The Brisbane auction market remained steady this week, with 94 scheduled auctions and a reported clearance rate of 32 per cent.
A mid-60s home on just over a hectare of land in Kenmore was the site of an intense auction. The property was a deceased estate that served as the vendor’s family home for more than 55 years.
About 90 people piled into its spacious front yard to watch 12 registered bidders battle it out. Bidding opened at $900,000 and quickly make its way to $1.7 million in a series of fierce bids between the eight active parties.
After a few stalls, the competition narrowed down to three main bidders who continued to compete for the property. Finally, the property was sold for $2.2 million.
Agent David Hills, of Harcourts Results Calamvale, said the auction proved the perfect strategy for the property.
“We had people turning up on the day that hadn’t even seen the house. It was certainly an impressive crowd,” he said.
“We knew from the outset that it was either going to be a developer or an owner-occupier. Obviously, auctioning was the main way to go in terms of having multiple parties at play, to ensure we got the true market price.”
Hills said the long family involvement in the property made it a very special auction.
“It was certainly an emotional time for the parties at play from the family. Everyone had their own opinion of what they wanted to do with it,” he said.
“It had been a family home where they all got raised in, so there was quite a bit of emotional attachment to it. For them, the closure was something that had been some time coming. They were super happy with the result.”
The buyers, a couple, intend to live in the property with potential later plans to develop the block.
Meanwhile, a stately six-bedroom, three-bathroom home on 2545 square metres in The Gap sold at auction for $2.125 million in front of about 80 people. Seven registered bidders duelled for the property in an auction that lasted 10 minutes.
The opening bid was $1.8 million, at which point the auction stalled. After seeking instructions from the seller, the auctioneer came back to the floor to ask for more bids. At that point, the bidding became a contest between two main parties. After 10 more bids the property was sold.
Agent Michael Kleimeyer, of Ray White Paddington, said the auction was fierce.
“It was quite quick and aggressive,” he said. “When each of them bid, the other person bid within three seconds, so it went up quite quickly.”
Kleimeyer said the house was a unique find in the area.
“It’s at the top of a hill, and the 2500 square metres are actually flat which is quite rare for The Gap,” he said.
“The home is the original 1960s farmhouse for Watercress Farm, and it was fully renovated to a high standard in 2013. It’s quite a large home, and there’s two kitchens plus an outdoor kitchen.”
The property sold to a young couple, which Kleimeyer said he and his team had been hoping for.
“We secretly were expecting that,” he said. “That was our dream that it would happen, and it did.”
The owner was thrilled with the result. She originally purchased the house in 2011, and was selling to move closer to her children’s high school.
On the other side of the city, a gorgeous home set on two lots in Mount Gravatt East was sold under the hammer. About 60 people watched for 35 minutes as 12 registered bidders attempted to lay claim to the property.
Bidding started at $650,000, which was immediately followed by a vendor’s bid of $700,000. After further bids, the price rose to $890,000. That bid was referred to the vendor, then after a bit more back and forth the property was ultimately sold for $906,000.
Agent Grant Boman, of Ray White Mount Gravatt, said the house presented several options for potential buyers.
“In the short to medium term it’s a really rentable home. It’s pretty rare for these larger blocks, because often they’ll have a little shack on them, that isn’t worth much,” he said.
“The people that were largely bidding on it were wanting it for the land, and the ability to subdivide and use the two lots that were there.
“The people who ultimately ended up buying it will retain a block [and] sell a block. They’ll just build one house to have a family home in the street. They’ve done it because they wanted to be in Mansfield [school] catchment.”
Boman said the result showed that despite a faltering market, good property would always do well.
“Even in the market at the moment, good-quality real estate is still going to be well patronised by buyers,” he said. “Good-quality property will always get results no matter the market conditions.”
Suburb record falls as hundreds turn out for marathon 45-minute auction
It was a busy week in the Brisbane auction market with 104 properties and an improved clearance rate of 42 per cent.
A thrilling auction in Grange saw 250 people watch eight registered bidders attempt to make their claim on a beautiful five-bedroom, three-bathroom property on 607 square metres.
Bidding for the newly built home opened at $1 million, climbed in $100,000 increments to $1.7 million before slowing to $50,000 and $25,000 jumps until the home was put on the market for $1.79 million.
The field narrowed to two participants, who bid in lots of $500. After a marathon 45-minute auction with more than 50 bids, the property was ultimately sold under the hammer for $1,820,500.
That marks the highest sale price for a property under 800 square metres in Grange. The previous record was $1,775,000.
All eight of the registered bidders were local families, exactly what agent Alistair Macmillan, of Ray White Wilston, was expecting.
“We were very much involved with the design process of the home,” he said. “We deliberately tried to build a property that was going to appeal to a broad market. The intention was to build a traditional-style home that appealed to a younger-type family.
