Australians are sceptical that properties will sell for their advertised price guide, a new survey shows, with the bulk expecting prices to soar much higher.
Only 19 per cent of Australians think properties sell at their sticker price, with almost a quarter expecting homes in their area to sell for a premium of at least 15 per cent above the guide, a survey by comparison platform Finder of more than 1000 people found.
The June survey found 71 per cent of respondents expected a property would go for more than the asking price, half of whom expected a result at least 10 per cent above the guide.
Only 11 per cent believed homes in their area would sell for below the sticker price.
Richard Whitten, home loans expert at Finder, said the results were unsurprising given the nation’s soaring property prices — home values climbed another 1.9 per cent in June — and reports of homes selling hundreds of thousands of dollars above auction guides each week.
Those in Sydney (80 per cent) and Melbourne (79 per cent) were more likely than their Brisbane counterparts (66 per cent) to expect a result above the asking price, with more than a quarter of Sydneysiders (28 per cent) and Melburnians (26 per cent) believing a price would go more than 15 per cent above, compared with 23 per cent of those in Brisbane.
In dollar terms, this means more than a quarter of Sydneysiders expect a home advertised at the city’s median house price of about $1.3 million, to sell for at least $195,000 more than advertised. About 3 per cent of Sydney respondents would add more than $650,000 onto such a guide in their area.
|More than 50% premium||2%|
|I think houses sell at the price they’re advertised for||19%|
|I think houses sell at less than their advertised price||11%|
Meanwhile, 18 per cent of Brisbane respondents thought properties in their area would sell for less than advertised, compared with just 6 per cent of those in Sydney and Melbourne.
Mr Whitten said the booming property market had instilled a fear of missing out among prospective home buyers, pushing them to dig deep — particularly at competitive auctions — which was seeing homes sell for well above asking prices.
People were routinely adding 5-10 per cent onto a price guide, wary that it did not reflect the current market, he said.
Baby boomers were most likely to believe the advertised price, with 26 per cent expecting it to match the sale price. They were followed by Generation Y (19 per cent), Generation X (17 per cent) and Generation Z (15 per cent).
Mr Whitten said it was important for buyers to do their own research and look at comparable sales. Researching government schemes and comparing savings accounts and mortgage rates, was also key to helping stretch your money, he said.
Real Estate Buyers Agents Association of Australia president Cate Bakos was unsurprised by the findings, but warned buyers against routinely adding a set amount to a property price.
“I see some people apply a rule of thumb of 15 per cent, but if something is underquoted by 30 per cent they still won’t get it, and if the agent is being honest, they may overlook it if they expect the property to go for 15 per cent more.”
Ms Bakos said underquoting — where an agent deliberately advertises a property for less than it is expected to sell, less than a seller will accept, or less than an offer the seller has knocked back — was a horrendous practice that wasted consumers’ time and money, and made it harder for honest agents to quote accordingly.
“Agents who quote more honestly lose the buyers for their campaign because other agent are underquoting [similar properties]. They start to compete, and it’s a race to the bottom.”
Ms Bakos encouraged consumers to do their own research because price guides, and even comparable sales, provided by agents were too often off the mark.
“[This week] I assessed a house quoted for $780,000-$840,000 and the two comparable sales were a unit that sold in lockdown, and a property that had high voltage power lines through it,” she said, adding she expected the house to go for above $1 million.
Real Estate Institute of Australia (REIA) president Adrian Kelly said the bulk of agents did the right thing, and added they had little to gain by underquoting, which would only increase interest from buyers looking in a lower price bracket.
Mr Kelly said the pace at which the market was rising did make it more difficult for agents to accurately price property, with comparable sales quickly becoming out of date.
“It makes sense to me to be adding an extra 5-10 per cent to a price guide, because that’s exactly what the market is doing at the moment,” he said, adding agents could only base prices on the real evidence of past sales and buyer feedback.
“If we go higher than that it’s real crystal ball stuff.”
Article Source: www.domain.com.au
Bridge to 2032 – Brekky Ck span approved, missing link for Games athletes’ village
Brisbane is set to have another major infrastructure project underway by the end of the year after Lord Mayor Adrian Schrinner lodged the final design of the Breakfast Creek green bridge with planning officers for approval.
The $67 million project is likely to provide a smoother connection for pedestrians and cyclists moving between the fast-growing riverside development at Northshore Hamilton and the CBD.
The 80-metre arch will cross Breakfast Creek to connect Newstead Park with the existing Lores Bonney riverwalk which was part of the now completed Kingsford Smith Drive upgrade.
“This is a crucial step towards securing the final approvals we need to commence work on the green bridge that will provide a $67 million investment in local industry, deliver a new active transport options and create 140 local construction jobs,” Schrinner said.
