A recent real estate advertisement revealed what some might call the bargain of a lifetime — a northern Brisbane apartment selling for almost 40 per cent below its 2010 purchase price.
The two-bedroom unit in Chermside is what property analyst firm SQM Research call a “distressed property”— bought for $522,000 and now on the market for $315,000.
In a more buoyant market, it might be enough to attract a long list of eager buyers, but with a rental vacancy rate of 3.3 per cent in Chermside the apartment has proven far from an easy sell.
SQM Research managing director Louis Christopher said large price falls have become the new norm for Brisbane apartment owners looking to sell in a saturated market.
“We have seen some heavy discounting before, but this is probably one of the biggest ones I’ve ever actually seen,” he said.
“It’s fair to say this is not normal in the market. Nevertheless, there has been an oversupply of properties — we see it through the rental market in the Brisbane CBD where we are recording rental vacancy rates of 5 per cent.
“We are noticing the vacancies in Brisbane are still elevated in the CBD and in the inner city market, whereas in the outer regions of Brisbane, we are recording tighter vacancy rates.”
Worst could be over, expert says
Mr Christopher said homeowners and investors might see their fortunes improving in coming months, as SQM data showed vacancy rates had been falling for the past four months.
“We noted the overall Brisbane rental vacancy rate is now at 3 per cent and has actually been dropping,” he said.
“There’s a chance now that the worst may actually be over when it comes to property investors in the rental market.”
PHOTO: Inner-city apartment vacancy rates remain high, Mr Christopher said. (ABC News: Isobel Roe)
Queensland population growing steadily
Australian Bureau of Statistics (ABS) data also suggested the state was enjoying steady population growth.
Marking the birth of the 5 millionth Queenslander yesterday, Premier Annastacia Palaszczuk said the two main drivers of the population increase were migration growth, particularly from New South Wales, and from 60,000 babies being born in the past year.
PHOTO: Is this Queensland’s 5 millionth person? Cordy Kerr-Kennedy was born yesterday in Townsville.(ABC News: Mark Jeffery)
“Overseas and interstate migration is up by 50,000 people in the past year, 19,000 came from interstate … more than 12,000, or 230 a week move from New South Wales to Queensland,” she said.
Mr Christopher said property oversupply was a problem mostly localised to Brisbane, with surrounding Queensland regions and other states recording much tighter vacancy rates.
ABS data also revealed the fastest and largest-growing area in Queensland in 2016-17 was Pimpama on the Gold Coast, which grew by 3,000 people.
Large growth also occurred in Jimboomba on Brisbane’s south side and in North Lakes — a suburb north of the city — which both increased by 2,100 people.
“On the Gold Coast, we’ve been recording vacancy rates well under 2 per cent and on the Sunshine Coast, the vacancy rate is once again under 2 per cent, strongly suggesting it’s been a landlord’s market in those two regions,” he said.
“When I look at the three main capital cities — Melbourne, Sydney and Brisbane — Brisbane has suffered the most in terms of an oversupply of units.
“Brisbane’s population growth rate has been falling behind Sydney and Melbourne and because of that, it hasn’t been able to absorb the surplus stock that’s been built, hence the reason why we’ve seen higher vacancy rates compared to Melbourne and Sydney.”
Would you pay $1.3million for this? Hoarder house filled with 100 cubic metres of junk sells for 60 times its original value after an incredible clean out and transformation
- An inner-city hoarders home has sold for 60 times its original purchase price
- Original owners had lived there for 45 years, purchasing it for just $22,000
- It took five people ten days to move 100 cubic metres of junk from the property
An inner-city hoarder’s house called ‘the worst house on the best street’ has sold for almost 60 times its original purchase price.
The property located in New Farm, a riverside inner suburb of Brisbane, sold for a whopping $1.3million at an auction on Saturday.
The original owners had lived in the property for almost 50 years, with the house last selling for $22,000 in 1973, realestate.com.au reported.
It had taken five people about ten days to move almost 100 cubic metres of junk from the premises prior to the auction.
The property’s original owners had lived in the property for more than 45 years and it took five people about ten days to move almost 100 cubic metres of junk from the premises
The property (pictured) located in New Farm, a riverside inner suburb of Brisbane, sold for a whopping $1.3million at auction on Friday, compared to selling for just $22,000 in 1973
The two-storey house, located at 140 Annie Street, pulled in more than 40 spectators including nine registered bidders.
A bidding war between interested parties saw the price hit quickly pass the seven figure mark.
Belle Property auctioneer Paul Liddy said prior to the auction he had expected the property to reach more than $1 million, describing the property as a ‘unicorn’.
‘Underneath the years of accumulated stuff, the home revealed the lovely bones as the ultimate renovator’s dream,’ Mr Liddy had told the Courier Mail.
‘I’ve only seen a handful of hoarder homes in my career, and this is the first that has blown me away with the gold we have uncovered underneath all the junk,’ he said.
Incredible photos from before its stunning transformation had showed rooms filled to the brim with junk.
