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People buying homes ‘sight unseen’ as Queensland’s regional property market runs hot

people buying homes

people buying homes

Regional Queensland is experiencing a real estate boom, with the market so hot some buyers are purchasing houses without even seeing them in person.

Sold signs are littered across Bundaberg, a dramatic turnaround from a few years ago when some homes sat on the market for up to 12 months.

Third-generation real estate agent Kurt Dempsey said he had never seen the market so busy, with interest coming from around the country and overseas.

Mr Dempsey said the coronavirus pandemic was playing a major role, as city dwellers looked to move away from inner-city density for a more relaxed, open-air regional lifestyle.

“The real estate in Bundaberg is going off,” he said.

“I think Bundaberg has so much to offer, and with all the madness that’s going on in the [capital] cities, people are making the change to move to regional areas.”

‘Reason to move’

With its coastal location and proximity to Brisbane, Mr Dempsey believed it was not just rum and ginger beer that Bundaberg had to offer.

The region produces 25 per cent of Australia’s small crops, has consistently mild weather, and easy access to natural wonders like Fraser Island (K’gari) and the southern Great Barrier Reef.

A median house price of $280,000 is also hard to beat.

“Now we are selling properties sight unseen; we are doing Skype tours,” Mr Dempsey said.

“The value is there, people are just prepared to pay the price — this is the best it’s ever been.

“I think they have needed a reason to move, and they have literally bought a house in Bundaberg to get out of the situation they are in.”

‘Community feel’

Bundaberg is not the only centre where houses are selling quickly.

About 200 kilometres to the west, buyers are snapping up homes in the North Burnett town of Monto for less than $100,000.

Real estate agent Louisa Bambling has sold 40 houses this year, more than she ever expected.

Ms Bambling said she believed affordable prices and access to essential services made Monto attractive to retirees wanting a home base while traveling around Australia.

“Price point is definitely a part of it,” she said.

“We’ve had a lot of sales under or around $100,000, but I think buyers have been looking to regional areas, and the community feel of Monto really captures them.

“They don’t want to go to a small town where there is nothing. They want a hospital, doctor, chemist, supermarkets — they are all pretty important.”

queensland regional property market

A few hundred kilometres south of Monto is the South Burnett town of Kingaroy, but it is not peanuts or the local bacon festival that are attracting people.

Builder Peter Davidson said he had had his busiest-ever period as tree-changers looked to escape regions like Brisbane, Sydney or the Sunshine Coast.

“We’ve probably got 20 houses ahead of us, but we could have more,” Mr Davidson said.

“I think people are trying to get away from the hustle and bustle.

“They can sell their house in Brisbane or Sydney and buy a cheap block of land, build a nice house and afford to retire.”

The regional property boom has not pushed up property prices yet.

However, the chief executive of the Real Estate Institute of Queensland, Antonia Mercorella, said as border restrictions eased, housing demand could jump higher, pushing up prices.

“We’ve seen modest house growth, we haven’t seen that frenzy that Sydney and Melbourne has experienced, and that’s not a bad thing,” she said.

“It’s been steady and reliable, but I do think in a post-pandemic world, our property market is set to do incredibly well.”

Ms Mercorella said listings were down, creating higher demand.

“My advice to sellers is if you are waiting, pressing pause, don’t do so,” she said.

“If anything, that is our biggest challenge — we just don’t have enough stock.

“The data is telling us it is a very good time to sell.”

This article is republished from https://www.abc.net.au/under a Creative Commons license. Read the original article.

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Brisbane

Buyer Demand Builds in the Outer Suburbs

Buyer Demand Builds in the Outer Suburbs
 Buyer Demand Builds in the Outer Suburbs

Buyer demand has significantly jumped compared to last year across all capital cities aside from Melbourne.

The Domain buyer demand indicator shows that the market has rebounded in recent months—revealing the top suburbs piquing buyer interest.

Houses and apartments in the outer-suburban areas of Sydney, Melbourne, Brisbane and Perth, were the highest in demand for the month up to 6 September.

This follows a state of hiatus caused by caused by Covid which is ongoing in Victoria where restrictions have stopped inspections and dropped listings.

Domain senior research analyst Nicola Powell said they tracked people who were most likely to buy, indicated by shortlisting, sending inquiries, inspecting and frequently viewing photos.

“The current health crisis has changed the way we use our homes, and for some altered our purchasing decisions and property wish lists,” Powell said.

“And while Covid-19 lockdowns sent buyer demand into a state of hiatus, activity from people likely to buy has rebounded in all capital cities apart from Melbourne.”

