A lack of stock coupled with high liveability is helping smaller homes in Brisbane’s northern suburbs win big at auction.
According to new research by the Domain Group, two-bedroom, one-bathroom homes that go under the hammer on a Saturday are the most likely to clear, with data compiled over the past 12 months revealing those pint-sized properties have a clearance rate of 47 per cent.
While it’s a slight change from the 2018 data, when three-bedroom homes in Brisbane’s inner city held the clearance rate crown, Domain data scientist Dr Nicola Powell says the research reveals affordability can be key.
“With two-bedroom houses there are also fewer – so it could also be a lack of stock [that’s driving buyer appetite],” Dr Powell said.
It’s good news for Kedron vendor Sam Chapman, who placed his two-bedroom, one-bathroom cottage at 47 Ramsay Street up for auction just a couple of weeks ago.
He said the prime slice of north side property had already attracted 15 groups to the first open house – just 36 hours after the auction campaign launched.
He put the high level of interest down to the sheer liveability of the area and said the only reason they were selling was to upgrade to a bigger place for their growing family.
“It’s such a great area – it’s really family-orientated and it has shops, public transport and lots and lots of parks,” Mr Chapman said.
“There’s miles of pathways too so it’s a really nice area to bring up a family … in fact we want to stay here [in Kedron] if we can.”
Selling agent Tamara Lee, of Ray White Ashgrove, said it was no surprise homes going under the hammer on the north side achieved top clearance rates, with excellent infrastructure and access to outstanding amenities making the area a hot spot for home buyers.
“I also think two-bedroom homes are selling well because of their affordability,” Ms Lee said.
Thanks to the stellar start to 2020, she said the agency had achieved a 100 per cent clearance rate on their auctions so far with the Chapmans’ two-bedroom, one-bathroom abode set to be no exception when it goes under the hammer on Saturday, April 4 at noon.
The home boasts a white picket fence, polished timber floors, high ceilings and stained glass casement windows as well as a sunroom, airconditioned lounge and dining area, a deck and a landscaped yard on a 405-square-metre block.
Brisbane auctioneer Justin Nickerson of Apollo Auctions said despite the city’s overall low auction numbers (in comparison to Sydney in Melbourne), they’d enjoyed a phenomenal few months in terms of clearance rates, which had delivered the strongest start to the year for auctions in almost a decade.
“The past few years haven’t been very exciting with auctions so this is good news,” Mr Nickerson said.
“I’ve got 10 auctions this Saturday including one in Aspley that’s had 10 offers prior.”
Daniel Waters of LJ Hooker Aspley said auction clearance rates were up from a year ago, with buyers pouncing on properties across the board – from two-bedroom abodes to large family properties.
“The first three months of this year were the busiest I’ve had ever had and there are lots of investors that are looking to buy [right now],” Mr Waters said.
“I had one new home come to the market last Saturday and we had 15 groups there.”
More than 65 homes are set to go under the hammer this Saturday across Greater Brisbane and while all data points to two-bedroom, one-bathroom homes stealing the show, Dr Powell said it was important to note that properties sold at auction tended to be higher end abodes.
Over the past 12 months, she said, the median sale price for homes sold under the hammer was $780,000, compared to a median price of $555,000 for private treaty sales.
This article is republished from www.domain.com.au under a Creative Commons license. Read the original article.
Coronavirus pandemic to slug Queensland’s property prices, industry figures say
For Queensland mortgage broker and property consultant Carolyn Walshe, it is not a matter of if, or when, the coronavirus will hit property prices, but by how much and for how long.
“You’d have to expect that they’re going to fall,” Ms Walshe said.
“The question is going to be just exactly how much — I think the smartest thing that people can do right now is just to hold back and wait and see what happens over the next few months.”
The latest figures show Queensland reached record median house prices for Brisbane, Noosa and other parts of the state in the last quarter of 2019.
Real Estate Institute of Queensland (REIQ) chief executive Antonia Mercorella agreed that COVID-19 would put a dent in that.
“Inevitably we will see the property market impacted by the coronavirus — I think it would be incredibly naive to think otherwise,” Ms Mercorella said.
“We know that a large volume of people will lose their jobs during this time.
“We know that it will completely erode confidence and those things — security and confidence — are very much key to the property market.”
Last night, Prime Minister Scott Morrison included the property sector in the latest moves to limit social interaction.
“Real estate auctions and open house inspections, in particular open house inspections — that cannot continue,” Mr Morrison said.
He said that from midnight tonight they would not be allowed.
Lenders, investors cannot foresee what’s to come
Ms Walshe, who also advised clients through the global financial crisis — suggested the forced shutdowns of parts of the economy, the restrictions on travel and the massive queues for Centrelink all added to the uncertainty.
“The list of instructions that people have to live under is breathtaking, so until we see some endpoint to all of that, it’s going to be very, very difficult to see exactly where the other side is,” Ms Walshe said.
