Here's an article I found recently on the Brisbane property market. It's really good news for those clients who purchased in Brisbane several years ago. Once again it's important to note that investing in property is a long term goal. The Brisbane market hasn't moved much in the past few years but now it's showing signs of improving significantly.
THE median price of homes sold at weekend auctions in Brisbane has passed $1 million for the first time, overtaking Melbourne to be second only to Sydney, as auctioneers continue to slam the hammer down on eye-watering sales.
The figures from property data platform, Archistar, show Brisbane’s median auction sales reached $1.099 million for March, up 29.3 per cent, which is the largest increase of any capital city.
Melbourne recorded $1,010,750 for March, up 11 per cent and Sydney leads the country on $1,609,375 up 16.4 per cent.
"Certainly these numbers are unprecedented in terms of those median prices,” Archistar chief economist Andrew Wilson said.
“We’ve had a remarkable market for Brisbane, also with clearance rates, we’ve never seen Brisbane consistently above 80 per cent clearance, we’re used to seeing around 50 per cent. There’s a change in the culture, there’s more urgency for buyers to secure a property on the day.
“But interestingly we’re seeing fewer auctions coming through at the moment and that’s another sign that there’s going to be more competition. The market is turning in Brisbane.”
Sellers have had their reserve prices gazumped by hundreds of thousands of dollars in recent weeks, with clearance rates reaching 81.4 per cent in March, up from 71 per cent in February.
But new data from Australasia’s largest auction house, Apollo Auctions, shows that in the past two months, the difference between the seller’s reserve price and the final sales prices is shortening.
“An interesting development has been that the percentage over reserve achieved per auction has dipped – no doubt due to the inflating expectations of prices for sellers,” Apollo Auctions director Justin Nickerson said.
“This bears monitoring in the coming weeks, as the buyer interest seems unlikely to waver.”
The percentage over reserve fell from 9.8 per cent from mid-February to mid-March, to 2.3 per cent from mid-March to mid-April at a time when dozens of bidders were lining up for individual properties.
“Buyer strength is staying, it’s really consistent and in most price brackets,” Mr Nickerson said. “There’s a depth to the buyers we haven’t seen before and they have a fear of missing out that they haven’t experienced in this region before. That’s providing a quality market environment. The only thing slowing the market is seller expectation.”
Mr Nickerson, who grew up in Sandgate, is Australia’s most highly awarded auctioneer, winning the Australasian Auctioneer of the Year award, and the Real Estate Institute of Queensland Auctioneer of the Year award more times than any other person.
He started Apollo Auctions in 2013 to train his own team of auctioneers, with seven now working in Australia and nine in New Zealand across multiple estate agencies.
“We have some wonderful auctioneers in this state in terms of the quality that we have,” he said.
“One thing that’s driven that is we have become good at doing a lot with a little and getting more creative, descriptive and more engaging in a tougher market. Now the market is easier, but that skill set has positioned us well for any time in the market.”
More than 50 properties will go to auction across Greater Brisbane today with Mr Nickerson calling auctions from Enoggera in Brisbane’s northwest to Wynnum on the bayside.
“It’s not as glamorous as it might seem, there’s lots of lunches in the car, very rushed bathroom breaks if you get one on a Saturday, and usually two to three changes of shirts. If it’s a stinking hot day it might even be four.
“It’s not as glamorous as it might seem, there’s lots of lunches in the car, very rushed bathroom breaks if you get one on a Saturday, and usually two to three changes of shirts. If it’s a stinking hot day it might even be four.
“But there is a rewarding feeling about representing someone’s biggest asset on a Saturday.”
Article courtesy The Courier Mail 24/4/21
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