A fierce case of FOMO is fuelling one of Brisbane’s biggest housing booms in years with open-home inspections looking more like a scene from The Hunger Games as desperate buyers treat dwindling stock like languishing loo paper.
The “fear of missing out” trend follows yet another month of median house price rises across the city, according to CoreLogic’s latest report, as buyers are now forced to make an offer mere hours after an inspection as record low interest rates and surging market confidence throw fuel on the fire.
According to the recently released Domain House Price Report, Brisbane’s median house price rose to an unprecedented $738,000 over the December quarter – a figure that’s up 4.7 per cent from 12 months ago and one experts say could further rise as the city undergoes a boom reminiscent of Sydney or Melbourne just a few years ago.
Internal Domain data has found the number of people attending open houses in Brisbane increased by a massive 69.4 per cent over the four weeks to the end of January– and that there were 43.9 per cent more people attending open homes than there were at the same time last year.
Buyer agent and director of Red Hill-based Your Property Hound Matt Reeves said increased interstate migration and investment had also sparked nothing short of a feeding frenzy among home-hunters, who were now terrified of missing the property boat.
“We have a wait list of new clients and we are working at full capacity. You arrive at a newly listed property now and it’s just intimidating the number of buyers that are there,” Mr Reeves said.
“The lines are stretched out the door and inside it’s like a can of sardines.
“It’s definitely the most competitive market I’ve seen. We put an offer in on a property in Keperra last weekend and, in what was the first open-home inspection, the agent received 15 offers – we were seventh in line.
“And it’s the same with all new listings.”
While Brisbane’s housing market has enjoyed steady growth throughout the pandemic, Mr Reeves said the market spiked late last year off the back of increased confidence – gathering more momentum over the past few weeks with half their business now coming from local home-hunters and the other half coming from interstate investors. He said investors were predominantly snapping up houses rather than units, which were continuing to underperform.
“The low interest rates are helping (this market growth) a lot but what’s off putting is the low levels of stock and the competition – there’s just so much pressure to make a decision in just hours and it’s even stressful for us as buyer’s agents.”
Director of Coorparoo-based Torres Property Will Torres has clocked record-setting buyer numbers at his open-home inspections this month, and said the Brisbane market was not only the busiest it had been in 16 years but was on an upward trajectory as the city emulated its major southern counterparts.
“I’m selling 10 per cent of my market to southerners and they are saying this (house price growth) is what happened in Sydney a few years ago – this is what we are experiencing now. I mean if you look back at 2018 down south, the market increased by about 30 per cent in Sydney and, while Brisbane is normally a good 10 years behind, that gap is closing because of covid,” Mr Torres said.
“And, because there’s so much urgency people don’t want to miss out, it’s FOMO.
“There’s a lack of stock, as well. Sellers know it’s hot but it’s just so bad to buy back in, unless it’s a lifestyle move. But, when you’re moving sideways though from one suburb to another, it’s almost impossible.
“I just put a video out on social media of every property we opened (last weekend) and we averaged about 70 groups through each one. One property had 111 groups through.”
He said the buying frenzy was fuelling major price jumps in some pockets, with one Carindale home recently selling for $1.251 million despite a seller’s reserve of $950,000.
While Mr Torres said families were the predominant force in the market, first-home buyers had hit the property pavement at a sprint, while splashing more cash than ever.
“First-home buyers are now saying we’ll pay $750,000 instead of $500,000 (a couple of years ago),” he said.
“I had 82 groups through a property in Morningside on Saturday and (immediately after) I had 11 written offers – all from first-home buyers. The property then sold to a first-home buyer for $810,000.”
Place Estate Agents New Farm director Judy Goodger said across Place Estate Agents Brisbane, they had seen about a 35 per cent increase in the number of settled sales in January 2021 compared with January 2020.
“The last two months of 2020 were some of the biggest we’ve seen in the Brisbane property market,” Ms Goodger said.
“We are (also) witnessing one of the highest buyer inquiries. Interstate buyer activity has increased significantly; southerners are wanting to escape to embrace the Queensland lifestyle. The inquiry from Victoria, in particular, has been phenomenal following their unfortunate lockdown. There are also more opportunities to work from home, so if people can relocate to the sunny state, they will.
“I just sold an apartment to a Melbourne couple. They said they wanted to become Queenslanders and ‘we should have done this years ago’.”
The sudden market spike is continuing to spark a string of incredible sales across the city, with one home at 34 Shakespeare Street, Bulimba, selling for almost $500,000 above reserve at auction last weekend.