Ms Walshe said the fact the Federal Government had moved the budget from May to October showed neither it nor investors, could foresee what was to come with any certainty.
“I don’t think anyone can have a lot of confidence at the moment until we see things that are far less alarming,” Ms Walshe said.
“Therefore, less property sales will complete until we have some confidence returned to the market and people are back at whatever semblance of normal work is.”
She said banks would be reluctant to lend, as people’s ability to repay loans also looked uncertain.
“Lenders are now going to be seriously looking at [the] possibility of there being lower numbers of borrowers who are in occupations where their income can be absolutely guaranteed,” Ms Walshe said.
Ms Mercorella said while some investors would be reluctant, others might pounce.
“We will see some investors perhaps getting cold feet and making a decision to suspend that,” Ms Mercorella said.
“But similarly, we will see some prospective investors being quite bullish about it and actually looking at this as an opportunity and probably pouncing on what’s available to try and secure a property at a better price, at a lower price.”
Renters and landlords also to come under strain
Ms Mercorella said the REIQ’s immediate concern was tenants facing eviction for not being able to make their rent.
“Around 35 per cent of the Queensland population rents,” she said.
“The vast majority of that supply comes via the private investor, so given the predicted job losses, we are concerned about the impact that will have on a tenants ability to make their rent obligations.
“We don’t want to see renters being evicted on account of non-payment.”
She said the REIQ welcomed any support governments could give to tenants.
“Equally, what we need to be cognisant of is that the vast majority of that rental supply is coming from private investors — mum and dad investors — and they will have their own obligations at the other end to the bank.” Ms Mercorella said.
“So the challenge will be how we protect tenants in this in this environment, but also supporting owners who ultimately — if they don’t meet those obligations — will end up defaulting on mortgages, and ultimately having to sell those properties and losing those properties, which will mean that we all lose.”
Ms Mercorella said there was hope the property market would recover relatively quickly.
She said the Queensland market was robust and recovered well from the global financial crisis.
“Again, we bounced back from the GFC rather well, but I but I do expect that this will be far more severe than that,” she said.
“It will also depend on how long we’re in the situation for, so it really is crystal ball gazing at this stage.”
This article is republished from www.abc.net.au under a Creative Commons license. Read the original article.
Brisbane auction buyers still keen amid COVID-19 fears
As social-distancing measures ramp up in response to COVID-19, public auctions present an interesting challenge for real estate agents. Despite this, a bumper 94 auctions went ahead across Brisbane at the weekend, with a clearance rate of 39 per cent.
“Buyers were cautious walking in,” said Nick Penklis, director of Space Property Paddington, of his auction of the two-bedroom, one-bathroom house at 20 Atthow Avenue, Ashgrove.
“[People] kept their distance. But, having it in the backyard certainly helped a lot, because it can provide private space.”
About 30 people gathered for 15 minutes to watch the auction, with five registered bidders attempting to walk away with the keys. Bidding opened at $700,000, and quickly jumped to $750,000.
Things slowed somewhat after this as bids of $5000 and $10,000 edged the price higher. Eventually, the hammer was dropped, and the house was sold for $885,000.
Despite the need for social distancing and hand sanitiser, buyers were still keen, Mr Penklis said.
“The buyers were there to buy, not to view,” he said. “It wasn’t like ‘Oh, we’ll just see what happens’. That was a strong sign for our market. The only thing we can’t do is shake hands. But, there were smiles all around, within distance.”
The vendors have owned the house since 1997, and have used it as a family home and an investment property. Meanwhile, the buyers are looking to get a foothold in the area.
Auctions in Sydney and Melbourne are under a cloud from next weekend with premiers in those states flagging shutdowns of non-essential activities. No such plans for Queensland have yet been flagged, though it remains to be seen whether coronavirus may bite into Brisbane’s much smaller auction scene.
“We’re not expecting to see an impact on the values of homes but we will see the number of sales fall as people wait and see what is going to happen,” said Real Estate Institute of Australia president Adrian Kelly. “Estate agents are pretty good at adapting in these circumstances.”
Elsewhere, Kosma Comino, of LJ Hooker Sunnybank Hills, sold the five-bedroom, two-bathroom house at 10 Mansfield Place, Mansfield, in Brisbane’s south-east before auction. He said COVID-19 was having an impact on people’s willingness to sell in the short term, but several sellers were still keen to get things moving in the coming months.
“I’ve got a lot [of auction campaigns] launching after Easter, but I think a lot of the sellers are up in the air with what’s going on with the coronavirus,” he said. “At the moment, what we’re seeing is a lot of increase in buyer inquiry, I think there’s a lot of panic buying at the moment.”
On the other side of the city in Brisbane’s inner north, the four-bedroom, one-bathroom house on a spacious 810-square-metre block at 295 Days Road, Grange, sold under the hammer.
