QLD How Does this Happen? - Need to Know experts thoughts.

Hi Experts
OK, I’m a bit gobsmacked......
Currently am trying to sell the family home, fantastic above average interest, but not where I want it - yet.

I’d really love feedback on people’s thoughts regarding what factors may have been involved in achieving an extraordinary sales result in a property I have been following....the property is “almost” like for like with mine in so many ways.
The property has managed to achieve a $1.2+M profit in 2 years, ( sold $1.1m 2020; sold $2.3m March 2022) the house was untouched in that time.

I spoke with the agent marketing the property and his thoughts are that the area has just been undervalued for many years and COVID meant people were exposing themselves to more undiscovered ‘local’ regions. In the past the big draw cards were to Nelson Bay and Forster bypassing North Arm Cove, much the same as the Sunshine Coast and Gold Coast are the drawcards from Brisbane, bypassing Beachmere/Northern Moreton Bay/Bribie etc

I’m curious also if anyone thinks the link he used within the description had much influence as well. The link was comparing the property to another waterfront property, but a shack and further from amenities, near Jarvis Bay that was expecting over $4M offers. Ie inferring by using the article how the area was undervalued by comparison and perhaps pointing out what you would think should be the obvious - that waterfronts are a scarcity.

My agent said that Qld RE laws don’t let you put comparisons in the advertising and doesn’t want to refer to an article such as the one used - is this true?
And does it make any difference anyway?
Does tidal waterfront make that much difference?
The other property is for all intents and purposes quite isolated compared to mine in terms of access to infrastructure.
What is it that opens peoples eyes to undiscovered areas.

For reference, here is what I’m talking about - and I’d love any ideas on how to market to the people this property got to

Ie:
The “Other” Property”
- Absolute Waterfront, Rocky shoreline, boat ramp, deep waterfront, spectacular waterviews, 40 minutes to Newcastle airport, 1 hr to Newcastle CBD, property in excellent “original” condition. Similar block and square footage, 20 minutes drive to local shops and tavern,
6 Barromee Way, North Arm Cove NSW 2324 - House Sold | Century 21 Coastal Properties


“My Property”
- Absolute Waterfront, approx 3m depth of sandy beach on title, boatramp, tidal waterfront, spectacular waterviews, 35 mins to Brisbane Airport, 55 mins to Brisbane CBD, property in excellent original condition, newly rendered, similar block and square footage, 5 minutes drive to local shops and Tavern,


That was long but I’m really curious if anyone on this site professionals or not, have studied or have thoughts on the epidemiological factors leading to property creep or oversights.TIA

 

I don't know either area, but even though the properties have some similarities, it is impossible to compare two houses that are so far apart. Most potential buyers in North Arm Cove are unlikely to be considering Beachmere and vice versa, as location is important to people for a variety of reasons.

I doubt the link had any impact on the sale price. Personally, I don't take much notice of the agent spiel, I just want to see photos & a floorplan to decide whether it is worth inspecting and researching further.

 

Looks like the North Arm Cove place was specifically being marketed to Sydney people as a holiday house. Who is your target market?

 

Have you seen the “beaches” at Beachmere/Northern Moreton Bay/Bribie etc? Also the infrastructure in those areas?

Absolutely no comparison to the Gold or Sunny coasts (with the possible exception of Bribie surf beach).

 

The Beachmere place looks like swampy mangroves.

 

Ok, now I think I know what you are talking about.

You simply can’t compare that location to the ad you linked. Or to something on the Gold or Sunny coasts. Deep waterfront is vastly different to tidal access for appeal to boaties.

 

@SurfSeeker Is the listing on realestate.com.au?

The only one I could see that fits the location where I think your house is located did not appear from photos to have a boat ramp? (Of course, I could be entirely wrong!!)

 

Thanks for reply. I probably didn’t explain things very well. I didn’t mean the properties were a comparison to the Sunny Coast or Gold Coast by any stretch, but that they were equal distance to those more populated places. Mine to Sunny and Goldy, the other similar travelling time to Forster and Nelson Bay.
Maybe deep waterfront is a stretch for the other property, as it’s still tidal and rocky but different.
Several people along my strip of beach now have Sealegs boats so tides are not relevant (drivable, inflatables with drop down wheels) Can be at Scarborough, Bribie or Tangalooma within half hour.....
And many use the low tide, to practice their golf swings, or walk the dogs.
I guess it’s more a question of seeking and marketing to buyers with the capacity to think outside the box rather than following the crowds or trends. Both properties afford a great lifestyle at a cheaper waterfront price than Sunny or Goldy, Forster or Port Stephens. It’s just the other has been maybe marketed well?
Ps. The boat ramp is grassed ATM.

 

Ok. You are presenting it very well.

Friends owned #32, sold and moved further up the street about 8 years ago.

