Families looking for rental properties in Greater Brisbane are facing intense competition in the tightest market in 10 years, with prospective tenants offering above the asking price just to secure a place.
- Rental markets in most of Queensland, including regional areas, are extremely competitive
- The greatest demand is for standalone houses, rather than units
- It is not uncommon for 20 applicants to apply for a single property
Real Estate Institute of Queensland (REIQ) data shows Greater Brisbane’s vacancy rate was sitting at 1.4 per cent in September 2020, making it difficult for families to find adequate rental accommodation.
But it is believed the rental market has only gotten tighter since then and the vacancy rate has dropped further — something Cassie Windsor and her four children know all too well.
Ms Windsor said in the past five months, she had gone to countless rental inspections and put in dozens of applications, hoping she could find a house that was affordable and large enough for her family.
The family was lucky enough to get help from a not-for-profit body in the form of a three-bedroom house in Redbank Plains, south of Brisbane. However the short-term lease is due to finish in April.
“It is hard to fit two beds in each room and the kids are on top of each other all the time, so it doesn’t suit our needs at all, but finding a bigger house is as rare as hen’s teeth,” Ms Windsor said.
She said the family was even considering relocating back to Townsville in north Queensland, where they moved from five years ago.
“There are so many applicants to one house and it is very intimidating to go to these inspections where you see 30 or 40 applicants for one house,” she said.
“It is deflating. You start to think, ‘Why bother?’
Article Source: www.abc.net.au
Queensland house prices ‘through the roof’ as interstate migration at 20-year high
The latest monthly data on Queensland house prices has confirmed what buyers already know — prices are booming.
- This month marks the sharpest monthly increase in Brisbane house prices since 2007
- Experts say the rise is due to low mortgage rates and a shortage of housing stock
- Demographers say net interstate migration to Queensland is the highest it has been in 20 years
Figures released by property analysts CoreLogic showed prices grew in almost every region of Queensland in February.
Across Brisbane, prices rose by 1.5 per cent in one month, taking annual growth to 5 per cent.
The February increase is the steepest rise since November 2007, when the monthly growth rate was 1.72 per cent.
In Brisbane’s east, house prices went up by nearly 10 per cent in 12 months.
The Gold Coast and Sunshine Coast also posted strong price hikes, rising 2.6 per cent and 2.5 per cent in February, which pushed the 12 month gains up to 10.5 per cent and 11.2 per cent.
Townsville was the only region to record a drop with prices falling 0.6 per cent in February.
But the north Queensland city still posted a 12-month increase of 6.2 per cent.
CoreLogic’s Head of Residential Research Australia Eliza Owen said there were several key factors pushing prices up.
“The main drivers are record-low mortgage rates and relatively low levels of stock on the market and that’s something that’s driving an upswing across most areas of Australia,” she said.
“The Gold Coast and Sunshine Coast have been top destinations for internal migration for years now.
“In an environment where there’s no international migration, that internal movement is really benefiting markets relative to other parts of the country.”
Ms Owen said prices were expected to keep rising in 2021.
“In terms of prices steadying or falling across Queensland, I wouldn’t expect to see that until we get a significant uplift in the amount of stock on the market which is unlikely as people aren’t really moving as much at the moment,” she said.
“Or we see the cash rate increase, and as such mortgage rates would increase, and again that’s not something we would expect until the inflation target is between 2 and 3 per cent.
“[We would then] see the unemployment rate being really tight at around 4.5 per cent.”
The CoreLogic data also revealed the increase in house prices was widely spread across Australia.
‘We’ve missed the boat’
Emma and Grant Parkin were planning to move out of their townhouse and into a slightly larger home with their two young daughters.
The couple was one of 17 registered bidders for a house at Indooroopilly in Brisbane’s west that went to auction in late February.
It sold for more than $1.5 million — well above what they were expecting.
“We thought we were in with a chance and in about 20 seconds it was already above what we had planned to spend,” Ms Parkin said.
Mr Parkin said prices “have gone through the roof” since the threat of the coronavirus pandemic eased in Queensland.
“You’ve got people who can’t travel, so where are they going to spend their money?” he said.
“People can now work from home a lot more … so people are spending money on property and motor vehicles and consumables.”
Mr Parkin said the young family would now do some renovations to their townhouse and try to buy a larger home in a couple of years.
“I feel like we’ve missed the boat this time around and the concern is how high does it go?” he said.
“Property prices seldom if ever slow down and stop and decrease.
“If anything, the rate of increase just slows slightly and I think with the interstate influx and people working from home, it’s just gone through the roof.”
Not a bubble, says academic
Finance professor from the University of Queensland, Shaun Bond, said a strong up-tick in demand was affecting house prices.
“We’ve had a lot of people moving back to Australia from overseas, we’ve had almost half a million people by the latest count, we see record low interest rates,” he said.
