Buying? Selling? – Property Prices on the Rise in Queensland:
If you’re thinking of buying or selling a property in Queensland, now is the time to do it as record growth in pricing is set to hit the State. For the last few years the major gains have been made in Sydney and Melbourne, but as pricing peaks there growth is expected to increase in Queensland.
As property lawyers we can certainly say we’ve noticed a real increase for demand in property on the Gold Coast and in Brisbane. The article below goes into more information about the various suburbs tipped to be the winners throughout South-East Queensland.
Brisbane’s Blue-Chip Suburbs Set to Bloom:
The sun will finally shine on Brisbane’s most expensive and prestigious suburbs this spring, according to new data from the Domain Group.
The Domain Spring Guide shows Brisbane’s blue-chip suburbs are set to well and truly bloom, thanks to low interest rates, increased confidence and perceived value for money, especially compared to the skyrocketing Sydney and Melbourne markets.
Domain Group’s senior economist, Dr Andrew Wilson, said Queensland had unfairly lagged behind the other capitals, but that was all about to change.
“Brisbane will be one of the leading capital city performers with house prices increasing by between 5 and 7 per cent this financial year,” Dr Wilson said.
He expects a similar rise for the Gold Coast’s houses and apartments.
Sunshine Coast house prices are also set to increase by between 5 and 7 per cent, he believes, with units 3-5 per cent.
“Queensland is in catch-up mode – it has been the underperformer compared to other capitals, but it’s now certainly catching up.”
Suburbs around the inner north and south of Brisbane, within 5 to 10 kilometres of the CBD, will outperform the market and see price increases of about 9 to 10 per cent.
They include the “aspirational suburbs” of Ascot, Hamilton and Bulimba to the north-east, Paddington and Bardon to the inner north-west, and St Lucia, Indooroopilly, Chelmer and Graceville to the south-west.
Middle-priced properties ranging from $450,000 to $900,000 will experience the biggest increases, as families take advantage of the current market conditions and upgrade into better homes.
Space Property Agents’ Angela Mastropostolos said demand for properties in the sought-after suburb of Paddington, just a couple of kilometres from Brisbane’s CBD, was already “unbelievable”.
“There are lots of buyers and we don’t have the properties,” Mastropostolos said.
“Because we’re low [on stock for sale], we have lots of competition on every property.
“That’s giving us exceptional pricing.”
She added all types of homes, from entry-level cottages to larger Queenslanders, had been receiving multiple offers within the first week, if priced correctly.
Many of those properties had little interest 12 months ago, but have now been selling for above and beyond owners’ expectations. Buyers could snap up cheaper unrenovated properties for about $650,000 last year, but now they’re paying in the high $700,000s.
“We’ve also had some enormous high-end sales,” Mastropostolos said.
“We just had an off-market sale that went under contract for just under $2 million.
“It was on the market last year and we were struggling to get interest at $1.7 million.”
Ray White agent Cameron Crouch said sales over winter were the strongest in more than seven years, and spring was shaping up to be his busiest season yet.
Although properties affected by the Brisbane floods in 2011 still carried a stigma, more buyers were willing to compromise, in order to get into a blue-chip postcode area and be close to good schools, shops and cafés.
A flooded Chelmer property recently received multiple offers and sold for $720,000 within the first week, Crouch said.
“Everyone still wants to buy in Chelmer, even though that area did flood,” he said.
“They’re seeing value for money and that they’re still paying reasonable prices.
“A lot of people are thinking that the market is going to spike and go up a lot next year.
“They’ve seen what has happened in Sydney and Melbourne and the view is that it’s going to happen here as well.”
Dr Wilson added the Redland city council area should also pick up this spring.
The anticipated price growth for Brisbane overall is similar to last financial year’s, when prices grew 7 per cent.
However, the outer suburbs of Brisbane will still lag, with the median house price expected to increase by 3 to 5 per cent.
“Budget-level markets tend to be more exposed to economic conditions and that’s what we’re seeing in Ipswich, Logan and around Moreton Bay,” Dr Wilson said.
“Narangba outwards, all the way up to Caboolture, have certainly been underperformers.”
On the other hand, a new wave of growth will wash up on the Gold Coast.
The glitter will return to Surfers Paradise and further south down to Coolangatta, with the 7 per cent growth prediction.
Like Brisbane, the sought-after suburbs including Broadbeach and Mermaid Beach will be the best performers, as interstate investors and homebuyers move to the sunshine state in search of value for money.
“The perception is that now is a good time to buy,” Dr Wilson said.
After years of oversupply, the unit market has now bottomed out.
Homebuyers and investors will also warm to the Sunshine Coast this spring.
Retirees moving north have already helped the market in Caloundra, but it’s the white sandy beaches around Noosa that are now getting most of the attention again.
“Sunshine Beach and Noosa are where the market has picked up,” Dr Wilson said.
“It’s more the weekenders and people from Brisbane looking for holiday homes.”
Properties near the famous Hastings Street along Noosa beach are predicted to increase by 7 per cent over the next 12 months, while unit prices should increase by 5 per cent.
LJ Hooker agent David Zuric said it was becoming increasingly difficult to find a house for less than $500,000 within walking distance to the beach.
“We have people asking for houses in the $700,000 to $900,000 bracket, which is a struggle as well,” he said.
“The stock [for sale] is nothing like it was a year and a half ago. Sunshine Beach [stock for sale] has been cut to one third.”
Zuric just sold a five-bedroom property to an interstate investor for $415,000 in Noosaville. The property sits on 900 square metres and rents for $515 per week.
He said Sydney buyers were sick of being outbid at auctions. They’re realising they can find something cheaper in Queensland and get in at the bottom of the market, rather than the top.
“They say to me ‘we can’t find anything like this in Sydney,'” Zuric said.
“To pay $415,000 and get $515 per week [in rent] is ridiculous. Later I was kicking myself. Why didn’t I buy this house myself?”