Looks like the brisbane market is slowly dragging to a halt because of large prices paid after 2003.
Typical suburban land in SE qld valued at $30,000 in 2001 is now valued between $80,000 and $150,000 depending on suburb, with the majority of the increase coming becore 2004.
Short term investor/rennovators are finding it unprofitable to sell now because older houses with more features have made such huge profits, that owners are prepared to let them go cheaply, and their are alot of them around.
Many examples i have seen just this weekend:
-Newish house that was asking $315k, after being brought for $245 in 2005 and landscaped. The price was dropped to $280k and is now asking offers and hasn’t got one above $245k yet. Area has deteriorated to bad rental area. Looks unlikly to sell for $280 for at least 2 or 3 more years.-Another house is asking $330 dropped to $315, was brought for $269 a few years ago. Reno’s added a new kitchen and outdoor entertainment area. However same houses can be found with pools, asking $315 and selling for $295. Hasn’t gone anywhere and isn’t likly to.
-House was brought for $289 with horrible paint sceme. Repainted and did some gardening, 1.5 years later is now asking $359 and probably going to take $340. Most agents are saying it would be luky to get $310.
-Newish house brought for $295k, now 2 years later listing was dropped to $315 and looks unable to sell, houses in area are going for $280k
The main reason seems to be the large increase in house prices is slowing and many people who brought around 2000 are now looking to cash in. A typical $300k house host $110k in 2000, let alone ones that have been done up! Now they are starting to all be sold and more recent reno’s/investorsr are going to find they need to hold onto the homes for quite a long time.
It might be a good time to buy. Maybe flow on effect of increases in inner city prices hasn’t hit these suburbs yet. With Brisbane’s high migration/immigration and the resources boom I expect it to continue going up. Bris prices look cheap compared to Perth and has a similar lifestyle. I think it will do a bit of a catch-up. Bris has also got a good rental return and lower management fees and stamp duty, compared to some other capital cities which will lure investors. Cheers.
Hi,
I have been hearing conflicting reports about Brisbane and QLD. Some seem to say it is on the move up and other seem to say it is on the move down….
I don’t live in Brisbane so I do not have the local knowledge to make an informed decision. Maybe the mining boom in some of the regional towns in QLD are having an effect of the numbers. My dad lives in a regional town near Townsville and in the past year prices have gone up about 150% due to demand for housing for miners. Maybe these sort of numbers cloud the issue.
Maybe there is a slump in some areas of the QLD market (for instance in some areas of Brisbane) but not in others.
Kelly
Very interesting analysis. It always pays to do you’re own research clearly. Not sure what suburb you’re talking about perhaps you could enlighten us so we can buy at the bottom market?
Many areas in Brisbane are on the move with multiple offers and properties achieving more then the asking price. Vacancy rates are at an all time low and returns improving by as much as 6%.
I attended two auctions in the past week and both properties sold under the hammer with very competitive bidding pushing the price above any other historical sales evidence for the streets and areas.
I’ve been involved with the sale of a property today with the buyer purchasing two properties in the same street and back-up contracts from other buyers on both properties. Tick, tick, tick
I guess that many areas of Brisbane are still well undervalued in terms of the southern states and Perth.
[ohno]
Opportunity in everythinng
Things change quickly.
Over the last week I am begining to see houses go for above asking price and sell very quickly.
It is very scary now, I saw one house asking $310 and getting so many offers it ended up selling for about $322 I believe, now a nearly identical house is asking $359 and looks like it will sell, scary to see such jumps so quickly. Friends brought a house in january for $255,000 and same houses in same street now asking $295,000…. unbelievable how fast things can move.
Curious where the houses you mentioned in your latest post are?
Things seem to be ticking along nicely in the Coorparoo, Greenslopes, Holland Park area.
Wylie
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