Property Market Outlook
The room was buzzing at the Queensland Property Market Outlook lunch, held at the Sofitel Hotel on the 21 March. Whilst delayed a few weeks, this event sets the tone for the year ahead. We heard from industry and economics experts on the lay of the land and expectations for what will or won’t be for the coming year. Thank you to our keynote David Plank, Head of Australian Economics at ANZ, whose accurate and insightful commentary we draw on annually to explain the broader economic environment we all operate in. In his address, David predicted that real wages would grow in Queensland, and this will support slow rises in official interest rates over the coming years, to around 4 to 5 percent. David also predicted a slight cooling in property prices for Brisbane, although less significant than those predicted for Sydney and Melbourne, which will impact migration patterns, when Queensland is more affordable than its southern counterparts, Queensland sees a boost in immigration. David then joined panellists Angela Buckley, General Manager of Build to Rent at Mirvac, Michael O’Brien, Managing Director at QIC Real Estate, Carmel Hourigan, CEO at Charter Hall and Stephen Conry AM, CEO for Australia and New Zealand at JLL for a lively discussion. The panellists discussed the issues raised in David’s address in more detail, covering a range of topics including impacts of labour shortages and material costs. The Queensland Property Outlook lunch was made possible by event sponsor Charter Hall and our corporate partners.
Developer Review Wrap
Last week we heard the latest update on the Queensland Government’s Review of developers in the building and construction industry. The Queensland Building and Construction Act 1991 (QBCC Act) requires that a review of the role of developers in the building and construction industry be undertaken and that a report on the outcomes of the review be tabled by the Minister in Parliament. To discuss the practical implications, we assembled a panel of legal and property experts to break down the review, possible economic impacts flowing from the review, and potential impacts on individual business. Ainslie Barron, Acting Assistant Director-General from the Department of Energy and Public Works outlined key elements of the ongoing industry reforms already underway, that cover payment, building quality and safety, and regulatory systems and oversight. Ainslie emphasised the developer review is designed to determine what role developers play in these issues, and to ensure the regulatory framework is appropriate and responsive to current and emerging trends. An independent panel of experts has been appointed to conduct the review. Alison Quinn is the review chair and is joined by Gina Patrick and John Payne as panel members. The review panel have commenced work on a work plan and stakeholder engagement plan and will release a discussion paper in coming weeks for public comment. Legal expert, Jim Demack, Partner at Gadens, stepped through the current regulations that capture developers, including QBCC Act and the Building Industry Fairness Act (Security of Payment) Act 2017, and cautioned against the introduction of any further framework that could serve as a duplication of existing regulations. Ainslie and Jim were joined by Todd Pepper, Executive Director of Alceon Qld and Claire O’Rourke, Bluebird Construction, for a robust panel discussion with industry experts cautioning against further regulation, outlining the challenges in defining the role of a developer in the residential sphere, and stressing a common-sense approach to ensure commercial viability.
Sunshine Coast Market Outlook
The Property Council’s Sunshine Coast committee kicked off the year in style with the Sunshine Coast Market Outlook event at the Lake House. Robert Sobyra – Head of Research & Digital at Construction Skills Queensland presented the keynote which focused on the pressures and high activity levels on the Sunshine Coast Market. Mr Sobyra believed that while the current cost pressures would throw up many challenges they would ultimately be naturally resolved by the market. However, the health of the US Economy posed the biggest long-term risk for the Australian economy. Following this Robert was joined on stage by Andrew Fryer – ECI Manager at McNab, Michael Hurley – Residential Manager at Aria and Sandy Zubrinich – Chair of the Sunshine Coast Business Council for a panel discussion. The conversation was expertly moderated by Brad Williams – General Manager Sunshine Coast at RPS. The discussion highlighted the critical nature of the upcoming planning scheme in addressing some of the region’s fundamental growth issues, identified key measures local businesses could undertake to protect themselves during periods of volatile pricing and examined how they saw the Sunshine Coast in terms of future investment potential.
Industrial Market Outlook
The Property Council enjoyed hosting over 160 attendees at the Sofitel for the annual Industrial Market Outlook. It is boom time in the industrial space which Dillon Murphy – Director at CBRE highlighted in his key -note presentation. However, the growing demand and cost of industrial has resulted in a dwindling supply. Following the keynote Dillon was joined by Rob Mactaggert – Chief Investment Officer at StoreLocal Australia and Dan Brekan – General Manager Queensland at Goodman Group. The panel conversation was expertly moderated by Gail Black – Partner at Gadens and Member of the Property Council’s Division Council. The panel agreed that the medium-term outlook was extremely positive with occupancy at an all-time high. Other key themes that the panel discussed was an increased focus on sustainability, whether the increased activity level would result in a boost in rents, and the increasing sophistication of industrial parks.