After several weeks of strong results, Brisbane’s auction market has slowed. Some 95 properties went to auction across the city at the weekend, with a reported clearance rate of 33 per cent.
The five-bedroom, four-bathroom house at 45 Olive Grove, Balmoral, in Brisbane’s south, sold at auction for $1.9 million. About 60 people watched for 20 minutes as four registered bidders made a move for the property.
Bidding opened at $1.5 million, and jumped in lots of $100,000 and $50,000. The house was on the market at $1.85 million, and sold for the final price after one more bid.
Selling agent Brandon Wortley, of Ray White New Farm, said nearly 60 people viewed the house over the campaign. The eventual buyer was a family with young children who live locally and were looking to upsize.
The vendors, meanwhile, were based in Sydney and had built the house as a rental property two years ago. Mr Wortley said both parties were happy with the result.
“They’re the best auctions, when you’ve got happy people on both sides,” he said. “Having clarity around the process was the big thing there because the buyers were nervous about the process.
“Between myself and Conrad, my co-agent, we spent so much time making sure they understood exactly what it was, and explaining that good houses attract interest.”
Elsewhere, a four-bedroom, two-bathroom house on 534 square metres at 18 Campion Avenue, Bardon, sold in a lively auction. About 30 people gathered to watch three registered bidders battle it out to walk away with the keys.
Bidding opened at $800,000, and, after 35 minutes of active bidding, the hammer was dropped and the property was sold for $945,000.
Selling agent Carmen Briggs, of Harcourts Solutions, said most of the interest in the house was from young families.
“They were all looking to get into the Rainworth schools, and they were all looking to be able to have their children walk to high school,” she said. “It’s got a separate area downstairs that could be a work from home office, or a granny flat, or a teenage retreat. It’s one of those properties that has multiple purposes.”
Mrs Briggs ran a three-week campaign for the house, rather than the typical four weeks, because she has been having great success with the shorter cycle.
“I’ve been doing a lot of three weeks [campaigns],” she said. “If you run the campaign longer than three weeks I find the buyers lose momentum. All my three week [campaigns] so far that I’ve been doing in the spring selling season have sold under the hammer.”
The buyers were a young family who had been driving for an hour each morning to get their children to the local schools. They had their extended family with them at the auction, and were thrilled with the result.
In Brisbane’s south, the four-bedroom, two-bathroom house on 594 square metres at 124 Brisbane Corso, Fairfield was sold under the hammer for $1.49 million in a well-attended auction.
More than 80 people watched as a massive 13 registered bidders attempted to stake their claim on the property. Bidding opened at $1 million, and, after 25 minutes and more than 90 bids, the house was sold.
Selling agent Geoff Sellars, of Ray White Annerley, said the house attracted massive attention over the four-week campaign, mostly from older couples and mature families. He put this interest down to both its quality and the circumstances of the sale.
“It was a lovely home, but we attracted that many bidders because it was a mortgagee in possession,” he said. “The bank actually gave us permission to advertise it as that, which is why the result was so strong.”
The buyers are from Sydney, and will be living in the house part-time. They were very happy with the result.
The Brisbane suburbs where house prices are higher than last year
The historic suburb of Windsor in Brisbane’s north has seen the biggest growth in median house prices in the last year, with a 17.2 per cent increase year-on-year.
New figures from Domain have revealed the top 10 suburbs whose median house price has risen the most year-on-year. Despite a largely flat market, there are still plenty of suburbs where prices are surging.
Windsor had the highest increase in median house price at 17.2 per cent year-on-year, followed in second place by the leafy inner-western suburb of Auchenflower which saw a 11.4 per cent increase.
Other suburbs in the top 10 include Queenslander paradise Newmarket (10.9 per cent increase), the massive blocks at Bridgeman Downs (9.8 per cent increase), and the outer-western suburb of Heathwood (8.3 per cent increase).
Ray White Wilston principal Allistair Macmillan said the massive increases in price at top performer Windsor were likely due to the suburb not always getting the recognition it deserved.
“For a long time Windsor has been slightly undervalued,” he said. “It’s so close to Wilston and Grange. [They’ve] always been supremely popular with families, I think Windsor was dragging the chain a little bit with those values.
“When you look at values in Windsor, they can vary quite a large degree depending on whereabouts in Windsor they are positioned. What we’ve found is that now the difference between the two sides of Gympie Road is nowhere near as prevalent as it once was.
“Of late, people have really come and been able to see the value Windsor does offer.”
Mr Macmillan said other contributing factors include the recent multimillion-dollar redevelopment of the Albion public transport exchange. Buyers on the eastern side of the suburb in particular have expressed interest in the plan.
The vast majority of buyers in the area are younger families who are looking to be in the Windsor State School catchment area, and are attracted to the many local parks, bikeways, and public transport options.
“Stock is incredibly tight,” Mr Macmillan said. “Generally speaking if you look at the volume of properties, there’s not a lot that are for sale in Windsor. It’s still a very tightly held suburb.”
Elsewhere, the northern suburb of Northgate also fared very well, with a median house price increase of 8.9 per cent year-on-year. Local agent Dwight Colbert at Ray White Aspley said the location and amenities were the big drawcards.
“[We’ve seen] popularity due to the proximity to the Brisbane CBD, Brisbane Airport, and also an array of public transport,” he said. “You are on the Northgate train line, which is the main one on the north side, and the hub.
“You’re between Nundah Village, you’ve got Banyo Village, you’ve got good access to the Gateway [Motorway], Toombul Road, Sandgate Road, Gympie Road. It’s quite a desirable locality to get in and out of everywhere.”
Mr Colbert said the area was traditionally seen as a haven for older buyers, but in recent years many young couples and professionals had taken the plunge.
