,217
    Location:
    At work
    How has Raby Bay performed with its waterfront properties?

    I lived there a long time ago (Cleveland, not raby bay), its never again come up on my radar except that I'm now starting business there next week. It might be interesting getting a feel for the place again.
     
  5. Rockys

    Rockys Active Member

    Joined:
    20th Jun, 2015
    Posts:
    33
    Location:
    .
    From my experience rentals are moving quickly in the area. From what i have gathered most residents in Cleveland don't commute to the CBD for work.
     
  6. Observer

    Observer Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    224
    Location:
    Sydney
    Thanks guys. Anyone familiar with the local job market? How are the things going there?
     
  7. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Hey Observer, can you tell us why you're considering a townhouse in particular?
     
  8. Observer

    Observer Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    224
    Location:
    Sydney
    I suppose can't afford a house in that area. Plus less maintenance.

    I'm also considering buying a unit in Coorparoo vs a townhouse a bit further away in my price range (say up to 450k). With the Myer site development there should be some CG. Would rather buy a house or townhouse there but none in my price range. I'm a bit concerned about the amount of units coming into the market in future though. Thus, considering townhouses a bit further away in my price range. Thoughts?
     
  9. Observer

    Observer Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    224
    Location:
    Sydney
    The thing that concerns me in Cleveland is that there is a lot of new stock coming onto the marker from the surrounding areas. Doesn't feel right from CGs perspective.
     
  10. Eric Wu

    Eric Wu Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    346
    Location:
    Australia
    houses in Cleveland (east side of Bloomfield Road, closer to water/muddy water) are selling pretty quickly, the whole area has a very nice family like feeling, there are multi million dollar houses around the canals. Redland Council has plan for a large development around the current wharf (ferry) site. if you have the chance, go and have a personal look, walk around the street and speak to locals.

    I would think Cleveland is similar to Dee Why (Sydney) if you are from Sydney
     
  11. Observer

    Observer Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    224
    Location:
    Sydney
    Yes, I've been considering Cleveland mainly because of that future $1.4b Toondah Harbour development project which from my understanding is supposed to bring some CGs to the area.

    However, I'm concerned about the amount of land in the surrounding areas which may have negative impact on CGs in future. E.g. currently lots of new houses/townhouses coming onto the market in Victoria Point which impacts the rents in Cleveland (according to one of the Cleveland PMs I had chat with).
     
  12. Heinz57

    Heinz57 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    493
    Location:
    Brisbane
    Many people commute to the city from the bayside. We have staff drive from Redland Bay and Vic Point as well as Cleveland.
     
  13. JDP1

    JDP1 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    2,839
    Location:
    Brisbane
    I would second your last option. However would need to ensure location is good ie close to bus/train ie connectedness to the cbd. Do research to see what you can get for your budget..units in cooparu are not a bad option however. I can think of worse..
     
  14. Observer

    Observer Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    224
    Location:
    Sydney
    Thaks JDP1. Decided to switch and investigate Eight Mile Plains for some townhouse options in my price range.
     
  15. JDP1

    JDP1 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    2,839
    Location:
    Brisbane
    Ok. 8 mile plains is fine. Again, Just make sure easy access to public transport. EMP should see some good Chinese money- already has, and I expect this to increase.
     
  16. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Some people work in different areas, not only the CBD. I knew people that lived out that way and worked in Mt Gravatt. Not too bad a commute.