BUYERS are no longer worried about the health of Brisbane’s property market, but rather finding the perfect home. And with stock levels low, now may be the time to put that property on the market.
BUYERS are no longer concerned about the health of Brisbane’s property market, but rather finding the perfect home.
A Place Advisory survey of 853 people — comprising local buyers (80%), interstate buyers (10%) and international buyers (10%) — found that more than one third, or 36 per cent, were now more concerned about finding their dream home than market uncertainty.
Only around 18 per cent identified market uncertainty as a major concern, according to the survey.
This marks a significant shift in sentiment compared to last year, when 44 per cent of potential buyers were more worried about the uncertainty in the property market.
ON THE MARKET: BELLBOWRIE — 111 Lather Road
5 bed; 6 bath; 5 car
Price: $3.795 million
Agency: Adcock Prestige
“This result is a strong indication that confidence is improving throughout the marketplace,” the report said.
Other notable concerns were having enough of a deposit or a lack of equity (18 per cent) and ongoing holding costs (14 per cent).
The survey findings come after the Reserve Bank of Australia kept interest rates on hold at a record one per cent earlier this week.
ON THE MARKET: KEDRON — 67 Sydney St
4 bed; 4 bath; 2 car
Auction: August 31, 2pm
Agency: Harcourts Clayfield
Place Advisory Lachlan Walker said the survey findings were a positive sign leading up to the start of spring selling season.
But he warned that available housing stock levels remained low compared to previous years.
“There are buyers out there but right now they are still searching for the right property,” he said.
“There is a lag (between buyer confidence and available housing stock) … we just don’t have enough stock on the market and buyers aren’t willing to compromise so they are happy to wait.
“Especially those local buyers who have always seemed to take their time … interstate buyers are more used to a fast market.
“But what this survey shows is that the majority (of survey respondents) feel that the market will continue to improve over coming months.”
Almost two thirds of the respondents said they believed Brisbane would continue to perform “at least as strong” or stronger by 2020.
“This market outlook of respondents strengthens the argument that Brisbane’s property market has now begun transitioning into the early stages of a positive growth cycle,” the report said.
ON THE MARKET: HIGHGATE HILL — 37 Derby St
4 bed; 3 bath; 2 car
Auction: August 31, 10.30am
Agency: Raine & Horne Brisbane West
ON THE MARKET: ST LUCIA — 388 Swann Rd
5 bed; 2 bath; 2 car
Price: $2.3-$2.45 million
Agency: McGrath Paddington
And the finding is supported by local real estate agents who said they were seeing an upswing in open house inspections, registered bidders at auction and direct inquiries.
Recently, a renovated Queenslander in a sought-after school zone was snapped up in less than 24 hours, with the buyer putting in an immediate unconditional cash offer.
In another example of buyers acting fast to secure the right property, a Sydney homeseeker spotted the perfect home online, and purchased the house, sight unseen, at auction the following day.
Brisbane agents further confirmed that stock levels were not keeping up with demand.
That sentiment was back up by data from property market analysis firm, CoreLogic.
In its most recent analysis, CoreLogic found that while the housing market was showing signs of recovery in the eastern capitals, including Brisbane, advertised housing stock had reduced.
“Across the combined capitals, the number of freshly advertised properties is down 25 per cent relative to the same time last year and total advertised stock levels are now tracking 5 per cent lower relative to a year ago,” according to CoreLogic.
“The reduction in available stock creates less competition among sellers and increased competition among buyers, adding support to higher prices.”
ON THE MARKET: MOUNT GRAVATT EAST — 5 Poinciana Close
5 bed; 3 bath; 3 car
Auction: August 31, 1pm
Agency: Place Sunnybank
REA chief economist Nerida Conisbee said realestate.com.au data showed that there are “tonnes of potential buyers” in the market, buoyed by rate cuts and the federal election outcome.
She said that increased competition would likely lead to a rise in housing values, particularly in the prestige market.
