Top Headlines Week 16, 2022
- Posted By David Brown
A luxury home in Sanctuary Cove has been bought by an international buyer for $ 10M. 1036 Edgecliff Pl has high-end inclusion and a massive 27m water frontage to Coomera River. The home was built in 2022 on a 1,320sqm block and boasts five-bedrooms, five-bathrooms, and a superyacht marina berth. The stunning home features, floor to ceiling windows to frame the magnificent view of the water, and ceilings reaching heights of 7m. The home isn’t the biggest on the market but with the quality finishes it quickly became a favourite of high-end property buyers.
A Queensland couple waited months for their dream home to finish construction and when shocked when the contract was suddenly terminated. A year after signing the contract to build their dream home, the developer invoked the sunset clause which allowed them to terminate the contract. The contract was signed in February 2021 for an off-the-plans four-bedroom townhouse located in Brisbane’s Seven Hills. Upon signing the contract, they were told that the construction would be completed by August of that year. They waited several months for the land to be put into their name but that never happened. Now the couple has been priced out of the market. The developer, Property Developments No. 1, activated the sunset clause in February 2022, which allowed them to terminate the contract. A sunset clause allows either party to terminate the contract and fully refund the purchaser if the developer has not completed construction by the nominated date. Although this clause seems to be in place to protect the buyer, developers are using it to their advantage in the current market. Developers are delaying construction so that the sunset clause is invoked, terminating the buyer’s contract and reselling at a much higher price. The above-mentioned property was originally purchased for $700K, it has recently been listed for hundreds of thousands of dollars more. New South Wales and Victoria have implemented special laws that require developers to go to court if they wish to invoke the sunset clause, but Queensland buyers aren’t as protected.
House Flippers are taking advantage of Gold Coast’s booming property market, by buying, renovating, and selling. Ray White data has shown that Gold Coast had the highest number of units bought and re-sold within 12 months, coming first against any other housing market in Australia. 720 units were flipped in Gold Coast, with Surfers Paradise making up 261 of those properties. Southport came in second with 127 units flipped. Houses in the Gold Coast market were less likely to be bought and re-sold. Units are the preferred pick as they are on average much cheaper. Some buyers bought without the intention of reselling but a couple months after their purchase received a phone call from an agent with buyers willing to pay far more than they just paid, it was hard to say no. As prices still continue to rise it is becoming harder to find properties that can be flipped and a profit to be made.
Although Melbourne CBD was the hardest hit by COVID-19 it has made an impressive bounce back in the property market. It is currently the preferred choice for international residents, with REA figures showing rental property interest has increased 40% during the march quarter compared to 12 months earlier. Melbourne’s CBD median unit rent has increased 13% over the past 12 months to $450 per week. The vacancy rate has also dropped dramatically, in September 2020 it was at 10.8%. during March it dropped to 2.4%. the vacancy rates are now lower than that of pre-pandemic. The main contributing factor to the drastic changing in the market can be credited to the opening of the country’s borders. SQM Research said there are 12,400 vacant rentals in March, compared to 27,300 the same time last year. As restrictions continue to ease, and the fear of COVID-19 slowly subsides we are sure to see more interest from international migrates Melbourne properties and other capital cities across Australia.
Brightlands Living has lodged plans for a new co-living and specialist disability housing apartment tower in the heart of Brisbane. The 14-storey tower will comprise of 57 co-living units, 15 specialist disability units, and 48 two-bedroom apartments. All in preparation for the 2032 Brisbane Olympics. The tower will be located near the Princess Alexandra Hospital and behind Buranda Village. Wolloongabba is aiming to create a wellness community, that will cater to all residents needs, this will include traditional apartments, co-living and NDIS apartments. Co-living seems to be a new concept in Brisbane but is well executed throughout the rest of the world. It focusing on flexible affordable community living to a wide range of residents. Co-living homes offer fully furnished units, and access to communal facilities and activities. Although this in preparation for the Olympics, it is planned to be leased out to the public post-Olympic Games.