BRISBANE house prices have hit a record high thanks to cheap money, a bounce back in buyer confidence and a sharp drop in listings, but Queensland’s peak real estate body warns there are fresh hurdles ahead.
The median house price for Brisbane’s local government area increased 3.6 per cent in the December quarter to an all-time high of $703,000 — breaking through the $700,000 ceiling for the first time.
The Real Estate Institute of Queensland’s quarterly market monitor, released today, reveals the strong result was mainly driven by the inner-city market, where the median house price jumped by 7.6 per cent to $850,000.
Inner-city suburbs such as Petrie Terrace, Highgate Hill, Coorparoo and Windsor recorded double-digit house price gains, while the middle-ring suburbs of Enoggera and Fig Tree Pocket also outperformed.
It comes as some prestige agents say Brisbane’s high-end housing market is hotter than ever, despite concerns around the impact of the coronavirus.
Ray White New Farm principal Matt Lancashire has inked seven sales over $4 million in 2020 — his strongest start to a year — with four of those sales transacting after COVID-19 started to spread.
84 Princess Street is in Petrie Terrace, the suburb which had Brisbane council region’s top median house price growth in the December quarter.
The house is on the market looking for offers over $899,000.
“I have a database of every buyer who has ever inquired with me on any property over $5 million, so I have a database of 1660 prestige buyers,” Mr Lancashire said. “And there are some serious buyers looking.”
Buyer confidence and a lack of listings has been fuelling demand, with the REIQ research showing the number of properties listed for sale in Brisbane dropped sharply in 2019 — down 9.8 per cent compared with the previous year.
That means buyers are competing for fewer properties, as well as having to contend with a resurgence of investors and first-home buyers.
REIQ CEO Antonia Mercorella said the record result was a reflection of stronger market conditions over the quarter, thanks largely to lower interest rates, less conservative lending criteria and a rebound in buyer demand.
“It’s the first time (the median house price has) had a seven in front of it,” Ms Mercorella said. “I think that’s a significant breakthrough.
TOP GROWTH SUBURBS FOR HOUSES IN BRISBANE LGA IN DEC 2019 QTR
Suburb Annual median price Quarterly change % Annual change %
1. Petrie Terrace $920,000 14.3% 17.9%
2. Highgate Hill $1.026m 12.7% 15.9%
3. Coorparoo $970,000 10.9% 16.2%
4. Windsor $995,500 10.6% 23.2%
5. Enoggera $703,000 9.2% 3.4%
6. Kangaroo Point $1.1m 8.8% 19.6%
7. Fig Tree Pocket $1.12m 8.3% 6.7%
8. Wilston $1.06m 8.2% 20.5%
9. Gumdale $1.1m 7.9% 32.9%
10. Nundah $760,000 7.5% 8.4%
(Source: REIQ)
“The quarter performed so strongly because if you think about the 12 months preceding, we absolutely saw a slowdown in that period caused by a series of factors that had a bearing on confidence.
“Hopefully, what we’re now seeing with this quarterly change, is that confidence returning. I think we’re also seeing some of those buyers who were holding off clearly making a decision to return to the market.”
Ms Mercorella said suburbs within a 10km radius of Brisbane’s CBD outperformed during the December quarter because of strong interstate migration and relative affordability compared with other capital city markets.
“Because the affordability in Brisbane is so extraordinarily good compared to Sydney and Melbourne, those people are coming and are able to buy in those premium suburbs, close to the city with all the amenities,” she said.
“In some cases they’re very cashed-up buyers and their dollar goes so much further here.
“I also think people want to live close to the action. We are becoming such a sophisticated modern city and at the end of the day, those inner suburbs are the most popular. How much do I need to retire?
“We know listings are down, so when an opportunity pops up, people are grabbing it and they’re prepared to pay more to secure that property that’s closer to the action.”
But while the quarterly performance is cause for celebration, Ms Mercorella acknowledges there are uncertain times ahead for the state’s housing market when it comes to the coronavirus.
“Despite good fundamentals in Queensland, we would expect to see the most immediate impact likely in the rental space,” she said.
“I think we’re likely to start seeing, in the not-too-distant future, renters losing their jobs and perhaps having the inability to meet rent obligations.
“That’s concerning, so it’s really important we see the state government announcing a package for renters to give assurance to tenants and investors.”
Ben and Daniella Davis are selling their five-bedroom house in Coorparoo, a suburb which recorded one of the strongest house price gains during the December quarter.
Mr Davis, a builder by trade, said he was not surprised the median house price for the inner-south suburb had jumped by almost 11 per cent in the final three months of December to $970,000.
7/16 Hawthorne Street is in Enoggera, Brisbane’s top median unit price growth suburb in the December quarter.
7/16 Hawthorne Street, Enoggera, is on the market priced in the mid $400,000s.
He said he knew developments such as Coorparoo Square had the potential to increase capital growth for homeowners in the area.
“I keep an eye on the market as far as what’s happening in the area and seeing all these developers starting to put money into the area, I really saw it was a suburb coming of age,” Mr Davis said.
The couple bought their property at 35 Walker Street three years ago and have since raised it, built underneath and installed a pool.
“We’re selling sooner than we were wanting to originally because we see it as a good time to be selling,” Mr Davis said. “All the signs are positive.”
