“Insatiable” demand is driving Queensland’s housing construction, including the prestigious market where activity has tripled in the past year.
Belinda Shields, senior buyers’ agent at PS Property Advisory, said Brisbane’s high-end market has been boosted by cashed-in buyers over the past year as the number of transactions increased.
“One of the most striking elements is that many more Brisbane residents are buying at this price level,” said Ms Shields.
“High-end prestige is no longer just within the realm of interstate, expat and overseas international buyers in Brisbane.”
Since 2019, the number of transactions involving properties priced between $5 million and $20 million has increased.
Brisbane has so far booked 11 prestigious sales in 2019, 22 in 2020 and 38 in 2021.
One of the most recent transactions was the sale of a $12 million home in Indooroopilly, which is only about five miles from the central business district.
It was a six bedroom, five bathroom property with parking for six vehicles.
The two storey architectural house has a sunken lounge, 5m ceiling, fireplace, terrace and pool overlooking the river.
“One of my contacts with real estate agents said that in today’s market it is 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 cashed in prestige real estate buyers around. ‘ said Mrs Shields.
Ms. Shields said prime buyers are often not price sensitive, which could further support growth.
“We are today’s high-net-worth buyers market, and as the limits come down, we’re going to see an influx of these ultra-luxury buyers,” she said.
“Interstate and overseas migration will skyrocket, and our top end will continue to rise.”
Factors driving the top markets
Ms Shields said that in the past it has been a challenge for high net worth buyers to find the right shares in Brisbane.
“Queensland’s status as a relatively COVID-free jurisdiction has enhanced our reputation among buyers both nationally and internationally,” she said.
However, Brisbane now has riverfronts, large estates close to the city, elevated views, quality architecture, extensive facilities and classic restorations that appeal to all first-class buyers.
“In addition, low interest rates have boosted business confidence — a resource feeding directly into the hip pockets of these high-net-worth buyers,” Ms Shields said.
“There’s also no denying that the 2032 Olympic announcement, and the inevitable international spotlight it will shine on our city, has given our cache of copper a boost.”
Overall market still shining
It’s not just the prime market that is currently thriving – the general Queensland housing market has reported solid indicators over the past quarter.
According to the latest report from the Real Estate Institute of Queensland (REIQ), median home prices rose 1.8% in the state in the third quarter of the year.
Brisbane achieved the highest number of 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 lifestyle and city fringe locations remained popular.
During the quarter, Brisbane’s median home price rose 4.7% to $900,000, representing an annual gain of 15.5%.
Greater Brisbane still offered an opportunity for greater affordability for those wanting to live on the outskirts of the capital, rising 2.8% per quarter to $640,000.
Noosa posted the highest quarterly median price growth of 13% to $1.3 million.
REIQ reported that while regional LGAs posted gains, volatility persisted in some markets over the past year.
REIQ CEO Antonia Mercorella said the “phenomenal” performance of the Queensland housing market was due to “insatiable” buyer demand.
“Queensland has never seen this sustained level of demand and accelerated growth, but after years of modest growth, prices are catching up here,” said Ms Mercorella.
“Even as our median prices rise, our state is still showing greater bang for the buck, with investors looking to push their real estate dollars further, and Southerners taking the step to increase our state’s incredible liveability factor.”
Ms Mercorella said low inventory levels, historically low interest rates, high consumer confidence and household savings are all factors that could support price growth in the coming year.
“While predicting what’s next is simply staring at a crystal ball, the market is still going strong with 12-month growth averages indicating markets are rising across the board,” she said.
“With the reopening of the interstate borders and the opening of international borders, there is a good chance we could see a flurry of activity and an increase in demand well into the new year.”
Photo by @cityofgoldcoast on Unsplash.