The year has started strong in the Brisbane housing market, showing consistent, sustainable growth with the new median house price at a record high of $655,000. According to the REIQ, that’s up 1.6% for the quarter.
*Despite the strong start, housing supply remains low. New homes coming to market are experience significantly high volumes of people through. Our local agents have more buyers than sellers, and according to Antonia Mercorella, the CEO of the REIQ, we are not alone. She mentioned in a recent address that agents are experiencing a similar issue throughout the entire south east corner.
The Brisbane market continues to be a strong performer and maintains its position as one of the most affordable options for first home buyers, families’ upsizing and investors - with affordable prices and good returns compared to our interstate friends in Sydney and Melbourne.
With low supply and increase interest from interstate buyers, we are seeing robust competition. Examples include the Auction at 69 Queenscroft St Chelmer where we had 5 registered bidders. One from Sydney moving up, a buyer from Brookfield wanting to move closer to the CBD and several local buyers. This saw the home sell under the hammer to the local buyer so the Sydney buyer is still out looking.
There has been increasing questions raised recently in the media and from those monitoring the market, about the units and apartments. Although this market segment has softened over the past 12 months due to the increased supply, looking at the actual price shift over the past 5 years tells a different story - with 11.3% growth. This underpins the unit market as a safe place to invest for long term growth, while maintaining a high rental yield. The apartment market is largely self-regulated and developers are already scaling back on projects scheduled for this year and 2018. *
The biggest winner if the Brisbane market, the sector that is continuing to go from strength to strength, is the high end of town. Brisbane recently saw a new record price set with the sale of 1 Leopard Street, Kangaroo Point for $18.84 million. This is a significant result and real evidence of confidence in Brisbane’s market. In fact, the top 20 sales for the year have all been over $4.5million.
Brisbane's Top 20 House Sales of the year
1. 1 Leopard Street, Kangaroo Point $18,450,000
2. 89 Welsby Street, New Farm $10,500,000
3. 102 Virginia Avenue, Hawthorne $8,600,000
4. 27 Sutherland Avenue, Ascot $8,615,000
5. 34 Mullens Street, Hamilton $6,625,000
6. 419 Brisbane Corso, Yeronga $5,500,000
7. 20 Eldernell Terrace, Hamilton $5,450,000
8. 34 Quay Street, Bulimba $5,400,000
9. 22 Langside Road, Hamilton $5,385,000
10. 16 Wendell Street, Norman Park $5,360,000
11. 171 Fernberg Rd, Paddington $5,300,000
12. 14 Otway Street, Holland Park $5,225,000
13. 20 Scott Street, Hawthorne $5,180,000
14. 435 Brisbane Corso, Yeronga $5,137,000
15. 63 Laidlaw Parade, East Brisbane $5,100,000
16. 12 Elystan Road, New Farm $5,100,000
17. 8 Wendell Street, Norman Park $5,018,000
18. 10 Aaron Avenue, Hawthorne $4,700,000
19. 261 Main Street, Kangaroo Point $4,675,000
20. 39 Ivy Street, Indooroopilly $4,500,000
Place Director and prestige property specialist Sarah Hackett, recently said that the current prestige market is the strongest position the market has seen since 2007.
Locally there have been a number of significant results also, including a new record sale price for a non-riverfront home in Chelmer with the sale of 29 Lama Street.
A number of other sales have underpinned rising local values, such as the sales of 28 Laurel Avenue, 34 Lama Street and 33 Gilgrandra Street, all selling for over $2million.
Domain Chief Economist Andrew Wilson believes that some of the key reasons for the strength in this market are due to the improved economic conditions here in Queensland, particularly in the Agricultural and construction industries.
First home buyers are back on the move and this can be attributed to low interest rates and local policy settings, such as the $20,000 First Home Owner Grant for new housing. It’s to early to say if this will continue in this year’s State budget however there is a level of anticipation around what the Federal Government are likely to release in May.
The rentals team are short on supply as well with the current vacancy rate being under 2%. This is positive news for landlords as it means their investment property is seeing a consistent stream of revenue.