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Dec 14, 2022

National CoreLogic RP Data Market Update December 2022

<iframe src="https://player.vimeo.com/video/779031152?h=ea232a74a6&color=ffffff&portrait=0" width="640" height="360" frameborder="0" allow="autoplay; fullscreen; picture-in-picture" allowfullscreen></iframe> <p><a href="https://vimeo.com/779031152">Brisbane CoreLogic RP Data Market Update December 2022</a> from <a href="https://vimeo.com/user62241360">First National Real Estate</a> on <a href="https://vimeo.com">Vimeo</a>.</p>

Dec 9, 2022

Housing support welcomed, but supply solutions still a WIP

The Real Estate Institute of Queensland (REIQ) has welcomed the immediate support to sustain tenancies, but says there’s still a lot of work to be done to address housing supply, in response to the Housing Summit Outcomes Report released today. REIQ CEO Antonia Mercorella said the immediate financial housing support, to be released prior to Christmas, would come as a welcome relief to the Queensland community. “The $48.5 million towards housing support, including tenancy sustainment, loans and grants, will benefit the most vulnerable in our community by helping to keep a roof over their head and reducing cost-of-living pressures over Christmas,” Ms Mercorella said. “Given we’re facing the tightest rental market in memory, we all hoped to see some immediate support come out of the Summit to provide some reprieve, so this is certainly a welcome announcement.” Ms Mercorella said the report laid-bare the complexities of the housing issues Queensland is facing. “No stakeholders at the Housing Summit were under the illusion that there would be an overnight fix to the housing crisis, but there was a clear willingness and urgency in the room to see the rubber hit the road,” she said. “This report indicates that clearly there are matters still being explored that are a work in progress and in some respects that speaks to the complexity of the housing crisis. “While we had hoped to see some more firm commitments on the supply side of the equation at this stage, we look forward to seeing further detail emerge and the ‘areas for further work’ progressed with the same sense of urgency as the Summit.” She said the REIQ saw opportunity in the audit, educational campaign, and planning reforms, but was disappointed that some of the key ideas and recommendations at the Summit had not made it into this report. “The announcement of an audit to identify state-owned land and buildings for residential use is welcomed by the REIQ, and we trust that this audit will extend to local government and Non-Government Organisations in a meaningful way,” she said. “At the Summit, we all spoke to the importance of different levels of government and the private sector working together and this is a chance for the State Government to meaningfully lead this and put this collaborative approach into action. “We appreciate that the Community Engagement and Awareness Campaign is a crucial step to ensure the community is on board with the change in housing diversity that needs to happen to support our growing community. “The campaign goes hand-in-hand with the flagged planning reforms – a widely recognised key barrier to housing supply, and we will be keenly watching this space for more detail as it progresses. “Another key theme that was raised at the Summit was Built-to-Rent models and the general consensus was that it was a sensible part of the solution, so it’s surprising that there are no new commitments surrounding this in the report. “The REIQ will also continue to advocate for initiatives that make downsizing a much easier financial decision for older Queenslanders, to significantly free up much-needed housing stock, and our view is more can be done at all levels to achieve this, and is a missed opportunity in this report.” Read more about the REIQ’s recommendations to the Housing Summit here.