 

I think once people know this street and realise it’s not in town and the lifestyle it affords they don’t want to leave. This has been in our family over 30 years and it’s only that my brother now has grandkids in Victoria that some of our priorities have changed as we wouldn’t be leaving. It is that good.
There are two neighbours in the street actively interested in the property. One has been looking up and down the Qld coast for the past few years but cant find anywhere that suits better so decided they don’t want to leave the street, but want a more manageable house and another who moved in a couple of years ago that wants another house as an investment, because they can see the 10 year forecast. A few others interested so going to auction

 

Friends bought the land about 45 years ago and built a small, basic kit weekender on it. Tanks, septic systems and a wind generator for power as power connection fees astronomical. They knew the area as the wife grew up in the area.

Lots of fun times visiting, our kids loved it.

When they retired the house was just not suitable and buying/selling was a cheaper option than a knock down/rebuild on their land.

You may well find your buyer close by.

 

No No No ........A local is the last thing I’m looking for. My thoughts are they will only pay as much as the comparable sales ☺️ Using the bias to downplay the area.

I’m looking for that person from afar that has no pre-conceived bias of the area and sees the attributes and what it has to offer in terms of lifestyle, convenience and growth potential and falls in love with the zen vibe to the place......just like that person who dished out more than 100% above the previous sale price 2 years prior in the example of North Arm Cove - a profit of $1.2m in 2 years, inconceivable!

That was my original question to the experts here -
How does that happen?
I mean you hear of places going up 20-25% in this boom but over 100% is unbelievable.........isn’t it or am I wrong?

What could possibly be the dynamics behind that?

It was an online auction - I tapped in at 1.9 but it very quickly went from there to 2.3 within a few days.
Was it FOMO
Was it someone who fell in love with the photography
Was it a local or someone from afar

So many questions on what makes someone pay that far out of range.
Not asking too much am I ‍♀️. Well maybe but I can live in hope .

 

Do you really think a buyer from outside the area is not going to look at recent comparable sales?

Surely that is the first thing anyone does. Except maybe naive first buyers, and that is not your target market.

 

No, No, lol, I don’t really think that, that is wishful thinking as much as I wish I could make it happen.

What I am though - is really curious what is “it” - that drives someone to pay $1.2m above the last sale price as per the North Arm Cove property?

ie:
sold 2020 for $1.1m
Sold 2022 for $2.3m
With nothing done to the property to add any value.

$1.2m profit - Equating to 110% gain in just 2 yrs.
That’s got to be phenomenal in anyone’s investment books I would have thought ?

That is my initial question - How does that happen, what forces can be learnt from a sale like that?
If any?
It is post-pandemic so FOMO is meant to have dropped off.
or was it just a naive buyer.

 

OMG - that is just insane.

The agent that sold North Arm did seem to indicate there was a fundamental change in the way people were looking at previously overlooked areas.......I was wondering if this would continue.

But honestly, if I was getting 5-7million for a non-waterfront place on Sydneys North Shore or Northern Beaches etc, I would be happy to spend half of that somewhere more remote and quiet. Within cooee of a city perhaps but perfectly happy to give up the traffic and hustle of city life - been there done that don’t ever need to do it again.

 

Similar anecdotal evidence from me. We're on the southern Goldie, and heard (from a broker friend) of someone in northern NSW who bought in April '21 for $1.5M (house on a couple of rural acres) and for personal reasons had to sell within the year. A professional couple from VIC (I think through a BA) asked for it not to go to market and offered $2.5M. Deal done.

I agree it's insane. To put that into context, that represents probably the entire savings over my entire working life of about 30 yrs, made by doing nothing except sit on a property for under a year. Not that I'm bitter or anything

I'd say it has to settle down once the exit from the cities has done it's dash. Once in a lifetime profit for some people, though.

 

Hey KJL
It is quite insane isn’t it......people being prepared to pay over $1m above comparables as they obviously have the money have thereby pushed surrounding properties up in previously overlooked pockets by such large percentages in such a short time pushing them out of reach for so many trying to get on the ladder. I’ll be bitter on your behalf, because I’m one of those people that tend not to have that luck befall them either lol.

 

Update?

 

An offer accepted and PnB done - awaiting feedback

Considering the first 3 opens we were flooded in so couldn’t get anyone through the door, and we have had 19 weeks out of 21 with rain, three x flooding closing off access roads to the house on the open-days ( house was fine), a threat of WW3, FOMO now a distant memory replaced by FOPTM, a Covid outbreak in the agency staff, an agency merger during the campaign, our agent sick for 6weeks, then back 3 days then Covid, then back two days - a death in immediate family, 1st interest rate rise in over a decade, a federal election, and .............. I am sure there were a few more “disruptions” I’ve forgotten to mention.
Soooooo, it certainly wasn’t the Campaign we were expecting and certainly not the North Arm Cove record I was discussing above but all things considered, I think a good reasonable result, should we get this over the line.
One thing I do know - is the buyer will be sitting very pretty in ten years time and will have had a killer lifestyle in that time. Absolutely would not have let this go if family were not 11 hours drive away.