What happens to our local property market after the flood? I discuss in this special weekly market update.
Weekly Property Wrap Up By Daniel Hooper Of One Percent Property
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3rd of March 2022
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daniel@onepercentproperty.com.au
Hi, this is Daniel Hooper from One Percent Property, coming to you with your Weekly Market Update for Kedron and the surrounding suburbs for the last seven days. Obviously, it's been an incredibly trying and difficult seven days, certainly the last four days for Brisbane as a whole, but definitely for Kedron and a lot of the residents in Kedron, Gordon Park and the surrounding areas. As I'm sure you're all aware, obviously, we've had some flooding in the area that has never really happened before because, obviously, the Kedron Brook is not so much linked to the Brisbane River but the absolute deluge of rain that we had created incredible overflows and some of the pictures and stories that I've been sent over the last week of properties that flooded in a matter of minutes, it's heartbreaking, it really is. And obviously, it's going to have an effect on, aside from the obvious, of people having to rebuild and everything and it's going to have an effect on the market and, obviously, how things move forward. And I'm going to run through that a little bit today, but obviously, I'm really, really...My heart goes out to anyone that's been affected by the floods. If there is anyone that's really in need and struggling, please reach out, let me know. I'd be happy to do what I can, otherwise, put your request out to my network and see if we can get you the help you need. Feel free to get in touch via my social media or you can give me a call, 042-458-5391. Over the weekend, there were still 1,568 sales in Queensland so there's still a lot of properties that sold. Incredibly, an auction clearance rate of 73%. Now, when you think what Saturday was like, I know I was out doing open homes and it was raining just nonstop. Heavy, heavy rain, as we all know. So to have an auction clearance rate still of 73% in that sort of environment—that's astounding. There were 26 sales in the inner north. There were still some really notable sales, some really good prices achieved in our local area.
69 Seventh Avenue in Kedron, which is a five-bedder on 607 square meter block of land sold for 2,000,060, which is a cracking price.
And 37 wood street, which is also in Kedron. That's a four-bedder on 429 square meters achieved 1.6 or just over. So still some very, very encouraging prices in the market.
Brisbane ended February with a 1.9% price raise or price increase. That's across the market. If you take houses compared to apartments, it's probably more like that 3%, which means still incredible growth and could be even more in that inner north area because we've had more growth in our local area than some of the other areas in Brisbane. We're still around the 24% undersupplied, which is still very much a seller's market. Now, I'll talk about this in a little bit but I think potentially what's happened with all this flooding may make that worse to be honest, it may make it even harder for buyers. So what I thought I'd do this week…we've had a lot of activity at One Percent Property and there's lots going on, lots of new properties and so on but what I thought I'd do this week is just talk through what's happened and what I think it might mean for the property market in coming weeks. So look, as we know, Kedron surrounds just got smashed. Certain streets in Kedron never flooded before that, obviously, had this massive deluge. The Kedron Brook—it's heartbreaking what's happened to the Kedron Brook. Obviously, big parts of it just being destroyed, bike tracks washed away, to the point where I really am not sure what the options are to repair it because in a lot of places, the land is just gone. So I'm not sure what's going to happen there but it's really heartbreaking to see. Obviously, homes but also the beautiful park lands that we value so much just being destroyed. There are homes that are on hills that are miles away from any rivers whatsoever that were affected because it was raining so heavy. There were some landslides in Stafford Heights and one house, I think the deck and potentially part of the house actually slid down the hill and was destroyed as well. So, it's destruction on a level which I don't think Brisbane has ever seen before and hopefully we'll never see again. So, obviously, the focus in the coming weeks is on rebuilding and cleaning up our beautiful area and again, if anyone is struggling or needs help, please let me know. I'd be happy to do what I can in that regard. But I guess the big question as we move away from the next, say, month and we look into the mid to long term is how is all this going to affect the property market? So look, the market is obviously extremely strong so it couldn't have been a better time as far as property for this sort of thing to happen because if it was a weak market, it would make it very, very, very difficult to sell property. But in a strong market, we're still 24% undersupplied. There are a couple of things that I have identified that I think will potentially be things to keep a look out for in the next six months. The first one is value change, and probably not in a good way for some properties. There are properties that have never flooded before that flooded quite badly. Now, that is going to affect the value of those properties. What I find in the property market is the 12 to 18 months after a flood, properties that are in flood zones or flood affected, the value drops significantly. After about two to three years, people stop thinking about it, they forget about it and then the value starts to go back up quite rapidly. I've known of people that have bought in flood zones historically after floods for, say, $400,000 and sold two years later for 600. Because once when it's not fresh in people's minds, they do start to forget. So I think properties that were adversely affected in that local area, especially if they're now added to overland flow maps, which, obviously, they weren't previously on those mappings, they're going to have a hit to their value unfortunately. And it's just something that we're going to have to see how that plays out. Aside from the obvious, which is the value, I am concerned that what's happened is going to create a further shortage in the property market because you've got to think, there are all these properties that were potentially on the market that were looking at coming to the market in the next, say, couple of months that have been hit by floods and are now waiting on insurance claims to repair before they can be sold. Same with rentals. A lot of people have been displaced so there's people that are waiting on insurance claims to repair, so there's going to be a lot of people looking for homes and I have a feeling that it's going to mean a further undersupply for the next six months in Kedron and the surrounding areas, which, obviously is going to make it a very difficult market for buyers. That's what I feel the main effects of the flood are going to be. Obviously, we'll see how it plays out over the coming weeks but I think the main thing at the moment is just supporting our fellow local residents in 4031 and surrounding areas.
And as I said, if anyone has anything that I can do to be of assistance, please reach out. If anyone needs me to put out a message or a call for help across my networks, please reach out. Otherwise, as good as it could have been, I hope you've had an okay week or a good week and hopefully, we'll see some sunshine and the rest of the week will be better than it was.
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