ON THE MARKET: BALMORAL — 71 Fifth Avenue
5 bed; 3 bath; 2 car
Sale by Negotiation:
Agency: Ray White New Farm
“Lower prices, record-low interest rates and better access to finance is giving buyers a great opportunity to make the most of the current market conditions. In markets like these, sellers can name their price,” Ms Conisbee said.
“Buyers and sellers should start seeing the current market as an opportunity to capitalise. “Buyers are back in a big way, but they need to act quickly before prices start increasing in Spring.
“We saw it happen in Hobart. High demand from buyers drove prices up quickly and a lot of people missed the boat.
“Right now, because the number of houses for sale is so low, those who are selling can almost name their price.”
New data from realestate.com.au shows that property searches grew 19 per cent, year on year, to 94 million a month, and inquiries on properties listed for sale jumped 25 per cent.
In Queensland, property searches jumped by 23 per cent, and inquiries in July grew 16 per cent compared to the same time last year.
Mr Conisbee said that buyers now had an opportunity to capitalise on the bottom of the market and sellers could name their price while stock levels remain low.
“These are really unique market conditions and they won’t last if prices jump as we head into Spring,” she said,
“Markets often change direction quickly and price growth can become unexpectedly strong with in a very short period of time.
“If buyers are quick, they can jump into a suburb they wouldn’t have been able to afford just 18 months, but it won’t be long before prices start to climb again.”
That’s good news for teacher Natalie West, who is selling the family home of 18 years at 40 Pinecroft Street at Camp Hill. It is listed with Shane Hicks of Place Bulimba.
“It is a great location for families,” Ms West, who has four children, said. “Our youngest was two years old and our eldest was 14 years when we moved in, and it has been a really great house for a growing family.”
“It is close to schools, shopping centres, the major arterials, and the bus, which the girls caught to All Hallows every day.
“And it’s a dead-end street so the kids used to play cricket on the street growing up.”
Mr Hicks said the size of the house and the block, plus its location, was attracting “a lot of attention”.
And he agreed that a lack of new stock hitting the market meant it was a good time to sell.
“But I would also argue it is a good time to buy,” he said. “I think some sellers are sitting and waiting but we haven’t see the price drops seen in places like Sydney and Melbourne.
“In some suburbs values have held their own, in others they have increased.”
Overall, dwelling values across Brisbane as a whole fell 2.4 per cent in the past 12 months, well below the falls reported in Sydney (-9%), Perth (-8.9%), Darwin (-8.7%) and Melbourne (-8.2%).
It was also considerably lower than the decline in value for all combined capitals, which was down 7.3 per cent over the same period.
But things are already looking up, with house values in Brisbane rising 0.2 per cent over the month to July, according to CoreLogic.
And some suburbs have escaped the property downturn completely unscathed, and have recorded significant increases in house values.
Jason Adcock of Adcock Prestige estimated that stock levels were down at least 20 per cent in his patch, which includes some of Brisbane’s most expensive suburbs.
“There is just not enough properties to go around for the amount of buyers in the marketplace,” he said.
“I am coming across buyers on a daily basis who have missed out on properties and when the next one comes up, they go even harder.”
“For example, there is less than 20 properties coming on to the market now in Chelmer, and that is the lowest I have seen in probably 20 years.
“It is definitely a sellers market in places like Chelmer.
“This is already impacting on values with some sellers getting prices that I have not seen in some time.”
Mr Adcock said owners considering selling should consider their options now, with the city experiencing a trifecta — boosted confidence, more buyers and less stock available.
“If I was selling, now is the time I would be looking to get on the market,” he said.
Mr Walker said he expected that median house values in Brisbane would continue to increase.
The Brisbane suburbs where house prices are higher than last year
The historic suburb of Windsor in Brisbane’s north has seen the biggest growth in median house prices in the last year, with a 17.2 per cent increase year-on-year.
New figures from Domain have revealed the top 10 suburbs whose median house price has risen the most year-on-year. Despite a largely flat market, there are still plenty of suburbs where prices are surging.