Marketing agent James Curtain of Place Woolloongabba said he had noticed an increase in appetite for property in Coorparoo and surrounding suburbs in the inner south.
“There is always a good energy for property in Coorparoo, regardless of the price point,” Mr Curtain said. “I think we have certainly seen that increase in the past six months.”
TOP GROWTH SUBURBS FOR UNITS IN BRISBANE LGA IN DEC 2019 QTR
Suburb Annual median price Quarterly change % Annual change %
1. Enoggera $384,000 14.8% 12.9%
2. Grange $443,500 14.6% 12.7%
3. Alderley $425,500 13.3% 13.3%
4. Mount Gravatt $423,750 13% -1.5%
5. Camp Hill $499,000 11.6% 1.8%
6. The Gap $540,000 11.3% 11.3%
7. Ascot $485,000 9.7% 7.9%
8. Corinda $420,000 9.1% 4.9%
9. Oxley $345,000 7.8% 1.5%
10. Mansfield $455,000 7.1% 4.4%
(Source: REIQ)
Mr Curtain said interstate buyers who were originally lured to Hawthorne or Bulimba often ended up in Coorparoo.
“They love the elevation, the old-world nature, the leafiness and the access to amenities,” he said.
“All the characteristics that appeal to an inner-city buyer, Coorparoo has in spades.
“It attracts professional families looking for big homes on big blocks and younger couples looking to get a start.”
Brisbane’s unit market continued to soften in the December quarter, with the median unit price slipping 2.8 per cent to $440,000.
But Ms Mercorella said there were strong signs the unit market was recovering — particularly in the inner-city suburbs where oversupply was a concern in recent years.
The median unit price in South Brisbane actually increased by 3.3 per cent during the quarter to $501,000.
Mr Curtain said the stock “surplus mentality” had disappeared from Brisbane’s inner south unit market.
“Younger couples, even professionals with one child, who can’t afford houses are willing to buy apartments in Woolloongabba and Kangaroo Point because of the superb amenities,” he said.
15 Syntax Street is in Sadliers Crossing, the top median house price grower in the Greater Brisbane region.
15 Syntax Street, Sadliers Crossing, is on the market looking for offers over $289,000.
There was also significant infrastructure investment in Brisbane LGA during the December quarter.
A new Roma Street Cross River Rail Priority Development Area (PDA) was declared to support the renewal of the inner-city transport precinct.
State development, manufacturing, infrastructure and planning minister Cameron Dick said the 32ha PDA would fast-track the delivery of the new underground Cross River Rail station.
“The New Cross River Rail Roma Street station will be the city’s pivotal arrival point, linking passengers with the existing interstate and suburban rail, the busway station and proposed Brisbane Metro station,” Mr Dick said.
“There will be unique opportunities for urban development, economic stimulation and job creation. It will provide critical public transport connectivity between the precinct and the city centre and to the nearby neighbourhoods of Petrie Terrace and Spring Hill.”
“This is a purpose-built facility to suit the cruise industry. We’ve worked very closely with the cruise lines and other stakeholders from the start of the process to ensure it delivers a seamless experience for travellers starting or finishing their journeys,” he said.
TOP GROWTH SUBURBS FOR HOUSES IN GREATER BRISBANE DEC 2019 QTR
Suburb Annual median price Quarterly change % Annual change %
1. Sadliers Crossing $357,500 12.6% -2.7%
2. Kurwongbah $685,000 12.3% 14.6%
3. Highvale $1.05m 11.1% 15.4%
4. Godwin Beach $507,500 9.7% 10.3%
5. Samford Valley $987,500 7.6% 5%
6. Wamuran $625,500 6.9% 1.7%
7. Woodend $405,000 5.2% 18.2%
8. Basin Pocket $265,000 5% 2.9%
9. Yamanto $398,000 4.5% 11.8%
10. South Maclean $590,000 4.4% 7.5%
(Source: REIQ)
Across Greater Brisbane, Logan, Moreton Bay and Redland all recorded falls in their median house prices over the year.
The median house price in Logan fell 1.3 per cent to $395,000, 0.4 per cent to $446,000 in Moreton Bay and 1.9 per cent to $525,000 in Redland.
Ipswich was the only outer LGA to record a rise in median for the year, with an increase of 0.3 per cent to $346,000.
Ipswich was the only LGA in Greater Brisbane to record a rise in its annual median unit — increasing 2.3 per cent to $335,000.
The biggest drop in median unit price in Greater Brisbane was recorded in Logan, which was down 10.2 per cent.
TOP GROWTH SUBURBS FOR UNITS IN GREATER BRISBANE IN DEC 2019 QTR
Suburb Annual median price Quarterly change % Annual change %
1. Point Lookout $410,000 10.8% 8.6%
2. Petrie $310,000 8.8% -3.7%
3. Clontarf $335,000 4.7% 8.4%
4. Cleveland $400,000 2.6% 0%
5. Lawnton $244,000 2.1% 2%
6. Daisy Hill $285,000 1.8% -3.4%
7. Shailer Park $292,500 1.7% 3.7%
8. Thorneside $318,000 1.4% -0.6%
9. Brassall $274,500 1.4% -2%
10. Kallangur $290,000 0.7% 0.5%
Elizabeth Tilley
