Weekly Property Wrap Up by Daniel Hooper of One Percent Property
RATE MY AGENT 2021 KEDRON AGENT OF THE YEAR WINNER
REIQ 2021 "RISING STAR REAL ESTATE SALES" FINALIST
KEDRON, STAFFORD HEIGHTS, EVERTON PARK & SURROUNDING SUBURBS
6th January 2022
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Daniel - 0424 585 391
Hi, this is Daniel Hooper from One Percent Property coming to you on Thursday the 6th of January, 2022 for the first Property Market Update for this calendar year. And what a year last year was. It was certainly interesting, I think very different from what a lot of us thought it would be. Very challenging and also very rewarding. In Queensland over the last seven days, as you would expect, there were very few sales, 145, no auctions. So, obviously, no rates there to update. 2021, however... it really was a year of broken records as far as the property market goes. So Australia had the highest price growth ever on record. So as far back as the records go, last year was the highest price growth as a country we've had, which was 22% on average across the country. There's also a record number of new suburbs that have joined the Million Dollar Club across Australia and across Brisbane. Locally, Wavell Heights, Kedron and Gordon Park all experienced over 30% price growth and all joined the Million Dollar Club, which means obviously an average property price of over $1 million—up from $700,000 - $750,000 12 months ago. Which is really, really quite astonishing growth. But, obviously, as local residents, you would've seen that happening throughout the year with crazy prices happening every single weekend. Looking forward to 2022, Brisbane is currently the dominant market as far as price growth goes. An example of this is in December, the Sydney property market went up by 0.3%. The Melbourne property market went down by 0.3%. The Brisbane property market went up by 2.9% on average. Joint with November—that's the strongest month we had all of last calendar year. So going into the new year, it's clear—very evident that Sydney and Melbourne have started to slow down, but at the current point in time, Brisbane is still looking extremely strong. There are a lot of factors that would obviously go towards that.
Interstate migration is a big one. People are moving up to Brisbane from Sydney and Melbourne, which obviously helps price growth.
Also, affordability. Our prices are quite a lot lower than Sydney and Melbourne. So affordability to wages, it allows us probably a little more room to grow before people can basically just not afford property at all. It is going to slow at some point, it cannot continue forever. And I believe it is going to slow this year.
Some factors that might affect that are, obviously, the upcoming election. Things tend to slow down around election because people, I guess, take a step back and want to see what's happening, who's going to be running the country before they put their money in.
Obviously the cash rate. I've seen America is starting to talk about raising their interest rates. If the RBA decides to raise the Australian interest rate, depending how much they raise it—that is going to affect property prices. Because obviously people have really overextended a little bit, probably stretched their finances to purchase their home, which has now gone up in value so much. If those interest rates go up too much, obviously, affordability is going to be a problem.
And obviously, COVID. COVID is something else that may affect the property market. I don't believe we're going to have something...or enough of an effect from potential outbreaks that it is going to affect the market. But if it got really bad, obviously, that is something that could happen. So those are three things to keep in mind. And, obviously, as I said, the price will slow going into 2022. I'm not sure how long. It could have another six month months, it could have less. As far as One Percent goes, over the last few weeks due to some personal issues I had a couple of weeks off, had a minor surgery, which is all fine, but it did mean that I wasn't able to really go out too much into the market.
Having said that, we had:
37 Chigwell Street in Wavell Heights. That one sold in December, went unconditional. It's a two-bedroom home in pretty horrendous condition. We managed to sell that one for $900,000, which is a good result in five days on the market.
Also, 186 Turner road in Kedron. I sold that one off-market in December. It is not yet unconditional, so I can't reveal the price, but that should go unconditional next week.
Coming into 2022 lots and lots of things in the pipeline. We've got five properties launching over the next seven to 10 days.
152 Leckie Road in 152, lucky road in Kedron. It's a pre-war character home on over 800 square meters, just off the avenues.
We've got 201 at 50 Lamington Avenue in Lutwyche. It's a cracking little entry level, two-bedroom apartment...sorry, one bedroom apartment.
409 at 1 Kingsmill Street in Chermside is another entry level, one-bedroom apartment. Both of them are very modern, very clean and ready to move in.
And then we've got 15 at 88 L'estrange Terrace in Kelvin Grove, which is a large two-bedroom apartment, two outdoor entertaining spaces. It's a really, really good offering in the inner city. Big car park as well, lots of storage space.
So if you think that any of these properties might be what you're after, or if you have any questions about the property market, or if you'd like to get an update on the value of your home, based on the crazy year we had last year—values did change a lot. Please feel free to give me a call: 0424-585-391. Otherwise, I hope you've had a fantastic week so far, and I hope the rest of it is even better.
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