Southern buyers driving up demand for Brisbane real estate
Media release - 12th December, 2014
Red hot housing markets in Sydney and Melbourne, combined with lower interest rates, are helping to drive demand for Brisbane real estate, according to leading property group, Raine & Horne.
“The Brisbane capital is attracting yield-hungry investors, who are being priced out of Sydney and Melbourne, as it’s still possible to buy properties for less than $180,000,” said Steve Worrad, General Manager, Queensland, Raine & Horne.
“This is starting to drive up values in some suburbs, a trend that I expect to continue in 2015, especially if the Reserve Bank decides to cut rates early in the year in reaction to last week’s lower than expected economic growth numbers.
“We are also seeing evidence that first home buyers are starting to react more positively to lower interest rates, so an additional cut in 2015 will be good for this segment of the market.”
Ms Wells, who has received interstate enquiries in relation to a superb, near-new, 4-bedroom house at 8 Crocodile Avenue, Morayfield, said, “Property values in suburbs such as Morayfield and Burpengary have appreciated by 10% in 2014.
“Lower interest rates have driven up first home buyer and investor enquiry by as much 50% for entry-level properties priced between $300,000 and $350,000,” said Ms Wells.
“First home buyers now represent about 30% of total buyer enquiries, compared with 10% twelve months ago, while investors also represent 30% of the market.”
The region’s affordability, combined with 7% yields, have caught the attention of investors from the southern states.
“Savvy investors recognise that our region offers affordability, decent yields, while improvements to infrastructure such as extra schools and the new marina at Burpengary are making it an even better place to live.”
Sydney investors have proven to be a dominant force in southern Brisbane markets such as Beenleigh.
“That said, many interstate investors are extremely savvy and will simply move on to the next property if their offer is not accepted, which means vendors need to be realistic about their pricing.
“In Beenleigh, we still have a decent supply of stock at affordable prices, which means it’s still very much a buyer’s market.
In Beenleigh, it’s possible to buy 2-bedroom townhouses from $179,000, which generate weekly rents of $320, according to Mr Wey.
“This is definitely a healthier return than leaving money in the bank,” he added.
“The last quarter was very strong with plenty of buying action stemming from local tenants, who have transferred to Brisbane from NSW and Victoria in recent years,” said Ms Elworthy.
“They’ve decided to take a ‘try before you buy’ approach, have liked what they’ve seen and are now securing homes in Cleveland, Redland Bay, Thornlands, Burbank and other suburbs in our region.”
Ms Elworthy added that the buying mix includes first time property owners, upgraders and investors, with demand for homes priced between $700,000 and $900,000 driving up the market for homes valued above $1 million.
For example, a stunning 6-bedroom home at 12 Talburpin Esplanade, Redland Bay sold under hammer after a four week auction campaign for $1.15 million, while a 4-bedroom home at 76 Wildsoet Street, Burbank sold for $1.225 million just four hours after the first open home.
“These results follow on from the sale of a 4-bedder at 12 Baylink Drive, Redland Bay, which was snapped up for $825,000, 48 hours after hitting the market and 8 Elderberry Street, Thornlands that sold for $815,000 in a single day,” said Mrs Elworthy.
About Raine & Horne
Raine & Horne is an iconic Australian property firm, with more than 300 offices worldwide, including Australia, Asia Pacific and Europe.
Established in 1883, Raine & Horne is a recognised Superbrand that has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Rural and Your Broker.
Executive Chairman and CEO, Angus Raine represents the fourth generation of his family to lead the global real estate brand.
For further media information contact:
Angus Raine, Executive Chairman and CEO of Raine & Horne on 0409 920 697
Andrew Harrington, National Communications Manager, Raine & Horne on 02 9258 5400