Selling agent Matthew Hackett, of Place Estate Agents Bulimba, said the home was listed just before Christmas and initially secured an offer of $1.3 million (which was the auction reserve price), but, after a hot campaign and soaring interest in January, it clocked $1.768 million.
“It was a deceased estate and a very aggressive reserve, the owner had been in the house since 1961 and it was on a double lot with two titles. The buyer was Cielo Property Group and they are going to build two new properties on it,” Mr Hackett said.
“This (booming) market is driven by a lack of stock and it’s like the rolls of toilet paper on the shelf at the supermarket. It (stock) is running low and now everyone wants some.”
Ray White Paddington agent Judi O’Dea said the still thousands of Aussies trying to get home from overseas had further boosted the Brisbane market, with those unable to attend open homes snapping up properties sight unseen, while locals queued out the door.
“With our properties we’ve launched there have been queues of up to 70 metres. It’s definitely a fear of missing out, the rental market is a problem as well so people are really shaken by the scarcity of homes,” Ms O’Dea said.
Article Source: www.domain.com.au
Two green bridges underway, Brisbane City Council seeks feedback on two more
Construction on two green bridges linking Brisbane’s inner-city suburbs is slated to begin this year, but the location of three other planned bridges remains unclear.
- Brisbane City Council pledged $550 million for five green bridges in 2019
- Two bridges begin construction this year and two others are out for consultation
- A planned bridge at Bellbowrie has been scrapped
In 2019, Lord Mayor Adrian Schrinner made a $550 million pledge to build five new green bridges, catering for pedestrians and cyclists, to reduce vehicle traffic and improve the city’s connectivity.
At Tuesday’s public and active transport committee meeting, Brisbane City councillors were given an update on the progress of the green bridges program.
Public and active transport committee chairman Ryan Murphy told the committee the council wanted state or federal funding support alongside the $550 million already committed.
The $190 million Kangaroo Point green bridge will be 470 metres long and 6.8 metres wide, with separated cycling and pedestrian lanes, linking the inner-city suburb with the City Botanic Gardens.
Construction on the Kangaroo Point and Breakfast Creek bridges will begin this year, with the council now out to tender for both.
Consultation for two West End bridges
Community consultation on the bridges from West End to St Lucia and West End to Toowong was extended following concerns the December-January consultation was too short.
For the West End bridges, suggested locations put forward by Brisbane City Council would either place the landing pads on public parks, such as Orleigh Park in West End and Guyatt Park in St Lucia, or on private property.
Greens councillor Jonathan Sri, in whose ward both West End bridges would sit, said it appeared the third option for the St Lucia bridge — between Keith Street in St Lucia and Boundary Street in West End — was most supported.
“I’ve heard from several residents who’ve said they think the Option C location for the St Lucia bridge is preferable from a transport perspective, but they have concerns about the scale and design of the exact alignment proposed by council, and the associated home resumptions,” Cr Sri said.
“The vast majority of residents seem to prefer alignment Option A for the Toowong Bridge, and it seems like the Toowong bridge in general has a lot more support.”
Option A for the Toowong bridge would see the bridge land at 600 Coronation Drive — the former ABC Towoong site now owned by developers Sunland, but put up for sale late last year.
Last year, Cr Schrinner ruled out purchasing the 600 Coronation Drive site saying the cost would be prohibitive, but said the council would consider resuming a portion of the land for a green bridge if needed.
LNP councillor James Mackay, in whose ward of Walter-Taylor the two bridges would land, recently spoke at a rally for a group opposed to a possible Guyatt Park alignment for the St Lucia to West End Bridge.
Cr Mackay referred queries about his community’s opinions to the lord mayor’s office.
Fifth green bridge site unknown
In mid-2020 a fifth proposed bridge, from Belbowrie to Wacol, was scrapped after several rounds of community consultation found little support.
The council is preparing options for a fifth bridge location, the committee heard.
Deputy Labor leader Kara Cook in a statement said she had lodged a petition with more than a thousand signatures calling for a bridge on the eastern side of the river.
Cr Cook said a bridge in her area — around Bulimba and Hawthorne connecting across to New Farm or Teneriffe — had been mooted since at least 1925.
Technical challenges are greater for the eastern section of the river as any new bridge must be of a height to allow ships through and would span a wider section of water.
Article Source: www.abc.net.au
Commercial Market Update – Brisbane Fringe Cityscope February 2021
The latest research from Brisbane Fringe Cityscope shows in the last three months property sale numbers have increased but sales figures have had a slight increase. The last three months to the beginning of February 2021 recorded 22 sales for a total of $114.2 million, with $23.7 million for commercial, $4.4 million for commercial strata, $4.2 million for retail, $4.3 million for retail strata and $77.5 million for other.