“Our objective, even pre-build, was always to try and build a product that was going to put pressure on that record price, so we’re pretty chuffed to set a new record.”
Meanwhile, a two-storey house overlooking New Farm Park was sold for $2.27 million under the hammer. About 50 people watched as two registered bidders battled it out for about 25 minutes for the property.
Bidding opened at $1.8 million and jumped to $1.9 million. The price rose in lots of $50,000 to $2.25 million. At that point negotiations began, then the property was put on the market and sold for $2.27 million.
Agent Matt Phillips, of Image Property Aspley, said the location and layout of the home had been very popular with the 50 groups that had inspected it during the campaign.
“The master bedroom had a balcony overlooking New Farm Park, and there’s two other bedrooms with balconies overlooking [the park],” he said. “It’s only a one-way road through Hopetoun Way, so there’s not much traffic there.
“There was not many people who came through that didn’t like it. [We had] very positive feedback throughout the whole campaign.”
Phillips said the buyers had been eyeing the property keenly, and were thrilled with the result.
“They were really excited,” he said. “They were trying to secure the property the whole way along, so they were happy they could be successful on the day.”
On the other side of the city, a beautifully designed four-bedroom, two-bathroom home on 583 square metres was sold at auction. Three registered bidders fought it out in front of a crowd of 100 people to secure the property.
The opening bid was $1.3 million, followed by an auctioneer bid of $1.4 million. The price jumped to $1.5 million and then $1,625,000, at which point the auction paused.
After consulting with the agent, the third bidder raised their paddle for the first time at $1.8 million. After some negotiation the price was raised to $1,805,000, then the house was put on the market and sold at that price.
Agent Saeed Moghaddam, of Brisbane Real Estate, said the vendors were happy with the result.
“They bought this land three years ago, and started construction last year, and they were going to move into this property. But they got a job offer down in Sydney, and the offer was too good not to take,” he said.
“The situation gave [the buyer] the opportunity to move on in his life. In his mind, he was convinced that it was the best price he could get in this market.”
Moghaddam said the result shows that despite a struggling market, high-quality properties still did well.
“It still reflects that the Brisbane market is strong for good properties,” he said. “Either properties on the river or with great city views still hold their value even in this market.”
Brisbane’s Comeback: Luxury Homes on Upswing 8 Years After Floods
Prices and interest in prestige properties have remained strong in recent months
Cashed-up Brisbane buyers are showing an increasing appetite for well-positioned premium waterfront properties, making a play for rare parcels of land and luxury homes along the city’s prestigious riverside.
Snaking its way through the Queensland capital city, Brisbane River was subjected to terrible flooding in 2011, which caused widespread and devastating damage to the city’s property market.
Prices dropped immediately between 5% and 10% across Brisbane, according to Australian Property Monitor figures, and the city has since staged a slow and steady recovery.
Several impressive blue-ribbon riverside properties have been listed for sale in the past six months, testing the strength and depth of the market, which has responded positively as buyers savor the choice of high-quality lifestyle properties available.
Real estate agents report they’re receiving multiple offers on prestige waterfront homes priced between A$4 million (US$2.84 million) and A$10 million. However, they’re cautiously optimistic, claiming the competition had led to steady results rather than a spike in prices.
“There’s not enough good quality properties out there,” NGU Real Estate principal Emil Juresic said of current market conditions.
“For those buyers who have A$4 million to A$10 million to spend, there are not enough prestige homes to suit their needs,” he said.
Those requirements, Mr. Juresic said, are specifically for new or renovated homes finished to the highest quality, for which there’s genuine buyer interest.
“The market is solid, it’s not going up or down … making it the best market for buyer and seller,” he said.
“Quality sells,” Mr. Juresic said. “If you’re a seller, don’t bother putting your house on the market unless it’s in a perfect condition because buyers in that price range don’t want to renovate or do anything to it. Make it perfect because you’ll get your money back or make a dollar on top.”
Brisbane doctors, husband and wife Chris and Tania Bradshaw, are asking A$11 million for Nareke, their waterfront home at Highgate Hill, 2.5 kilometers southwest of Brisbane’s central business district.
The three-level mansion was built in 1996 by the previous owner, who wanted to pay homage to Brisbane’s colonial architecture with its elaborate fretwork and wraparound verandas.
Occupying 60 meters of Brisbane river frontage, with a private jetty and boatshed, Mr. Bradshaw considers the home a value proposition for someone wanting to buy prestige waterfront.
“I honestly believe we’re selling it for about a third of what it’s worth,” he said.
“Taking into account the construction cost and land value, it comes to about three times the asking price. It’s a really good buy for somebody,” he continued.
