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Brisbane’s median house price tipped to hit $2.24m by 2043

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Brisbane’s median house price tipped to hit $2.24m by 2043

BRISBANE’S median house price is tipped to hit $2.24 million by 2043 after growing more than 300 per cent in the past 25 years.

Paul Leaver and his sister, Narelle Rodenbush, at their family home, which they are selling for the first time since 1948. Image: AAP/John Gass.Source:News Limited

BRISBANE’S median house price is tipped to hit $2.24 million by 2043, if property values continue to rise at the same rate as they have in the past 25 years.

New research by CoreLogic and Aussie Home Loans reveals the Queensland capital’s median house value has increased by $16,290 per annum or more than 300 per cent overall in the past quarter of a century to sit at $535,292.

It’s hard to believe, but in 1993, the average price of a house in Brisbane was just $128,000.

Brisbane’s median house price tipped to hit $2.24m by 2043

A new report reveals Brisbane’s median house value has risen more than 300 per cent in 25 years.Source:istock

The report also reveals the best performing suburbs for price growth over the past

25 years, based on the change in median prices between 1993 and 2018.

The Brisbane riverside suburb of Bulimba has experienced the greatest capital gains growth in the past 25 years, with house values rising a whopping 876 per cent between 1993 and 2018.

A quarter of a century ago, you could buy a house in the now exclusive, riverside suburb for an average price of just $133,000, but now it has a median house price of $1.3 million.

New Farm has seen the next biggest gains, recording an 852 per cent jump in house values in 25 years followed by Hawthorne, which experienced an increase in its median house price of 672 per cent to $1.15 million during that period.

Brisbane’s median house price tipped to hit $2.24m by 2043

This house at 38 Mark St, New Farm, is for sale for the first time since 1981.Source:Supplied

On the Sunshine Coast, Mudjimba’s median house value has increased the most in 25 years, rising 656 per cent to $724,500.

Dicky Beach and Sunshine Beach have experienced similar gains in house prices.

On the Gold Coast, Mermaid Beach topped the list, with a 700 per cent rise in house values in the past quarter of a century.

The median house value in the suburb has risen from $195,000 in 1993 to $1.56 million today.

Paradise Point, Coolangatta and Burleigh Heads have also experienced strong capital gains in that period.

Brisbane’s median house price tipped to hit $2.24m by 2043

House values in Mermaid Beach have risen 700 per cent in the past 25 years.Source:Supplied

CoreLogic pointed out the extrapolations did not take into account how economic and demographic conditions might play out over the next 25 years or how housing demand and supply may evolve.

Aussie Home Loans chief executive James Symond said he expected Brisbane to perform well over the long term, given house values grew more than 10 per cent per annum between 2001 and 2004.

“Perhaps the greatest change we are seeing is Brisbane’s growth in higher density housing, with the share of apartment sales to all residential property sales growing from 19.4 per cent to 30.2 per cent over the past 25 years,” Mr Symond said.

“I expect this trend to continue as apartment living grows in popularity across Brisbane, where a larger proportion of the population will choose to live closer to the CBD and transport corridors.”

Brisbane’s median house price tipped to hit $2.24m by 2043

Paul Leaver and his sister, Narelle Rodenbush, at their family home, which they are selling for the first time since 1948. Image: AAP/John Gass.Source:News Limited

But affordability remains a problem, with buyers in Brisbane now needing to dedicate 119.5 per cent of their annual gross income to raise a 20 per cent deposit.

Brisbane’s Paul Leaver is selling his family home in Paddington for the first time in 70 years.

The four-bedroom house at 96 Beck Street was bought by his grandparents in 1948 for just 575 pounds, which is equivalent in value to $34,750 today, and paid it off in just three years.

“How good would it be to pay off a house in three years now?!” Mr Leaver said.

The house next door at 94 Beck Street recently sold for 15 times what it was bought for 30 years ago.

He remembers growing up in the home with his three brothers and sisters and wishing he lived further out of town because it wasn’t regarded as a desirable area more than 25 years ago.

“We always wished we had a bigger yard,” he said.

Brisbane’s median house price tipped to hit $2.24m by 2043

This house at 96 Beck St, Paddington, is for sale for the first time since the 1930s.Source:Supplied

Selling agent Daniel Argent of Urban Property Agents said he was not surprised the median house value in Paddington had jumped more than 500 per cent in the past quarter of a century.

“It’s a big number but I’m not surprised given the shift in people’s behaviour,” Mr Argent said.

“Twenty-five years ago, the inner city wasn’t a sought-after place to live — it was a real working class area and the richer people lived further out.

“There’s definitely been a major shift towards people living closer to the city.”

Mr Argent said he expected the suburb to continue to experience house price growth due to strong interstate demand.

