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Best market we’ve ever seen’ – QLD sales achieve record results

Queensland market

The Queensland market has been roaring throughout 2021, with median prices up around +20 per cent for the year across the state.

Where other areas in the country are now beginning to soften, vendors in the Sunshine State are still experiencing incredible selling conditions that are leading to standout results everywhere you look.

We spoke to top agents in Brisbane and the Sunshine Coast to explore some of their recent sales and just how strong the local market is.

Sunshine Coast homes attract record prices in clear seller’s market

“I can’t recall the amount of activity I’ve seen internationally and interstate coming to Pelican Waters and particularly the Sunshine Coast,” explains Linda Feltman of McGrath in Caloundra.

“Everything is selling well above expectations. It’s even surprising agents sometimes.”

Since the pandemic hit, the Sunshine Coast has been one of the most desirable parts of the country when it comes to property. With its ideal weather, minimal impacts from Covid shutdowns and overall lifestyle benefits, it’s easy to see why.

The sale of 26 Millennium Circuit in Pelican Waters, the lakeside suburb which sits on the southern tip of the Sunshine Coast region, is a great example of the success sellers in the area are experiencing.

Queensland market

26 Millennium Circuit, Pelican Waters provided a stunning outlook onto the lake and local golf course. Source: McGrath Caloundra 

The stunning lakeside home boasted four bedrooms plus a guest wing, huge open living and dining, a gold class cinema, a large pool and spa, and views of the internationally renowned Pelican Waters Golf Club.

“From the moment it went online, we had 66 enquiries within 24 hours,” Ms Feltman says.

The owners were hoping for any offers over $2m, and with the huge levels of buyer interest, they ended up securing a fantastic result at $2.2m, a record sale for the lake area.

8 Bond St was another big hit for the area. The modern, sun-drenched four-bedder was on the market for offers over $1.495m, and again expectations were exceeded when the deal was done at $1.8m.

Queensland market

8 Bond St, Pelican Waters achieved a result well beyond the seller’s expectations. Source: McGrath Caloundra 

“On average, at the moment we’re getting anywhere from 100 to 170 enquiries per property,” Ms Feltman explains.

“We’re also dealing with a minimum of three to four offers. One of my properties the other day had nine offers.

“We’ve got huge demand and we haven’t got enough listings, so the supply is low and the demand is high. So whenever you have those two factors—and it’s like that at the moment—obviously it’s a seller’s market, and there are a lot of families that need to purchase on the Sunshine Coast.”

Brisbane sellers in the ‘best market we’ve ever seen’

“If I was to describe the market quite simply I would describe it as an absolute seller’s market,” says Tony O’Doherty, principal at Belle Property Bulimba.

“It’s often hard to know what market you’re in, and it’s very rare that it’s such an extreme one-sided market,” he explains.

“There is no line in the sand… the market has been as good as it’s been in the Brisbane environment.”

The Queensland capital has, similarly to the Sunshine Coast, been experiencing a historic boom that’s led to some remarkable results for sellers.

30 Grosvenor St in Balmoral is what Mr O’Doherty calls a very good example as to how the market is performing.

Queensland market

The sale of 30 Grosvenor St, Balmoral brought the vendors a massive return on their investment. Source: Belle Property Bulimba 

The five-bed family home attracted a wide array of buyers including people from overseas and interstate.

“We had people from America, Byron Bay, Sydney, Melbourne, and a lot of Brisbanites,” he says, adding that despite the media attention on how many out-of-towners have been showing interest in Queensland real estate, “most of our transactions are people who already live in the suburb.”

The owners of the Balmoral house originally purchased the property for $1.3m in 2015. Since then it hasn’t undergone any significant renovations.

After debating when to sell, they felt the market conditions gave them the confidence to list. Fast forward to November 2021 and it sold for $2.15m, a staggering +66 per cent increase in just six years.

Mr O’Doherty also points to the recent sale of 22 Orchard St in nearby Hawthorne as a demonstration of the current power of the market.

Queensland market

In 2020, the owners of 22 Orchard St, Hawthorne couldn’t find a buyer. In 2021 they went well beyond their dream price. Source: Belle Property Bulimba 

Just last year the owners had the three-bedroom house on the market for an extended period and couldn’t achieve a $1m price. In the 2021 market, the property sold for $1.415m.

These kinds of results aren’t only being seen in a particular price bracket, either. “It’s right the way through the market. It’s the million-dollar product, it’s the seven million dollar product, and everything in between,” Mr O’Doherty says.

“If you are a seller and you want to transact your home, this is the best market we’ve ever seen.”

What’s next for Queensland property?

While there’s talk of the property boom reaching its peak in other key markets like Sydney and Melbourne, the near future still looks very bright in the Sunshine State.

Ms Feltman expects that, once the state’s borders open in mid-December, there may be a short lull in activity as families reunite.

“But after that, once mid-January comes along, I think it’s going to be extremely busy because people will be up here and they’re going to be ready to go into real estate mode and need to buy fairly quickly,” she says.

