market updates - Peter May and Brad Robson
What happened during 2019?
In our latest market wrap, we look into what happened in the real estate market in 2019 for both sales and rentals and provide some thoughts on what we’re expecting to see in 2020. Focusing in on Chelmer through to Oxley, the Centenary Suburbs and Indooroopilly west to Bellbowrie, including Kenmore and Chapel Hill. We look at some proposed reform from the Queensland Government and share some exciting news that we’ve got coming up. If this sounds interesting to you, grab a piece of Christmas cake and enjoy reading on.
The year that was...
The stats are in and this Christmas, once again, you can feel confident your family home is worth more than what it was last Christmas with Brisbane dubbed the nation’s “quiet achiever”. Brisbane house prices have grown almost 30 per cent in the past five years, largely thanks to steady, sustainable growth, which has made us one of the most stable capital city markets in 2019.
2019 started with some challenges as the property market felt stagnated however, that quickly trued around in the second half after the Federal Election. Buyers were nervous about proposed changes by the opposition so when The Government was re-elected, Buyers were relieved and reacted positively. Other factors included record low interest rates and a loosening of monetary policy, making it easier for Buyers to borrow once again. News out of Sydney and Melbourne during the last quarter of 2019 saw the fastest quarterly gain in the last 3 years. This adds further upward pressure on Brisbane house prices because with the two major cities sky-rocketing, interstate migration continues to pick up and buyers will seek more affordable options up here.
It’s fair to say 2019 has been a great year for all of us here at Place Graceville. Our clients rated our overall performance 5 stars within Chelmer, Graceville, Corinda, Indooroopilly and Chapel Hill, putting us in first place amongst all our competing agencies in these suburbs according to RateMyAgent. Our sales success has been one of our strongest on record with over 90% of the homes we’ve listed, we’ve sold and our Auction success is currently holding strong at just over 80% sold either prior to auction day, under the hammer or within two weeks after.
Excitement for the year to come...
Looking to the year ahead, we’re excited for 2020. Starting on 1st January, the Federal Governments first home loan deposit scheme will be introduced, bringing an additional 10,000 new buyers into the market. Although we don’t expect this to mean immediate change for us locally, we do expect to feel the knock on effect as sellers upgrade.Further to that, the media have shifted into spreading positive news as some outlets are talking 20% growth in the Brisbane market by 2022.
As we move into 2020, property owners that are considering selling get an amazing opportunity that largely goes unnoticed. Both realestate.com.au and domain.com.au report January as one of the busiest months of the year for traffic on their respective sites. With a consistent waive of job transfers, interstate migration, families moving to get closer to their preferred school, January is a great time to sell.
The problem being that a lot of agents and sellers wait till February where less buyers are looking and there’s more competition. The Place Graceville team understands this trend and while other agencies will be on holiday, we will be proactive right from the 4th January. Giving our clients the opportunity to showcase their home during this very busy period. So if you’re considering selling, give us a call on 3379 4311 to speak to your favourite Place agent and we will help you get the jump on the market as we catch this first wave of buyers.
Exciting news from the office!
On a personal note, we’ve got some really exciting news to share. In 2020, we get to welcome two new faces to our dynamic team. The experienced duo of Scott Smolders & Maddison Hayward, who have sold over 250 properties are joining our team and bring with them a wealth of experience, exceptional work ethic and a dedication towards customer service.
What's happening in the rental space?
On the rental front, 2019 was a very stable year. Rental prices largely held their ground and in some locations we saw rents increase. We expect modest increases to continue in the year ahead.
Looking forward to 2020, some change may be on the horizon. The Queensland Government proposing rental reforms. Some of the proposals have us concerned, specifically the abolishment of a landlord’s right not renew a lease at the end of its agreed term and the introduction of the tenants right to make modifications to the home without the owners approval.
Best wishes from the team at Place Graceville
One of our core values here at Place is Community; and in 2019 our team strove to give even more. We were proud to offer our support with a number of local school fetes, supporting local fundraisers, being major sponsors and participants of the CTK fun run or even our current Christmas Appeal on behalf of the Smith Family - our philosophy here at Place is, we want to give back to the community and residents because they give us so much.
From the entire Place Graceville time, we wish you all the best this festive season, we hope you have a wonderful and safe time, spent with friends and family. Together, let’s make 2020 the best year yet!
What happened during FY18-19?
In our latest market wrap, we will share a few insights into what’s happened in the marketplace during the 2018-19 financial year for both sales and rentals. focusing in on Chelmer through to Oxley, the centenary suburbs and Indooroopilly west to Bellbowrie, including Kenmore and Chapel Hill.
