Property prices are soaring in some capital cities. The lure of a better lifestyle and value for money property is encouraging people to move to Queensland and in particular Brisbane and the Gold Coast.
RP Data’s latest figures show just seven suburbs in the Brisbane and Gold Coast areas where median house prices are over $1 million, while the average price is just $495,575.
It is a much different story in Sydney, where a staggering 172 suburbs have a median of $1 million or more and the average price is $806,907.
“Over summer, we’ve had a strong influx of Sydney buyers come into the market,” said Larry Malan, principal, Ray White Broadbeach. “Whenever Sydney performs strongly, people come up here with plenty of money and buy property.”
In Broadbeach, three-bedroom penthouse apartments next to the beach start at $429,000. A similar apartment in the Sydney equivalent of Coogee, would set a buyer back $800,000 or more.
“The area represents great value, you can see why Sydney buyers would be interested,” Mr Malan said.
The Gold Coast took a major hit in the wake of the GFC, with values plunging and an excess of supply on the market, but is now strengthening.
“We have been in recovery mode since September and I don’t see the market slowing down for the next few years.” Mr Malan said. “In the $600,000 to $1.2 million bracket, supply is just starting to run low and prices are moving upwards.”
RP Data figures show home values in the Brisbane-Gold Coast market have grown 4.1 per cent in 12 months; are up seven per cent from the market trough, but 5.9 per cent down on the peak; meaning bargains are still available.
Sydney meanwhile is 17.6 per cent up from its market trough, 11.8 per cent up from its previous market peak and has 20,080 properties currently listed for sale; the lowest number since 2008 according to SQM Research.
Brisbane and the Gold Coast have 26,618 and 11,293 properties listed between them, combining for close to double the available stock in Sydney.
Stock levels will keep southeast Queensland more affordable, but values are likely to grow soon, making now one of the best times to buy.
“The south Queensland market is likely to perform this year,” said John McGrath, CEO, McGrath Estate Agents. “What we like to call ‘The Paddington Gap’ is too big for my liking. Paddington in Sydney is a similar suburb to Paddington in Brisbane, but properties in the Sydney Paddington cost up to $1 million more. That gap will start to narrow this year.”
Marcus and Jennifer Gyles moved to the Gold Coast recently for work and could not believe the difference in affordability.
They sold their small two-bedroom home in Marrickville for $800,000 and bought a house in the Gold Coast’s south with 3000 times the land, for $50,000 less.
“Our Marrickville home was tiny and unrenovated, on a 120 sqm block,” Mr Gyles said. “Here, we bought a three-bedroom house, with three car ports and a work shop; on three hectares of land.”
The family immediately wondered why they did not make the move sooner.
“The lifestyle we can afford here is extraordinary,” Mr Gyles said. “I get home at night and can’t see any other houses from my house, yet in 15 minutes I can be at Burleigh Heads, one of the best beaches in the world. I didn’t think this sort of lifestyle was available anywhere when I lived in Sydney.”
Original article published at www.news.com.au by Tim McIntyre, Real Estate Reporter, News Limited Network 4/3/14
Are these Australia’s cheapest blocks of land?
Just when we thought we had found the cheapest – a patch of dirt for $4.94 a square metre near the Queensland and NT border – we found another one.
And this “dirt cheap” vacant block is on the market for $2.08 a square metre – less than a 2L bottle of milk!
The fully fenced rural block of land has town water available and “power close by” but is only suitable for horses or recreation, hence the price.
It is listed with LJ Hooker Gayndah.
In Camooweal, yes that one near the border, a “drovers dream” is listed at 54 Cronin Street for $10,000.
With 2024sq m of vacant land that works out to be $4.94 a square metre — less than a beer at the local pub or a foot-long sub on discount day.
To help you wrap your head around that, that block of land would cost you over $1 million in Ipswich.
A recent report by property services group Oliver Hume found that Ipswich had the best value dirt in southeast Queensland, with land averaging $507 a square metre.
That is nearly half the price of vacant land in Brisbane, where buyers can expect to pay an average of $970 a square metre, so that block of land in Camooweal would set you back almost $2 million in the big smoke.
Bronwyn Finch of Jays Real Estate Mount Isa is marketing the Camooweal vacant block, which is located off the Barkly Highway.
Camooweal had a population of 208 at the time of the 2016 Census, with the average resident aged 36.
“It is walking distance to the local shop and garage, and you can wave at the tourists as they go past,” Ms Finch said.
“I sold another block about a year back, same deal for about $8000.”
Ms Finch said the cheap blocks were usually purchased by retirees looking for a spot to park their van between trips.
She noted it would be a tough ask to get a car park in Brisbane for the same price.
“It is quite close to the Gregory River, which is beautiful, and Adels Grove, our premiere tourist attraction out here, is about an hour away.
“That’s close for us. That’s a daily commute in the city.”
Meanwhile in Mungallala, a tiny outpost on the Warrego Highway west of Mitchell, is a 1012sq m vacant lot of land that is on the market for $6000, or the nearest offer.
That’s $5.92 a square metre – less than a cup of coffee in Ascot.
It is listed with Ray White Charleville agent Glenda Fill.
“There has been a new house built in the town in the last two years,” she said.
“It is very small town off the Warrego Highway and had a population of 136 in 2016.
“It is an hour and a quarter from here (Charleville) so it’s a bit closer to the coast than we are.”
And in Westwood, which is about half an hour from Rockhampton, the beef capital of Queensland, is an 1800sq m block for $9000.
There is also another 1174sq m lot for $8000, and the 962sq m lot, which was listed for $6000, has sold.
“Blocks are not serviced and would suit ‘off grid’ living,” the listing says.