“I envisage the next six months on the Sunshine Coast will be phenomenal, and then after that, it will depend.

“I think people will start to travel again comfortably, I think that’s going to definitely play a part in the real estate industry.”

She also points out that the 2032 Olympics announcement has set off a wave of new investor interest, so the long-term growth prospects for the region are extremely strong too.

Mr O’Doherty notes that Brisbane has seen a huge amount of growth in a short period, to the point that it puts things in uncharted territory and makes the future difficult to predict.

“This is not a natural economy, you’ve got a lot of money circulating that wouldn’t be if it wasn’t for Covid,” he says.

“I believe we’re in such a heavily geared seller’s market, if you are a seller waiting to sell—what are you waiting for?

“If you’re looking to buy, if you buy the right block size in the right location, it’ll never go backwards. If you’re looking to sell, it’s an absolute seller’s market.”

Article Source: www.openagent.com.au

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Brisbane

Record auction figures in December as Australia’s property market plays catch up

Auction

A surge in post lockdown supply coupled with buoyant market conditions, led to unprecedented levels of auction activity across Australia in the final three months of 2021.

CoreLogic’s Quarterly Auction Market Review shows 42,918 properties were taken to auction across the combined capital cities in the three months to December 2021, an 85.1% increase from the previous quarter and more than double (109.5%) the December 2020 figures.

CoreLogic’s Research Director Tim Lawless says several factors resulted in the surge in auctions, including some catch-up from the September quarter when the largest auctions markets were weighted down by lockdowns as well as a pickup in activity following the seasonally slower conditions of winter.

“The large number of auctions held through the December quarter also reflects the strong selling conditions that were present, which motivated vendors to capitalise on strong buyer demand and the significant rise in values seen through the pandemic,” he says.

“Auctions as a way of selling tend to be more popular during a sellers’ market; in this situation buyers are highly competitive and incentivised to outbid rival purchasers in order to secure a property. During cooler market conditions an auction may not attract as many registered bidders or as much competitive bidding.”

In Australia’s two biggest auction markets, Melbourne had 19,788 auctions and a clearance rate of 69.7% for the December quarter compared to Sydney, where 14,906 auctions were held at a clearance rate of 69.9%.

Across the combined capitals, the quarterly clearance rate of 71.3% was only slightly down on the previous quarter results of 71.7%.

However, as the quarter progressed and the volume of auctions held increased, the clearance rate progressively trended lower to 61.1% in the week ending 19 December, 2021.

Mr Lawless says higher auction volumes will often correspond with lower clearance rates as demand becomes more thinly stretched.

“The surge in the number of auctions through the final quarter of 2021 was accompanied by a consistent trend towards lower clearance rates, with this trend evident across each of the capital cities,” he says.

“The drop in clearance rates implies demand didn’t quite keep pace with the level of auction supply during the quarter.”

In the smaller capitals Brisbane (3027 auctions, clearance rate of 74.9%), Adelaide (2902 auctions, 80.5%) and Canberra (1949 auctions, 82.4%) also recorded significant increases in volumes compared to Q3 2021, and the corresponding quarter in 2020.

auction At a granular level, the suburb of Wishart, 12km south-east of Brisbane’s CBD, recorded a 100% clearance rate, the highest in the country, with all 28 properties scheduled for auction in the December quarter selling under the hammer.

The heightened auction volumes in Brisbane and Adelaide echoed the cities respective housing strength, where values continued to rise at cyclical highs through December, prompting a higher proportion of properties being taken to auction.

Auctions in Australia’s regional areas also increased substantially over the quarter. Larger centres such as Newcastle, the Illawarra, Geelong and the Gold and Sunshine coasts in Queensland, each saw a surge in auction volumes, reflective of the tight housing market conditions that currently exist in the country’s popular coastal areas and lifestyle-oriented markets.

In the week ending January 23, 2022, close to 460 auctions are scheduled across the capital cities, almost 40% higher when compared to the same period a year ago. However, Mr Lawless says it’s too early to forecast the auction market trend likely to prevail in 2022.

“Overall advertised supply levels generally remain below average across most of the capitals suggesting sellers are still benefitting from strong selling conditions,” Mr Lawless says.

“Auction volumes tend to ramp up through early February and move through a seasonal peak in the weeks prior to Easter. Over the medium term we are expecting listing numbers to gradually normalise which should see buyers regaining some leverage in the market over time.  If this is the case, we could see more vendors reverting to private treaty sales rather than auctions as competitive tension amongst buyers eases.”

A full city-by-city suburb analysis, where at least 20 auction results were reported over the December quarter, can be found in the report.

 

Article Source: www.corelogic.com.au

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Brisbane

High Rollers Spending Big in South-East Queensland’s Premium Market

Market

The Gold Coast continues to rise above the pandemic, providing bang for buck for many ultra high-net worth individuals who bought into the unyielding prime residential market.

