Brisbane Pain

Morningside. Highest 3 x2. 15 yr old reno.

 

Even if there are “bargains” and activity is picking up, is this more for owner occupier buyers? Unless investors have a very strong buffer to tie them over for the next 6 mths, how can they rent back out during this time with declining rents and a glut of rental supply?

 

Isn't it interesting how headlines are often very wrong! Brisbane has proven it' resilience throughout the worst of Covid-19 (to date) and now Westpac predict 20% price rises!

 

Glut of rental supply? With houses? Houses are the opposite at the moment, if you have a well presented house it will be attracting a lot of inquiry. Units not so much!

 

Finance EXPERT on channel 7 ... Almost as bad as channel 9!

I can tell you that currently there are a lot of buyers on the ground in Brisbane. I'm about to sell a property and have been watching the market closely, I've seen properties under offer on the same day as the first open home with multiple (strong) offers.

 

We just listed one of ours.

 

And accepted a full asking price offer from the first inspection. This was the same value I estimated it to be worth this time last year, and higher than I estimated a few months ago.

 

Well done!

 

The current market is on fire at open homes expect to see a minimum of 20 buyers with a min of 3 offers at the first opens. This across Logan, Brisbane and Moreton Bay.
Out of those 20 buyers at least 15 have pre approval. Unless we see 10 times the amount of properties coming to market (which I can't see coming) prices will remain or even go up.
Over the past 6 months we have seen at least a 5% increase in property prices across North and South Brisbane. (Within 20km of the Brisbane CBD). Even trying to get properties around Lawnton and Petrie and tricky. They are all selling at the first open home or prior to the first open. In Camp Hill on the weekend we seen a sub dividable block sell for $1.6 mil at Auction which just insane. Normally that would only sell around the $1.25 mil mark but people have money. I just purchased for a client and they got a interest rate of 1.89% which means it was cheaper for them to buy that million dollar property then to rent.

 

I have found this too.
High demand around Keperra

 

Also agree, OO properties are still in high demand and can't see any bargains in the forseeable future. Govt. stimulus has also pushed new builds/land purchases through the roof.

 

And now interest rates are going down again ... more demand coming in the weeks ahead!
The Brisbane market is already such a high demand market. I've attended auctions where there have been upward of 10 bidders (the highest being 39 registered for a vacant block in Kedron). That is a lot of buyers who are ready to buy, but are missing out. Buyer depth is going to remain for some time it seems and when it is this competitive the market generally shifts fast.
We are finding properties are selling between 5-10% ABOVE our appraisal range. We appraise property based on settled sales ... so that gives you an idea of some of the shifts in some pockets of Brisbane.
There are no bargains that we are seeing in Brisbane right now ... it is more about understanding who the other buyers are and positioning offers accordingly under multiple offer. You can't buy a bargain when there are so many offers going in on a property (even off-market opportunities can be competitive at times!)

 

That’s exciting! Here’s hoping we can continue this for 24 months so it cements some real price growth in to Brisbane, goodness we have been patient. Comparative to other states, a median of $700k would seem reasonable.

 

Some sellers have high expectations especially for townhouses. Agents are not conditioning them.

 

Do you have any examples?