BRISBANE SUBURBS WITH THE STRONGEST CAPITAL GAINS IN 25 YEARS

Suburb Median price 1993 Median price 2018 Change in median price in 25 years

Bulimba $133,000 $1.2975m 876%

New Farm $181,125 $1.725m 852%

Hawthorne $149,000 $1.15m 672%

Seven Hills $130,000 $920,000 608%

Grange $135,000 $942,500 598%

Camp Hill $130,000 $899,000 592%

Paddington $160,000 $1.1055m 591%

Hamilton $189,000 $1.3m 588%

West End $153,025 $1.048m 585%

Norman Park $135,000 $915,000 578%

(Source: CoreLogic, Aussie Home Loans)

Source: www.news.com.au

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Couple turns $145k into $7.5m

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Couple turns $145k into $7.5m

The massive 1.97Ha site of their family home sits in the middle of Wakerley, about 16km to the east of the Brisbane CBD – a popular area with families that’s been targeted for major subdivision work.

Property records released last week show a $7.5m deal was struck off market in late March, while just two years ago, the site was valued around $1.1m. It’s believed the property was bought for $145,000 in 1987.

Preparation for the development approval began last year, with the couple then selling to a firm that then filed a development application to split the site into 27 housing lots in the first stage and five lots in the second stage.

Couple turns $145k into $7.5m
The new subdivision is expected to connect other streets in the area surrounding it. Picture: CoreLogic

The large “rural” home site was surrounded by residential subdivisions on three sides and fronts Manly Road – one of the main feeder streets to the area. The new plans mean it will join seamless into the other subdivisions in the area.

The company that bought the site received development approval from the Brisbane City Council in May and waived the appeal period.

Couple turns $145k into $7.5m
114 Virginia Ave, Hawthorne, QLD.

The previous highest price fetched in Brisbane’s east was at 114 Virginia Avenue, Hawthorne – an ultra-modern six bedroom, five bathroom, six car space home that sold for $7.48m in six years ago.

Built in 2008, the Viriginia Avenue home has solid concrete walls and floors over all levels, with full walls of glass fronting the river.

114 Virginia Ave, Hawthorne, QLD.

Source: www.sunshinecoastdaily.com.au

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Metro Property’s discounts leftover Brisbane apartments

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Metro Property's discounts leftover Brisbane apartments

Want a bargain? Metro’s Newstead Towers in Brisbane has 20 per cent discounts. Supplied

Real estate agents are offering 20 per cent discounts on apartment sales at four of Brisbane-based developer Metro Property Development’s Brisbane CBD projects as the apartment market continues to face headwinds.

Along with 20 per cent discounts on one and two-bedroom apartments, buyers were being offered a 4.5 per cent rental one-year guarantee at Aqua Newstead, Broadway on Ann, Canterbury Towers, and Newstead Towers. These apply to apartments priced between low $400,000 to nearly $600,000.

The oversupply problem in Brisbane is heating up, with the Queensland Treasury now warning its apartment market could take a turn for the worse, especially if the bigger Sydney and Melbourne markets begin to falter.

But Metro said the discounts applied only to residual stock, not entire projects or launch prices, with residual discounting being part of a business-as-usual stock clearance.

“We are not discounting [the original prices of] apartments in Brisbane, but rather managing an orderly sell down of any remaining stock we have,” Metro marketing and sales general manager Phil Leahy said.

“The heat has certainly come out of the Brisbane market from where it was a couple of years ago, but we see it as just back to normal market conditions with good buying opportunities and plenty of growth potential in the coming years to buyers entering the market now.

“We have already secured buyers for the four buildings and are in the run up to settling the last of these units over the next couple of months.”

He said discounts were sometimes offered by agents on their own accord, hoping developers would accept the lower prices.

“We see this all the time, however I can confirm there is no discounting to our [original] price lists and we have been successful in maintaining pricing levels thanks to the locations, amenity, inclusions and designs offered in the apartment projects we have been selling,” Mr Leahy said.

Discounts aside, a 4.5 per cent rental guarantee was reasonable and agrees with SQM Research’s data which show the latest rental yield for two-bedroom units in Brisbane was close to 5 per cent.

“We are taking an average of 18 days from handover to secure a tenant via our in-house rental team. Given this strong demand, we do offer a one-year rent guarantee to investors,” Mr Leahy added.

“We are having excellent success getting investors from both Melbourne and Sydney to look at Brisbane as a more affordable investment option than the other wo capitals vis-à-vis lower purchase prices with high rental yields.”

Source: www.afr.com

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Analysis: Brisbane’s backyards emerge victorious over townhouses but for how long?

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Analysis: Brisbane’s backyards emerge victorious over townhouses but for how long?

Three years ago, Madonna King wrote that Brisbane was “at risk of becoming downright ugly”.

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