Will 2014 be the year of the new property development? Will the banks relax their financing requirements for developments and start pushing LVRs higher and presale requirements lower?
Looking at what is planned early on in the year, celebrated Queensland property developer Sir John Pidgeon will begin what may be his last major residential project after buying Devine’s Camelot site on Albert Street in Brisbane. The Pidgeon family paid between $18 million and $19 million for the 2007-square-metre site, which was the last remaining one within Devine’s unrealised French Quarter precinct.
Georg Chmiel has resigned as LJ Hooker chief executive to take the reins of ASX-listed iProperty Group, which runs a network of Asian property portals. Mr Chmiel will remain LJ Hooker CEO for up to six months while a replacement is sought and will then take up a non-executive board appointment. LARRY SCHLESINGER
And a mainland Chinese developer has paid $13 million for the 1396-square-metre City Peugeot site on Carlton’s Swanston Street, just outside the Melbourne CBD. The price was a record for a Carlton site of more than 1000 sq m.
AMP Capital will begin a $670 million redevelopment of the Pacific Fair mall on the Gold Coast in January. It will be Queensland’s largest shopping centre and the fourth-largest in Australia upon its completion in 2016. Westfield Design and Construction will take on the project.
The Queensland property market looks like it is going to have the strongest growth, according to Raine & Horne believe Brisbane is going to be the nation’s strongest property market in 2014 with 7% plus growth. While Brisbane finished behind Sydney and Melbourne last year, they believe it is well-placed for a comeback with tight supply and growing demand.
Raine & Horne’s general manager for Queensland, Steve Worrad, said that while activity has slowed over the holidays it’s often being reported as up 25% for the same time last year, with listings down by as much as 60%. Brisbane’s New Farm in particular was mentioned as a good performer over 2013, with days on market at just seven.
This comes as confidence builds in Queensland economic sectors, with Australian Bureau of Statistics data seeing a 4.9% increase in trend dwelling approvals and a 0.5% increase in retail turnover during November of 2013. This may help increase the supply that Raine & Horne notes is currently lacking.
Acting Treasurer and Minister for Trade, John McVeigh, said that they were cutting red tape and the cost of business to help maintain Queensland’s job creation and speed up building approvals.
“Importantly, this increase in trend dwelling approvals follows 23 consecutive monthly increases, with approvals now 50.6 per cent higher than December 2011,” said McVeigh.
“This figure was driven by private other dwelling approvals, such as townhouses or apartments, which were 78.4 per cent higher over the year and at their highest level on record in November 2013,” he said.
Lots of activity planned for 2014 in the residential and commercial development space, provided the property market continues to improve competition within the banking sector should therefore also continue to improve and costs and pre-sale hurdles should also reduce. We are already noticing this with recently approved development finance deals with rates in the mid-5%’s! By Jayden Vecchio
By Jayden Vecchio Google+