Weekly Property Wrap Up by Daniel Hooper of One Percent Property
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7th of January 2023
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Daniel - 0424 585 391
daniel@onepercentproperty.com.au
Hi, this is Daniel Hooper from One Percent Property coming to you with your first Weekly Market Update for 2023. It is Saturday, the 7th.
Not a lot has happened over the last seven days or the last four nights because, obviously, the Christmas holidays, there were only 7, sorry, 88 sales in the last week, there were none locally.
So, what I'm gonna do is I'm gonna look at what happened in 2022 with the property market locally especially and then I'm gonna look at what I expect to happen in the coming 12 months.
So, in 2022, the market peaked locally in April that was when prices hit their highest around $1.3 million dollars. In Kendron has a median—rates started to increase, rates have been increasing obviously fairly quickly. They are still going, we do expect them to level out, I guess, sometime in the next 3-6 months, hopefully sooner rather than later. Consumer confidence at its lowest point in 30 years in 2022. That's a massive effect on the property market because if people don't feel confident with what's going on, they're not going to purchase property. We saw that hugely in the local market. Locally, prices dropped significantly in Kedron, specifically, they peaked at just over 1.3 in April. At the end of November, they were a million and 80. So, it's a $230,000 price drop locally on the medium price, which is significant. It's 17.55% from April to November. So, that's, obviously, quite a lot. But if you zoom out a little bit, you take it into perspective, the growth in 2021 was 45%. The growth in the three years leading up to April or leading up to November 2022 was closer to 100%. So, although it has been a fairly significant drop in recent months, that is following three years of meteoric growth in prices locally. Investors are exiting the market—they have been for the last two years. This means less rentals which means, obviously, we're having a rental crisis at the moment, so less rentals is not good. It does mean that rents are increasing and I expect rents to continue to increase. The construction industry, obviously, has been having massive problems as well since Covid that's created two things:
it's difficult to find builders to actually work on projects. You know, some people are saying they can't find builders who will start to build within 18 months, which means if you buy a house sitting empty for a year and a half and then another year and a half build a year…a year build, could be three years before you get to move into your property. It's also very expensive. It's much more expensive than it used to be.
Now that collectively, has been making it, obviously, a lot a lot harder to sell. Renovators and blocks of land, not a good time. Not a good market at the moment for properties that need a lot of work done to them. On the flip side of that, nicely finished times that are ready to move in and need no work have actually held their value quite well. We're still getting really good prices for those locally compared to properties that need a lot of work.
What to expect in 2023? What are the themes we're going to see in the local property market this year? It's going to remain a buyer's market certainly, I think for the majority of the year it's certainly potentially going, I think it will start to level out in 3 to 6 months, but I do expect some more price declines over the next certainly the next three months. Rates, I believe, will stabilize before the end of the year, hopefully, sooner rather than later because, obviously, that has a big effect. I think once rates stabilized, I think consumer confidence will go back up, people will have less of the unknown. They'll know what they can afford and what they're gonna be paying on their repayments. They're gonna be less scared of rates going through the roof and suddenly they're not being able to afford their home, which is a big fear that buyers have at the moment. I expect things to start to look more positive in the second half of 2023. I don't think things are gonna go back up for a while, but I certainly think they're gonna level out, we're gonna get more into a stable market rather than a declining market. I believe the construction industry, over the next 12-24 months also is, it's already started from my conversation with builders but it's going to improve—prices are going to go down, accessibility is going to go up, which is, obviously, going to make it easier to then sell properties that need a lot of work or blocks of land as well. The rental market is going to remain extremely tight. I don't see a fix for that and certainly not with what the government's doing. I think that's probably gonna be an ongoing problem for the coming years, which doesn't mean it's probably gonna continue to go up. In the long term, I'm very, very positive on Brisbane. I think it's got a lot of really, really positive fundamentals, all of the development that's happening—all the infrastructure is going in the Olympics: interstate migration, people coming to Brisbane… I think over 5 to 10 years, probably gonna do fantastic. But certainly in the short term it's gonna be a rough road.
At One Percent Property over the last couple of weeks, lots and lots going on. I'm sitting currently in our brand-new office, which is located on the corner of Castle Street and Gimpy Road in Kedron just set up as Katherine's only real estate agency now, which is exciting for us.
Over the last couple of weeks:
24 Beeby in Wavell Heights got unconditional at $925,000.
Number 5 Eleventh Avenue, just here in the Kedron Avenues is under offer. We sold that off market after one inspection.
72 Imbros Street in Nundah; that is also under offer.
95 Brook Street I put under offer last night as well in Windsor.
So, it's still a lot happening over the holiday period but certainly the big focus was, obviously, on opening up the office which we're really, really excited to be right here smack bang as part of the community.
On the market at the moment, we still have:
61A Broughton Road in Kedron. Massive house, big block, very, very private, very, very good condition that one's on for 1.4
67 North Street also in Kedron. Again, good size house needs a bit of work. It's on for 950. It's on a 600 plus block, elevated. It's a great property. Great street. North Street is very, very sought after.
Coming soon, we’ve got:
31 Armienteres Street in Kedron. Big home, big block, one of Kedron's best streets that'll be launching probably the next four weeks. There's a few renovations that are finishing up there.
23 Glenhaven Street in Kedron again, 599 square meter block, three-bed, one-bath. It's got a big pool at the back—elevated. It's a cracking property in a good location.
14 Evans Street and that one's off-market for the moment. But four-bed, two-bath, 425 square meter block of land. Good location and
And 9/27 School Road in Kelvin Grove. Very clean and tidy, two-bedroom apartment.
So, lots of lots coming up.
If you have any questions, please give me a call, 0424-585-391 or feel free to pop into our office, which is 359 Gimpy Road. It's in the same shopping complex as a post office in the subway so we'll be around if anyone has any questions at all, please feel free to stop by.
Thank you so much for tuning in. I hope you have a fantastic week so far and hope you have a great weekend.
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