News Archive - 2019

Modern Apartment Block
Market News - January > March 2019
I think this article from Melbourne's well know Publisher, 'The Age', really gives an accurate appraisal of what is happening in the mainstream property development market:
 
https://twitter.com/VikingCapitalGr/status/1100507921379512320  
 
From Viking Capital's perspective, I can only reiterate to Developers that we are more than capable of assisting them with sourcing and negotiation of competitively priced, 'non-bank' construction funding, and where required, additional preferred equity and/or mezz funding.
 
According to Core Logic data releases in January & February Property markets in Brisbane, the Gold & Sunshine Coasts, Ipswich, Canberra and Hobart are still profitable at the moment for small to mediums sized projects.  
 
In regards to future construction costs this recent Mitchell Brandtman construction costs report may be of very good use for Property Developers;
Sold
City Center
Market News - April to June 2019
With residential property markets and auction sales rates all but 'bottoming out' in the major two CBDs during quarter 2 / 2019 there really hasn't been much joy for property investors, private financiers or institutional lenders. 
Of course in stark contrast the ASX and overseas stock markets have been reaching upwards to record highs and it seems like securities are the current thing to invest in, as we here in the property industry suffer the property doldrums.
 
The major highlight of the quarter can only be said to be the political environment where on a federal level the coalition party recorded a shock win putting paid to the ALP's proposed negative gearing abolshment, and its proposed raid on franking credits for retirees.   
Obviously there has been some pockets around the country which have performed resonably well, from a capital gains and affordability perspective but in the mainstream we have been left guessing as to when an actual mainstream property market recovery might commence.
Display of Stock Market Quotes
Market News - July to September 2019
 
Thanks must go to the RBA for its continuing commitment with interest rate cuts which have been a much needed stimulus to the national property markets.
 
Many of our developer clients have struggling to move their stock in the current environment, but now hopefully we can start to see some wind coming back into the sails, as median values now start to ramp back up after a pro-longed decline, particualrly in the Sydney and Melbourne markets.
3-Level-Townhouse-HPR-4b.jpg
Construction Site
Market News - October to December 2019

While Melbourne, Sydney and selected regional markets have rebounded strongly, with capital values continuing to work back in the positive direction, Brisbane mainstream markets have continued to be subdued, and particularly in the inner city locations for units, as unit supply levels are still well over supplied.

 

Nevertheless, as the detached housing market has remained fairly quiet, the emerging market in the Brisbane property market has been for 'non-unit-designated-development-sites' and interest in the acquisition of these types of properties has improved substantially since the Brisbane City Council, in its infinite wisdom, decided to reduce back allowable product yield sizes for designated property developments in certain key inner city suburbs. This decision, has created a strong and continuing demand for townhouse developments sites, either raw or with DA, especially sites in the very few effected / unchanged LMR zoning areas, (LMR designates Low-to-Medium Residential Development capability), or sites which have had a DA put in place before BCC decided to tighten up on their approval methodologies.