Briefly, we will look at a couple of trends we’ve noticed and give our thoughts on what to expect during the 2019/2020 financial year. So if this sounds interesting to you, grab a coffee and read on.
Here's what the numbers say...
Wow, for a year full of negative press, the results certainly haven’t lined up with what the journalists were predicting. Yes, Sydney and Melbourne took a hit but according to the REIQ market monitor report, Brisbane saw 1.5% growth for the financial year, this rounds out a whopping 24.8% over the 5 year period. The numbers are in for Sydney and Melbourne too with them seeing 3.6% and a 2.5% reduction over the 12 month period.
The team here at Place Graceville had a great year financial year, we’re proud to say we’ve helped 838 people find their happy place. That’s 241 Sellers, 241 Buyers along with 374 landlords and tenants. But more than helping them find their happy place, our clients awarded us with a 5 star rating on RateMyAgent making us the agency recommended the highest in Chelmer, Graceville, Corinda, Indooroopilly and Chapel Hill – Thank you to all those that trusted us throughout the 2018 / 2019 financial year. Our goal is to help even more of you during the year ahead.
What are sellers and buyers doing?
One trend that we noticed over the past 12 months is that Sellers seem to have gone into hibernation with the number of homes being made available across the core areas that we look after has reduced by 13.8%. We feel that this is one of the reasons why the Brisbane market has continued to hold strong. With supply being reduced while demand has held, prices have remained stable.
It’s fair to say, looking ahead, Buyers are out in force and they are very frustrated at the moment with the lack of available choice within the market. The good news for Sellers that are choosing to act now rather than waiting for the traditional spring rush, they see increased competition, ensuring they get a great result with less time on the market.
What else is influencing the market?
There are a number of reasons why there’s positive news coming from the press gallery. The cost of money is getting cheaper with interest rates on the way down along with changes from APRA, freeing up the banks ability to lend. This means it’s easier for buyers to secure higher amounts of finance, therefore increasing demand.
What does this all mean?
All in all, it has been a strong twelve months for the property market. If we can help you with anything property related, please do not hesitate to get in touch with a member of my hard working and dedicated team on 3379 4311.
What's the latest?
In this market wrap we’re going to drill down into what we’ve seen in our local property market during the first quarter of 2019. Focusing on Chelmer through to Oxley, the Centenary suburbs and Indooroopilly, west to Bellbowrie and Moggill, including Fig Tree Pocket and Chapel Hill.
We’re going to look at what’s happening in Melbourne and Sydney and contrast their market movements to our own, whilst looking forward to see what we can expect during the rest of 2019. Then, we get a little bit political with the proposed changes to negative gearing. So, if this sounds interesting to you, please continue reading and enjoy.
Is the doom and gloom real?
This market wrap is going to be a little different because like you, we’re seeing the various media outlets peddle all kinds of doom and gloom but we’re simply not seeing those outcomes on the ground. The biggest struggle we have at the moment is finding homes to sell. Given all of this negative talk, we’re noticing sellers hold off and waiting for the market to improve. On the contrary, the stats are showing we’re still in a good market here in Brisbane.
As an office, during the first quarter of this year we’ve sold over 70 homes. That’s over one per day, every business day for the first 3 months of the year. Right now, buyers are buying, sellers are selling and prices are holding steady.
Here's the reasearch...
We’ve done our research and looked into why there’s currently so much negative talk surrounding the Brisbane property market. Evidently it seems to all relate back to Sydney and Melbourne. Here in Australia, there is no overarching “Australian property market”, as the property market is dramatically different depending on the State, Territory, city or regional area that you’re in. Australia is therefore essentially a collection of many different housing markets.
So, what’s happening in Sydney and Melbourne that is having such an adverse effect up here on the reputation of Brisbane’s property market? Well, over the past 3 months Melbourne has seen a decrease of 4.1%, and they’re down a total of 9.6% since their peak back in November of 2017. Sydney similarly has experienced a down turn of 4.1% over the 3-month period but has declined a total of 13.2% since their peak in July 2017.
But what about Brisbane?
Contrastively, Brisbane have only seen a slight ease over the past 3 months of just 0.7%, meaning we’re only marginally below our peak in April 2018. Here, our economy is being reinforced by projects such Queen’s Wharf, TradeCoast, Cross River Rail, the second airport runway and several other major projects.
More than that, the jobs growth from those projects hasn’t even been felt yet and won’t kick off for a few more years, giving us a positive outlook for a reinvigorated market into the future. So, what is actually going on in our local property market right now? Well, the stats presented below clearly show that the news is all good for our local area. Lots of homes are selling and prices are holding strong.
