St Lucia, Ascot, Auchenflower and Wilston were the best performing suburbs in Brisbane where the prices increased by more than $150,000.
Property experts say the Queensland’s southeast had emerged as a powerhouse property market generating solid capital growth for homeowners and putting its southern counterparts to shame.
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The latest Real Estate Institute of Queensland quarterly report shows the Brisbane local government area median house price rose 3.6 per cent over the year to June to a new high of $655,000 — up from $505,000 five years ago.
That’s nearly 60 per cent higher than it was a decade ago, showing the resilience of the city’s housing market against headwinds such as the global financial crisis and the mining downturn.
But Brisbane wasn’t the state’s strongest performing LGA in the 12 months to June.
That was the Gold Coast, which saw a 6.8 per cent jump in its median house price to $595,000.
The Sunshine Coast wasn’t far behind its southern cousin — growing 6.2 per cent over the year to June to $550,000.
And Noosa was the top-performing market in the state during the period — recording median house price growth of more than 12 per cent to $645,000.
Real Estate Institute of Queensland chief executive Antonia Mercorella. Photo: Claudia Baxter.
REIQ chief executive Antonia Mercorella said Queensland’s southeast corner was the ideal housing market, delivering steady, sustainable growth and beating Sydney and Melbourne when it came to affordability and lifestyle.
“There is no denying the consistency of Greater Brisbane’s yearly median house price growth — we have grown steadily for about four years — which is proof that affordability combined with jobs and lifestyle are the recipe for a pretty close to perfect house market,” she said.
“We have withstood an enormous level of disruption from the GFC and the mining downturn and despite this, over the past 10 years our median house price has grown 58 per cent.”
She said the latest capital city property data from research firm CoreLogic supported the case that Brisbane was an unbeatable house market, when compared with Melbourne and Sydney.
“As those markets start to cool people are naturally growing concerned about a potential correction,” Ms Mercorella said.
“However, throughout the southeast corner, our growth is based on an improving value proposition, which means it is reliable, sustainable capital growth.
“There’s no boom or bust here in Brisbane.”
An aerial shot of Brisbane, which experienced 3.6 per cent growth in house prices in the year to June.
REA Group chief economist Nerida Conisbee said Brisbane was still “a very affordable city”.
Only 6 per cent of the suburbs in Brisbane have a median house price of $1 million or more, compared to more than half in Sydney and a third in Melbourne.
“That makes Brisbane so attractive,” she said.
“Look at what you can buy for a million bucks.”
The suburb of St Lucia, in Brisbane’s west, saw the strongest median house price growth in the year to June, rising nearly 22 per cent to $1,255,000.
Rod Dashevici has almost finished building a new house there, which he plans to sell and reap the returns from.
Mr Dashevici said he chose to buy a block of land in St Lucia because he knew the suburb was popular with both owner occupiers and investors.
“Being in the Ironside school catchment is very important and it’s also close to the University of Queensland, so you’re winning,” he said.
“It’s just such a great family suburb.”
Rod Dashevici at the home he has built at 91 Eighth Avenue, St Lucia. Pic Peter Wallis
But it’s not just the affluent suburbs that have outperformed.
In Gaythorne, 7km west of Brisbane’s CBD, the median house price grew nearly 22 per cent in the year to June to $720,000.
“This was definitely a bit of a surprise,” Ms Mercorella said.
“It’s one of those inner west suburbs getting a bit of the halo effect from surrounding suburbs, like Enoggera.”
Aerial view of Gold Coast, which saw a 6.8 per cent jump in its median house price in the year to June.
The upcoming Commonwealth Games and the luxury housing market are driving price growth on the Gold Coast.
Ms Conisbee said it was unusual for a region to outperform a capital city housing market, but that was the case when it came to Brisbane and the Gold Coast.
“The Gold Coast is creating quite a lot of jobs at the moment because of the Commonwealth Games and infrastructure spending,” she said.
“It provides a lifestyle that people — particularly from places like Sydney — find highly desirable.”
Ms Conisbee said nine of top 10 suburbs in Australia for rental demand were on the Gold Coast. “A lot of people rent first before they buy.”
Kollosche Prestige Agents managing director Jordan Williams said his agency had completed $40 million worth of sales in the past four weeks, and the majority of buyers were local.
“Local buyers are seeing value in the market,” he said.
“It’s hard to find good quality homes and buyers are snaffling them up quickly.”
This house at 51-53 Portobello Dr, Mermaid Waters, has just sold.
Erik Raaschou and his wife, Lea, have just sold their mansion at Mermaid Waters through Mr Williams for a record sale price for the Gold Coast suburb.
The five-bedroom, four-bathroom waterfront home on a huge 1900 sqm has sold for $2.9 million to a family relocating from Brisbane.
It’s definitely paid off for Mr Raaschou, who paid $2.05 million for the property in May last year, even though he undertook substantial renovations.
“For us to get that sort of a return after a bit over a year is testament to the strength of the Gold Coast market,” he said. “It’s gone nuts.”
The entrance to 51-53 Portobello Drive which has broken the sale price record in Mermaid Waters.
Further north on the Sunshine Coast, Tom Offermann Real Estate Noosa principal Tom Offermann said Noosa had also experienced substantial growth in the past 12 months.
“We have buyers from Sydney, Melbourne, New Zealand, our usual Brisbane market, plus a lot of overseas buyers and that’s driven by the big lift of around 100 per cent in values in Melbourne and Sydney markets,” he said.
“People are using equity in those properties and shifting some of that up to Noosa, where the values have only recently started to catch up to southern states’ growth.”
Mr Offermann said Noosa had also benefited from a lift in the number of visitors to the area. “In the last three years, we’ve seen year-on-year growth of around 16 per cent, so even during off-peak times, it feels like holiday season here.”
View over Noosa Main Beach and Noosa Sound. Photo Lachie Millard.
BRISBANE LGA’S TOP 10 SUBURBS FOR HOUSE PRICE GROWTH
Suburb Price growth in year to June 2017
1. St Lucia 21.8%
2. Gaythorne 21.6%
3. Ascot 21.6%
4. Auchenflower 19.2%
5. Wilston 18.8%
6. Corinda 17.5%
7. Milton 17%
8. Fig Tree Pocket 16.5%
9. Doolandella 14.3%
10. Coopers Plains 14.3%
(Source: REIQ)
QUEENSLAND’S TOP 10 SUBURBS FOR HOUSE PRICE GROWTH
Suburb Price growth in year to June 2017
1. Woodend (Ipswich LGA) 34.5%
2. Murgon (South Burnett LGA) 26.0%
3. Clear Island Waters (Gold Coast) 24.0%
4. Oonoonba (Townsville LGA) 23.6%
5. Sunshine Beach (Noosa LGA) 23.1%
6. St Lucia (Brisbane LGA) 21.8%
7. Gaythorne (Brisbane LGA) 21.6%
8. Ascot (Brisbane LGA) 21.6%
9. Auchenflower (Brisbane LGA) 19.2%
10. Noosa Heads (Noosa) 19.1%