Nov 25, 2022

Flip to build-to-rent projects good on many levels

Build-to-rent projects are becoming increasingly attractive to developers and investors as younger generations shift away from house ownership amid a national housing deficit. Traditional developers are also finding it tougher to get their apartment projects up as interest rates rise, which is stalling pre-sales in overstocked markets. Some are switching to the newer build-to-rent format. Development Finance Partners recently salvaged a project that was unable to meet its lenders’ pre-sales targets on a 50-apartment project in Brisbane’s Chermside. The private investor approached DFP to look at ways to refinance the project. DFP took the project to their development management partners, Highgate Management, which specialises in distressed project workouts. Highgate Management and DFP worked with the Sydney-based co-­living rental specialist BNTO to completely redesign the project to yield 138 BTR apartments. Changing the project from build-to-sell to BTR resulted in the development’s approval and a new financial backer. DFP director Matt Royal said BTR was a great way for second and third tier developers to capitalise on the demand while building equity in their property portfolios, without having to meet stringent pre-sales requirements placed on them by lenders. “Under the new BTR configuration – targeting young, professional tenants – the project will deliver substantially higher returns than the 50-apartments previously approved and most importantly, as a BTR, it now stacks up as financially viable for its investors,” he said. While institutional capital from both international and domestic investors is starting to flow into Australia’s BTR sector, Mr Royal said it is only a matter of time before smaller players enter the market. “I believe the time is right given there is huge demand for rental properties in almost every metropolitan and regional centre throughout the country,” he said. In a similar vein, Melbourne-based BTR business Local is working with Blue Earth Group on a tower in South Melbourne. Local will acquire 245 Normanby Rd in a turnkey deal and the pair will develop a $280m tower. Listed developer Mirvac is a sector leader. It opened its first BTR property, Liv Indigo, two years ago at Sydney Olympic Park, and has projects in the pipeline across Sydney, Brisbane and Melbourne. Since opening Liv Indigo, Mirvac’s BTR general manager Angela Buckley said the company had been overwhelmed by the level of inquiry received. “Obviously the rental market right now is very, very strong, and I think for renters, they’re definitely seeking out alternative opportunities and build-to-rent is one of those,” she said. “One of our biggest learnings is that the reach of where people have relocated to has been far more significant than we expected.” Security of tenure is one of the biggest reasons people have decided to move into Liv apartments, Ms Buckley said. “They have a choice around how long they want to live with us for … we do give people the option, it’s really their choice as to how long they would like their lease to be,” she said. Over the past 12 months, Liv Indigo has been leased to between 95 and 98 per cent, which Ms Buckley believes to be a strong representation of interest in the BTR concept. Mirvac has almost completed its second project, Liv Munro, opposite Melbourne’s Queen Victoria Market. Amid the rising construction costs and a growing rental market, mid-size developers and builders are also entering the BTR market to avoid having to shelve projects. DFP’s Mr Royal said when a project is complete, it can be sold in one line or can be retained in whole or in part as a rental pool, creating cash flow and adding to the balance sheet to give the developer greater borrowing strength.

Nov 10, 2022

Brisbane CoreLogic RP Data Market Update November 2022

Brisbane CoreLogic RP Data Market Update November 2022 from First National Real Estate on Vimeo.

Oct 11, 2022

Brisbane CoreLogic RP Data Market Update October 2022

Oct 6, 2022

Rental Housing Crisis

Australia's Rental Housing Crisis.mp4 from First National Real Estate on Vimeo.

Sep 9, 2022

Brisbane CoreLogic RP Data Market Update September 2022

Sep 9, 2022

Changes of Stage 1 of the RTRA Act on 1st October 2022 in Queensland

What YOU need to know about changes to the Residential Tenancies & Rooming Act from 1 October 2022 Key changes relate to: Ending Tenancies The grounds for ending fixed term and periodic tenancies have changed The right of a lessor to end a periodic tenancy without grounds has been removed and from 1 October 2022, lessors can only end a periodic tenancy for specific prescribed grounds under the RTRA Act. There are new offence provisions and penalties if a Form 12 Notice to Leave is issued on grounds and limitations are not complied with. There are new grounds for a tenant to end a tenancy within the first 3 months by application to QCAT for false and misleading information given by a property manager or lessor about certain matters. There will be an Expansion of grounds for tenant’s right to issue Form 13 Notice of Intention to Leave. There are new grounds for lessor to make a QCAT application to end a tenancy. Pets Properties can no longer be advertised as “no pets allowed”. Lessors must respond to a pet request within 14 days – or their approval will be deemed granted. Lessors can only refuse a pet request on prescribed grounds, and they must give reasons to tenant for why they believe those grounds apply. Lessors can impose conditions on a pet approval in line with the prescribed requirements. Maximum Spend Limit for Emergency Repairs Tenants and property managers are now able to arrange emergency repairs to be made to the property up to a maximum amount equal to four (4) weeks’ rent under their tenancy agreement (increased from two (2) weeks’ rent). Nominated Repairers The Form 18a General Tenancy Agreement must identify nominated repairers and whether they are the tenant’s first point of call for emergency repairs. There are new requirements for the tenant to contact the nominated repairer before arranging for another repairer to carry out emergency repairs. Repair Orders A new type of QCAT order will be  introduced – Repair Order. A tenant can apply if a property or inclusions need repairs that fall into category of routine or emergency repair. Outstanding Repair Orders must be disclosed in Form 18a General Tenancy Agreement. A property cannot be lawfully leased while a Repair Order is outstanding. Repair Orders A new type of QCAT order will be  introduced – Repair Order. A tenant can apply if a property or inclusions need repairs that fall into category of routine or emergency repair. Outstanding Repair Orders must be disclosed in Form 18a General Tenancy Agreement. A property cannot be lawfully leased while a Repair Order is outstanding. Other Changes New procedure and requirements for changing locks. Expanded retaliation provisions related to repair matters. Domestic & Family Violence provisions Minimum Housing Standards coming into effect on 1 September 2023 for new tenancies and 1 September 2024 for existing tenancies. New provisions for death of a sole tenant and co-tenant. Entry condition reports.