Top greater Sydney suburbs

 Buyer Demand Builds in the Outer Suburbs

NSWHousesUnitsPost-Covid Demand
1.Hawkesbury demand increase since CovidRouse Hill-McGraths HillWollondilly (Houses)
2.Rouse Hill-McGraths HillPennant Hills-EppingRichmond-Windsor (Houses)
3.WollondillyMarrickville-Sydenham-PetershamCamden (Houses)
4.HornsbyEastern Suburbs-southGosford (Units)
5.Dural-Wisemans FerryWarringahHawkesbury (Houses)

Top greater Melbourne suburbs

 Buyer Demand Builds
VICHousesUnitsPost-Covid Demand
1.Whitehorse-westMornington PeninsulaMacedon Ranges (Houses)
2.Macedon RangesCardiniaManningham-east (Houses)
3.Manningham-eastKnoxMornington Peninsula (Units)
4.Mornington PeninsulaMaroonahYarra Ranges (Houses)
5.Yarra RangesKingstonFrankston (Units)

Top south-east Queensland suburbs

 Buyer Demand
QLDHousesUnitsPost-Covid Demand
1.NambourBribie-BeachmereMudgeeraba-Tallebudgera (Houses)
2.NundahCoolangattaNoosa hinterland (Houses)
3.CarindaleRedcliffeGold Coast hinterland (Houses)
4.Surfers ParadiseIpswich innerNoosa (Units)
5.Mudgeeraba-TallebudgeraCleveland-StradbrokeNambour (Houses)

Meanwhile major gains have been made in national vacancy rates to pre-Covid levels with outer suburbs also showing the most improvements.

Residential property prices dropped by 1.8 per cent in the latest quarter according to the Australian Bureau of Statistics.

In Perth, Mundaring houses and Wanneroo units topped the list, Canberra’s Weston Creek was listed for houses and Gungahlin for units. Litchfield, Darwin topped the list in the Northern Territory for both houses and units.

Hobart was the only other city to record a fall in activity over the four week period to 6 September, along with Melbourne, where the most demand was seen for Sorrell-Dodges Ferry and Hobart.

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Market Place

Noosa’s Most Expensive Homes in Hot Demand from Buyers Across the Globe

Most Expensive Homes

The COVID-19 storm has spawned a hurricane of home sales across some of the Sunshine Coast’s hottest tourist magnets as property punters report unprecedented buyer action from city-based sea-changers in search of a pandemic-free paradise.

The rise of remote work and virtual inspections amid record low interest rates has further sparked the coastal migration with popular hub Noosa clocking millions of dollars in sight-unseen sales alone during the past month.

Adrian Reed, from Reed & Co Estate Agents in Noosa, said buyers from Brisbane to as far away as Hong Kong had pounced on the region’s high-end market, with the agency transacting $60 million in sales from April until August.

“It feels like there’s a gravitational pull towards those idyllic locations … and this trend has continued throughout COVID,” Mr Reed said.

“We sold $26 million in the past couple of months alone sight unseen.

“They are buying from abroad and domestically and then from Brisbane … and I think it’s likely to continue.”

Most Expensive Homes

He said the skyrocketing sales action had particularly centred around Noosaville, with $6 million of off-market property sold in the past six weeks.

The agency also clocked the latest Noosaville record for the spectacular mansion at 32-36 The Anchorage, which fetched $12 million. The property features 13 bedrooms and was the former home of the late businessman and founder of Hayco, Donald Hay.

Dan Neylan, from Dowling and Neylan agency in Noosa, said in his 27 years of real estate experience he’d never seen such incredible buyer activity.

“The average time on market for us has shrunk back to three weeks and most of our auctions are not even getting to auction,” he said.

“We had a sale for an apartment on the weekend where the reserve was expected to be $5.5 million but it sold for almost $6.5 million.

“Our biggest one was the sale of 46 Seaview Terrace which was Pat Rafter’s previous home – and that was sold in excess of [a record] $17 million at the end of May to the Rudds. They just saw the long-term value of Noosa.”

Expensive Homes

Mr Neylan said interstate buyers were particularly snapping up homes like hot cakes with the agency handling more sight-unseen sales than ever before.

He said many home hunters claimed the growing work-from-home-movement had finally allowed them to have a remote career from an idyllic place – and they were wasting no time pouncing on regional, coastal destinations.

“The future for us is pretty rosy and that’s going to last for the next two or three years and by then the international airport will be finished,” he said.

Tom Offermann, from Noosa’s Tom Offermann Real Estate, agreed the fierce buying storm was set to continue during spring with Brisbane buyers competing against interstate and overseas house hunters.

“This winter was like no other and out of the disruption caused by COVID came a storm of buying activity,” he said.

“We’re also seeing capital growth rates between 10 and 15 per cent … with the hot locations typically on the riverfront and the beachfront.”

most expensive house

Mr Offermann said last week’s sale of apartment 1 at Noosa’s prestigious Little Cove for a cracking $6.3 million following 38 bids from eight buyers, was the perfect example.

“This sale capped off another very successful week … with a string of high-value sales which included two breaking $10 million.

“There’s also been a string of nine sales between $5 million and $12 million but we can’t announce them yet because they haven’t settled.”

