Brisbane house prices have fallen more than units this quarter but, as a capital city, it’s holding up better than most, new data shows.
At first glance, Domain’s latest quarterly house price report makes for sombre reading — houses are down 1.2 per cent and units down by one per cent — but given some context, Brisbane’s housing market is performing relatively well.
Year-on-year, houses in the Brisbane LGA are still up 1.8 per cent; a strong result compared with Sydney, which recorded the largest annual fall in house prices (-4.5 per cent) since 2008.
Melbourne house prices are down 1.8 per cent this quarter, while over the year it’s seen a marginal price increase of 0.5 per cent, representing the slowest annual rate of growth since 2012.
House prices in Greater Brisbane, which includes Brisbane, Ipswich, Redland, Moreton Bay and Logan LGAs, have performed better as a whole than Brisbane LGA itself, rising by 2 per cent over the past 12 months. In five years, Greater Brisbane house prices have grown by 26.8 per cent.
Domain Group data scientist Nicola Powell stressed that Brisbane’s negative house price result this quarter was not a sign of things to come.
“This negative movement for the city of Brisbane is more down to normal seasonal slowdowns at this time of the year,” she said.
“Overall, Brisbane’s growth is what I’d call modest. The thing that Brisbane has going for it is that it has avoided that east coast price surge.
“Nationally we’re seeing house prices go down in nearly every capital city in Australia but in Brisbane, it’s almost the best in a negative market — and the population growth coming from interstate migration will act as a buffer to that downturn … that’s a good thing for Brisbane’s house prices moving forward.”
A recent residential property survey carried out by NAB revealed property professionals believed Queensland’s housing market would lead the country for capital growth over the next one to two years — but by “leading the country”, they did not mean Brisbane’s house prices would flourish.
On the contrary, they scaled back their predictions, forecasting Brisbane’s house prices would rise by only 0.1 per cent this year and not move at all next year.
NAB Group chief economist Alan Oster said Brisbane’s housing market was unlikely to boom in the next couple of years.
“We see the housing market as flat and I see that continuing for the next couple of years. That’s the big picture,” he said.
“If people are arguing Brisbane is where everyone is going to go next, well, they’re not — they’re all in Hobart.”
However Mr Oster said Brisbane’s steady housing market was not a cause for concern and just “part of the normal cycle”.
“One of the things that tends to get lost — prices may not be booming but if you look at Brisbane, prices are 11 per cent higher than they were three years ago. You need a bit of context,” he said.
“You shouldn’t expect house prices to go up forever.”
The Domain report also showed Brisbane LGA units dropped 3.2 per cent in the past 12 months but Ms Powell said the rate of decline had slowed.
“What we’re seeing in the unit market is that it’s working its way to balancing out,” she said.
“It’s taking a while for that to occur but advertised stock is declining. We will see a relative balance because Brisbane has that population growth increasing.”
Unit values in Greater Brisbane continued to decline, dropping 6.4 per cent over the past 12 months. They are now back to prices seen in early 2014, following four consecutive quarters of decline.
Mr Oster said units were still a “worry” for NAB.
“Not all units are performing badly but I think the broader unit market hides some problems in specific markets,” he said.
“The Brisbane postcode says to us that houses are fine but apartments are not fine … our forecast is we don’t see apartment’s improving in 2018 or 2019 … or in 2020 either.”
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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