Sun to shine on Queensland real estate
Media release - 23rd April, 2014
- Wynnum and Manly markets 10 percent stronger than six months ago
- In Cleveland, homes priced between $600,000 and $750,000 selling fast
- Down graders from Darwin prominent buyers in Hervey Bay, where sales are 30 percent stronger than April 2013
- Entry-level apartment market on Gold Coast benefiting from improved consumer confidence thanks to the upcoming Commonwealth Games and improved local infrastructure.
It’s still trailing the southern capitals of Sydney and Melbourne, however with year-on-year growth of 5.5 percent, according to the latest ANZ Housing Market Update, Brisbane real estate is set to surge.
“The inner Brisbane suburb of New Farm, for example has been identified as a major hotspot to watch, with average annual growth of 4 percent over the next five years,” Steve Worrad, General Manager (Queensland) for Raine & Horne.
“The market in Brisbane has turned the corner, with well-priced property being snapped up in days, although more listings are needed to meet growing buyer demand,” said Mr Worrad.
In suburbs to the east of the city, Margaret Vote, Principal of Raine & Horne Wynnum/Manly describes the real estate market as solid, with buyer enquiries about 10 percent stronger than six months ago.
“We’re not seeing the same rush for property in Wynnum and Manly as is the case with some suburbs closer to the Brisbane CBD, although our market is moving well and we have plenty of buyers and a significant variety of real estate to sell,” said Mrs Vote.
For example, Raine & Horne Wynnum/Manly recently sold a block of land for $285,000 at 36 Primrose Parade, Wynnum West, while at the other end of the scale, it sold a house a house at 329 Upper Esplanade Manly for $1.275 million.
“Our buyers are a mix of investors and owner-occupiers, with owners dominating the market,” said Mrs Vote.
“We have a good solid market and I believe values have probably jumped about 8 percent since the Federal Election last year, and with plenty of listings and improving buyer confidence, it should be possible to maintain a decent level of growth for the next few months.”
In Cleveland, on the western shores of Moreton Bay, Val Elworthy, Co-principal of Raine & Horne Cleveland, who recently sold 1 Bay Street, Redands Bay for $1.3 million, describes the market in her patch as “very strong”.
“The market for homes priced between $600,000 and $750,000 is buoyant, while the market above $1 million, which has struggled over the past few years, is also starting to move as illustrated by the sale of 1 Bay Street Redlands Bay,” said Mrs Elworthy.
“Homes between $600,000 and $750,000 that are sensibly priced, will sell in Redland Bay and Wellington Point.”
According to Mrs Elworthy the improvement in the market can be attributed to an increase in buyers who have a pre-approved mortgage from their lenders.
“We had plenty of buyers last year, however in 2014 we are seeing more buyers who are qualified to buy, while on the supply side, listings are hard to come by,” she said.
“A shortage of listings and more qualified buyers augers well for the market in 2014.”
The market improvements in Brisbane appear to be translating to stronger activity in regional and coastal towns such as Hervey Bay, Charters Towers, the Sunshine Coast and Gold Coast, according to Mr Worrad.
In Hervey Bay, which is about 290 kilometres north of Brisbane, real estate sales are up 30 percent compared to April 2013, according to experienced local agent, Graham Cockerill, Principal of Raine & Horne Hervey Bay.
“We’re seeing more activity across the board from entry-level properties to prestige homes, with retirees from Melbourne, Sydney and even Darwin prominent,” said Mr Cockerill.
Over the past three months, Raine & Horne Hervey Bay has sold six properties to empty-nesters shifting from Darwin, who according to Mr Cockerill, have a predilection for new property.
“We recently sold a brand new four bedroom home with a double garage at 1 Duke Court, Urraween to a retiree couple from Darwin for $460,000,” he said.
“This home is in a great location, close to shops and the hospital precinct.
“The government is updating the public hospital system, while UnitingCare Health’s new St Stephen’s Hospital, one of Australia’s most ultramodern hospitals, will open soon.”
“Improved infrastructure is always helpful in underpinning long-term real estate values, so we are convinced the prospects for Hervey Bay are very positive.”
On the Queensland Gold Coast, Clarke Brackenridge, Principal of Raine & Horne Surfers Paradise says the entry-level apartment is red hot, and this is filtering through to higher price ranges.
For instance, Brett Green from Raine & Horne Surfers Paradise sold a two bedroom, two bathroom apartment in the Rivage Royale[i] last week for $517,500.
“It sold six months ago at auction for $453,000, which is almost a 15 percent increase and illustrates the strength of the Gold Coast market,” said Mr Brackenridge.
According to Mr Brackenridge, apartments between $200,000 and $300,000 are being snapped up fast by investors, who can expect yields of around 4.5 percent and plummeting vacancy rates close to zero longer-term rentals.
“Investors have recognised that the Gold Coast apartment market has been undervalued for some years now and with more consumer confidence and job certainty, they expect values to improve over the next few years as we head into the Commonwealth Games in 2018,” he said.
“The Commonwealth Games is improving the perception of the region, while the completion of the light rail will also help speed up travel times on the Gold Coast.”
For further media information contact:
Steve Worrad, General Manager (Queensland), Raine & Horne on 0498 071 991
Prudance Rattley, Marketing Coordinator on 02 9258 5400