‘I’ve only seen a handful of hoarder homes in my career, and this is the first that has blown me away with the gold we have uncovered underneath all the junk,’ Belle Property auctioneer Paul Liddy had said
After nine bids, and auction attendees spilling out onto the street, the house was sold under the hammer for $1.3 million
Photos after the mess had been cleared revealed an almost unrecognisable home which has further potential with more renovations.
But as the property is heritage listed, the new buyers will not be able to demolish it.
Mr Liddy said the sellers, who inherited the property, were ecstatic with the result and revealed that although they were emotional due to the house’s history, the price exceeded their expectations.
He said the buyers were a young couple not originally from Queensland, who were keen to turn it into their family home.
The most popular suburbs in Brisbane for Chinese property buyers
CHINESE buyers losing faith in their own property market are looking to Brisbane for a safer investment — and they have expensive taste. WHICH SUBURBS ARE THE MOST POPULAR?
The research by Chinese international real estate website, Juwai.com, shows Kangaroo Point had the highest number of inquiries from Chinese investors in the first half of 2018, followed by Newstead, Sunnybank, South Brisbane, Indooroopilly and Ascot.
That’s in contrast to Chinese demand for property in Brisbane in the first half of 2017 when the outer suburbs of Calamvale, Park Ridge and Rochedale were the most popular.
Juwai.com chief executive Carrie Law said the top suburbs list revealed the importance of new development, education, and convenience to Chinese buyers.
“Brisbane is attractive due to its easy lifestyle, beautiful water views, and quality English language educational institutions,’ Ms Law said.
“If you have a moderate, high-rise apartment in Brisbane, you can generally snap a beautiful selfie at the window or on the balcony with gorgeous water or district views in the background to show off to your friends at home in China.”
Ms Law said suburbs with new developments or large numbers of new house and land packages for sale were also in demand.
“Because of foreign investment rules, offshore buyers are pushed into new property to support the construction of new housing,” she said.
“It is a revelation for Chinese buyers that they can obtain a new house on its own land in Brisbane for about half the price of an inner-city apartment in Shanghai or Beijing.”
Last week, protesters ransacked a number of new apartment sales offices in China angry their investments were being sold for much less than they paid for them.
The unrest is a further sign China’s property market is beginning to cool, prompting investors to turn to places like Brisbane.
“Brisbane feels like a safe, desirable place to live,” Ms Law said.
“It often starts with a property purchase for sending a child to study or work in Brisbane. “Over time that can lead to additional investments, starting local businesses, and eventually the whole family moving to live in Brisbane.
“These buyers look for established homes with land and relatively new or like-new construction in areas with good schools for proximity to good private schools or universities.”
Brisbane is the third most popular city in Australia among Chinese property buyers.
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It ranks just below Melbourne and Sydney and just above Adelaide and the Gold Coast.
Chinese buyer demand for Australian property remains strong, increasing 10.1 per cent in the first quarter of 2018 and 4.4 per cent in the second.
But it’s a more sustainable growth rate than what the country experienced in 2016 when there was a massive run-up in Chinese demand for Australian property.
Zhen Luo and his fiancee, Yihan Lin, have just bought their first home in Sunnybank Hills, which is one of the most popular in Brisbane among Chinese buyers.
The couple from China had been looking for about six months, but eventually settled on a townhouse in the suburb with the help of Belle Property Calamvale.
Mr Luo said he thought Australia, particularly Brisbane, was a safer place to invest in property than China at the moment.
He said Sunnybank Hills was attractive because of its convenience, its proximity to shopping centres and the fact it was within the Sunnybank Hills State School catchment.
In Bardon — one of Brisbane’s most desirable suburbs — one of two architect-designed homes dubbed the Minka Twins has just sold for $1.888 million — 8 being the luckiest number in Chinese numerology.
Sold to an Asian family, the house is one of two still under construction in the suburb.
Marketing agent Di Anderson of Position Property said the new owners had two young children attending Brisbane Grammar, and were keen on securing a home that would
suit Brisbane’s subtropical climate.
“They were keen to purchase prior to completion to ensure they secured the property,” Ms Anderson said.
“As a result, the developer agreed to a small discount for buying during construction.”
TOP BRISBANE SUBURBS FOR CHINESE BUYERS IN H1 2018
1. Kangaroo Point
4. South Brisbane/West End
7. Sunnybank Hills
8. St Lucia
(Source: Juwai.com, ranked by number of purchasing inquiries)
TOP BRISBANE SUBURBS FOR CHINESE BUYERS IN H1 2017
1. Fortitude Valley
5. Park Ridge
7. East Brisbane
8. Russell Island
(Source: Juwai.com, ranked by number of purchasing inquiries)
Originally published as Chinese buyers look to Brisbane
Healthy Brisbane full list: Brisbane’s suburbs rated by health opportunities
The Domain Healthy Brisbane study, authored by Deloitte Access Economics and Tract Consultants, compares 260 Greater Brisbane suburbs across 10 indicators that either help or hinder residents from leading a healthy lifestyle.
These include walkability, access to fresh food, proximity to hospitals and allied health facilities as well as hindrance factors like density of fast food and liquor stores.
Based on the scores across these indicators, each suburb was given a rating out of five stars. It’s important to note the study is about place, not people – it is designed to increase understanding of the opportunities suburbs provide residents to live a healthy lifestyle.
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