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An “insatiable” demand has been driving Queensland’s housing, including the prestige market where activity has tripled over the past year.
PS Property Advisory senior buyer’s agent Belinda Shields said Brisbane’s high-end market was boosted by cashed-up buyers over the past year, as the number of transactions surge.
“One of the most striking elements is that far more Brisbane locals are purchasing at this price level,” Ms Shields said.
“High-end prestige is no longer just within the realm of interstate, expat and foreign international buyers in Brisbane.”
Since 2019, the number of transactions involving properties priced between $5m and $20m has been increasing.
Brisbane recorded 11 prestige sales in 2019, 22 in 2020, and 38 in 2021 to date.
One of the most recent transactions was the sale of a $12m home in Indooroopilly, which is only around eight kilometres away from the central business district.
It was a six-bedroom, five-bathroom property with parking space for six vehicles.
The two-level architectural home features a sunken lounge, 5-metre ceiling, open wood burning fireplace, terrace and pool with river views.
“One of my agent contacts said in the current market, it’s easier to sell a property between $10m and $20m than it is to sell a property between $3m and $5m because there are just so many cashed-up prestige property buyers around,” Ms Shields said.
Ms Shields said buyers in the prime segment are often not price sensitive, which could further support growth.
“We are the current go-to market for high-net worth buyers, and as borders come down, we’ll see an influx of these ultraluxe buyers,” she said.
“Interstate and overseas migration is set to skyrocket, and our upper end will lift further.”
Factors boosting the prime markets
Ms Shields said it was a challenge in the past for high-net-worth buyers to find the right stock in Brisbane.
“Queensland’s status as a relatively COVID-free jurisdiction has improved our standing both nationally and internationally among buyers,” she said.
However, Brisbane now boasts river frontages, large estates close to the city, elevated views, high-end architecture, comprehensive facilities, and classic restorations which prime buyers are all finding appeal.
“In addition, low interest rates have bolstered business confidence – a source that feeds directly into the hip pockets of these high-net-worth buyers,” Ms Shields said.
“There’s also no denying the 2032 Olympic announcement, and the inevitable international spotlight it will shine on our city, has boosted our cache with buyer.”
Overall market still shining
It is not just the prime market that is currently thriving — Queensland’s overall residential property market has been reporting solid indicators over the past quarter.
According to the latest report from the Real Estate Institute of Queensland (REIQ), median house prices increased by 1.8% across the state during the third quarter of the year.
Brisbane achieved the highest number of house sales over 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 house price increased by 4.7% to $900,000, representing a 15.5% annual gain.
Greater Brisbane still offered a chance of greater affordability for those who wish to live on the capital city outskirts with a 2.8% quarterly increase to $640,000.
Noosa posted the highest quarterly median price growth of 13% to $1.3m.
REIQ reported that while regional LGAs have been seeing gains, there remains volatility in some markets over the past year.
REIQ CEO Antonia Mercorella said the “phenomenal” performance of Queensland’s housing market was due to “insatiable” demand from buyers.
“Queensland hasn’t experienced this sustained level of demand and accelerated growth before, but after years of modest growth, prices here are playing catch up,” Ms Mercorella said.
“Even as our median prices rise, our state is still demonstrating greater bang-for-buck, with investors looking to make their real estate dollar go further, and southerners making the move keen to lap up our state’s incredible liveability factor.”
Ms Mercorella said the low levels of stock, record-low interest rates, high levels of consumer confidence and household savings are all factors that could support price growth over the next year.
“While predicting what’s next is simply crystal ball gazing, the market is still going strong with 12-month growth averages indicating markets are rising right across the board,” she said.
“With interstate borders reopening and international border opening to come, chances are we could see a flurry of activity and an uptick in demand well into the new year.”
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Photo by @cityofgoldcoast on Unsplash.
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