“There is a lot of property development going on in Northgate as well,” he said. “So a lot of the older, bigger blocks are being subdivided. Which is also certainly going to help with the average house price.”
West Brisbane family-favourite Auchenflower pulled out a particularly impressive result, posting a 11.4 per cent increase in median house price year-on-year. This makes it the third-most expensive suburb in the city, up from 12th last year.
Place West principal Andrew Degn credits the suburb’s massive gains to the recent completion of major infrastructure in the area.
“Five or six years ago they finally finished gentrification of the old Milton tennis centre and turned it into a park called Frew Park, which is adjacent to [Milton State School], and the playground, and that goes through to the Rosalie village,” he said.
Auchenflower also features the Wesley Hospital, the recently upgraded Milton State School, and various inbound and outbound public transport options. Mr Degn was so passionate about the area he decided to buy and live there himself.
“Real estate people are supposed to know good real estate, and I live in Auchenflower,” he said with a laugh. “So there you go, I’m personally responsible for pushing the price up.”
Top 10 suburbs with the largest house price increase since last year
1. Windsor – 17.2%
2. Auchenflower – 11.4%
3. Newmarket – 10.9%
4. Yamanto – 9.9%
5. Northgate – 8.9%
6. Heathwood – 8.3%
7. Brassall – 8.1%
8. Toowong – 7.6%
9. St. Lucia – 7.4%
10. Hendra – 7.1%
11. Karana Downs – 7.1%
12. Indooroopilly – 6.9%
Five Australian Cities Make World’s Top 30 Luxury Residential Markets
Australia’s ultra-luxury residential market, largely unaffected by the impact of recent lending restrictions, has continued to record positive growth in the prestige sector of the market.
Sydney, Melbourne, Brisbane, the Gold Coast and Perth make up the five Australian cities which rank in the world’s top 30 cities for luxury residential price growth.
The major east coast cities of Sydney, Melbourne, Brisbane and the Gold Coast have now recorded 25 quarters, or more, of positive annual growth for luxury property, according to Knight Frank’s Prime Global Cities Index for the third quarter 2019.
Defined as the most desirable and expensive property in a given location, prime property is generally the top 5 per cent of each market, by value.
Sydney ranks 17th in the global rankings, with 2.6 per cent annual growth, Melbourne at 21st spot recording 2 per cent growth.
Brisbane followed closely ranking 22nd with 2 per cent growth, the Gold Coast which was included in the Index for the first time earlier this year moved up the rankings to 26 with a 1.3 per cent increase, and Perth ranked at 30th recording a 0.7 per cent rise.
Knight Frank’s Prime Global Cities Index
|City||12-Month Change (Q3 2018 -Q3 2019)|
|26. Gold Coast||1.3%|
Knight Frank’s head of prestige Residential Deborah Cullen says the top end of the market is showing more consideration and time in transacting.
“There is still strong interest from local and expat buyers for blue ribbon areas and for “best in class” assets, in particular the waterfront areas of Sydney,” Cullen said.
“Growth in prime property prices closely follows the performance on the stock exchange,” Knight Frank head of residential research Michelle Ciesielski said.
“And there have been some significant gains made on the Australian sharemarket in 2019.
“Collectively the Australian prime market has continued to see sustainable growth of 2 per cent in the year ending September 2019, whilst the sharemarket recorded a 7.7 per cent return,” Ciesielski said.
Slowdown gathers pace in top-tier cities
The global cities index increased by just 1.1 per cent in the year to September 2019, down from 3.4 per cent last year, with slower prime price growth attributable to mounting economic headwinds.
Despite a longer-than-expected period of loose monetary policy and steady wealth creation, the report notes that luxury sales volumes are at their weakest for several years in many of the first tier global cities.
“Slower global economic growth– the IMF lowered its 2019 forecast from 3.3 per cent to 3 per cent in October – along with escalating headwinds: US-China trade relations, Hong Kong’s political tensions, a US presidential election in 2020 and the Brexit conundrum are influencing buyer sentiment,” the index notes.
Moscow recorded the highest rate of growth with an 11 per cent increase over the year to September.
The report notes that Moscow leads the index largely due to strengthening demand and the completion of a number of high-end projects in prime areas like Ostozhenka and Tverskoy.
The prime global cities index is a valuation-based index that tracks the movement in prime residential prices in local currency, using data, across 40 cities.
Brisbane Plans CBD Riverfront Renewal
New plans to revitalise Brisbane’s CBD riverfront, a 1.2 kilometre stretch of river frontage from the City Botanic Gardens to Howard Smith Wharves, has been released.
New ferry and CityCat terminals are included in Brisbane City Council’s draft master-plan, which aims to improve river access and cement the CBD river frontage into “a world-class employment and lifestyle precinct”.
The draft plan includes an increase of the current pathway to an eight-metre-wide promenade which would span the riverfront, and includes an increase of green-space, trees, and public art.
“This is just one of the ways we are making the Brisbane of tomorrow even better than the Brisbane of today,” Brisbane City Council said of the draft plans released on Thursday.
The riverfront precinct is currently home to more than 30 dining destinations and 1.6 hectares of parkland.
The draft plan also includes a proposed new green bridge connection at Kangaroo Point.
“It’s part of our bigger plan to connect people and places,” City Planning Chair Matthew Bourke said.
Bourke says the draft plan took cues from well-known waterfronts, including the likes of San Francisco’s Fisherman’s Wharf and Singapore’s Marina Bay.
Property giant Dexus is under way on its $1.4 billion Waterfront project transforming Brisbane’s Eagle Street Pier.
Council’s draft masterplan for Brisbane’s riverfront will be open to public consultation from Monday 11 November through to early December.
The final masterplan will be released in 2020.
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