Hyper local... have a look at your suburb:
- Chelmer median based on 40 sales over the past 12 months is $950,000, this has increased by 18.8% over the past 5 years.
- Graceville median based on 75 sales over the past 12 months is $945,000, this has increased by 37.5% over the past 5 years
- Sherwood median based on 81 sales over the past 12 months is $790,000, this has increased by 16.9% over the past 5 years
- Corinda median based on 59 sales over the past 12 months is $745,000, this has increased by 41.5% over the past 5 years
- Oxley median based on 131 sales over the last 12 months is $570,000, this has increased by 25.3% over the past 5 years
- Indooroopilly median based on 125 sales over the last 12 months is $800,000, his has increased by 14.3% over the past 5 years
- Fig Tree Pocket median based on 49 sales over the last 12 months is $950,000, this has increased by 8.6% over the past 5 years
- St Lucia median based on 64 sales over the last 12 months is $1,085,000, this has increased by 28.8% over the past 5 years
- Chapel Hill median based on 120 sales over the last 12 months is $827,500, this has increased by 25.4% over the past 5 years
- Kenmore median based on 146 sales over the last 12 months is $731,250, this has increased by 28.3% over the past 5 years
- Bellbowrie median based on 69 sales over the last 12 months is $555,000, this has increased by 18.8% over the past 5 years
- Moggill median based on 71 sales over the last 12 months is $563,000, this has increased by 11.7% over the past 5 years
- Jindalee median based on 87 sales over the last 12 months is $565,000, this has increased by20.7% over the past 5 years
- River Hills median based on 46 sales over the past 12 months is $536,250, this has increased by 24.7 % over the past 5 years
- Mount Ommaney median based on 25 sales over the last 12 months is $910,000, this has increased by 34.8% over the past 5 years
- Westlake median based on 57 sales over the past 12 months is $749,000, this has increased by 19.8% over the past 5 years
What does the negitive gearing changes really mean?
The only concern that we at Place Graceville have looking forward, without getting too political of course, is the proposed changes to negative gearing. If this goes through, we will see investors leave the market, causing an instant reduction in demand and a consequential fall in prices. More than that, there will be less investors in the market which means fewer rental properties and overall stiffer competition between tenants, pushing up rents.
We all know that for most, the natural life cycle starts by living at home, then move into a share house, then moving into our own rental as we save for our first home in the hopes of hopping onto the property ladder. If rents go up, this will make it even harder for first home buyers to save for a deposit.
Australia has built the property market on private investors and the only way I can see these changes in negative gearing working is if Australia spends billions on public housing with a long-term view of moving away from the current status quo. There have been a ton of different reports all showing different stats, however one message remains consistent; if Labor goes through with the proposed changes, rents will go up and prices will fall.
What does that all mean?
All in all, the news is positive here in Brisbane, we still have a healthy level of affordability, interstate migration and a good balance of local and interstate investors. We are expecting 2019 to offer stability and for Brisbane to come out as Australia’s leading property market.
If we can help with anything property related, please don’t hesitate to get in touch with one of my hard working and dedicated team members on 3379 4311
Just a stone’s throw away from the city lies Kenmore, a suburb which is at the heart of Brisbane’s property growth.
Gearing is a form of financial leverage. In real estate, when an investor borrows money to invest in an income-producing property, gearing is the money borrowed to buy this asset - usually a home loan. The income made from this investment property is either positively or negatively geared.
In our latest market wrap, we will share what market movement we’ve seen in the third quarter of 2018 for both sales and rentals. We’ll also look forward to what we can expect over the horizon. Focusing in on Chelmer through to Oxley, the centenary suburbs and Indooroopilly west to Bellbowrie, including Kenmore and Chapel Hill.
The 2017-18 financial year is now finished and we will share a few insights into what has happened in the marketplace, for both sales and rentals, in the past twelve months. Looking ahead to what can be expected over the horizon. Focusing in on Chelmer through to Oxley, the centenary suburbs, Indooroopilly and west to Bellbowrie, including Kenmore and Chapel Hill.
On behalf of the entire team at Place Graceville, we would like to wish you and your family a very Merry Christmas and a safe, enjoyable holiday season.2017 has been a great year within the property space here in Brisbane, we’ve seen more steady, sustainable growth and rental yields in the western suburbs have largely held their ground.
Don’t you love elections, a time when politicians get to jostle for air time, promising us the world, trying to become the messiah of all issues great and small.
Spring is well and truly under way and the traditional upswing in properties coming to the market is evident. Here at Place, we’ve seen a number of new homes come online feeding the appetite of some starving buyers that didn’t see much over the winter months.