Brisbane’s housing market has shown modest growth in the past five years, with median house values up 0.4% in the year to December 2018, figures from data provider CoreLogic show.
Brisbane’s dwelling values in 2016 and 2017 increased 1.6% and 1.8% respectively, weighed down by a glut of new apartments on the market.
In contrast, the residential housing markets of Sydney and Melbourne increased 18.4% and 13.1% respectively in the 12 months before prices peaked in 2017. Australia’s two biggest markets have since become the country’s softest markets, suffering double-digit price falls in the past year according to CoreLogic, with median house values at their lowest levels in three years.
A week before its expression of interest campaign ended on April 4, Sarah Hackett, principal of Place Estate Agents in Bulimba, sold a home on Wendell Street in Norman Park for A$6 million on behalf of the owner, Brisbane developer Tim Forrester. It last traded in March 2013 for A$3.9 million.
She said the exceptional standard of the renovation, along with its premium waterfront position and stunning city skyline views, had attracted three offers from Brisbane-based families.
“For good quality properties there are still multiple offers happening, which is a really good sign,” Ms. Hackett said.
“The empty-nester market is looking to move to areas that offer them a lifestyle connection to the water, cafes and a good quality home,” she said.“The other buyer market are families where both mum and dad are working and they have no time, so they want to be able to walk into a house that is fully done and requires no work.”
Balaam, an ultra-modern eight-bedroom home for sale on Harbour Road in Hamilton, was to test both the depth and growth in the prestige market when it went to auction in March.
However its failure to sell under the hammer hasn’t knocked the confidence of selling agent Ray White New Farm principal Matt Lancashire, who believes the three-level home, which occupies a 48.3 meter stretch of the Brisbane River, will set a new price record for the area. It last traded for A$11.8 million in 2015.
Mr. Lancashire has fielded genuine interest from five parties and his confidence was buoyed further by the success of an earlier auction in March when a waterfront mansion on Griffith Street in New Farm sold for A$7.75 million. It attracted competitive bidding from eight registered parties, selling during post-auction negotiations.
Prospective buyers interested in luxury waterfront homes are a mix of Brisbane-based locals trading up and interstate migrants, relocating to what is colloquially referred to as “the Sunshine State” for work and lifestyle.
The Australian Bureau of Statistics data show over the past decade, Queensland’s interstate migration grew by an average net figure of 11,000 people per year. It’s this figure real estate experts believe will underpin Brisbane’s forecast of moderate price growth in 2019.
“Anecdotal evidence from our agents suggests that we are seeing property buyers moving here from interstate, lured by the greater bang-for-buck proposition that is presented by our real estate,” REIQ chief executive officer Antonia Mercorella said.
“Quite simply, your real estate dollar goes further in Queensland,” she said.
Mr. Hackett said her average buyer in 2018 was 60 years old and spent A$4.1 million. This year, amid the calls she’s receiving from retirees are eager younger families from Sydney and Melbourne.
“We are dealing with two families a week who are moving back to Brisbane for cost of living and lifestyle,” she said.
“On average, they have $2 million to $3 million to spend. Brisbane is becoming a big city, a new restaurant is opening each week and there’s a lot of new development and that’s driving property,” she said.
Mr. Juresic, too, has found half his prestige buyers are Brisbane locals while the rest are coming from interstate or overseas.
“It’s an extremely liveable city at the moment,” he said of Brisbane.
“It’s not a little village anymore,” he added. “A lot of people might sell a house in Melbourne’s Toorak for A$12 million to A$14 million and they can buy a house in Brisbane that’s probably better and closer to the city for A$4 million to $5 million.”
Why more families than ever are quitting Sydney and leaving for Brisbane
Sydney siders are looking to buy property in southeast Queensland more than anywhere else in Australia, new data shows.
Exclusive research from Domain into out-of-area inquiries made by people living in Sydney has revealed that, last year, more than 50 per cent were looking at buying property in Queensland.
That’s up 5 per cent on 2017 inquiries and, so far this year, that figure is increasing again.
The highest proportion of those inquiries was to Brisbane (21.5 per cent), followed by the Gold Coast (15.3 per cent).
Only 25.7 per cent of Sydney buying inquiries were made to Victoria and, moreover, that figure has been falling since 2017.
It’s in line with ABS figures released last week, which showed the top three areas with the biggest flow of interstate migration.
Brisbane had the most by far, followed by the Gold Coast, Sunshine Coast and then Melbourne – while Sydney had a net loss of -27,300.
Domain data scientist Eliza Owen said the figures pinpointed exactly where the growing interest was in Queensland.
“We can track where those inquiries are increasing and decreasing, and can see that the portion of people looking to buy in Queensland has increased over time and overtaken Victoria,” she said.
