The REIQ’s March quarter Queensland Market Monitor found that against a backdrop of cooling southern markets and falling listings volumes, Brisbane house sales demonstrated “admirable” resilience, buoyed by steady population growth driving demand and underpinned by good economic fundamentals.
REIQ media and communications manager Felicity Moore said that anyone thinking of selling was going to find willing buyers in good supply.
“In this market, we could potentially see a rise in off-market sales as eager buyers pressure sales agents to see property before it hits the market,” the manager said.
The unit market eased over the 12 months to March 2018, losing 1.8 per cent off the annual median price of $442,000.
Ms Moore said that the unit market was at the tail end of an unprecedented level of supply. Rising demand would undoubtedly absorb excess stock, and the only question remaining was just how long that would take.
“Queensland has become the number-one destination for internal migration, taking over from Victoria in the latest ABS Census data, and our overseas migration is at its highest level in years, which means demand for accommodation will continue,” Ms Moore said.
The rental market is operating in the healthy range, with vacancies at 3.1 per cent for the March quarter and rising demand levels easily absorbed almost 3,200 new rental properties hitting the rental pool this quarter.
The Ipswich house market grew by 3.0 per cent to a new annual median house price of $340,000. March was a quiet quarter for this market, falling by 1.5 per cent, but over the year, it performed well.
The growth in the house market was offset by falls in the unit market, contracting by 3.0 per cent over the 12 months to March 2018 to an annual median unit price of $319,900.
The Logan house market delivered among the strongest performances for all markets in the March report, adding 4.0 per cent to the annual median house price to $395,000.
The unit market was one of the few markets to grow, adding 0.7 per cent to an annual median unit price of $271,000. However, over the past five years, the unit market has fallen by 7.5 per cent.
The Moreton Bay annual median house price grew a steady 2.4 per cent over the 12 months to March to deliver a median house price of $435,000. This growth is the smallest in Greater Brisbane.
The unit market felt the pain of the combined factors of strong supply and the affordability of houses, with a 3.8 per cent contraction in the annual median unit price to $346,250, down from $359,900 this time last year.
Redland LGA delivered “rock star” growth of 3.9 per cent for the year to a median house price of $530,000. The heavy lifting was done in the suburbs of Birkdale and Cleveland, which delivered 6.3 per cent and 6.7 per cent growth, respectively. The lifestyle and affordability options in this region are proving very popular with buyers.
Similar to the house market, the Redland unit market delivered stellar growth over the 12 months to March 2018, adding 3.4 per cent growth to a new median unit price of $409,500. This was by far the strongest unit growth in all of Greater Brisbane.
The Gold Coast has taken the gold medal for annual median house price growth again, adding 6.0 per cent growth to a median house price of $620,000, the highest growth in the state.
The unit market added 1.9 per cent to deliver a median unit price of $428,000 for the year.
The Toowoomba market has been a consistently steady performer, delivering 1.1 per cent growth for the year to March 2018 to a median house price of $355,000.
The unit market has defied regional trends throughout most of 2016 and 2017; however, gravity is now catching up and this market contracted 2.9 per cent to $300,000. The market remains 17.6 per cent larger than it was five years ago.
The house market of the Sunshine Coast Statistical Division (SD), incorporating the Sunshine Coast LGA and Noosa Shire, has delivered moderate and sustainable growth for the quarter, the past year and the past five years.
A typical house in the Sunshine Coast SD increased in value by $31,250 for the past year to reach an annual median price of $576,250. Noosa continued holding the title of the most exclusive market compared to the Sunshine Coast local government area as Noosa houses generally cost $100,000 more.
In March 2018, the Noosa median house price reached $665,000 compared to the Sunshine Coast median house price of $563,000.
The Noosa unit market also performed well for the past 12 months, growing a stunning 7.1 per cent to reach an annual median price of $525,000 and remaining as the most expensive unit market in Queensland.
The Fraser Coast house market continues to be a steady performer, with annual median prices holding steady for the past quarter and increasing very modestly (only 1 per cent) for the past year. A typical house in Fraser Coast had an annual median price of $315,000 in March 2018.
The unit market performance was weak in the March quarter. However, its performance for the past year was better compared to the house market as the annual median unit price increased by 2.2 per cent. A typical unit in Fraser Coast had an annual median price of $259,500 in March 2018. Only about 11 per cent of the regional dwellings were units.
The Bundaberg house market has held its ground over the past five years, with a house costing about the same today as it did five years ago. However, the market showed small growth levels of 1.8 per cent over the past 12 months, which is encouraging.
