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Brisbane auctions: Locals make desperate rush before Christmas and the borders reopen

Brisbane auctions

Plummeting stock levels and a looming interstate buyer swarm sparked local upgraders to dominate high-end auctions across Brisbane at the weekend, as real estate experts warn Queenslanders are now more desperate than ever to bag a slice of the property pie before the state floodgates open.

With property stock levels continuing to nose dive leading to Christmas, local buyers with cash to splash pounced on classic Queenslanders through to modern mini mansions on Saturday, fuelled largely by a fear of missing out once interstate home hunters are again able to travel north.

Joanna Gianniotis, of Place Bulimba, sold the stunning 1925, renovated Queenslander at 15 Hamel Street, Camp Hill, under the hammer for $1.75 million on Saturday, and said Brisbane upgraders were nothing short of out in force for the hotly contested auction.

“Local buyers are in upgrade mode and that’s either because they now want a home with an office or they are spending much more time at home and not travelling overseas,” Ms Gianniotis said.

“It’s all about lifestyle (for these buyers). COVID has changed that and money is also cheap (right now).

“There are also only five weekends left until Christmas and with little around, buyers are feeling the pressure for when Sydney and Melbourne buyers (return).”

The Hamel Street auction attracted five registered bidders with a Rockhampton woman flying in on the day to secure the winning bid on the classic five-bedroom, three-bathroom abode.

“The home is a beautiful 1925 Queenslander that was raised and renovated – the owner was an interior decorator and she did an amazing job,” Ms Gianniotis said.

Brisbane auctions

15 Hamel Street, Camp Hill. Photo: Place Estate Agents

While the sheer style of the home and the size of the block attracted a stream of foot traffic leading up to the auction, Ms Gianniotis said sales in general were up and their office had enjoyed soaring auction clearance rates in the past month, alongside increased competition among hungry buyers.

“Bigger blocks (like 15 Hamel Street) have been in really hot demand – people just want bigger land right now.

“What’s keeping me up at night now is simply not having enough stock for when those interstate buyers arrive,” she said.

Brisbane auctions

Inside the renovated 15 Hamel Street, Camp Hill. Photo: Place Estate Agents

The Hamel Street home clocked one of the biggest reported sales across Brisbane on Saturday, of a total of 49 auctions held throughout the city. A total of 26 confirmed results were recorded from the day, totalling $9,927,000 and an auction clearance rate of 54 per cent.

Mitch Palmer, of Ray White Broadbeach Waters, echoed fears of plummeting stock levels and said despite his office witnessing some of the highest buyer activity in two decades, simply securing enough homes to sell into next year was their biggest challenge.

“I think we are seeing that local buyers do want to get in and secure something before the potential rush (of interstate home hunters arrive),” Mr Palmer said.

He sold the modern masterpiece at 54 Edinburgh Road, Benowa Waters, under the hammer for an impressive $1.538 million on Saturday in what he said was a great result for the suburb – with a local buyer securing the winning bid.

“This was hotly contested with seven registered buyers battling it out – and it really came down to the wire with three families fiercely contesting at the end,” Mr Palmer said.

“Bidding actually started back at $1 million, but as is the case with the power of auction, that competition drove the price all the way up and well beyond the highest offer prior, of $1.4 million.

“The market is very strong with incredibly low stock and high demand driving exceptional competition.

“In fact, it’s one of the strongest markets I’ve seen in 18 years, and we’re expecting 2021 to be very strong as well.”

Other top auction results across Brisbane included a small, renovated worker’s cottage at 36 Confederate Street in leafy Red Hill – which sold for a whopping $937,000 after more than 85 groups went through the property during the campaign.

On the day, seven registered bidders battled it out for the three-bedroom abode, which has an elevated block.

 

The post “Brisbane auctions: Locals make desperate rush before Christmas and the borders reopen” by Sarab Webb appeared first on the https://www.domain.com.au/ Blog

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Brisbane

Mirvac Sells Golden Triangle Tower for $87m

Golden Triangle Tower

Melbourne-based property fund manager Forza Capital has picked up a prominent office building in Brisbane’s “Golden Triangle” from Mirvac for $86.7 million.

The property, located at 340 Adelaide Street—on the corner of Adelaide and Wharf Streets, comprises 12,800sq m of B-Grade office space across 17-levels, together with a ground floor cafe and parking for 100 cars.

In recent years, Mirvac has refurbished the building, upgrading the lobby and repositioning the external ground plane and retail.

Mirvac chief investment officer Brett Draffen said the proceeds from the sale will be redeployed into prime and A-grade commercial assets as well as its $22.4 billion development pipeline across the residential, office and industrial sectors.