“The Lores Bonney Riverwalk is currently used 2300 times a day, and this new green bridge will improve safety and increase capacity to the riverwalk by creating a continues walking and cycling connection.”
He said the Breakfast Creek project would join the now-approved Kangaroo Point green bridge as fast-tracked investments to create jobs as the city headed out of the coronavirus pandemic.
The council has also linked the project to the 2032 Olympics, saying it will be a “key connector” for the planned Athletes Village at Hamilton and provide a critical transport link for the Games.
Two other cross-river pedestrian and cycle links connecting Toowong to West End and St Lucia to West End remain on the council’s green bridge program books but are yet to be funded.
The council insists the remaining bridges need federal and state government funding to go ahead.
Article Source: inqld.com.au
Green ‘Grand Central’: Cross River Rail unveils changes to parklands vision
Developers of Queensland’s biggest infrastructure project, the $5.4 billion Cross River Rail, appear to have bowed to public pressure and moved to preserve more public space in its redesign of the city’s Roma Street parklands precinct.
The Cross River Rail Delivery Authority has confirmed it will allow more public open space in a revised development plan for the area.
A new development scheme for the Roma St precinct, which will contain the state’s most most important transport interchange (dubbed Grand Central) as well as the proposed Brisbane Live arena, identifies new green areas and more affordable housing than was originally planned.
The Palaszczuk government has insisted that the development of an underground Roma St station as part of Cross River Rail is a chance to revitalise an under-used part of Brisbane into a major opportunity for private investment.
The government expects that over the next 15 years there will be nearly 4200 new residents and more than 19,700 new workers within the 32 hectare Roma Street priority development area, bounded roughly by Wickham Terrace, North Quay and College Rd.
However, the delivery authority came under fire for giving over part of the Roma St parklands which houses a public car park and Brisbane City Council maintenance depot to residential and commercial development.
The authority now says under the finalised development scheme the precinct would have more “publicly accessible open space”.
“The existing 11 hectares of publicly accessible open space within the Roma St Parklands will not only be protected forever, but will be expanded even further by more than two hectares,” the authority said in a statement.
“The development scheme also provides for new social and affordable housing as part of new residential buildings parallel to the rail corridor, adding to the existing apartment complexes along Parkland Boulevard.”
“This scheme is all about renewing one of Brisbane’s most underutilised inner-city locations while protecting and enhancing the beautiful natural features that already exist. ‘
About 46,000 people each weekday are expected to use the new high-capacity underground station at Roma Street by 2036.
Article Source: inqld.com.au
Brisbane Olympics to Push Property Market’s Limits
Brisbane house prices will hit the $1-million median well before the 2032 Olympics with suburbs near venues tipped to move up to $3.9 million.
Property projections from PRD Research indicate the median price would reach $1.7 million by 2033 and would be “immensely” boosted on the Gold and Sunshine coasts.
PRD chief economist Diaswati Mardiasmo said it was clear that hosting major events had served the property market well.
“The year after the 2000 Sydney Olympics, Newington (site of the athletes’ villages) and surrounding suburbs’ median house prices grew by 13.4 per cent,” Mardiasmo said.
“Median house price growth was not limited to the year after the Olympics. It grew by 38.5 per cent two years after, and 66.4 per cent three years after.
“The year after World Expo 88, South Bank and its surrounding suburbs grew by an average of 19.1 per cent and by 10.3 per cent after G20 Summit 2014.”
Brisbane property price predictions: Olympics 2032
|Suburb||2011||2021||Projected Growth G20 Average|
|South Brisbane house||$805,000||$1,210,000||$2,560,360|
|Redland Bay house||$450,000||$638,000||$1,350,008|
|Spring Hill house||$950,000||$1,150,000||$2,433,400|
|Alexandra Headland house||$570,000||$1,110,000||$3,348,760|
|Twin Waters house||$651,000||$1,077,000||$2,278,932|
^Source: PRD Research, AMP Pricefinder
“Bearing in mind the 2032 Olympics are still 11 years away, and based on how the Brisbane market is travelling, the potential to eclipse this price point is high,” Mardiasmo said.
“Regardless of the calculation method, the conclusion points us to Brisbane becoming a $1-million median house price city sooner rather than later. ”
Domain’s latest house price report showed median house price in Brisbane was $678,236, up 13 per cent annually.
Meanwhile, prices on the Gold Coast and Sunshine Coast hit $792,000, up 18.2 per cent on last year, and $825,000 up 23.1 per cent, respectively.
Domain chief of research Nicola Powell said at the moment, low listing numbers and interstate migration were driving the price hike.
“It suggests that upgrading homeowners are fuelling house prices, as well as interstate and expat buyers moving from more expensive cities,” Powell said.
Melbourne and Canberra officially joined Sydney in the $1-million home club in the July results.
Article Source: www.theurbandeveloper.com
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