Brisbane’s median house price has increased to $668,000, showing positive property growth amid a declining national market, new figures show.
As house prices in Australia’s two biggest cities fall deeper into a downturn, the Brisbane local government area is bucking the trend, having recorded 1.2 per cent house price growth over the past 12 months.
The figures for Greater Brisbane showed the annual median house price was up 2.2 per cent across the five LGAs, which include Brisbane, Ipswich, Redland, Moreton Bay and Logan, although it recorded a 0.4 per cent drop over the quarter.
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“Nationally, [the] downturn has been aided by the tightening of credit by the banks following regulatory intervention and a bruising royal commission,” she said.
“Rising mortgage rates, tighter credit conditions and reduced borrowing power have impacted all capital cities to a varied degree.
Capital city median house prices – September quarter
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“Comparatively, Brisbane is performing well,” she said. “Interstate migration has hit a decade high, helping to propel Brisbane to one of Australia’s fastest growing cities. This will support demand for housing.”
McGrath Paddington agent Reuben Packer-Hill said while tighter lending criteria had affected some buyers, Brisbane’s western suburbs had performed exceptionally well in the past 12 months.
“Chapel Hill has shown 8.9 per cent growth year on year. As a micro market, we are bucking the trend and that’s because there’s a shortage of stock and a lot of competition,” he said.
“But I think it’s important to understand that in the outer fringe, in suburbs like Kenmore, Chapel Hill and into the Centenary suburbs, they’re probably not as exposed to the ups and downs and changes in the market because it’s such a strong family demographic. Families still need houses to live.”
Mr Packer-Hill recently sold 32 Burdekin Drive, Sinnamon Park, in only three weeks for $2.5 million, setting a residential record price for the suburb. He said it was indicative of the demand for property, particularly at the prestige level, in the area.
“Tightened lending criteria is certainly affecting some buyers and I’m seeing an extension of finance clauses but the fundamentals are that quality stock is always in demand — and in this part of Brisbane, there’s not enough supply,” he said.
“The wonderful thing about the Brisbane market is because we don’t go through the huge growth, we’re not exposed to the same downturns. That’s why people take confidence investing here.”
However, economists said it was important to recognise Brisbane’s growth for what it was — positive, but minimal — and not the beginnings of a boom.
“There was a case to be made for Brisbane when Sydney was booming — that we would see Brisbane house prices also move up — but the time for it seems to have dated,” said AMP chief economist Shane Oliver.
“The main reason I’ve become less optimistic is the credit. The problem of the tightening in credit standards will impact buyers in Queensland as much as NSW and Victoria.
“On the one hand you could say Brisbane’s strengthening population is a positive and affordability is always a positive, but the main dampener is the credit cycle. It has got us less optimistic. I would see the one per cent growth continuing.”
NAB group chief economist Alan Oster said while Brisbane was performing well relative to Sydney and Melbourne, the bank’s forecast for Brisbane was very conservative.
“Our forecast for Brisbane is pretty much flat,” he said. “Next year, our forecast for Brisbane is 0.0 per cent.
“Performance can vary [from] postcode to postcode … but broadly Brisbane is going sideways.”
Space Property agent Judi O’Dea said lending conditions had had a small impact in Brisbane’s inner city suburbs but not enough to take the shine off the city’s prospects.
“There is so much going for Brisbane at the moment, so much new infrastructure and so much happening, it would take more than that for Brisbane to falter,” she said.
“Brisbane has a stability to it…it just kicks over beautifully. The banks have caused a bit of angst but nothing drastic.
“Our auction clearance rates are steady and I see that continuing. The banks and their lending restrictions will likely ease as they don’t want to cut off their nose to spite their face.
“I’m very confident in the continued stability of our inner city marketplace…there’s a lot of excitement around Brisbane at the moment.”
Brisbane’s unit market remained a concern for economists. The latest Domain figures showed units in the Brisbane LGA fell 3.3 per cent over the September quarter, while in Greater Brisbane they fell by 3.2 per cent over the quarter and 6.2 per cent over the past 12 months.
“I don’t think it’s time for Brisbane units to shine,” said Mr Oster.
“We think they are incredibly overbuilt in the CBD. [Prices] are only slightly down but we don’t think the falls are finished.
“You might like buying there but you wouldn’t be expecting any capital gain anytime soon.”
Dr Powell said while units in Greater Brisbane had dropped in median price significantly, anecdotal evidence suggested that well-built, owner-occupier apartments had fared much better.
