Brisbane has welcomed five new suburbs to the million-dollar club.
Property experts say the new additions have come about as a result of the pandemic, low interest rates and a market playing catch up.
So what’s driving prices up the ladder and is it as simple as supply and demand?
Brisbane’s new million-mark suburbs
These are the Brisbane suburbs where the median house price just topped $1 million, according to data from the Real Estate Institute of Queensland (REIQ):
REIQ chief executive Antonia Mercorella said the results might surprise some Queenslanders.
“There are a few surprising suburbs making that list, the likes of Wishart, Stretton and Morningside,” she said.
“Of course, Woolloongabba also features on that list and Windsor, so certainly those aren’t surprising.”
It is no surprise to real estate agent Alistair Macmillan, who had in excess of 100 inspections for a two-bedroom, one-bathroom property in Windsor recently.
“On the day of the auction we ended up with 22 registered bidders,” Ms Macmillan said.
“The reserve on the property was at $1 million, we announced it on the market at $1,000,020 with the final sale price being $1,220,000.”
It was a great outcome for the Brown family, who bought the property six years ago.
“It’s probably exceeded our expectations, but we knew that it was close to the city, had access to trains, nice parks, nice street — we knew that it would appreciate, but we just weren’t sure how it was going to go,” Drew Brown said.
“It’s definitely given us a great foundation for the next part of our life.”
What does this mean for sellers?
Ms Mercorella said Brisbane was playing catch up on house prices.
“We’ve had quite modest growth over a number of years so some of this is just catching up,” she said.
“Of course, then when you factor in very low interest rates and a pandemic over the top of that, it is making property incredibly appealing.”
Mr Macmillan said for those looking to sell, the current market is exceptional.
“It doesn’t get any better than this; huge demand, stocks incredibly tight,” he said.
‘Prices really accelerating’
Real estate agent Darren Bonehill said he had seen the same trend at Morningside in Brisbane’s south-east.
“We’ve seen increasing demand, there’s a lot of buyers out there driven by the low interest rates and that’s pushing people to pay more and more for properties,” Mr Bonehill said.
“It’s creating a competitive environment and with a massive shortage of stock the prices are really accelerating at the moment.”
It is a market giving the Chandler family confidence to upsize.
“We need some more rooms for the kids, bigger land and just a bit more play area for everyone,” Ross Chandler said.
They were happy to hear Morningside had made it to the million-dollar club after buying in the area 17 years ago.
“We just knew we had to get into the market at the time and back then we were told we paid too much for it, so the market’s been very exciting over the years and particularly now,” Mr Chandler said.
Ms Mercorella said strong growth looks set to continue for some time.
“There’s no signs of anything slowing down at this stage,” she said.
“We have very low interest rates that are likely to remain low for a number of years to come.
“Queensland has just been announced as the Olympic winner and whilst that’s still some time away, we will of course benefit from the extraordinary infrastructure that will be put in place for that event.
“Interstate migration rates are the highest they’ve been for over two decades, so all of those factors combined tend to indicate that the property market will continue to move at a very strong and northerly pace.”
What does this mean for buyers?
In short, the news is not good for prospective buyers.
Mr Macmillan said he doesn’t anticipate things getting easier anytime soon.
“It’s very difficult to see that the market is going to retract in the coming years, certainly in the short term,” he said.
“Perhaps maybe it can’t sustain the level of growth that it has done over the previous 12 months, but certainly the notion that the market’s going to retract in the short term is not accurate.”
While the median sale price is $780,000 in the local government area of Brisbane, the median across Greater Brisbane is a more manageable $575,000.
Ms Mercorella said there is still hope for those wanting to get their foot in the door.
“There is still relatively good affordability here in Brisbane — and indeed in Greater Brisbane — so it really is just a matter of doing your research,” she said.
“You may not be able to buy in your preferred suburb of choice, but look for those neighbouring suburbs that are on the rise.”
What are the suburbs to watch?
The latest data from REIQ shows more suburbs are expected to join the million club within the next 12 months.
That will be good news for home owners in these suburbs:
- Bridgeman Downs
- The Gap
- Wavell Heights
Ms Mercorella said it is important to remember that while prices are high, sellers need to consider the fact that they’ll be buying back into the same market.
“Really important that if you are selling and then looking to buy again, that you might want to consider the order of things,” she said.Internet Explorer Channel Network