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Why the time is ripe for home buyers and sellers in Brisbane

Why the time is ripe for home buyers and sellers in Brisbane

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.

Why the time is ripe for home buyers and sellers in Brisbane 10

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.

Why the time is ripe for home buyers and sellers in Brisbane 1

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.

Why the time is ripe for home buyers and sellers in Brisbane 5

ON THE MARKET: HIGHGATE HILL — 37 Derby St

4 bed; 3 bath; 2 car

Auction: August 31, 10.30am

Agency: Raine & Horne Brisbane West

Why the time is ripe for home buyers and sellers in Brisbane 2

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.”

Why the time is ripe for home buyers and sellers in Brisbane 7

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.

Why the time is ripe for home buyers and sellers in Brisbane 6

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.”

Why the time is ripe for home buyers and sellers in Brisbane

“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.”

Why the time is ripe for home buyers and sellers in Brisbane 4

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.

Why the time is ripe for home buyers and sellers in Brisbane 8

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.

 

 

 

Source: www.news.com.au

 

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Brisbane

‘The margin will never be this close again’: Brisbane’s waterfront secret where property is still affordable

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 3

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.

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 1

“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.

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 2

“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.”

‘The margin will never be this close again’ Brisbane’s waterfront secret where property is still affordable 3

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.”

 

 

Source: www.domain.com.au

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Brisbane

Cheap Units In Brisbane Suburbs

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:

SuburbMedian priceYoY % growth5-year % growth
Bowen Hills$362,500-13.70%-18.80%
Runcorn$368,2504.80%-11.60%
Richlands$370,000-2.00%9.50%
Clayfield$375,0004.20%-2.10%
East Brisbane$378,000-7.40%-5.50%
Coorparoo$382,000-7.70%-2.30%
Nundah$385,000-6.70%-6.10%
Taringa$385,000-14.40%-4.90%
Kedron$387,000-3.30%6.30%
Fortitude Valley$392,000-6.80%-8.90%
Albion$397,500-10.00%-10.70%
Spring Hill$398,000-8.50%-2.70%

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.

 

 

Source: www.yourinvestmentpropertymag.com.au

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Brisbane

Brisbane Prices Could Be Headed For Recovery

Brisbane Prices Could Be Headed For Recovery

Brisbane prices are at their lowest level in the cycle, according to the latest national property clock from Herron Todd White (HTW).

The house values in Brisbane, Bundaberg, Ipswich, Rockhampton, and Toowoomba were at the bottom, according HTW.

Meanwhile, prices in Cairns, Gladstone, Mackay, Townsville, and the Whitsundays are starting to recover, the data showed.

There was momentum for the price growth in Brisbane, given that the capital city had been “bouncing along the bottom for some time now”, HTW Brisbane managing director Gavin Hulcombe told The Courier-Mail.

“I think it will be (a) steady rise, but my suspicion is in a couple of years’ time we might look back and think it (now) probably wasn’t a bad time to buy. Some areas are likely to perform better than others,” he said.

Brisbane units are also at the bottom of the price cycle, along with Bundaberg, Ipswich, Mackay, Rockhampton, Toowoomba, and the Whitsundays, according to HTW.

Apartment prices in Cairns, Emerald, Gladstone, and Townsville are already rising, the figures showed.

 

 

Source: www.yourinvestmentpropertymag.com.au

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