Brisbane’s prime market thrives, supported by ‘insatiable’ demand
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‘Insatiable’ demand has been driving Queensland housing, including the premium market where activity has tripled in the past year.
PS Property Advisory’s senior buyers agent Belinda Shields said Brisbane’s high-end market has been boosted by cash buyers over the past year as the number of deals has increased.
âOne of the most striking things is that many more Brisbane residents are buying at this price point,â Ms. Shields said.
âHigh-end prestige is no longer just the domain of international interstate, expatriate and foreign buyers in Brisbane.â
Since 2019, the number of transactions involving properties priced between $ 5 million and $ 20 million has been increasing.
Brisbane has recorded 11 prestige sales in 2019, 22 in 2020 and 38 in 2021 to date.
One of the most recent deals was the sale of a $ 12 million home to Indooroopilly, which is only about five miles from the central business district.
It was a six bedroom, five bathroom property with parking space for six vehicles.
The architectural two-level home features a sunken living room, 5-meter ceiling, open wood fireplace, deck, and pool with river views.
“One of my contacts with the agent told me that in today’s market it’s easier to sell a property between $ 10 million and $ 20 million than it is to sell a property between $ 3 million and $ 5 million because there are so many premium real estate buyers in the area, âMs. Shields said.
Ms Shields said high-end buyers are often not price sensitive, which could further support growth.
âWe 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,â she said.
âInterstate and overseas migration is about to skyrocket, and our top end will increase further. “
Factors that drive prime markets
Ms Shields said it has been a challenge in the past for wealthy buyers to find the right stock in Brisbane.
âQueensland’s status as a relatively COVID-free jurisdiction has improved our standing nationally and internationally among buyers,â she said.
However, Brisbane now has riverfronts, large estates close to the city, elevated views, upscale architecture, extensive facilities and classic restorations that major buyers all find appealing.
âAdditionally, low interest rates have bolstered business confidence – a source that directly feeds the hip pockets of these wealthy buyers,â Ms. Shields said.
âIt is also undeniable that the announcement of the 2032 Olympic Games, and the inevitable international spotlight that it will shine on our city, has strengthened our cache with the buyer. “
The global market still brilliant
It is not just the core market that is currently booming – 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 in 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 city lifestyle and outlying locations have remained popular.
During the quarter, the median home price in Brisbane rose 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 quarterly increase of 2.8% to $ 640,000.
Noosa posted the strongest quarterly median price growth of 13% to $ 1.3 million.
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 seen this sustained level of demand and accelerated growth before, but after years of modest growth prices here are catching up,” Ms Mercorella said.
âEven 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 our state’s incredible quality of life factor. “
Ms Mercorella said low stock levels, record interest rates, high levels of consumer confidence and household savings are all factors that could support price growth over the next year.
âWhile predicting the next step is just a crystal ball, the market remains strong with 12-month growth averages indicating markets are up across the board,â she said.
“With the reopening of interstate borders and the opening of international borders coming soon, it is likely that we may see a surge of activity and increased demand at the start of the new year.”
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Photo by @cityofgoldcoast on Unsplash.
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