A house in Bundaberg cost an annual median price of $285,000 in March 2013 and March 2018.
The unit market performed a bit better than the house market over the past five years. A unit in Bundaberg increased in value from $251,400 in March 2013 to $259,000 in March 2018.
Gladstone has stared down some of the most challenging market conditions in the state. This market lost 8.5 per cent over the 12 months to the March quarter to have a median house price of $280,000. This market is more than 38 per cent below where it was five years ago.
The unit market fell by 36 per cent over the past 12 months to an annual median unit price of $167,500.
The Rockhampton property market slipped moderately for the past year, with house prices falling by 1.9 per cent to $265,000 and unit prices contracting by 1.3 per cent to $295,000.
Units continued to outperform houses, as they’ve done for much of the year, and ended the year more expensive than houses. This atypical performance may be the consequence of the limited unit market, which represents less than 10 per cent of the region’s dwellings.
The Mackay house sales market has delivered an outstanding 4.1 per cent growth to the annual median house price to reach $333,250 and live up to last quarter’s forecast of a stronger start to 2018.
This market is now officially in recovery.
However, the unit market performance remained weak as unit prices fell by 7.8 per cent to $212,000 for the past year. Mackay is the second most affordable unit market in the state.
Townsville delivered a surprising fall of 3 per cent in the annual median house price for the year to March to reach $325,000.
Even more surprising, units grew a massive 5.7 per cent for the year to March to $280,000.
Cairns delivered steady growth of 2.5 per cent over the past 12 months to arrive at an annual median house price of $410,000 in March 2018.
The Cairns house market has been one of the top two regional performers (excluding the south-east corner) for the past five years of all the areas analysed in the Queensland Market Monitor. House prices increased by 17.1 per cent, or $60,000, from $350,000 in March 2013.
The unit market was weak in the year to March, with the annual median unit price falling by 1.7 per cent to $232,000.
Hollywell, the often overlooked Central North Gold Coast suburb: HTW
Hollywell is often overlooked in property searches due to its size and the well known surrounding suburbs, according to a recent Herron Todd White (HTW) residential report.
It is a small suburb located just below Paradise Point and just above Runaway Bay on the Gold Coast, Queensland.
It features canal front properties with bridge free broadwater access to a number of sites, as well as broadwater views.
“Whilst the suburb does lack quality shopping facilities, restaurants and cafes, it is within walking distance to suburbs that offer these,” the valuation firm said.
“Furthermore, public transport is readily accessible and runs straight through the middle of the suburb.”
Price points within the suburb do range as the property mix comprises units, dry block houses and canal front houses.
“Over the past six months we have seen entry level two-bedroom, two-bathroom units being acquired for just under $400,000, dry block houses selling upwards from $525,000 and canal front properties with bridge free broadwater access from $900,000,” the report said.
There was a recent $900,000 sale.
A circa 1980 five bedroom brick house at 361 Bay View Street, Hollywell was sold for $900,000 (pictured above).
The house features updated kitchen with timber floors, solar panels, concrete boat ramp, pontoon jetty and swimming pool.
Other highlights include north-east facing, 18 metre canal frontage with bridge free broadwater access, and 725 square metre land area.
The property is positioned on a local thoroughfare road that runs through Hollywell, which is a detracting factor.
The property was on the market for 64 days and original asking price was $1.15 million.
Gold Coast rainforest retreat sells in multimillion-dollar deal
A Gold Coast family will head to the hills after securing the keys to a picturesque property in a multimillion-dollar deal.
A rainforest retreat in Currumbin Valley has changed hands in a multimillion-dollar deal, selling to a large local family seeking a tree change.
The picturesque property sold for $2.4 million to the family from Sovereign Islands last week.
It was aptly named the Palasari Rainforest Estate and had a lush mountain backdrop and tropical rainforest surrounds.
Two residences were on the sprawling 10.52 ha property.
The main house was perched at the highest point and featured four bedrooms, a resort-style pool and an Asian-influenced design.
On the lower side of the block was an updated four-bedroom guesthouse.
Kollosche Broadbeach agent Rob Lamb, who sold the estate alongside Laura Delaney, said a Melbourne buyer also flew up and put in an offer but the local family had an unconditional cash contract.
“They are a large family with lots of kids who wanted to get out of the small confinements of urban living,” Mr Lamb said.
“There’s a bit more maintenance with a rural property but they can ride motorbikes and have a bit more freedom and privacy as the kids are growing up through their teens.”
Mr Lamb said the family plan to live in the guesthouse while renovating the main residence to better suit their needs.