“Those type of units will certainly be holding firmer than those solely targeted at the investor,” she said.
“That’s a broad thing that will happen anywhere; it’s always those investor-led markets that are more exposed.”
Smart buys: Brisbane’s best properties under $800,000 for sale right now
Here’s our pick of the best buys in Brisbane and some of its surrounds at the moment — and they’re all under $800,000.
34 Ivy Street, Toowong
With tongue-and-groove floorboards, a cast-iron fireplace begging for love, a sunroom, and a prime position on 405 square metres, this three-bedroom original workers’ cottage is bound to catch eyes of inner-west renovators. No price has been set yet but agent Alex Jordan says as a vacant block on land it would achieve over $600,000.
McGrath, Alex Jordan 0410 424 749
81 Payne Road, The Gap
The rear of this multi-tone brick house surprises. There’s a single-garage-cum-workshop or home office between the double carport and an elevated timber sundeck, and there’s also a pool. It is fully fenced on a 625-square-metre block, and has three bedrooms with a further small room inside that could become a fourth bedroom or study.
Harcourts, Stephen Dangerfield 0412 145 802
48 Bringelly Street, Arana Hills
From its white picket fence to its flat sandpit-friendly backyard, the DNA of this three-bedroom, one-bathroom house is pure family. Set on a flat 607-square-metre block about 20 metres from the local bus stop, Grovely State School is 900 metres away and Arana Hills Plaza, restaurants and cafes are at the end of the street.
Coronis, Jo Dryden 07 3351 5151
19 Allamanda Crescent, Albany Creek
This substantial four-bedroom, double-storey house sits on a 1250-square-metre landscaped block. It has ample room for its pool and double garage, and there is a massive covered entertaining area and both casual and formal living and eating rooms. Two state high schools are located within 2.4 kilometres of the front door.
Style Real Estate, Claire Little 0422 755 171
40 O’Quinn Street, Nudgee Beach
This 54-year-old updated beauty on a double block opposite the beach offers three bedrooms, three bathrooms and 1000 square metres of land. Open-plan living and dining space, plenty of natural light, timber floors, and a second living area with clever built-in bench seating and storage are boons. The rear has a storage shed, two garden sheds and a single garage.
Calio & Scott Real Estate, Carl Calio 0416 145 288
6 Chase Crescent, North Lakes
Worth a look if a first-time home buyer, or investor watching budget-friendly growth areas, this super neat, modern three-bedroom, two-bathroom house also has a double garage. It is set on a low-maintenance and landscaped 486-square-metre block. It also has decent-sized, open-plan living and media rooms.
Hudson Property, Viv Robinson 0407 918 184
50 Windsor Place, Deception Bay
This two-bedroom, one-bathroom cottage on a 397-square-metre corner block has serious update or rebuild potential. Set three blocks west of Moreton Bay and one block to the suburban public primary school, it is liveable as a home or easily rentable with a modern kitchen and fenced backyard. It has a separate sunroom and a single carport.
Ray White, Lydia Robins 0438 166 763
441 Beenleigh Road, Sunnybank
This renovated, four-bedroom, one-bathroom house has parking space for two cars on a 708-square-metre block. The floor plan is open between living, dining and kitchen areas and the metro rail station is about 400 metres away. Its reserve price is unknown as required by Queensland auction laws, but it was found in a search for homes under $800,000.
Auction, June 29, 12.30pm
RE/MAX, Gary Dellios 0411 879 935
4 Parliament Street, Bethania
The federal election is done for 2019, but here is another way to get into Parliament. With three bedrooms and one bathroom, this brick-and-tile house also has a double carport and a double garage. On a flat 758-square-metre block, the back section is contained making for a fine play zone. Neutral timber-look flooring in the kitchen-meals area balances the retro swirl carpet in the living-dining.
LJ Hooker, Trina Wilson 0427 188 500
Cbus Property Plans $600m North Quay Tower
Cbus Property will partner with local Brisbane developer Nielson Properties to deliver a $600 million riverfront commercial building in the city’s CBD.
The 3,000sq m corner site, an amalgamation of 205 North Quay and neighbouring 30 Herschel Street, will now house the city’s latest A-grade commercial building.
The office development, to be known as 205 North Quay, will deliver 50,000sq m of net lettable area.
Cbus Property chief executive Adrian Pozzo said the site was ideal as it takes advantage of Brisbane’s strong economic outlook, employment growth and the state government’s infrastructure investment.