Just one party attended the auction, making one registered bidder and an audience of two people. Despite this, the house sold over reserve.
The single registered bidder was a developer, who opened with a strong offer and, after about 20 minutes of private negotiation, the hammer was dropped and the house was sold.
The vendors were two sisters who inherited the house after a death in the family. It was particularly process for them because the house had been in the family since the 1980s.
Selling agent Georgie Haug, of Belle Property Samford, said the successful result was thanks to an incredibly smooth process, as well as the vendor’s willingness to trust her advice.
“I sold the seller’s property in Ferny Grove a couple of years ago for a record,” she said. “So, just the trust and the communication. I took [this] job in a heartbeat because they had so much trust in me to do the right job and get the result. It was just a really beautiful process.”
Closer to the city, the two-bedroom, one-bathroom house at 16 Skinner Street, West End, sold in an incredibly fast auction. About 20 people gathered to watch as two registered bidders battled it out for under five minutes.
Bidding opened at $700,000 and moved quickly to $800,000. Bids continued in increments of $20,000 then $10,000 until the house was sold for $970,000.
Selling agent Keryn Osgerby, of Sold Property Group, said 33 groups inspected the property over the five-week campaign, with the vast majority of interest coming from families.
“It was overwhelmingly young families who wanted to be in the area of lifestyle reasons,” she said. “Second to that would be the schooling benefit, but most of it was all about the West End vibes and lifestyle.”
The buyers fit this bill exactly and will be moving in with their young family very soon. Meanwhile, the vendors live overseas and were using the property as an investment. They sold because of a change in circumstances.
This article is republished from www.domain.com.au under a Creative Commons license. Read the original article.
Brisbane’s real estate sector holds steady: Herron Todd White
Brisbane’s residential real estate sector performs relatively steadily throughout its price cycle, avoiding dramatic dips, swings, peaks and fluctuations, according to the latest report from valuation firm Herron Todd White.
“Long-term property owners tend to do fairly well as long as their asset selection is on the mark,” the March report found.
“There is also a fairly typical range of buyer types. Our first home owners are motivated by affordability and getting the most bang for their buck. Their tick list will obviously be driven by location, but they’re also keen to find decent size allotments, potential for renovation, proximity to amenities and easy access to the CBD or a wellestablished lifestyle hub,” the report continued.
“While many of our first home buyers would no doubt like to buy within the five-kilometre radius, their price point usually means a balance between location and property type and quality. As such, there are those able to cope with a second-hand unit in a prime near-city position, while others will seek a newer home on a larger lot in a suburb a bit further out.”
“Both options could appeal to first home buyers at a similar price point Of note also is that first home buyers are becoming more prominent in our market.”
“The $15,000 state government first home buyer grant (which is limited to new property) and federal government deposit scheme are helping to boost their numbers. Add to that low interest rates as a motivation to getting first timers on the property ladder.”
Conversely, upgraders in Brisbane are looking to draw on increased value in their existing homes to secure better-quality accommodation in their location of choice.
“Their desired suburb will probably be dictated by their households needs. Young professional couples might look to move out of units and head towards a detached home with some renovation potential so there’s opportunity to build fast equity.”
Upgraders are mostly looking for the advantage of more space or larger yards and hopefully improved location compared to their first home – While upgraders will reside anywhere from outer suburbs through to near CBD depending on the budget, many find themselves in mid-range suburbs with easy access to the city.
“Family buyers could almost be considered an advanced subset of upgraders. These buyers are typically driven to certain properties by school catchments, proximity to public transport, parks, amenities and lifestyle amenities.”
“While many family buyers might want to look for renovation potential, there are plenty who are motivated to acquire something ready to live in so as not to tie up their weekends doing upgrade work.”
Brisbane downsizers and empty nesters are looking for low-maintenance homes with lock-and-leave potential to allow for trips out of town – a smaller detached dwelling of good quality and with a low maintenance yard, the report found.
“We are also seeing ever increasing numbers seeking accommodation in high-end units of minimum two (even three) bedrooms. They like the security while still having space for the kids and grandkids to stay. Downsizer locations vary from the CBD through to the bayside suburbs.”
Downsizers are also drawn to large apartments in suburban nodes within close proximity of shopping centres, amenities and hospitals.
The final buyer group highlighted in the report is the business professional – These buyers want to be close to the CBD or suburban nodes so their commute is short.
“Again, low maintenance is a priority as is public transport and lifestyle facilities. It’s suspected that these buyer numbers may well increase from the interstate migrant cohort coming to Brisbane chasing a better lifestyle than in Sydney or Melbourne,” the report found.
“The above list is, of course, not exhaustive. We are seeing a societal demographic shift with the rise of single-person households, multi-generational homes, single-parent families and share ownership among friends.”
“It’s envisaged that these varying household makeups will spur innovative and thoughtful design changes that will become more common over the next few years,” the report concluded.
This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.
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