Homeowners living on Brisbane’s south side could be sitting on a “goldmine” thanks to a frenzy of first-home buyers and interstate investors desperate to break into the area.
Local agents say they cannot keep up with demand in suburbs such as Mount Gravatt East, Mount Gravatt and Holland Park West, where prices are rising at a faster rate than the rest of Brisbane.
In Mount Gravatt East, house prices have risen 7.6 per cent over the past year and, more significantly, 4.3 per cent over the past quarter, which was the same period where Brisbane house prices fell by 1.4 per cent. In Mount Gravatt, prices have risen by 2.5 per cent over the year and in Holland Park West, they’re up by 3.1 per cent.
Olivia Scott-Young, agent from Freedom Property.com.au, recently sold 200 Margate Street, Mount Gravatt East, a run-down two-bedroom, one-bathroom, post-war home on 636 square metres of land.
She received a whopping 27 written offers at the first open house, all of them from first-home buyers.
“I actually had phone fatigue, I took that many calls on that property,” she says. “I have never experienced anything like it in all my career.”
Ms Scott-Young says it’s indicative of the “tidal wave of interest” in these suburbs, particularly Mount Gravatt East.
“Buyer are crazy for Mount Gravatt but even more for Mount Gravatt East, where there’s less development. The area has retained its integrity more so than other suburbs,” she says.
“It’s only eight kilometres from the CBD and neighbouring suburbs are double the price. My feeing is that prices will continue to rise throughout the year.”
A house at Kentish Street recently set a new record for similar houses in Mount Gravatt East – the three-bedroom, one-bathroom, post-war went for $676,000.
Unfortunately for mum and dad investors, prices have now outstripped rental yields, according to Isa Kural, agent at Ray White Holland Park.
“Buyers are now paying $640,000 to $650,000 for a three-bedroom, post-war house but they’ll only get $440, $450 a week in rent,” Mr Kural says.
“The numbers don’t stack up so investors are being priced out very quickly.”
Investors from Sydney and Melbourne, however, are yet to be priced out. Many have Brisbane’s south side on their radar and the competition to secure large, sub-dividable blocks of land is fierce, Mr Kural says.
“The houses with development potential are like little goldmines. Everyone wants them,” Mr Kural says.
Mr Kural recently sold 10 Nightingale Street, Mount Gravatt East – a three-bedroom original post-war home on 807 square metres – for $830,000. Only days later he sold 16 Iris Street, Holland Park West, a three-bedroom, post-war home on 810 square metres, off market for $960,000.
“These investors from down south are loaded – and they’re looking for the next best place to invest,” Mr Kural says.
“A lot of these interstate buyers are paying top dollar for these properties because they’re buying for tomorrow. They’re prepared to pay what they think it will be worth in one year’s time; they’re that confident of its capital growth.
“They’re land banking, looking to hold on to these blocks for a couple of years, then split them and build on them.”
Originally Published: https://www.domain.com.au/