Industry NewsNationalNews

Majority of NSW markets in decline as SA and QLD heat up in October 2018: Herron Todd White

The October 2018 issue of the Month In Review report from independent property valuation and advisory firm Herron Todd White shows that the majority of markets in New South Wales are either at their peak or declining, while Brisbane and Adelaide are still on the rise.

Residential

According to the firm’s Residential Property Clock, NSW’s North Coast region, including Coffs Harbour, has reached the peak of its cycle. The firm is also reporting many owners in the Coffs Harbour region splitting their property to maximise rental income, although overcapitalisation is also a problem when it comes time to sell, with many renovations in the region returning only 50 to 75 per cent of their cost.

Aside from the Gold Coast, Queensland is looking pretty healthy. Beleaguered regions like Rockhampton and Toowoomba have reached the bottom of the cycle, with Cairns and Townsville beginning to recover. Things are looking great for Brisbane, according to the report, with conditions still on the rise.

The report also shows owners in Rockhampton are reportedly struggling to secure financing for renovations unless the property has been owned for longer than 10 to 15 years, and approvals are petering off on the Gold Coast where the market is declining.

With Perth and Darwin still sitting at the lowest part of the cycle, Adelaide was another strong region, showing steady growth. The same is being seen in Launceston, although according to the report Hobart is nearing the peak.

Also in the residential portion of the report, councils in Melbourne’s southwest are considering a reduction in minimum lot sizes, and in Darwin the government is providing grants to incentivise owners to purchase and renovate property under $500,000.

The report also showed the potential for investors and developers in Canberra after the Mr Fluffy asbestos scandal.

Commercial

Cafes, food outlets, specialised products and telephone companies are taking over from traditional retail shopfronts, especially in development-heavy regions such as the Gold Coast and Adelaide.

Sydney CBD saw a rise in the demand for high-end retail spaces. Despite the pressure of online threatening bricks and mortar retail, the continued opening of high-end stores means rental growth in this sector is still occurring. Luxury retail stores are also jockeying for flagship locations, meaning prime commercial real estate is still hotly contested.

In Adelaide, businesses are seasonally ‘hot bedding’ where many share the same tenancy through different months of the year to limit overheads and ensure consistent traffic through their site. The state is also seeing the second strongest growth of retail behind Victoria.

Regional NSW and QLD are the areas to watch, with Cairns, Toowoomba and Ballarat all listed as commercial markets on the rise according to the Property Clock.

Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close