Queensland real estate set for 7 percent growth in 2014
Media release - 10th January, 2014
Cleveland, New Farm and Beenleigh the suburbs to watch in 2014
- Southern state baby boomers, fly-in/fly-out workers, and investors are set to drive Queensland property in 2014, says Raine & Horne
- Listings are down 60 percent on the same time last year, while demand for Queensland homes is starting to hot up
- Steve Worrad is tipping some Brisbane suburbs to grow by more than 7 percent, with Cleveland, New Farm and Beenleigh among the suburbs to watch in 2014
After finishing 2013 behind Sydney and Melbourne, Brisbane is well-placed to grab pole position as the nation’s strongest property market in 2014, according to Raine & Horne.
“Although activity has slowed for the holidays, our offices are reporting buyer activity in some markets is up about 25 percent compared with the same time last year, while listings are down by as much as 60 percent,” says Steve Worrad, Raine & Horne’s General Manager for Queensland.
“It’s on the basis of tight supply and growing demand that we expect property values in Brisbane to grow by 7 percent, and more in some cases, during 2014.”
According to Mr Worrad, demand for Brisbane property is being driven by investors, and empty-nesters shifting from interstate.
“Property prices in the southern capitals enjoyed a robust 2013, with the median house price in Sydney, for example, between $665,000 and $712,000 depending on who you listen to, while the median house price in Brisbane is an affordable $445,000,” says Mr Worrad.
“This gives Sydney retirees, especially, scope to sell a family home tax-free, and make a lifestyle shift to Brisbane and add the difference to their retirement savings.”
“While attracting local interest, we’ve fielded enquiries from Melbourne-based retirees for this spacious apartment, which makes sense as it is located on the sought-after Raby Bay Marina, and has a beach at the end of the street and excellent river boardwalks,” says Mr Worrad.
The price differential between Brisbane and the southern capitals is also set to prove an attraction to fly-in/fly-out workers.
“Whether they’re working the mines in Western Australia or on an investment banking desk in Sydney, Brisbane’s lifestyle and affordable property prices will attract more fly-in/fly-out workers in 2014,” says Mr Worrad.
Popular New Farm, in Brisbane’s inner city, is also set for a strong 2014, following a robust finish to 2013, with days-on-market down to a speedy seven days.
“Given the jump in enquiries since the Federal Election, which is being fuelled by historic low interest rates, we expect capital growth of 7 to 8 percent for the New Farm market in 2014,” says Lee Paul, Principal of Raine & Horne New Farm.
“The smart money has recognised that the market is set for an expansionary period and buyers want to secure a property before prices get more expensive.”
According to Ms Paul, New Farm is an eclectic property market with prices ranging from $250,000 for a small one bedroom apartment or townhouse, to million dollar homes on Brisbane River. The suburb also boasts three times more apartments than houses, according to Ms Paul, and 50 percent of homes are investment properties.
“We’re seeing a lot of young professionals moving to the area, and even expat buyers,” says Ms Paul.
To illustrate, a former-Brisbane executive now living in London secured a cute, renovated cottage at 77a Clay Street, New Farm, for $780,000.
“The cottage, which is built on a 200 sqm block and comes with a pool, was on the market for $760,000, and received 80 enquiries, as well as multiple offers,” says Ms Paul.
“It sold in ten days to a London-based, Brisbane-born executive, who plans to live in the property on her return to Australia.”
On the city’s southern fringe at Beenleigh, the local real estate market is being driven hard by investor activity, and experienced local agent Dennis Wey, Co-Principal, Raine & Horne Beenleigh expects a 10% surge in prices in 2014 as a consequence.
“The good news is that activity is picking up, although prices are still stable for now,” says Mr Wey.
“Investors are coming out of the woodwork attracted by the fact that it’s still possible to buy houses for less than $300,000 with the prospects of decent rental returns,” says Mr Wey.
Many investors are also buying properties sight unseen, confirms Mr Wey, including the recent sale of a three bedroom, one bathroom house at 5 Page Street, Bethania.
“This property was listed and sold for $250,000, and rents for $340 a week,” says Mr Wey.
“It was secured by an interstate investor, who is yet to visit the property. The investor enlisted the services of a builder to check on the property prior to making an offer.”
According to Mr Wey, any property in Beenleigh and surrounding suburbs, which is sensibly priced, will sell in a few days, “although overpriced properties won’t sell”.
For further media information contact:
Steve Worrad, General Manager Queensland, Raine & Horne on 0498 071 991
Andrew Harrington, National Marketing & Communications Coordinator on 02 9258 5400