Brisbane has become a buyers’ happy hunting ground for houses under $1 million, even in some blue-ribbon suburbs.
But there is a catch, with agents cautioning that the bargains can come with some pretty big drawbacks, including proximity to busy roads or location in flood zones.
The latest data from Domain’s House Price Report , released yesterday, shows Brisbane’s median house price fell by $66,001 over the September quarter, from $1,218,123 to $1,152,122. It was the steepest quarterly fall on record.
The price slide has given some young people and first-home buyers a chance to get a foothold in previously out-of-reach suburbs.
But agents say these properties are often in flood zones, attracting eye-watering insurance premiums, or are close to noisy roads or rail lines.
28 Weston Street, Zillmere QLD 4034
“Buyers are becoming more fussy, but it depends on the property,” says Porter.
Zillmere, which has a large stock of cheaper post-war houses, has taken a bigger price hit than others because it was always an attractive suburb for investors, who are increasingly disappearing from the market.
Porter says some properties are attracting higher bids than the listed price while others are attracting offers below, with a lot depending on whether the home was well presented.
“There are increasingly markets within markets,” she says.
Madeline Scott, of Ray White Sherwood , says there has been a noticeable decline in prices across the board, but there are still very few houses in the sub-$1 million mark across the western suburbs of Brisbane.
The house has been purchased by first-home buyers who saw the opportunity to get a foothold in a blue-ribbon suburb.
She says interest rates and tax reforms have reduced the number of investors in the market.
Hot Property Buyers Agency founder Zoran Solano says discounting has pushed some properties previously priced above $1 million below that threshold, creating opportunities at the more affordable end of the market.
“This is what the Labor government wanted to do, which is cool the market to allow first-home buyers an opportunity,” says Solano.
“We have seen that start now. It’s been a little bit slower to kick off than we were expecting, but it’s starting to happen. There’s blood in the water, but not for buyers.”
“Greenslopes is a suburb that she never thought her budget would allow her to purchase a property in,” says Solano.
“Last year, there would not have been any in that price range,” says Duncan.
“The market has definitely come back although most of the activity is around the $1.1 million to $1.2 million.”
She says the Stanworth Road property in Brisbane’s north was located on quite a busy road.
24 Stanworth Road, Boondall QLD 4034
But now a few were appearing, even though they could not be considered the cream of the crop.
He is currently marketing a house at 10 Beckett Road, McDowall, from $929,000, which he describes “as the most affordable house” in the suburb this year.
He says the house is near a busy road with challenging access, but it could offer a foothold for someone wanting to live in an attractive suburb like McDowall.
Buyers’ agent Solano says higher stock levels at the lower end of the market may partly reflect slower sales rather than simply more new listings.
Properties are staying advertised longer, with Solano saying some are taking 45 days or more to sell.
“Buyers are waiting for the bottom of the market,” says Solano.
“But that’s a very dangerous game, in my experience. Prices rise faster than they fall typically. If you wait too long and our market starts to become a recovering market, these buyers may miss the boat.”
Glen Norris is an experienced journalist and editor with a career spanning four decades across Asia, Australia and Europe. His roles have included stints at Bloomberg News and Asian Wall Street Journal.
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