The deal, negotiated by CBRE’s Flint Davidson, Tom Phipps and Bruce Baker, represents an 11 per cent premium to its book value in June.

“As the first major, post-Covid capital markets transaction in the Brisbane CBD, this deal highlights the demand from onshore investors for quality office assets,” Phipps said.

Golden Triangle Tower1

The building is 93 per cent leased to tenants Covermore, Cerebral Palsy League and Oracle, and has a weighted average lease expiry of 3.8 years. Image: Supplied

“As travel restrictions ease we expect the market to awaken in the first half of next year fuelled by historically low financing costs and Brisbane’s attractive yield spread.”

Forza Capital director Ashley Wain said the asset represented exceptional value, given the building’s comprehensive refurbishment program, and was transacted with a high degree of certainty over a period of one month.

“Shortly after Covid struck, [we] identified the opportunity to prepare our investor base of sophisticated investors for opportunistic property investments.

“Speed to transact was anticipated to be critical and we believed getting early capital commitments and being able to transact quickly would be paramount to securing new investments on attractive metrics,” Wain said.

The acquisition represented $52.5 million of equity from Forza’s client base of family offices, high net worth advisory groups and individuals, and will now sit in the newly-established Forza 340 Adelaide Street Fund.

“The uncertainty in office investment markets has created really attractive investment metrics which, when combined with highly competitive debt funding, results in a target 8 per cent per annum distribution yield over the first five years of the investment,” Wain said.

Last week, Dexus listed a neighbouring A-grade office tower, located at 10 Eagle Street, with price expectations of $300 million.

 

The post “Mirvac Sells Golden Triangle Tower for $87m” by Ted Tabet appeared first on the theurbandeveloper.com Blog

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Brisbane

Yeronga trophy home fronting the Brisbane River listed

Brisbane River

A riverfront Yeronga, Queensland trophy home has been listed without a price guide.

The five bedroom, five bathroom abode is being marketed by Heath Williams and Nick Hurwood of Place.

Situated at 363 Brisbane Corso, the tri-level home fronts the Brisbane River.

Set on 916 sqm, it features two swimming pools and a private boat pontoon.

Other features include full-height stacked glass sliding doors opening out to a covered balcony which capture sweeping Brisbane River views as well as a ground-level rumpus or games room equipped with a bar, a projector and a linked balcony.

It is located seven kilometres from the CBD.

 

The post “Yeronga trophy home fronting the Brisbane River listed” appeared first on the propertyobserver.com.au Blog

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Brisbane

Mirvac offloads Brisbane office building for $87m

Mirvac office building

Mirvac has offloaded a 17-storey office building in Brisbane to Melbourne-based property fund manager Forza Capital for $86.75 million in one of the first institutional grade office deals to take place in the city since COVID-19 struck.

The building, which is in Brisbane’s ‘Golden Triangle’ at 340 Adelaide Street, had undergone an extensive refurbishment by Mirvac and sold at an 11 per cent premium to its last book valuation in June.

The property, which is 93 per cent leased to tenants such as Oracle, Cover-more Insurance and the Attorney General’s Office, has a 3.8 year weighted average lease expiry.

Brett Draffen, chief investment officer at Mirvac, said proceeds from the sale would be redeployed to grow its asset creation business and would allow the group to “capitalise on opportunities to create Australia’s next generation of workplaces, residential communities and mixed-use precincts”.

The office tower is the first asset to be acquired by Forza Capital following a $240 million capital raising from its client base of family offices and high net worth advisory groups in September and will sit in the newly established Forza 340 Adelaide Street Fund.

Forza Capital director Adam Murchie said they had advised their investor base to be prepared for opportunistic property investments shortly after COVID-19 had struck.

“Speed to transact was anticipated to be critical and we believed getting early capital commitments and being able to transact quickly would be paramount to securing new investments on attractive metrics.”

Forza Capital director Ashley Wain said the uncertainty in the office market had created attractive investment metrics.

“When combined with highly competitive debt funding [the metrics] result in a target eight per cent per annum distribution yield over the first five years of the investment.”

The deal was negotiated by CBRE’s Flint Davidson, Tom Phipps and Bruce Baker, and Matt Lawrence arranging the debt.

“As the first major, post-COVID capital markets transaction in the Brisbane CBD, this deal highlights the demand from onshore investors for quality office assets,” Mr Phipps said.

“As travel restrictions ease we expect the market to awaken in the first half of next year fuelled by historically low financing costs and Brisbane’s attractive yield spread.”

 

The post “Mirvac offloads Brisbane office building for $87m” appeared first on the afr.com Blog
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