“Plus, we see a lot of people rethinking their options, people choosing not to be in inner-city apartments, they’re choosing to think about lifestyle areas, they’re going for coastal areas, sometimes they’re looking at regional areas, even within a city like Brisbane they’re starting to think about larger suburban properties.”
Professor Bond said while price growth was strong, he would not classify it as a bubble.
“Yes, we’re seeing a strong up-tick in demand, but I feel like that can be explained by several of the factors we’ve discussed, plus the strong economic recovery we’re seeing in Australia as well — Australia has weathered the COVID crisis very well.
“The underlying economy is actually in a much better place than people thought it would be at this stage.”
Professor Bond said the rollout of the Coronavirus vaccine in Australia could affect the housing market.
“One of the things may be that it suddenly gives people more choices, so maybe some of those expats who returned from overseas may decide that they’re going to go back to the US, back to the UK to work or resume their careers there — people might start to travel again.”
Interstate migration at 20-year high
Australian Bureau of Statistics (ABS) demographer Andrew Howe said over the last year Queensland had a net inflow of about 25,000 people.
“Although [it’s] still not quite as high as the peak years for interstate migration to Queensland in the early 1990s.”
Provisional internal migration figures from the ABS showed Queensland had a net gain of 7,237 people in the September 2020 quarter.
The number of people arriving in Queensland from other states fell in comparison with the previous quarter.
But, crucially, fewer people left Queensland, with departures at their lowest level since December 1994.
In net terms, Queensland gained more than 4,000 people from New South Wales in the September quarter.
Last week, Premier Annastacia Palaszczuk told parliament more people were moving to Queensland’s regional areas rather than to Brisbane.
“This is contributing to the highest investment in new houses in Queensland since 1994,” she said.
Article Source: www.abc.net.au
The richest streets in Brisbane, revealed
There is always a lot of attention on Sydney and Melbourne’s affluent areas and property markets, but what about the wealthy Australians in Brisbane?
Where do they live?
Brisbane’s property market were very resilient during the challenges of 2020 and now Brisbane housing values are going gangbusters.
The recent increase has pushed dwelling values to a new record high for the area.
With median prices in Brisbane, at around $520,00, being far less than those in Sydney or Melbourne the ‘affordability factor’ of lower property prices is driving more investment into the area and more interest from highest-earners who are able to get more bang for their buck.
Unfortunately Queensland postcodes didn’t feature on the ATO’s recent top 10 suburb rich list, but there is an abundance of wealthy residents and high priced properties, so with the help of realestate.com.au, Domain Group and census data, I’ve put together my own list of exclusive areas where Brisbane’s richest call home and then I’ll reveal the top 10 Brisbane streets.
4005 (Teneriffe, Inner Brisbane)
Median income: $127,972
Median house price: $1.962 million
According to Corelogic data, the Inner Brisbane suburb of Teneriffe has the highest median house price of any area across the Queensland capital.
Despite being an industrial town in the past, the proximity to the city and riverside views has made it ideal for affluent, young Australians with average ages of just 20-39 and median annual incomes of $127,972.
With few houses in this inner city location, the median house price comes in at a whopping $1,962 million.
However, even units in Teneriffe are more expensive than the rest of Brisbane with a median of $570,000.
Median income: $128,752
Median house price: $1.6 million
The exclusive suburb of Chandler is a high-demand market with an impressive median property price of $1.6 million to match its median resident income of $128,752 per year.
The peaceful and secluded semi-rural suburb consists largely of bushland and residential properties on acreage and is close to Brisbane’s major commercial precincts of Carindale and Capalaba and the CBD is just 20 minutes away.
Median income: $126,516
Median house price: $1.31 million
Builmba’s leafy streets and large blocks attract the Queenslanders able to spend big on impressive houses and an elegant lifestyle.
Sitting just 4km from the city and with all the amenities you could ever need, Bulimba is popular with young and established professionals.
Bulimba houses are seeing an impressive amount of interest with an average of 432 visits per property listing, way about the state average of 374.
With its close proximity to the city and gorgeous waterfront cottages, Bulimba has a median house value of $1,31 million and residents earn an average $126,516 per year.
Median income: $98,488
Median house price: $1.48 million
Despite a slightly lower median resident income of $98,488, Hamilton houses alone have grown 9% over the last five years to a median of $1.48 million.
The affluent and upscale postcode is popular for riverside high-end dining and a hip weekend food market with live gigs attracting a young average resident age of 20-39.
4005 (New Farm)
Median income: $93,704
Median house price: $1.6 million
Once the humble home of immigrants and workers, New Farm is now popular and low maintenance living for people who like food, fun and farmer’s markets right on their doorstep.
Thanks to the increasing desirability of the area, New Farm has enjoyed an enormous 442% price growth in its property in the last 20 years as some of Brisbane’s high-income earners flock to take advantage of the exclusive lifestyle.
Like Bulimba, property demand in New Farm is strong, with realestate.com.au recording 674 visits per property for listings in the area, nearly double the Queensland average of 374.
Here are the top 10 most expensive streets in Brisbane.
