The naughty and nice list for Brisbane property owners!
We’ve made this list and you can check it twice. You’re going to find out, for Brisbane property owners this year, who’s been naughty and what’s been nice. Among them: surging prices have been very nice but now there’s a Grinch-like tax man about to spoil Christmas. As your local real estate agents we know what’s been bad or good for you in 2021, (and a few things you better watch out for in 2022) so here’s a quick look!
Naughty: Finishing the year with a shocking just-before-Christmas tax grab from interstate investors, our Qld government have firmly put themselves on the naughty list. Huge numbers of Brisbane property are owned by southerners and our Treasurer last week announced their holdings in other states will now be added to local ones in calculating their Qld land tax bill. “How can the government possibly justify slugging property investors with tax for land they own that isn’t even within our state borders?” Real Estate Institute of Queensland CEO Antonia Mercorella said. Like any impost on landlords, this can only lead to higher rents, or less available rental homes. Probably both.
Nice: Investors have waited a long time for rent rises but they’re finally happening. With three consecutive quarters of median rent rises, inner-Brisbane especially has shown its strength as 2021 progressed. It’s up 6%pa on last count. Not long after we’d absorbed the huge tsunami of new apartment supply, naughty COVID came to town. But not even closed borders, absent overseas students and an apparent shift to suburbia (ha!) could slow down tenant demand. Some tenants aren’t happy their ‘naughty’ landlords are raising rents, but median Brisbane rents haven’t come close to keeping up with ownership expenses like council rates and body corp fees over this past decade.
Naughty: We don’t often call out our fellow property managers, but why are so many closed and away on holidays right now??! Our borders have just opened and tenant enquiry has spiked in the last week. This is prime time to be leasing. If I was a landlord with a vacant Brisbane property and my agent was lying on a beach somewhere, I’d be mighty ticked off right now… (No our team don’t ever close at Christmas, opening every day except the public holidays!)
And, (warming to the topic), many of those same agents deserve a naughty list spot for not working harder to earn their clients better rents. Negotiate for increases. Every landlord understands the value in keeping good tenants in place and Bees Nees’ tenancies are far longer than the average. But when rents are rising there’s an important balance and investors need their net returns to climb with the market.
Nice: Okay so this one’s the most obvious for Brisbane property owners right now. Our price rises are now the biggest of all capitals and show little sign of slowing. Up 25.1% over the past year, our median dwelling price added a further 2.9% in November alone. The nice news for those yet to buy? With a median price of $662,000 we remain the most affordable of the big cities. For now.
The latest data showed Brisbane’s sales listings are 34% down on our 5 year average. It’s not nice for home hunters with the pickings slim and competition fierce. But for those selling now there’s very positive results to be had (especially while many agents are holidaying and their listings are ‘on ice’). Multiple offers are the norm as FOMO pushes buyers to their limits over this Christmas period.
We consider this the best opportunity to sell a Brisbane property that we’ve seen since 2007.
Naughty: 2021 will go down as The Year of Compliance. All governments deserve a naughty listing for all the rules and all the changes every property owner has had to endure. Don’t inspect your property as you/your agent might have COVID. Don’t ignore maintenance that you didn’t see because you couldn’t inspect it. Wear a mask and do a QR code sign in for all sales and rental inspections. Now here’s new tenancy legislation – your tenants will soon be able to keep a pet without your approval and, (with limited exceptions) stay in your property as long as they like.
Spend hundreds of dollars for new smoke alarms and make sure they’re installed by January 1st 2022 or you can’t move a new tenant in. Even if there’s a shortage of housing and tenants are desperate. Whew… so many changes. And that’s not the full list!
Nice: Just a quick glance at our city’s new major projects paints a very nice picture of what lies ahead for our lifestyle and for Brisbane property owners. New bridges announced and underway in our inner-suburbs. New entertainment precincts progressing on a huge scale ($3.6 billion Queens Wharf). New, once in a generation transport infrastructure marking exciting milestones (Cross River Rail, Brisbane Metro). Then the big juicy announcement that we will host the 2032 Summer Olympics. There’s been lots of nice news this year.
So while you’re lounging by the pool or beach with a cocktail in hand (today is Wednesday December 22nd by the way: no-one remembers the date at this time of year!) we hope you’ve enjoyed this quick look back on a remarkable year for Brisbane property. The Bees Nees team wish you and yours a wonderful Christmas and we hope Santa Claus is coming to your town!