In comparison, the last three months to the beginning of November 2020 recorded 14 sales for a total of $98.9 million, with $86.2 million for commercial, $1.5 million for commercial strata, $800,000 for retail strata and $10.5 million for other.
The 12 months leading up to early February 2021 recorded 60 sales for a total of $323.5 million, more than $212.6 million less than the same time last year.
The table below shows sales recorded for the past eight updates of Brisbane Fringe Cityscope:
Significant sales recorded this quarter total nearly $80 million, these sales include:
After a failed sale to iProsperity, interests associated with Amora Hotels & Resorts have purchased the 296-room Novotel Brisbane Hotel for just over $67.8 million; the hotel will be rebranded following Novotel’s lease expiring in late April this year. JLL Hotels & Hospitality Group negotiated the sale. The hotel last traded for $63.5 million in 2010.
A three-storey child care centre at 20-22 Marie Street, Milton has been sold for $8.435 million; it was purchased through The Trust Company (Australia) Limited. The property, formerly an office building, was extended and refurbished in 2018 for use by the a 120-space child care centre. It previously traded for $6.15 million in 2017.
Developer, builder and property managers, Pellicano, have purchased 68 Brunswick Street, Fortitude Valley for $8 million from Metro Property Group. The property was originally going to house stage 4 of the adjoining Central Village development. The 5,374 sqm site was sold through JLL Brisbane and has Council approval to demolish the existing buildings on site.
Properties for sale include:
- Lanmor House, 124 Brunswick Street and 52 Amelia Street – a two-storey office building and a two-storey warehouse/office building, with a combined area of 960 sqm and associated car parking. For sale by expressions of interest, closing February 24, 2021; agent, Colliers International (Hunter Higgins and Nick Wedge).
- 29 Amelia Street, Fortitude Valley – two-strata units (the whole building) with a combined 828 sqm of office space over two levels, plus ground floor car parking for 20 vehicles. For sale by expressions of interest, closing February 18, 2021; agent, C Property Qld (Sam Callanan and Joe Kennedy).
- 196 Wickham Street, Fortitude Valley – a two-storey retail/entertainment building with lower ground level to the rear. For sale by offers to purchase; agent, Commercial Brisbane (Glenn Corrigan and Tom Chan).
Properties under contract (conditional or unconditional) include:
- 38 Warry Street and adjoining car parking at 41 Kennigo Street – 2,955 sqm of office space (the former Keatings Bread Factory site) and an adjoining carparking for 20 vehicles. Under contract; agent, Cushman & Wakefield Brisbane (Peter Court and Mike Walsh) and CBRE Brisbane (Jack Morrison and Peter Chapple).
- 72 Costin Street, Fortitude Valley – a single-storey plus mezzanine, brick office building with car parking for 15 vehicles. Net lettable area, 507 sqm. Under contract unconditionally with a long, one-year settlement period expected; agent, Colliers International Brisbane (Hunter Higgins and Nick Wedge). The property was advertised with a potential leaseback agreement from 9-months to three-years.
Article Source: www.corelogic.com.au
Brisbane, Gold Coast, Perth outstrip Sydney and Melbourne prestige property markets
The hunt for a house that’s not just a home, but a COVID-free castle, has pushed up prestige property prices in Perth, the Gold Coast and Brisbane, with a new report revealing the three cities outstripped the nation’s two biggest capitals during 2020.
The Knight Frank Wealth Report 2021, released today, also revealed the trio made a global splash in the Prime International Residential Index (PIRI 100), which tracks the movement of luxury home prices across the world’s 100 best residential markets.
Off the back of surging buyer demand, low interest rates and a greater emphasis on lifestyle, the three cities, with Perth in the lead, were ranked in the top 44 of prestige markets, after they each clocked up annual price growth of more than 2.5 per cent.
Sydney was ranked 56 – after prestige home prices grew just 1.1% – while Melbourne came in at 63 after prices rose 0.9 per cent.
A roaring resources sector and a push towards relaxed lifestyle locations saw Perth not just top the national list and rank 34th globally, but dramatically leap from last place among Australian capital cities in 2019 after prestige property prices soared by 3.6 per cent last year.
Luxury home prices in the Western Australian capital had remained almost stagnant the year before, rising by just 0.9 per cent.
The Gold Coast achieved a global ranking of 36 after prices grew by 3.2 per cent – compared to 1.8 per cent growth the year before.
Article Source: www.domain.com.au
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