Article Source: propertyupdate.com.au
Brisbane auctions: Ashgrove weatherboard sells for $1.27 million in strong weekend
A post-war cottage that last sold in the 1960s for just over $7000 has been snapped up for a whopping $1.271 million at auction, after 17 registered bidders battled it out for the Ashgrove four-bedroom abode adorned in weatherboard and Besser brick.
The “knock-down” property at 21 McCormack Avenue – which had been in the same family for five decades – sparked a feeding frenzy among home-hunters on Saturday, with 78 bids accrued after the bidding started at $800,000.
Selling agent Matthew Jabs, of Place Estate Agents Newmarket, said the auction was one of the most emotional sales he’d clocked, with more than 100 people turning out to witness the transaction of the 1960s abode.
“This home had been in the same family [for all those years] and it has all the key elements. It’s north-facing with city and park views and, in terms of the actual house, it can be knocked over,” Mr Jabs said.
“All the bidders wanted to build their dream home there and, in the end, it was a local family that bought it.
“It was very emotional because of how long the family had had the home. It belonged to an elderly lady and it’s the only home she’s ever owned.”
The cottage, which sits on a 607-square-metre block, was one of a handful of pre-war and post-war homes to transact for close to a million dollars or more over the weekend – alongside a handful of high-end sales, revealing the strength of the city’s market.
In total, 35 properties were sold from a reported 49 to deliver a clearance rate of 71 per cent, almost double the rate from this time last year.
Among those was a prime piece of land with a run-down original two-bedroom Queenslander at 37 Pine Street, Hamilton, which clocked one of the weekend’s top results after it sold for $1.837 million to a local family through Dwight Ferguson, of Ray White Ascot.
The ageing home, which sits on a 1365-square-metre parcel in one of the city’s top blue-chip suburbs, features just two bedrooms and a bathroom. It attracted 23 registered bidders.
“Most of those bidders had a go so it was a bit of a frenzy initially,” Mr Ferguson said.
“We got down to three bidders at the end and then announced the home was on the market at $1.7 million, and the reserve was below that.
“This is the best level of auction activity I’ve seen in 30 years — buyers have a lot of confidence. I didn’t expect this [level of market action]. It’s just incredible.”
In Paddington, an old cottage at 19 Plunkett Street that was renovated into a glamorous four-bedroom masterpiece clocked the city’s top reported sale of the weekend, after it fetched $2.45 million under the hammer through Nick Penklis, of Space Property.
Mr Penklis said a mature couple from the Sunshine Coast won against six registered bidders, with interest being high throughout the campaign thanks to the quality of the renovation and the prime location.
“The sellers rebuilt the old cottage after they bought the home 10 or 11 years ago – and that old cottage is now the main bedroom,” Mr Penklis said.
“I think everyone in Brisbane is getting good results right now and more people are putting one step forward at auction.”
At a Ray White auction event in Bulimba, the very first home of sellers Brisbane Lions AFL player Ryan Lester and his wife, Emi, sold under the hammer for a reserve smashing $931,000, just over $300,000 more than they paid in 2014.
The modest three-bedroom, two-bathroom cottage, at 12 Princess Street, Camp Hill, attracted 151 groups over a two-week auction campaign, with nine registered bidders battling it out on the day.
Selling agent and principal ofRay White Metro North David Treloar said the bidding came down to two competitive parties, with the under-bidder being a Hong Kong expat, and the ultimate buyer being a Kangaroo Point local.
“All of our auction campaigns at the moment are only running for two weeks, because of the insatiable demand from buyers,” Mr Treloar said.
“And, this was a small home in a really ordinary street, but it was something a buyer could just move into.
“It was also the first home of Mr Lester, who was married last year. He and his wife have had a baby and he’s signed a new two-year contract, so he’s looking for something bigger.”
A pint-sized two-bedroom cottage on a 405-square-metre block at 51 Didsbury, East Brisbane, secured a top result on Saturday, after selling for $925,000 – $225,000 more than the vendors paid for it in 2014.
Selling agent Madi Roche, of Ray White Bulimba, said a first-home buyer secured the winning bid in what she described as an “insane auction”.
“We actually sold that property to the vendors in 2014 for $700,000, so they were over the moon. They weren’t expecting it to sell for so much.
“I think a year ago we still would have had a lot of interest on that home but maybe it would have sold for about $820,000, so that’s a big price jump.”
Wrapping up the hot weekend of auctions was the indoor/outdoor masterpiece at 23 Deramore Street, Wavell Heights, which Place Estate Agents New Farm agent Heath Williams sold for $1.2 million.
Mr Williams said the home, built by Owen Architectures director Paul Owen, had accrued enormous interest over just two weeks and was snapped up by a local buyer.
“We gave out 15 contracts prior to auction but it ended up being a two-horse race between two girls,” Mr Williams said.
“We’d set out with a four-week campaign, but we reduced it to two because the numbers were so high.”
Article Source: www.domain.com.au
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