"Insatiable" demand has been driving Queensland housing, including the premium market where activity has tripled in the past year.
PS Property Advisory & # 39; s Senior Buyers Agent Belinda Shields said Brisbane & # 39; s high end market has been boosted by cash buyers over the past year, as the number transactions increased.
"One of the most striking things is that many more Brisbane residents are buying at this price point," Ms. Shields said.
"Upscale prestige is no longer just for international interstate, expat and foreign buyers in Brisbane. "
Since 2019, the number of transactions involving properties priced between $ 5 million and $ 20 million has increased.
Brisbane has recorded 11 prestige sales in 2019, 22 in 2020 and 38 in 2021 to date.
One of the more recent deals was the sale of a $ 12 million house at Indooroopilly, just about five miles from the central business district.
It was a six bedroom, five bathroom property with parking space for six vehicles.
The two-level architectural home features a sunken living room, 5-meter ceiling, open wood-burning fireplace, deck, and pool with river views.
"One of my agent contacts told me that in today's market it's easier to sell a property between $ 10 million and $ 20 million than it is sell a property for between $ 3 million and $ 5 million because there is so much prestige out there. property buyers around, "Ms. Shields said.
Ms. Shields said high-end buyers are often not price sensitive, which could further support growth.
“We are the preferred market for high net worth buyers right now, and as the borders fall, we will see an influx of these ultraluxury buyers,” she said.
“Interstate and overseas migration is about to skyrocket, and our upper end will increase further. "
Factors favoring prime markets
Ms. Shields said it was a challenge in the past for wealthy buyers to find the right stock in Brisbane.
“Queensland's status as a relatively COVID-free jurisdiction has improved our standing nationally and internationally among buyers,” she said.
However, Brisbane now has riverfronts, large estates close to the city, elevated views, high-end architecture, extensive facilities and classic restorations that major buyers all find appealing.
"In addition, low interest rates have bolstered business confidence – a source that directly feeds the hip pockets of these wealthy buyers," Ms. Shields said.
“It is also undeniable that the announcement of the 2032 Olympics, and the inevitable international spotlight that it will shine on our city, has beefed up our cache with the buyer. "
The global market is still shining
It's not just the main market that's currently flourishing – the overall Queensland residential real estate market has shown strong indicators in the last quarter.
According to the latest report from the Real Estate Institute of Queensland (REIQ), median house prices rose 1.8% statewide during the third quarter of the year.
Brisbane had the most home sales in the quarter (3,912), followed by the Gold Coast (2,419), Moreton Bay (1,945), Sunshine Coast SD (1,510), Logan ( 1,413) and Ipswich (1,366) showing The way of life and places on the outskirts of the city remained popular.
During the quarter, the median home price in Brisbane increased 4.7% to $ 900,000, representing an annual gain of 15.5%.
Greater Brisbane still offered a chance to be more affordable for those wishing to live on the outskirts of the capital with a 2.8% quarterly increase to $ 640,000.
Noosa posted the strongest quarterly median price growth of 13% to $ 1.3 million.
The REIQ reported that while regional LGAs have seen gains, there remains volatility in some markets over the past year.
REIQ CEO Antonia Mercorella said the "phenomenal" performance of the Queensland property market was due to "insatiable" demand from buyers.
"Queensland has never experienced this sustained level of demand and accelerated growth before, but after years of modest growth, prices here are catching up," Ms Mercorella said.
"Even as our median prices rise, our state is still showing better value for money, with investors looking to boost their real estate dollars and southerners keen to take advantage of the incredible quality of life factor. of our state. ”
Ms Mercorella said that low inventory levels, record interest rates, high levels of consumer confidence and household savings are all factors that could support price growth in the world. over the next year.
“While predicting what will come next is just a crystal ball, the market remains strong with 12-month growth averages indicating markets are up across the board,” she said.
"With the reopening of interstate borders and the opening of international borders to come, it is likely that we could see a surge of activity and an increase in demand at the start of the new year . "
–
Photo by @cityofgoldcoast on Unsplash.
