BUYERS are no longer worried about the health of Brisbane’s property market, but rather finding the perfect home. And with stock levels low, now may be the time to put that property on the market.
BUYERS are no longer concerned about the health of Brisbane’s property market, but rather finding the perfect home.
A Place Advisory survey of 853 people — comprising local buyers (80%), interstate buyers (10%) and international buyers (10%) — found that more than one third, or 36 per cent, were now more concerned about finding their dream home than market uncertainty.
Only around 18 per cent identified market uncertainty as a major concern, according to the survey.
This marks a significant shift in sentiment compared to last year, when 44 per cent of potential buyers were more worried about the uncertainty in the property market.
ON THE MARKET: BELLBOWRIE — 111 Lather Road
5 bed; 6 bath; 5 car
Price: $3.795 million
Agency: Adcock Prestige
“This result is a strong indication that confidence is improving throughout the marketplace,” the report said.
Other notable concerns were having enough of a deposit or a lack of equity (18 per cent) and ongoing holding costs (14 per cent).
The survey findings come after the Reserve Bank of Australia kept interest rates on hold at a record one per cent earlier this week.
ON THE MARKET: KEDRON — 67 Sydney St
4 bed; 4 bath; 2 car
Auction: August 31, 2pm
Agency: Harcourts Clayfield
Place Advisory Lachlan Walker said the survey findings were a positive sign leading up to the start of spring selling season.
But he warned that available housing stock levels remained low compared to previous years.
“There are buyers out there but right now they are still searching for the right property,” he said.
“There is a lag (between buyer confidence and available housing stock) … we just don’t have enough stock on the market and buyers aren’t willing to compromise so they are happy to wait.
“Especially those local buyers who have always seemed to take their time … interstate buyers are more used to a fast market.
“But what this survey shows is that the majority (of survey respondents) feel that the market will continue to improve over coming months.”
Almost two thirds of the respondents said they believed Brisbane would continue to perform “at least as strong” or stronger by 2020.
“This market outlook of respondents strengthens the argument that Brisbane’s property market has now begun transitioning into the early stages of a positive growth cycle,” the report said.
ON THE MARKET: HIGHGATE HILL — 37 Derby St
4 bed; 3 bath; 2 car
Auction: August 31, 10.30am
Agency: Raine & Horne Brisbane West
ON THE MARKET: ST LUCIA — 388 Swann Rd
5 bed; 2 bath; 2 car
Price: $2.3-$2.45 million
Agency: McGrath Paddington
And the finding is supported by local real estate agents who said they were seeing an upswing in open house inspections, registered bidders at auction and direct inquiries.
Recently, a renovated Queenslander in a sought-after school zone was snapped up in less than 24 hours, with the buyer putting in an immediate unconditional cash offer.
In another example of buyers acting fast to secure the right property, a Sydney homeseeker spotted the perfect home online, and purchased the house, sight unseen, at auction the following day.
Brisbane agents further confirmed that stock levels were not keeping up with demand.
That sentiment was back up by data from property market analysis firm, CoreLogic.
In its most recent analysis, CoreLogic found that while the housing market was showing signs of recovery in the eastern capitals, including Brisbane, advertised housing stock had reduced.
“Across the combined capitals, the number of freshly advertised properties is down 25 per cent relative to the same time last year and total advertised stock levels are now tracking 5 per cent lower relative to a year ago,” according to CoreLogic.
“The reduction in available stock creates less competition among sellers and increased competition among buyers, adding support to higher prices.”
ON THE MARKET: MOUNT GRAVATT EAST — 5 Poinciana Close
5 bed; 3 bath; 3 car
Auction: August 31, 1pm
Agency: Place Sunnybank
REA chief economist Nerida Conisbee said realestate.com.au data showed that there are “tonnes of potential buyers” in the market, buoyed by rate cuts and the federal election outcome.
She said that increased competition would likely lead to a rise in housing values, particularly in the prestige market.
ON THE MARKET: BALMORAL — 71 Fifth Avenue
5 bed; 3 bath; 2 car
Sale by Negotiation:
Agency: Ray White New Farm
“Lower prices, record-low interest rates and better access to finance is giving buyers a great opportunity to make the most of the current market conditions. In markets like these, sellers can name their price,” Ms Conisbee said.
“Buyers and sellers should start seeing the current market as an opportunity to capitalise. “Buyers are back in a big way, but they need to act quickly before prices start increasing in Spring.
“We saw it happen in Hobart. High demand from buyers drove prices up quickly and a lot of people missed the boat.
“Right now, because the number of houses for sale is so low, those who are selling can almost name their price.”
New data from realestate.com.au shows that property searches grew 19 per cent, year on year, to 94 million a month, and inquiries on properties listed for sale jumped 25 per cent.
In Queensland, property searches jumped by 23 per cent, and inquiries in July grew 16 per cent compared to the same time last year.
Mr Conisbee said that buyers now had an opportunity to capitalise on the bottom of the market and sellers could name their price while stock levels remain low.
“These are really unique market conditions and they won’t last if prices jump as we head into Spring,” she said,
“Markets often change direction quickly and price growth can become unexpectedly strong with in a very short period of time.
“If buyers are quick, they can jump into a suburb they wouldn’t have been able to afford just 18 months, but it won’t be long before prices start to climb again.”
That’s good news for teacher Natalie West, who is selling the family home of 18 years at 40 Pinecroft Street at Camp Hill. It is listed with Shane Hicks of Place Bulimba.
“It is a great location for families,” Ms West, who has four children, said. “Our youngest was two years old and our eldest was 14 years when we moved in, and it has been a really great house for a growing family.”
“It is close to schools, shopping centres, the major arterials, and the bus, which the girls caught to All Hallows every day.
“And it’s a dead-end street so the kids used to play cricket on the street growing up.”
Mr Hicks said the size of the house and the block, plus its location, was attracting “a lot of attention”.
And he agreed that a lack of new stock hitting the market meant it was a good time to sell.
“But I would also argue it is a good time to buy,” he said. “I think some sellers are sitting and waiting but we haven’t see the price drops seen in places like Sydney and Melbourne.
“In some suburbs values have held their own, in others they have increased.”
Overall, dwelling values across Brisbane as a whole fell 2.4 per cent in the past 12 months, well below the falls reported in Sydney (-9%), Perth (-8.9%), Darwin (-8.7%) and Melbourne (-8.2%).
It was also considerably lower than the decline in value for all combined capitals, which was down 7.3 per cent over the same period.
But things are already looking up, with house values in Brisbane rising 0.2 per cent over the month to July, according to CoreLogic.
And some suburbs have escaped the property downturn completely unscathed, and have recorded significant increases in house values.
Jason Adcock of Adcock Prestige estimated that stock levels were down at least 20 per cent in his patch, which includes some of Brisbane’s most expensive suburbs.
“There is just not enough properties to go around for the amount of buyers in the marketplace,” he said.
“I am coming across buyers on a daily basis who have missed out on properties and when the next one comes up, they go even harder.”
“For example, there is less than 20 properties coming on to the market now in Chelmer, and that is the lowest I have seen in probably 20 years.
“It is definitely a sellers market in places like Chelmer.
“This is already impacting on values with some sellers getting prices that I have not seen in some time.”
Mr Adcock said owners considering selling should consider their options now, with the city experiencing a trifecta — boosted confidence, more buyers and less stock available.
“If I was selling, now is the time I would be looking to get on the market,” he said.
Mr Walker said he expected that median house values in Brisbane would continue to increase.