Windsor had the highest increase in median house price at 17.2 per cent year-on-year, followed in second place by the leafy inner-western suburb of Auchenflower which saw a 11.4 per cent increase.
Other suburbs in the top 10 include Queenslander paradise Newmarket (10.9 per cent increase), the massive blocks at Bridgeman Downs (9.8 per cent increase), and the outer-western suburb of Heathwood (8.3 per cent increase).
Ray White Wilston principal Allistair Macmillan said the massive increases in price at top performer Windsor were likely due to the suburb not always getting the recognition it deserved.
“For a long time Windsor has been slightly undervalued,” he said. “It’s so close to Wilston and Grange. [They’ve] always been supremely popular with families, I think Windsor was dragging the chain a little bit with those values.
“When you look at values in Windsor, they can vary quite a large degree depending on whereabouts in Windsor they are positioned. What we’ve found is that now the difference between the two sides of Gympie Road is nowhere near as prevalent as it once was.
“Of late, people have really come and been able to see the value Windsor does offer.”
Mr Macmillan said other contributing factors include the recent multimillion-dollar redevelopment of the Albion public transport exchange. Buyers on the eastern side of the suburb in particular have expressed interest in the plan.
The vast majority of buyers in the area are younger families who are looking to be in the Windsor State School catchment area, and are attracted to the many local parks, bikeways, and public transport options.
“Stock is incredibly tight,” Mr Macmillan said. “Generally speaking if you look at the volume of properties, there’s not a lot that are for sale in Windsor. It’s still a very tightly held suburb.”
Elsewhere, the northern suburb of Northgate also fared very well, with a median house price increase of 8.9 per cent year-on-year. Local agent Dwight Colbert at Ray White Aspley said the location and amenities were the big drawcards.
“[We’ve seen] popularity due to the proximity to the Brisbane CBD, Brisbane Airport, and also an array of public transport,” he said. “You are on the Northgate train line, which is the main one on the north side, and the hub.
“You’re between Nundah Village, you’ve got Banyo Village, you’ve got good access to the Gateway [Motorway], Toombul Road, Sandgate Road, Gympie Road. It’s quite a desirable locality to get in and out of everywhere.”
Mr Colbert said the area was traditionally seen as a haven for older buyers, but in recent years many young couples and professionals had taken the plunge.
“There is a lot of property development going on in Northgate as well,” he said. “So a lot of the older, bigger blocks are being subdivided. Which is also certainly going to help with the average house price.”
West Brisbane family-favourite Auchenflower pulled out a particularly impressive result, posting a 11.4 per cent increase in median house price year-on-year. This makes it the third-most expensive suburb in the city, up from 12th last year.
Place West principal Andrew Degn credits the suburb’s massive gains to the recent completion of major infrastructure in the area.
“Five or six years ago they finally finished gentrification of the old Milton tennis centre and turned it into a park called Frew Park, which is adjacent to [Milton State School], and the playground, and that goes through to the Rosalie village,” he said.
Auchenflower also features the Wesley Hospital, the recently upgraded Milton State School, and various inbound and outbound public transport options. Mr Degn was so passionate about the area he decided to buy and live there himself.
“Real estate people are supposed to know good real estate, and I live in Auchenflower,” he said with a laugh. “So there you go, I’m personally responsible for pushing the price up.”
Top 10 suburbs with the largest house price increase since last year
1. Windsor – 17.2%
2. Auchenflower – 11.4%
3. Newmarket – 10.9%
4. Yamanto – 9.9%
5. Northgate – 8.9%
6. Heathwood – 8.3%
7. Brassall – 8.1%
8. Toowong – 7.6%
9. St. Lucia – 7.4%
10. Hendra – 7.1%
11. Karana Downs – 7.1%
12. Indooroopilly – 6.9%
Five Australian Cities Make World’s Top 30 Luxury Residential Markets
Australia’s ultra-luxury residential market, largely unaffected by the impact of recent lending restrictions, has continued to record positive growth in the prestige sector of the market.
