QLD Brisbane is booming 2022!

People are still cash rich .. interest rates caused a bit of fear but majority of people are still sitting on hundreds of thousands of extra equity gained in last 12-24 months which they are going to make use of sooner or later to upgrade to larger houses or buy IPs. There are ways to get around higher rates such as buying at lower LVRs which most people can achieve due to massive equities in existing houses they own.

Aussie 10 year bond rates are starting to get lower from last 2 weeks after hitting high which means interest rates are likely to peak at 2017-2018 levels. Stock market has stabilised and variable rates are still under 3%. US markets are also recovering and supply chain issues world wide are easing up.

And Brisbane fundamentals are still better than most other Australian cities.

Result: Brisbane auction rate today was higher than last year when all the growth was happening.

 

A standard desirable owner occupier property is still changing hands in 1-2 weeks. Anything else specially developer stock is taking a bit longer.

Fast forward to August and new school year FOMO will be well and truly underway.

 

Last week, I receive a Brisbane auction result email from Domain, saying 50%.


I checked the last week's Brisbane auction result on the Domain website today and found that it was updated to 39%. Not sure if this week's auction result will be updated with a different figure later.

 

I attached a screenshot of the Brisbane auction result here. Will come back to check if it will be updated by the Domain later.

 

Corelogic data

 

I don't think you can draw too much from one day's auction results. There are probably variables some related to buyer, some not. If it's consistently trending up than that's different. I am still seeing an increasing amount of stock, some discounting and places not selling at auction. I think buyers are just being cautious, luckily the low rental rate kind f forces peoples hands a little.

 

Realestate.com is reporting different figures. Approx 57%

 

That’s for whole of QLD.

Domain numbers are usually more reliable.

Whether or not numbers get revised down or the quality of numbers is irrelevant because you are really looking for a trend. A 68% clearance reported on a winter Saturday is a massive number for Brisbane and will bring a lot of sideline buyers back into the market just like below 50% numbers in last few weeks made buyers wait a bit more.

 

oh, so it didnt sell again ?

 

Nope. Not sure what’s going on. Was open yesterday with new agent. Domain has it as sold. No idea!

 

Where is this place?

Interesting... Hearing the market is cooling and quite quickly interesting.

I am looking to sell 2. Let's see...

 

13 Gresham St, East Brisbane

 

Nice house... $3m?

 

According to Domain: 3.69

 

Sold for 3.69 at first auction. That buyer fell over. Went to auction again and got passed in a 3.5m, apparently had another offer at over 3.6 out of the auction but finance fell over and offer withdrawn.

I think after the first auction owners have that 3.6-7 mark in their head which was a high mark for that house.

Was last sold in 2016 for 780k, Reno's finished before covid price increases so the owners will be making a killing regardless.

 

https://www.news.com.au/finance/rea...a/news-story/f6f344012aee2b0455748c28b5402e48

Looks like Brisbane is about to get a hair cut of up to 10% house price drop according to CBA prediction.
Brisbane 5km - drop $150k
Brisbane 10km - drop $100k
Brisbane 20km - drop $50k

Not too bad overall if that is all there is to it
BTW it is for 2023 price drop.

 

If we bought a good house by that time for 1.5mn, and probably that would have gone to 2.2 now. So building new house and the amount of work resulted same yield?

 

Who believes CBA these days? These monkey's were predicting 30% drops during Covid. It went 30% upwards. So their prediction was a complete U-Turn. LOL

Cant get anymore wrong than that.

 

If that is on top of the 5-7% this year that would be about right.

 

I don't know - so far it is up this year 2022 for Brisbane. Unless you are thinking it will totally reverse all that gain so far and then some?