“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.
BRISBANE’S property market continues to fire with almost a dozen suburbs hitting double digit price growth in the past 12 months.
The median house price in the Brisbane local government area rose to a record $670,000 in the March quarter, up 3.1 per cent on the previous year.
But there were plenty of suburbs – 68 – which far exceeded that level of growth.
The best performer in the past 12 months according to the Real Estate Institute of Queensland’s latest Market Monitor was Indooroopilly where the median house price increased by 24.1 per cent to $1.01 million.
The best performer in the March quarter was Paddington where the median house price rose 19.8 per cent to $1,269,500.
Judi O’Dea of Space Property Agents, said the suburb had really come into its own in the past couple of years and she predicted continued strong price growth.
She said a lot of money had been spent on renovating homes in the suburb in the past two years and that was now paying dividends.
Many parts of Paddington had city views and contemporary houses, but a lot of the attraction was the community feel and closeness to the city.
Paul Lomas and his family moved to Paddington 11 years ago and bought their current house at 36 Kennedy Tce, three years ago.
They have listed the house for sale, but Mr Lomas said they would definitely stay in the area.
“We moved to Australia 11 years ago and we came straight to Paddington because it was close to the city and we have been here ever since,’’ he said.
“It is safe, I think the most important thing for us is it safe, considering it is so close to the city, you don’t really have any problems here at all.
“It is a really great family, friendly area that is so close to the city you could actually walk to town if you wanted to.’’
Mr Lomas said he had noticed that properties were selling well in the suburb lately.
“This is a booming market everybody wants to be here,’’ he said.
The figures showed that Brisbane now had 18 suburbs with a median house price of $1m or more, with Teneriffe the highest at $2.325 million.
With few houses in that inner city suburbs, it has recorded a number of significant sales including a five-bedroom house at 32 Teneriffe Drive, which sold at auction last weekend for $4,405,000.
Outside of Brisbane coastal markets continued their strong run with the Sunshine Coast in particularly continuing to fire.
Minyama chalked up the highest median house price rise in Queensland for the year, with the median up 43.9 per cent to $1.275 million
On the Gold Coast, Tallebudgera Valley was the best performer in the past year with its median house price up 27.3 per cent to $1.050 million
For the remainder of the state, Boonah in the Scenic Rim was the best performer with its median house price up 20.8 per cent to $314,000.
BRISBANE SUBURBS WITH DOUBLE DIGIT GROWTH
INDOOROOPILLY: $1,010,000 – 24.1%
SEVEN HILLS: $920,000 – 18%
ASHGROVE: $1,026,500 – 16.6%
BULIMBA: $1,297,500 – 14.3%
SUNNYBANK: $820,000 – 14.2%
WOOLOOWIN: $849,500 – 13.3%
KALINGA: $1,127,000 – 12.7%
LUTWYCHE: $850,000 – 12.4%
TENERIFFE: $2,325,000 – 10.7%
SHORNCLIFFE: $807,500 – 10.5%
ROCKLEA: $425,000 – 10.4%
Source: REIQ Market Monitor (year to March)
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.
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.
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.
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.
“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.”
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