“There is no town water in Westwood – households rely on tank or underground (bore) water.
“No town sewerage (septic or bio), Westwood has electricity – no current supply to this estate.”
Marketing agent John Neumann of Discover Real Estate said “it’s a bargain” with a “rural outlook”.
“There is a rail line nearby, a mining one,” he said. “I think there is a pub, a post office and a police officer there.
“It is only about 50km from Rockhamption and it is on the western highway to the mining belt.”
Mr Neumann said he had already had some interest in the lots, mostly from grey nomads looking for a base and people keen to “go off-grid”.
He said he had even had inquiries from uni students looking to get a leg – or toe – on the property ladder.
Westwood had a population of 174 during the 2016 census.
It was the first new town proclaimed in the Queensland Government Gazette, after the state became a separate colony back in 1859.
‘The margin will never be this close again’: Brisbane’s waterfront secret where property is still affordable
Think “Brisbane waterfront” and Moreton Bay darlings Wynnum and Manly quickly spring to mind.
But only 30 kilometres northeast, on the other side of the airport and a similar distance to the CBD, another bay-front suburb, Sandgate, appears.
The photogenic village topped Domain’s best performing Brisbane suburb list in 2018 with 18.8 per cent median house price growth.
Despite this overall rise in housing value, data-savvy local agent Jacqui McKeering makes the case that Sandgate’s waterfront properties are still undervalued compared to southside bay designer homes.
Ms McKeering, of Jim McKeering Real Estate, says Sandgate waterfront still remains great value because family groups have to buy further back to get more features.
“When the price-to-rateable-land-value gap narrows, you are getting a bit of a bargain,” she says.
“A simple calculation to illustrate this point shows the market value of Sandgate waterfront properties not that much greater than the rateable land value; on average 32 per cent greater.
“In fact one waterfront property sale, back in 2017, sold for 15 per cent less than the rateable land value, yet one block back and without bay view properties have a greater gap of 42 per cent.
“One particular [non-waterfront] property sold as high as 66 per cent greater than the rateable land value.
“The outtake here is there is plenty of money to be made on Sandgate waterfront properties.
“I do believe the margin between waterfront properties and the neighbouring streets will never be this close again.”
Flinders Parade, which runs along the foreshore of Sandgate and into Brighton, plus Eagle Crescent and Shorncliffe Parade, are the waterfront property strips in focus.
Ms McKeering says a lot of people have been buying these older houses and renovating and that at the moment there is some choice in “real cheapies” from about $900,000 to about $1.35 million.
“I know someone who bought for $1.4 million in 2017 with a $1.8 million renovation budget,” she says.
“When you see that sort of money coming into an area, it tells me people are seeing long-term capital value in this area.”
Fellow Sandgate agent Tamara Wecker of RE/MAX agrees suburb 4017’s waterfront properties are priced and selling considerably under their comparable Brisbane market values.
“When compared to Wynnum and Manly,” Ms Wecker says, “absolutely; I mean you can live in the Taj Mahal in Sandgate for about $1.5 million.”
She is seeing buyer migration from Sydney and “a little bit from Perth” because of affordability, and thinks Sandgate’s strict rules, which prohibit multi-unit developments on its waterfront, is a further drawcard.
“People tend to think of Wynnum and Manly but here you can have a premium home and lifestyle only 30 minutes from the city,” Ms Wecker says.
“To be honest, it has been a bit of a secret because we are off the highway so you have to have a reason to come here, but that is changing in the past 18 months.
“We are getting more inquiries from people, even from Brisbane, who just did not know about us.”
Mark Crew has been selling Sandgate housing since 1990 and thinks people have woken up to how great a suburb it is in the past 18 months.
The Professionals’ agent has reported strong interest from Sydney buyers “looking for a better family lifestyle”.
He estimates 25 to 30 per cent of Sandgate buyers this year have come from the neighbouring suburbs of Shorncliffe, Deagon and Brighton; people who want to upgrade but stay in “the village”.
“It is 31 minutes to the CBD and you can be walking on the waterfront with your kids after work and we’ve got excellent schools too,” Mr Crew says.
Regarding Sandgate’s waterfront property market and its value, he says three factors should be considered.
“There are few waterfront properties for sale, land is scarce and over the past 20 years there has been a lot of change to the houses themselves, a lot of renovation and/or raising older three-bedroom cottages and transforming them into often substantial five-bedroom luxury houses,” he says.
“So these houses on their waterfront blocks are, quite rightly, going to fetch more in sale prices when they do one day return to the market; and that is showing.”
Cheap Units In Brisbane Suburbs
Twelve suburbs in Brisbane have a median unit price of just under $400,000, according to Domain’s June House Price Report.
Ten out of these 12 suburbs are in the inner city, the report said.
Bowen Hills, Fortitude Valley, Albion, and Spring Hills are all within three kilometres of the Brisbane CBD. The median unit prices in these suburbs are below $400,000, the figures showed.
East Brisbane, Coorparoo, Clayfield, Nundah, Taringa, and Kedron also offer some of Brisbane’s cheapest unit values, according to the report.
Bowen Hills is the cheapest suburb to buy a unit, with prices falling 13.7% in the past 12 months, the figures showed.
Here are Brisbane’s cheapest suburbs to buy units by median price, according to Domain:
|Suburb||Median price||YoY % growth||5-year % growth|
In Greater Brisbane, the median unit price fell 8.6% over the year to June, according to the report.
The capital city’s unit prices are “sitting at 2013 levels”—down from their peak in 2015, according to Domain research analyst Eliza Owen.
However, prices are expected to bottom out this year, with the end of the downturn in the unit segment in sight, Owen said.
“Unit listings are also moderating, which should reduce downward pressure on prices,” she said.
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