It seems those interested in other real estate sectors are heading north as well... Planning and design laws, not financial issues, the main barriers to downsizing...
Queensland proving attractive with retail, not just residential real estate investors
While Queensland’s popularity with residential real estate investors is no secret, it seems those interested in other real estate sectors are heading north as well.
According to the Victorian arm of real estate agency MMJ, 2015 has seen a steady stream of retail real estate investors make their way into the Queensland market.
Much of Queensland’s popularity with residential investors is a result of it being a much more affordable than areas such as Victoria or New South Wales and Joel Wald, director of MMJ Melbourne, said it’s a similar story for the state’s retail real estate.
“At the moment we’re getting a lot of people coming to us and asking us to try and find something in Queensland,” Wald said.
“I think a lot of that is people just looking around locally and realising there’s not really anything that attractive on offer, so they’re starting to look a bit further abroad,” Wald said.
That doesn’t the Queensland retail market is simply the best of a bad bunch however, with Wald believing there positive signs for the sector in the sunshine state.
“The returns up there are pretty good. Yields have tightened a little bit recently, but a lot of the people we’re working with are looking to buy quality stock that is going to return good capital growth,” he said.
“There are other positives as well. Queensland has strong population growth, which is great for the retail sector and a lot of the recent sales we’ve done have had covenants in place with companies like Officeworks for them to occupy the sites.
“Having major companies like that looking for locations is definitely a great sign for the market and I think it will help attract more investors to Queensland.”
Planning and design laws, not financial issues, the main barriers to downsizing
Encouraging elderly homeowners to downsize has been touted as one way to address housing affordability and supply issues, however it is likely to take more than just financial incentives to encourage people to move from their family home.
Last month, both the Property Council of Australia (PCA) and Real Estate Institute of New South Wales (REINSW) called for changes to be made to both the pension means test and stamp duty to make the idea of selling the family home more attractive to the elderly.
But while those groups believe reducing financial barriers could result in more larger, family homes coming on to the market, others have suggested there are more pressing needs that need to addressed if downsizing is to become a popular choice.
A report from the National Seniors Productive Ageing Centre (NSPAC) suggests elderly homeowners are currently reluctant to downsize due to a lack of appropriate housing stock.
“It is clear that there is a gulf between what many seniors want and what is available in the present marketplace. This dearth of appealing housing stock seems to stem, in some cases, from a lack of innovation and flexibility in terms of development, planning and design,” the NSPAC report said.
“State and local government could do more to promote senior-friendly housing products in planning and ageing strategies by encouraging more areas of higher density and age-friendly accommodation around transport hubs and town centres.”
The NSPAC’s calls for changes to planning and design laws are backed by the Federal Government’s Productivity Commission, who made similar claims in a report of their own this week.
“Fifteen per cent of older Australians expect to downsize to a more suitable dwelling or age-specific housing. State and local planning systems remain the most significant barriers to the supply of innovative and affordable housing options,” the commission’s report said.
In response to the Productivity Commission’s report, PCA retirement executive director Mary Wood said governments should look to changes that will increase the availability of stock in retirement villages.
“Retirement villages are an increasingly popular and affordable choice but there is not enough supply to meet demand because of outdated planning systems,” Wood said.
While Queensland’s popularity with residential real estate investors is no secret, it seems those interested in other real estate sectors are heading north as well.
According to the Victorian arm of real estate agency MMJ, 2015 has seen a steady stream of retail real estate investors make their way into the Queensland market.
Much of Queensland’s popularity with residential investors is a result of it being a much more affordable than areas such as Victoria or New South Wales and Joel Wald, director of MMJ Melbourne, said it’s a similar story for the state’s retail real estate.
“At the moment we’re getting a lot of people coming to us and asking us to try and find something in Queensland,” Wald said.
“I think a lot of that is people just looking around locally and realising there’s not really anything that attractive on offer, so they’re starting to look a bit further abroad,” Wald said.
That doesn’t the Queensland retail market is simply the best of a bad bunch however, with Wald believing there positive signs for the sector in the sunshine state.
“The returns up there are pretty good. Yields have tightened a little bit recently, but a lot of the people we’re working with are looking to buy quality stock that is going to return good capital growth,” he said.
“There are other positives as well. Queensland has strong population growth, which is great for the retail sector and a lot of the recent sales we’ve done have had covenants in place with companies like Officeworks for them to occupy the sites.
“Having major companies like that looking for locations is definitely a great sign for the market and I think it will help attract more investors to Queensland.”
In depth: Loyalty: are your clients in the raving fans category?
The biggest source of leads for Top Brokers is often referrals and the more loyal your clients, the more they will refer you.
The biggest source of leads for Top Brokers is often referrals and the more loyal your clients, the more they will refer you.
Planning and design laws, not financial issues, the main barriers to downsizing
Encouraging elderly homeowners to downsize has been touted as one way to address housing affordability and supply issues, however it is likely to take more than just financial incentives to encourage people to move from their family home.
Last month, both the Property Council of Australia (PCA) and Real Estate Institute of New South Wales (REINSW) called for changes to be made to both the pension means test and stamp duty to make the idea of selling the family home more attractive to the elderly.
But while those groups believe reducing financial barriers could result in more larger, family homes coming on to the market, others have suggested there are more pressing needs that need to addressed if downsizing is to become a popular choice.
A report from the National Seniors Productive Ageing Centre (NSPAC) suggests elderly homeowners are currently reluctant to downsize due to a lack of appropriate housing stock.
“It is clear that there is a gulf between what many seniors want and what is available in the present marketplace. This dearth of appealing housing stock seems to stem, in some cases, from a lack of innovation and flexibility in terms of development, planning and design,” the NSPAC report said.
“State and local government could do more to promote senior-friendly housing products in planning and ageing strategies by encouraging more areas of higher density and age-friendly accommodation around transport hubs and town centres.”
The NSPAC’s calls for changes to planning and design laws are backed by the Federal Government’s Productivity Commission, who made similar claims in a report of their own this week.
“Fifteen per cent of older Australians expect to downsize to a more suitable dwelling or age-specific housing. State and local planning systems remain the most significant barriers to the supply of innovative and affordable housing options,” the commission’s report said.
In response to the Productivity Commission’s report, PCA retirement executive director Mary Wood said governments should look to changes that will increase the availability of stock in retirement villages.
“Retirement villages are an increasingly popular and affordable choice but there is not enough supply to meet demand because of outdated planning systems,” Wood said.
In depth: How to make negotiating work for you
A common pitfall for negotiators is going in with a firm and fast idea of the result they’re looking to achieve.
A common pitfall for negotiators is going in with a firm and fast idea of the result they’re looking to achieve.