The region recorded a 156 per cent increase in annual sales turnover for prime residential property, the biggest in the country, according to Knight Frank’s Australian Prime Residential Review report.

Knight Frank head of residential research Michelle Ciesielski, who authored the report, said Gold Coast property had chalked up a 10.5 per cent increase in prime prices, the second-highest behind Sydney at 10.7 per cent.

“The Gold Coast saw the biggest rise in prime annual sales turnover at 156 per cent, followed by Brisbane at 135 per cent,” Ciesielski said.

“Gold Coast prime properties were on the market 19 days less on average [than the previous quarter], the biggest reduction across Australia.”

The Gold Coast also offered more for your money.

According to Knight Frank data, US$1 million would buy you 124sq m of luxury floor space in the Gold Coast, while in Melbourne it could buy about 88sq m and a paltry 44sq m in Sydney.

Prime residential performance, third quarter 2021

Region Capital Growth YoY Sales Volume YoY Gross rental yield
Sydney 10.7% 119% 2.07%
Melbourne 6.5% 85% 2.69%
Brisbane 8.4% 135% 2.41%
Perth 10.4% 120% 1.78%
Gold Coast 10.5% 156% 3.48%

^Source: Knight Frank Australian Prime Residential Review

Sherpa Property Group chief executive Christie Leet told The Urban Developer late last year that beachfront prices at nearly $20,000 per square metre were “towards the top end, well and truly”.

“There’s a fair argument that we might have hit a peak,” Leet said.

“But there’s still plenty of people out there buying tower sites that are going to take three or four years to develop.”

Towards the end of 2021 there were more than 50 residential projects with an estimated investment value of $4.8 billion under construction on the Gold Coast.

Nationally, the third quarter of 2021 was the second highest on record for prime sales, recording 1971 properties sold, while the volume of prime sales was up 119 per cent across the year ending September 2021.

Knight Frank forecast prime prices would increase 11 per cent across 2021, and a further 8 per cent in 2022.

Luxury rental prices on the Gold Coast have risen 10 per cent with yields the strongest in the Australian prime residential market at 3.48 per cent.

The pace of development of prime apartments and townhouses across Australia has slowed. About 26,700 new high-end apartments and townhouses were built in 2020, while the pipeline was 42 per cent less for 2021 with just 15,500 under construction.

Almost half of these new apartments are for the Melbourne market (7450), while Sydney and the Gold Coast were slated for more than 2000 properties each.

Globally the strongest prime residential capital growth was recorded in Miami, followed by Seoul, Shanghai, Moscow and Toronto.

Sydney was ranked 14th, followed by the Gold Coast (15th) and Perth (16th). Brisbane was at 21, while Melbourne came in with a middling performance at 24.

 

Article Source: www.theurbandeveloper.com

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Opinion

How home loan mortgages rose in 2021 to record levels

home loan

Lender records were broken in every state and territory except WA, according to the ABS data

Purchases by NSW owner occupiers came with mortgages sat at around $770,000, according to the latest lending data.

The national average mortgage size for owner-occupiers has reached a record high of $595,568 according to ABS data.

Records were broken in every state and territory except WA.

The national mortgage was up $92,404, an 18% hike over the year.

The November ABS Lending Indicators, released 14 January, advised the loans were for the purchase of new and existing dwellings.

The national average mortgage size for owner-occupiers has reached a record high of $595,568 according to new ABS data out today.

Records were broken in every state and territory except WA, according to the ABS data in original terms.

Victorian home buyers saw the biggest jump in their mortgages, up 24% or $120,000 to $618,602.

Average new owner-occupier mortgage size, November 2021

Amount Year-on-year change
National
$595,568 $92,404 18.4%
NSW
$769,459 $125,112 19.4%
Vic
$618,602 $120,032 24.1%
Qld
$513,649 $73,604 16.7%
WA
$439,578 $22,868 5.5%
SA
$421,801 $38,016 9.9%
ACT
$585,859 $58,434 11.1%
TAS
$445,915 $73,175 19.6%
NT
$433,333 $53,271 14%

“Demand for Aussie housing remains firm, but affordability has decreased because home prices have surged more than wages,” Ryan Felsman, senior economist at CommSec noted.

“In November housing stock was high and the country’s two largest states were freshly out of lockdown, so it’s no surprise to see a rise in new lending,” RateCity.com.au research director, Sally Tindall, said.

“Growth in property prices is starting to slow on the back of fixed rate rises and a crackdown by the regulator, but the opening up of borders this year will increase demand, keeping prices moving north,” she forecast.

The data did not include refinancing, nor renovation loans.

Renovation loans surged by 18 per cent in November to a record $569 million. The value of lending for renovations is up by a massive 115 per cent on a year ago.

Canstar analysis showed Australian mortgage holders refinanced $15.72 billion worth of loans to a new lender in November 2021, down 2.3% from October.

 

Article Source: www.urban.com.au

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