“The Gold Coast in particular has had strong growth over the past couple of years and we can see the increase in inquiries has grown at quite significant levels and is continuing well into this year.”
Kristi and Lance Burrows were happily renting a small townhouse in Mona Vale, in Sydney’s northern beaches, when Lance was offered a job in Brisbane last year.
“We originally turned it down because I was heavily pregnant with our second child but then we toyed with it a bit more … the lifestyle in terms of being right in the middle of Byron Bay, Noosa — and the property market, we could buy somewhere, which was a massive incentive,” Ms Burrows said.
The couple took a leap of faith and moved with their two small children, Kingston and Ruby, and settled in Balmoral, in Brisbane’s exclusive inner east.
After renting for a few months, they purchased a two-bedroom weatherboard cottage on 430 square metres of land — and plans are already in motion for an extension that will bring the footprint to four bedrooms, two bathrooms and a pool.
Mr Burrows, general manager at Howard Smith Wharves, catches the ferry to work every day and Kristi has just started a part-time job two days a week.
Achieving the equivalent in Sydney would have been a pipe dream, Ms Burrows said.
“If we were still in Sydney? We would have still been renting. For us to purchase in the northern beaches we would have had to put another $1 million in front of what we paid here,” she said.
“For us to buy in Sydney I would’ve had to work full-time and for a good five years with both our wages to save for a deposit. So the reach was really far; it was not something we could’ve realistically done.
“I had a friend who spent just under $1 million for a teeny townhouse in Narrabeen. We bought a free-standing house for well under that, and even after we renovate we will have only spent the same — and we’ll have four-bedroom home with a pool, four or five kilometres from the city. That’s why we’re still here.”
Demographer Mark McCrindle said it was clear that people were looking for alternatives to the cost of living, the congestion and the sheer size of the city.
“Sydney, while Australia’s largest and most global city, is losing numbers and the data shows it’s those in western Sydney that are more likely to move,” he said.
“Those southwest areas — Parramatta, even the inner west — that’s where the biggest exodus is coming from. It’s those who are the furthest out with the worst commutes who are questioning a lifestyle change.
“The buy data is fascinating — it’s a little more aspirational. They’re dreaming about their ideal new life and it’s all a story of southeast Queensland.”
Meighan Hetherington, director and buyers agent at Property Pursuit, said she saw two key groups of Sydney buyers in Brisbane.
“One of these groups is the buyers who want a lifestyle change and that mortgage relief,” she said.
“They’re selling out of their Sydney asset and looking for mortgage-free purchases, which allows them to step out of that corporate lifestyle, step back from working 60 to 80 hours a week to come back and focus on spending more time with family.”
The main other type of Sydney buyer was investors with a budget of $800,000 to $1 million, Ms Hetherington said.
“They’re sophisticated investors with a plan to invest in high-quality assets in Brisbane,” she said.
“They’re not the entry-level investors who we saw buying up cheap properties around Logan, Ipswich and Stafford around 2016 — a lot of these investors are buying in Brisbane on the advice of financial planners who have identified Brisbane as having a stable economic base and that steadier growth over the long term.”
She said they’re making conscious decisions to buy properties where the land value content is high.
“They’re buying in more of the key suburbs like Paddington, Wilston, Grange, Balmoral, Red Hill, and because of that, rental income or yield is a low priority,” she said.
“They’re focused on capital gains, so they want to buy low-density, entry-level character cottages on good land.”
Shannon Harvey of Place Estate Agents Bulimba sold the Burrows’ their Balmoral home and said it was more than just cheap housing that was drawing Sydneysiders to Brisbane.
“They can see the value and yes, Sydney isn’t performing well but there is more to it than that,” she said.
“Brisbane has become a really dynamic place to live, there’s a lot of infrastructure going on and there’s work here. It’s the lifestyle.
“Bulimba State School had 25 new families join the school from interstate this year. I mean, it’s huge. People from Sydney love this area because it’s on the river, it’s got the original cafe strip culture and it’s tight-knit.”
Ms Burrows said there were certainly things she and her husband missed about Sydney.
“We miss the beach being so close, like on our doorstep. We were pretty spoilt with where we could go from where we lived. That’s the biggest miss for us, being by the water,” she said.
“And having our friends close by as well. That said, everyone is so busy in Sydney. We miss our friends but how often would we have seen them?”
Mr McCrindle said despite the negative flow away from Sydney to interstate locations like southeast Queensland, it was still Australia’s global city.
“People haven’t quit on Sydney. It’s still Australia’s economic gateway — but it’s almost a victim of its own success,” he said.
“We’ve had a fair bit of catch up on infrastructure the past five years and it will take another 15 to get there but if we fast forward another couple of decades, we’ll see Sydney shine again.
“With that international brand and a nation-leading economy, it will get back there.”
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