Weekly Property Wrap Up by Daniel Hooper of One Percent Property
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1st of July 2022
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Hi, this is Daniel Hooper from One Percent Property, coming to you with my Weekly Market Update for Kedron, Gordon Park, and the surrounding suburbs, on Friday, the 1st of July 2022.
Over the last week, there were 1,269 sales across Queensland, which is pretty consistent with what we've been seeing over the last few weeks. That's down from about 1,500 to 1,600 during the peak of the market towards the end of last year. 58% auction clearance rate, again, it was up around 80 to 90%. It's dropped down, so almost one in two properties are not selling at auction, which is pretty obviously evident of what's going on in the market. In the Inner North, we had 26 sales, which is actually a pretty good number, still a lot of properties changing hands. A couple of notable sales, so one good and one bad. 42 Jardine Street in Kedron, six beds, 787 square meters, city views. It's offered just under 2 million, 1.97, which is a pretty good price. On the other side of the coin, 29 Richmond Street here in Gordon Park, it's a two bed on 607, sold for actually under a million dollars, which I don't know if there was something severely wrong with the property, but that seems like an extremely low prize for a property on 607 square meters, in a good street and a good part of Gordon Park. Would be very interested to find out why that property sold for such a low price, but it's certainly quite surprising. In the media, what's going on with our markets as a whole, it is clear and evident that we are over the peak. We are on the slow decline side of the market. Brisbane property prices, they're still up 0.2% for the month, but last week they dropped 0.2%. So, that's going to continue. In my opinion, it is going to continue to drop. I think Brisbane is probably going to be one of the best performing markets over the next 12 to 24 months, but that's best performing on a downward slide, I would say, compared to potentially more drastic drops in Sydney and Melbourne. A few things that I would say remember as the market is declining. Firstly is Australia is not a single market. So, when you look at news articles on news.com or something like that, and they say the market's going to tank, it's going to drop by 30% or whatever it is. Generally, these experts are referring to Sydney and Melbourne. There have been many, many times where articles have come out. Actually this week, I can think of one specifically where the biggest turnaround, the biggest drop after a growth ever seen in Australia. Now, that is just clearly not evident in Brisbane. Sydney and Melbourne, and certainly Sydney, I think, dropped 1.6% last month. So, they have certainly seen a downturn, and it may be the biggest in 30 years, I'm not sure. But it is not reflective of Brisbane. So, whenever you read those big articles on the national news sites, like news.com.au, just keep in mind that they're probably referring to Sydney and Melbourne, and we are a totally different property market to Sydney and Melbourne. We have our own property cycles, and they're totally different to what's going on down there. So, what is actually happening in the market? Firstly, properties are taking longer to sell. There is no doubt at all that properties are taking longer to sell. My average days on market last year was seven. Certainly, we're taking usually a minimum of two to three weeks, sometimes 5, 6, 7, 8 weeks to actually find the right buyer to get a good price for the properties. What is happening, and the reason that's happening is there's far less urgency with buyers, and buyers are more picky. Last year, you'd put a property on the market, and what was happening? Buyers were walking in and going. It's not perfect, but prices are going up by 30 or $40,000 a month. I'm panicking that I'm not going to get a property, so I will look past the things that I don't like, and I will purchase this house. That was happening almost every time. Properties didn't have to be perfect for people to purchase them. Now, when things are slowing down, there's less urgency on prices rising. There's less competition between buyers. What we're finding is people are a lot more picky. Properties have to be perfect. They have to be exactly what they want, which means it takes longer to find that buyer. Having said that, we are still getting around the prices that I initially value properties at. So, we're not dropping prices, but one thing we're not getting is the crazy emotional offer. Last year, a number of times, more than 10 times on different properties, we would get situations where we'd be guiding, say 650,000, and we'd have someone come in and offer 850. Or we'd be guiding 1.3 and have someone come in and offer 1.5, which is a crazy emotional offer. It's a big offer. It's far and high above what we're asking for. The reason that is obviously what I just mentioned, with that fear of missing out the sense of urgency and prices rising. Those offers are not happening anymore, because buyers do not have that external pressure on them to make a crazy offer in order to secure a property. What I would say in the current market is, I've got probably three tips. Firstly, if you're selling and you want to sell in the next 12 months, try and expedite it and do it as quickly as possible. Because, in reality, prices are probably going to slide for 12 to 24 months. At which point, I would say the cycle will start again and will start rising. If you're wanting to sell in the next 12 to 24 months, you'll be doing yourself a favor by doing it sooner, rather than later. Second tip is do not panic. Prices are not tanking. Doesn't matter what you're reading on news.com.au or any other website, prices are not tanking. Certainly not yet. If anything, we're just very stagnant at the moment. So, do not read too much into the news articles and do not panic. The third thing is be realistic. Last year, you didn't have to be realistic because we were getting those exceptional... The offers just made no sense at all. So, people were coming to me and saying, "I want X price." It was way above what I thought market value was, and someone would offer that price. In the current market, we need to be realistic, because we're not getting the crazy offers. We're still getting good offers. We're still getting solid offers at the right value, but the craziness has just gone out of the market. So, you need to obviously shoot for a really good price, but also be realistic. Otherwise, you do risk your property sitting on the market for a very long time and potentially not selling. At One Percent Property this week, very, very busy at the moment.
So, 25 Calida Street in Boondall, that property is unconditional. We had, and again, this one is probably the exception to what I've just been saying about the market slowing down. But in five days, I had five offers. We sold it for the highest price ever seen for a property of this type in Boondall.
Also, 153 Albion Road in Windsor, that one was sitting on the market with a number of different agents for a couple of years. No one could get an offer. We sold that in five days to a developer that is also unconditional.
Also, this week, 1303/25 Charlotte Street in Chermside is under offer. I'll let you know the price once it goes unconditional. Lots and lots of properties on the market at the moment. Some really, really good homes.
67 Homebush Road in Kedron, that is a beautiful home. Ready to move in. It's got a good block on a good street.
54 Bertram Street, Stafford, again, smaller block, but entry level pricing into Stafford. Really, really well maintained brick home.
39 Emerald Street in Kedron, again, entry level pricing into Kedron, very near the avenues in the right school zones.
We've got 22 Bennetts Road in Everton Hills. It needs a few renovations, but it's got good bones. It's got a fantastic block, and it's in the right school zones again, in the Mcdowell School zones there.
36 Belnoel Street in Wavell Heights. It's a big family home, five beds, over 300 square meters under roof on a 607 block.
224 Appleby Road in Stafford Heights. It's a developable block. It's got a DA on it for one into two, 809 square meters. It's a cracking opportunity, whether you want to own it and live in it, or you want to do a split and do a project.
Also, 331 Ellison Road in Geebung. It's got a three-bedroom house at the front, three bed, two bath, and it's got a two-bedroom granny flat at the back. Very, very good condition. It's only built five years ago. It's in a good spot. It's walking distance to Chermside. Near public transport. And the home itself is in fantastic condition.
And then, also, just listed and coming up in the next few weeks. So, we've got 7 Whiptail Court in Cashmere. It's a beautiful big five-bed family home. It's got a pool. It's got a 700 square meter block of land. Really, really great offering in a fantastic street, in a good area. And 125 Kirby Road in Aspley. That is a four bed, one bath. It's got stacks of potential. Really, really good opportunity to do a cosmetic renovation to make a lovely family home in Aspley. If any of these properties sound like what you're after, if you have any questions about them, or if you have any questions about what's going on in the market, please give me a call. Otherwise, I hope you've had a fantastic week so far, and I hope the weekend is even better.
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