Despite the strong selling activity Mr Offermann said their agency was running at about 50 per cent of their normal stock levels, with nervous vendors still reluctant to pull the trigger amid the global uncertainty

 

This article is republished from https://www.domain.com.au/ under a Creative Commons license. Read the original article.

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Brisbane

Brisbane Property Market Update – August 2020

brisbane property market

brisbane property market

The latest Corelogic Data shows overall dwelling values in Brisbane declined -0.1 per cent, but houses were stable and the decline came from the unit sector, down -0.3 per cent. Since January, Brisbane house values have reported an increase of 1.6 per cent, despite the pandemic, and yet unit values have slipped -1.8 per cent.

houses property market

This stability has been seen in Brisbane, despite very early predictions from many of price falls across all Australian markets. The price changes in Melbourne have been more pronounced, with -4 per cent coming off the value of houses and -2.2 per cent off units over the last three months. On this basis, it seems that the performance of the housing market is intrinsically linked to the number of coronavirus cases in a particular region and the subsequent policies in place around social distancing. Stage 4 shutdowns seem to have had a big impact in Melbourne.

That said, in Brisbane, despite small cluster outbreaks from time to time, our strict border control measures appear to be keeping the virus under control. Most of us are able to return to the labour market, sentiment is fairly strong and we seem to be able to move around with a certain degree of freedom. This is all very positive for our local property market as well.

According to SQM Research, listing volumes are still 9.7 per cent lower in Brisbane than they were 12 months ago, and in the last month alone (between July and August 2020) listing volumes were down a further 5.1 per cent so we expect transactions volumes will remain low for some time yet, simply due to limited supply.

property market

New research from realestate.com.au has revealed that Queensland property seekers are the most confident buyers in Australia. In Brisbane the suburbs with the highest views per listing according to realestate.com were as follows:
• Ashgrove Qld 4060
• Kalinga Qld 4030
• Chandler Qld 4155
• Holland Park Qld 4121
• Tarragindi Qld 4121
• Stafford Heights Qld 4053

We can confirm from being on the ground that these areas have strong demand from buyers with many properties going to multiple offer very soon after being listed. These are some of the areas that are outperforming, with upward pressure on prices. The high number of buyers, combined with limited listings, tends to have this effect.

The rental market in Brisbane remains resilient also at this time. We are seeing the vacancy rate at a city level continuing its downward trajectory, after an initial spike from March to April 2020.

Residential rates

Since then, rental markets have tightened, with many markets across Greater Brisbane experiencing the tightest vacancy for many years. We are also seeing multiple applications from prospective tenants being submitted on properties for rent, illustrating the shortage of quality rental properties available.

There remain some “at risk” locations in certain pockets of Brisbane. For example, postcode 4000 (which includes the Brisbane CBD) has a local vacancy rate of 13 per cent, which is extremely high-risk for an investor who may be looking at buying into that market.

While there is no evidence of distressed properties coming to the market in Brisbane, there continues to be talk about the economic cliff that is apparently ahead of us. Once JobKeeper and JobSeeker payments ease, and mortgage repayment deferrals stop, perhaps some people may need to sell as they are no longer able to hold their property. We remain of the opinion that different markets around Australia will be impacted in different ways.

According to a recent NAB announcement, Australian Home Loan deferrals are broadly in line with the total portfolio spread. This means the exposure of some states to potential “forced selling” is much less than other states around the country.

Queensland makes up approximately 17 per cent of the total number of NAB Home Loan facilities and 16 per cent of the total Home Loans that have been deferred across Australia. Compare that with NSW/ACT, which makes up 38 per cent of the total portfolio but 40 per cent of the total deferrals, and Vic/Tas, which makes up 31 per cent of the total portfolio and 32 per cent of the total deferrals. Then there is WA and SA/NT with much lower exposure again.

This provides a greater level of confidence for property owners and property buyers in Brisbane, given our exposure is a lot less than other locations around Australia.

Shane Oliver, AMP chief economist, also updated his forecasts recently for Australians’ property market. His thoughts are that Sydney and Melbourne are more exposed to price falls given their higher dependence on international migration, higher debt-to-income ratios, higher price-to-income ratios and greater investor penetration.

Over recent years, Brisbane’s growth has been underwhelming compared with Sydney and Melbourne, for example. While the other capitals experienced amazing capital appreciation, Brisbane property values remained quite flat. This is because local drivers of supply and demand vary considerably between different locations. Different property markets behave in different ways during various market conditions, so there is no reason to expect the outcomes to differ considerably throughout this pandemic.

Brisbane properties are more affordable and our income-to-debt ratio is a lot lower. The amount of our take-home income that we spend on our mortgages here in Brisbane is also a lot lower. Property markets around the country are all responding differently as a result of the pandemic, and at this stage we remain optimistic about the performance of Brisbane in the months ahead.

This article is republished from www.smartpropertyinvestment.com.au under a Creative Commons license. Read the original article.

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