Sydney, Melbourne, Brisbane, the Gold Coast and Perth make up the five Australian cities which rank in the world’s top 30 cities for luxury residential price growth.
The major east coast cities of Sydney, Melbourne, Brisbane and the Gold Coast have now recorded 25 quarters, or more, of positive annual growth for luxury property, according to Knight Frank’s Prime Global Cities Index for the third quarter 2019.
Defined as the most desirable and expensive property in a given location, prime property is generally the top 5 per cent of each market, by value.
Sydney ranks 17th in the global rankings, with 2.6 per cent annual growth, Melbourne at 21st spot recording 2 per cent growth.
Brisbane followed closely ranking 22nd with 2 per cent growth, the Gold Coast which was included in the Index for the first time earlier this year moved up the rankings to 26 with a 1.3 per cent increase, and Perth ranked at 30th recording a 0.7 per cent rise.
Knight Frank’s Prime Global Cities Index
|City||12-Month Change (Q3 2018 -Q3 2019)|
|26. Gold Coast||1.3%|
Knight Frank’s head of prestige Residential Deborah Cullen says the top end of the market is showing more consideration and time in transacting.
“There is still strong interest from local and expat buyers for blue ribbon areas and for “best in class” assets, in particular the waterfront areas of Sydney,” Cullen said.
“Growth in prime property prices closely follows the performance on the stock exchange,” Knight Frank head of residential research Michelle Ciesielski said.
“And there have been some significant gains made on the Australian sharemarket in 2019.
“Collectively the Australian prime market has continued to see sustainable growth of 2 per cent in the year ending September 2019, whilst the sharemarket recorded a 7.7 per cent return,” Ciesielski said.
Slowdown gathers pace in top-tier cities
The global cities index increased by just 1.1 per cent in the year to September 2019, down from 3.4 per cent last year, with slower prime price growth attributable to mounting economic headwinds.
Despite a longer-than-expected period of loose monetary policy and steady wealth creation, the report notes that luxury sales volumes are at their weakest for several years in many of the first tier global cities.
“Slower global economic growth– the IMF lowered its 2019 forecast from 3.3 per cent to 3 per cent in October – along with escalating headwinds: US-China trade relations, Hong Kong’s political tensions, a US presidential election in 2020 and the Brexit conundrum are influencing buyer sentiment,” the index notes.
Moscow recorded the highest rate of growth with an 11 per cent increase over the year to September.
The report notes that Moscow leads the index largely due to strengthening demand and the completion of a number of high-end projects in prime areas like Ostozhenka and Tverskoy.
The prime global cities index is a valuation-based index that tracks the movement in prime residential prices in local currency, using data, across 40 cities.
Brisbane Plans CBD Riverfront Renewal
New plans to revitalise Brisbane’s CBD riverfront, a 1.2 kilometre stretch of river frontage from the City Botanic Gardens to Howard Smith Wharves, has been released.
New ferry and CityCat terminals are included in Brisbane City Council’s draft master-plan, which aims to improve river access and cement the CBD river frontage into “a world-class employment and lifestyle precinct”.
The draft plan includes an increase of the current pathway to an eight-metre-wide promenade which would span the riverfront, and includes an increase of green-space, trees, and public art.
“This is just one of the ways we are making the Brisbane of tomorrow even better than the Brisbane of today,” Brisbane City Council said of the draft plans released on Thursday.
The riverfront precinct is currently home to more than 30 dining destinations and 1.6 hectares of parkland.
The draft plan also includes a proposed new green bridge connection at Kangaroo Point.
“It’s part of our bigger plan to connect people and places,” City Planning Chair Matthew Bourke said.
Bourke says the draft plan took cues from well-known waterfronts, including the likes of San Francisco’s Fisherman’s Wharf and Singapore’s Marina Bay.
Property giant Dexus is under way on its $1.4 billion Waterfront project transforming Brisbane’s Eagle Street Pier.
Council’s draft masterplan for Brisbane’s riverfront will be open to public consultation from Monday 11 November through to early December.
The final masterplan will be released in 2020.
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