“205 North Quay is a major riverfront CBD site, ideally located to capitalise on the major infrastructure projects nearby such as the recently announced Roma Street Station, Brisbane Metro, Cross River Rail and Brisbane Live,” Pozzo said.
“Queensland’s economic growth also anticipated to continue to outperform the Australian average.”
“We will look to build on these strong economic foundations and our past success with 1 William Street, to deliver a premium and future-focused commercial tower for Brisbane’s CBD in collaboration with our partner, Nielson Properties.”
No stranger to Brisbane CBD’s commercial market, the project follows Cbus Property’s 46-storey “tower of power” at 1 William Street, home to the Queensland government.
The 205 North Quay development will add to the continued regeneration of the burgeoning North Quarter precinct, which will also include Mirvac’s 80 Ann Street tower to be tenanted by Suncorp, Shayher Group’s 300 George Street project and the recently completed W Hotel on George Street.
The development will also be located in Brisbane’s prime commercial district, capitalising on the major infrastructure projects nearby such as the recently announced Roma Street Station, Brisbane Metro, Cross River Rail and Brisbane Live.
“As a local Brisbane developer, we’re excited to be a part of the evolution of the North Quarter as it becomes a vibrant hub bolstered by outstanding connectivity to Brisbane’s CBD and premium infrastructure and amenity,” Nielson Properties director Ross Nielson said.
Cbus and Nielson have commenced preliminary discussions with the Brisbane City Council.
Last week, Brisbane-based Sentinel Property Group snatched up Makerston House, a neighbouring commercial property in Brisbane’s North Quarter precinct from investment management company Challenger for $103 million.
Further along the CBD riverfront, work has also commenced at the $3.6 billion Queens Wharf developed by the Destination Brisbane Consortium, a joint venture led by casino giant Star Entertainment Group, Far East Consortium and Chow Tai Fook Enterprises.
Work is also under way on Brisbane’s newest riverside public space, with the area between the Goodwill Bridge and 1 William Street to be developed into an above-water pedestrian walkway and recreational area called Waterline Park.
‘Why not Hendra?’ The luxury house that is poised to set a new benchmark for this Brisbane suburb
A prestigious new property in Hendra is tipped to break records when it goes under the hammer in a couple of weeks, setting a new benchmark for luxury in the area.
The five-bedroom, four-bathroom house may be located on General Street, but its myriad of bells and whistles means it’s anything but.
With a plethora of top-line features, including travertine tiles, state-of-the-art fixtures and a mosaic-tiled swimming pool, it includes a climate-controlled wine cellar as well as bespoke cabinetry throughout.
Marketing agent Patrick McKinnon of Place Ascot said the house was part of an emerging trend in the suburb towards luxury new builds. The developers behind the home, Innovare Builders, were quickly transforming the standard of Hendra homes project by project, he said.
“They’ve really lifted the benchmark for what’s expected in Hendra and set the tone for the quality that people look for here,” he said.
“This house should a set a record for the area for 405-square-metre non-racecourse property. The records are around the $1 millions and I think this is better than anything else comparable on the market right now.”
While perhaps not as well-known as its prestigious neighbouring suburbs of Ascot and Hamilton, Hendra’s gentrification is well underway, partly due to the redevelopment of Eagle Farm Racecourse.
The 379-square-metre statement home is within an easy canter of the racecourse as well as many cafe precincts.
Orazio D’Arro of Innovare Builders said Hendra’s multitude of attributes made the decision to develop there simple.
“In a nutshell, why not Hendra?” he said.
“We first chose Hendra because it is a gentrified living suburb with wide, tree-lined streets full of traditional and modern character houses and dotted by cafes, boutiques, other community businesses and gorgeous local parklands.”
Mr D’Arro said the design inspiration was Hamptons exterior meets modern European interior.
“Modern life requires thoughtful use of space and automation as well as comfort and this was at the forefront of each and every design and inclusion decision,” he said.
Located within easy commute of the Brisbane Airport as well motorways north and south, the home can be controlled from anywhere in the world via state-of-the-art automation and electrical integration.
“Part of a busy modern family’s lifestyle demands convenience – even while travelling – and the electronic aids offered up here deliver convenience in spades,” Mr D’Arro said.
Other features of the home include a rear patio designed for al fresco dining and summer barbecues, with a built-in, custom outdoor kitchen that features a barbecue and beverage centre.
The home also boasts an in-ground swimming pool lined with mosaic tiling and a manicured, drought-resistant lawn with landscaped gardens.
The property is located at 6 General Street, Hendra, and will go to auction on Saturday, June 22.
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