QLD Brisbane Suburbs with Double Digit Growth

Renovated 4 bedder home, no pool, 526sqm lot sold $1,215,000

35 Arrowsmith Street, Camp Hill, Qld 4152 - Property Details

 

Is this just me?

But sold for $820k...looks like extensive renos (looks pretty recent)...at least another 100k....sold for $895k ...and then 880k...really? Fools gold......... The stamps alone would be abot 30k....silly ....silly BS.....

 

I'm not posting saying the seller made money. Posting it showing what prices are being achieved for 405sqm lots on older stock.

 

OK...but I can't see massive profits here.

This is burning a lot of people.

I get the question of people wanting to develop who have no idea what the end cost of holding and development are. For example a recent example of where someone wanted to by a 800sqm block in Mebourne for 850k....put 3 T/H cost 750k plus holding/other costs north of 100k....no way they will see for 600k plus just to break evne,

The stats show 80% of developers never make money. I am seeing numbers in the USA where people are buying houses for say 50k..and then require another 30k in reno..plus holding costs of say another 5k...all up it has cost them something like 85k. The say it is worth 100-110k...serioulsly?

 

I have no idea about Melbourne 800sqm blocks - that's out of my sphere of knowledge. I do know those who bought splitter blocks in the 6-850k price range in inner and middle ring Brisbane are able to capitalise on it now if they can manage the build costs and if there are views then even better. Say 800k block, 1.1m build including contingency, total 2mil TDC approx. Selling at 1.25-1.35m and above. That's approx. 500k to 700k gross profit, or 25-35%+ gross return on TDC. It stacks up and the demand for them is strong.

RPI who is on the ground and deals with splitters and developers for subdivisions so knows the numbers. Read his posts # 6, 8, 10 and 12 from this thread.
What's happening in the inner ring in Brisbane ?

 

Then there's this from the Urban Developer for the last 10 years-

"All of the suburbs in the top house list were in the Brisbane main capital city region, while only one suburb in the capital region made the top 10 unit list, with the Gold Coast dominating the top growth for units over ten years."


Houses

Rank Suburb Median Value May 2018 10 Year Change
1 Underwood $601,345 65.6%
2 Ashgrove $1,019,808 53.4%
3 Sunnybank $790,039 50.7%
4 Hawthorne $1,274,810 49.6%
5 St Lucia $1,146,060 46.9%
6 Fig Tree Pocket $1,033,312 42.1%
7 Sunnybank Hills $691,532 41.5%
8 Holland Park West $750,949 41.4%
9 Holland Park $681,499 41.4%
10 Paddington $1,070,714 41.2%

Units

Rank Suburb Median Value May 2018 10 Year Change
1 Paradise Point $576,240 44.0%
2 Benowa $570,011 43.7%
3 East Tawoomba $297,619 37.6%
4 Coolangatta $549,296 32.4%
5 Woody Point $471,758 28.4%
6 Palm Beach $471,758 22.9%
7 Currumbin Waters $410,835 22.6%
8 Broadbeach Waters $524,556 21.8%
9 Tugun $470,759 20.1%
10 Mermaid Waters $400,689 18.6%

 

I agree that this reflects the cost of the renovations more than market rises. But as you point out Leo, someone has to come along with the money and pay that premium.
Someone bought a 250m2 block around the corner from my place and plans to spend $900k on the build. That is what the agent said. Buyer (a builder) had plans drawn up. Lets see if that turns out to be true, but certainly I am seeing a lot of money spent on builds - much more than I would have expected would make sense when comparing to the underlying value of the land.

 

Not convinced.....1.1m maybe...but 1.3m is fairy floss...you can get freestanding property for that.

There is probably 150-200k in it...but I am getting that on some of my simple house and land. I look for 30% plus gross margins. On a $2m deal 25 points is too small if something goes wrong...a 10% swing downwards will wipe your profits out.

 

I'm never looking to convince anyone of anything.


All splitters. Most on 405sqm blocks and all are free standing except 7A which makes its sale price even more impressive. There are many more examples on REA.


28 Oateson Skyline Drive, Seven Hills, Qld 4170 - Property Details

26 Quirinal Crescent, Seven Hills, Qld 4170 - Property Details

59 Darcy Road, Seven Hills, Qld 4170 - Property Details

184 D'Arcy Road, Seven Hills, Qld 4170 - Property Details

60 Esther Street, Tarragindi, Qld 4121 - Property Details

17 Pring Street, Tarragindi, Qld 4121 - Property Details

36 Watson Street, Camp Hill, Qld 4152 - Property Details

48 Shire Street, Coorparoo, Qld 4151 - Property Details

7A Wills Street, Coorparoo, Qld 4151 - Property Details

49 Frank Street, Norman Park, Qld 4170 - Property Details

100 Kingsbury Street, Norman Park, Qld 4170 - Property Details

 

A lot of these are more like 700-800k costs to build.

 

Ditto......550k is probably not going to get the right finish...more like 700-800k..I am only talking bout 28sq home...anything bigger is going to cost a hell of a lot more.

 

And in my opinion don't look that nice. Especially compared with renovated classics. These buyers will lose gains (opportunity cost) as these houses date

 

The ones that cost more to build also have a higher sale price.

 

Most I think miss the point: for me it wouldn't be in the developments that one only makes money. Imagine having these large blocks (corner or not) that can now be split, can be on sold do others.
I see the value in land price in what one may have purchased say 20 years ago per sqm and what one could sell now in $ terms....
Perhaps we could do a calculation in price per sqm then and now for these suburbs:
- Seven Hill, Coorparoo, Camp Hill, Tarragindi, Norman Park, West End, Holland Park, etc....?

 

Yep...Brissie buyers from what I can see what classic stuff...Queenslanders can be a pain in the arse to maintain but they get top prices.

Sorry don't agree...those shiny houses are costly to build and will get less than a replica Queenslander....somethung to thunk about....Qld is very different to Sydney...as Whitecat...dhey like the more classic stuff. Dems how they roll.......

 

The best strategy with shiny modern (for now) houses is to build them and sell them before they have the chance to date.

 

I picked up a 800m2 splitter in Camp Hill in 2016 for $750k. $550k build costs including pool for 2x 5 bed, 280m2 spec home with decent finish. Add on stamps, holding costs, subdivision, tdc 980k per lot. Sold in 2017 for 1.25m and 1.205m.

1.3m is not fairy floss but with a nice view or a better spec, you can get that and more. but you couldn't get these prices in just any suburb. Nor can you find splitters for that money as easily

 

That is okay...about 20% gross margin...I would want about 30%....

 

When you are geared at 80% lvr, 20% margin is a 100% return on equity.

 

I am doing stuff much lower risk....land 140 and 155k....build .....220k and 230k....sell cost 550-600k for one and 600-650k for the other...gross margin of 60% plus...I guess I am bit spoilt.

A lot of people can't do these $2m jobbies unless they are cashed up.....