This article is from the Australian Property Journal archive
PRESTIGE residential property buyers have returned to Brisbane. According to PRDnationwide, premium real estate sales soared 72.2% since June 2009.
A total of 594 million-plus properties changed hands in Brisbane between January and June 2010, compared to 341 during the same six month period, a year earlier.
The million-plus sales accounted for 7.8% of total property transactions in Brisbane during the first half of 2010.
PRDnationwide research analyst Josh Brown said a resounding recovery within Brisbane’s million-plus market could be the first real sign of an upturn in the Brisbane market.
Brown said the interest rate rises has had minimal effect on purchasers within the higher income brackets.
“This demographic has a higher tolerance for further rate rises and better access to capital to secure a deposit, allowing them to capitalise on what is a ‘buyer’s market’,” he added.
“A robust economy, historically low interest rates and a potential for discounted properties has seen million-plus transactions skyrocket.
“This indicates that buyer sentiment within Brisbane’s prestige markets is at its highest since June 2007,” he added.
Brown said the recent growth in million-plus sales was on the back of a lull in the premium market.
“During the ‘incentive driven market’ which lasted from September 2008 through to October 2009, the lower-end performed well, keeping the market buoyant and experiencing a steady growth in price.
“Over the same time frame, transaction above $1,000,000 in Brisbane contracted, as debts were consolidated and a lingering uncertainty in the market deterred large investments in property,”
“Moving into the back end of 2009 however, increasing interest rates and the impending withdrawal of the First Home Buyers Boost saw uncertainty filter back into the first home buyer demographic causing this market to stall,” he continued.
Brown said the growing demand in top suburbs has pushed up prices and he believes it will continue to grow. The 74.2% jump in sales has coincided with a 7.2% price increase in median price.
“Sales have been buoyed by increased investor activity, as well as attention from the ‘upgraders market’ which is people buying their second and third homes in more expensive price brackets,” he said.
According to PRDnationwide, Clayfield recorded the highest number of million-plus sales – registering 28 transactions. This was followed by Paddington with 26 sales (up from 12) and Bardon with 24 sales (up from 7).
But PRDnationwide found recovery had not been as strong in the million-plus apartment market.
Brown said this is most evident in the suburbs within close proximity to the CBD, such as New Farm which recorded 10 transactions over the first half of 2010, compared to only two sales over the same period in 2009.
Other suburbs to display this trend were South Brisbane (recording six apartment sales, up from just two) and Kangaroo Point (recording 19 sales, up from nine).
Australian Property Journal