A freestanding cellar door with a 1600-bottle, climate-controlled wine room, butler’s kitchen, powder room and outdoor patio was another impressive feature of the property.
The large block also had a thriving orchard with citrus, stone fruit, mangoes, avocadoes, apples, paw-paw, guava, banana, berries, macadamias, gapes, figs and vegetables.
The property was listed through Kollosche from late March, first with a $2.899 million price tag that was later reduced to $2.6 million, according CoreLogic.
Property records also showed it first hit the market with a different agency in January seeking more than $4 million.
The property last changed hands in 2015 for $2.3 million.
Currumbin Valley’s median house price has grown by 19.5 per cent in the past five years to $920,000. It is the Gold Coast 11th most expensive suburb.
Mr Lamb said he hadn’t seen any shift in the prestige property market in the lead up to the federal election and expected it to keep soldiering on. “For owner occupiers and particularly prestige properties, it shouldn’t affect anything too much,” he said.
“Interest rates look like they are heading down so it should suit the buyers looking to live in those prestige properties.”
The southeast Queensland suburbs where vendors are discounting their sale prices
The southeast Queensland suburbs where vendors are discounting their sale price by the largest percentages have been revealed.
New data analysis by Domain looked at the average rate of vendor discounting on properties in suburbs throughout Brisbane, the Gold Coast and the Sunshine Coast over the six months to March this year and found some areas were discounting by as much as 12 per cent.
Houses at Carindale, Clontarf, Redcliffe and Rochedale South topped out the list of Greater Brisbane suburbs with the highest percentage of vendors discounting their asking price, while Chermside, New Farm, Redcliffe and South Brisbane had the highest rate of discounting for units.
On the Gold Coast, houses at Broadbeach Waters and Hope Island both recorded double-digit average vendor discounting, while units at Main Beach and Southport had the highest rate of discounting.
Maroochydore and Tewantin headed up the Sunshine Coast houses that were being the discounted by the highest percentage.
Domain economist Trent Wiltshire said the rate of discounting was another market indicator that could help assess conditions in certain suburbs.
The data was compiled using a minimum of 30 observations and did not include properties that sold via auction or without a listed price.
“This can be a bit more timely than price data,” he said. “But it is only an average figure and, while the average or median is the simplest way to look at a suburb, it doesn’t tell the full story.”
Will Torres of Torres Property said overall the housing market in Carindale was performing well but that the average discounting rate was likely brought down by a specific price point.
Carindale’s median house price is $879,750, a rise of 1.1 per cent over the year to March.
“I’d say the market that is being affected at the moment is that mid-$1 million price range,” he said.
“Rewind to six months ago I was selling houses in this price range in three weeks — now I’m struggling to get numbers in the door. That’s where the discounting will be, around that $1.5 million range and that’s why the Carindale percentage is that high.
“Anything under that price point is still performing really well and selling well. Days on market have stretched but the buyers and the demand is overall still there.”
Broadbeach Waters recorded the highest rate of vendor discounting, by up to 12 per cent. Jordan Williams of JW Prestige said that figure had likely been increased by houses in the $2 million to $3 million range, which were sometimes overpriced.
“If you’re 10 per cent over the odds you won’t get a result, you won’t get a deal — that’s why you’re seeing that average discount for Broadbeach Waters,” he said.
“So this figure doesn’t mean the market has dropped here, it means some properties were overpriced. I sold a house for $4.5 million where the owners originally were asking $4.7 million. That’s a massive discount.
“But it started out that high because the owners said they wanted to give it a go, test the waters. There’s a million different scenarios for why people discount their properties.”
At Hope Island, where the average vendor discount is 10.3 per cent, agent Warren Hickey is selling a four-bedroom, two-bathroom contemporary home on Virginia Avenue, which is listed for offers over $995,000 and advertised as a huge price reduction.
However, he said the listing was not representative of the local market.
“On average we’d sell a property a week in Hope Island. I would say if you look back at everything we’ve sold in the past few years, we’ve probably only advertised one as having a price reduction and this is it. It’s the exception,” he said.
On the Sunshine Coast, where Maroochydore recorded an average discount on houses of 7.5 per cent, local Century 21 agent Damien Said said a lot of the properties in higher demand were now auctioned.
“That needs to be noted — those properties are automatically excluded from the data,” he said.
“If anyone in Maroochydore is discounting, I’d say it’s more of a reflection of a few properties that came on the market with unrealistic expectations.
“Generally, we’re finding that when properties do come on the market, as long as the price is realistic, our days on market are reducing. The coast market is still quite active.”
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