Houses in many Brisbane suburbs “earned” more than the typical resident did in the past year, with new figures revealing how much property values have risen in those suburbs. New analysis from Domain shows in the past 12 months median house prices in about a quarter of Brisbane suburbs increased by more than the typical resident’s average annual household income. Blue-chip suburbs New Farm and Hamilton led the pack: New Farm’s median house price increased by $440,000, more than four times the suburb’s annual household income of $103,638 while Hamilton’s median house price increased by $352,500, about three times the annual resident income of $108,929. While the price increases may seem substantial, Brisbane median house prices are still relatively affordable when compared with the prices achieved in southern states. Domain chief of research and economics Nicola Powell believes Brisbane prices will continue to rise particularly as demand picks up in the lead-up to the 2032 Olympics
Gold Coast Unit Markets Outperform
Half of the top ten Queensland suburbs where dwellings “earned” more than the typical resident in the past year are on the Gold Coast. In the unit market, three Gold Coast suburbs made the top ten for earning more than locals did in the past year. New analysis from Domain shows that in the past 12 months median prices increased in some Gold Coast suburbs by more than three times the area’s average annual household income, including Bundall, Miami, Mermaid Beach and Burleigh Heads. In Bundall the median house price increased by $337,500, Miami increased $296,250, Mermaid Beach $290,000 and Burleigh Heads $272,500. In the unit market, median prices in Currumbin, Palm Beach and Coolangatta rose by at least 1.5% more than the average annual household income. Domain’s chief of research and economics Nicola Powell says the Gold Coast is sure to benefit from future price rises in the lead up to the 2032 Olympics
Quote of the Week
“If someone is willing to bite the bullet and put their property on the market, they might actually find it’s quite successful just because there’s not much stock on the market.”
REA Director of Economic Research Cameron Kusher
Record Level Of New Home Building
The number of homes under construction in Australia is at record levels on the back of recent government incentives. The HIA’s latest Industry Outlook Report reveals updated forecasts for new home building and renovation activity throughout Australia. It predicts the boom in construction will continue to keep the building industry firing well into 2022. The high level of construction means there are still issues with the supply of materials and labour, which is also expected to continue next year. While most of the demand has been for standalone housing so far, demand for units is starting to return with approvals for units increasing in both New South Wales and Queensland after a slow 2020. The renovation market is also expected to remain strong, buoyed by a significant build-up in savings by homeowners unable to travel during the pandemic. The HIA is predicting that although the next 12 months will be strong, construction levels may begin to decline in the following years
75% Expect Growth In Next Year
It’s not just owner-occupiers who are feeling happy about the property market, with investors also overwhelmingly positive about future price growth prospects. The latest Australian Property Investor magazine Quarterly Investor Sentiment Survey shows that 68% of investors are positive about the market and three[1]quarters expect prices to grow in the next 12 months. While price increases from the current national boom have a few concerned, it isn’t enough to deter the 52% of investors who still want to buy. Affordability is top of mind for most investors, followed by concerns about growth potential and whether tenants will find it difficult to pay rent during future lockdowns. A third of investors say they are planning to buy within the next 12 months, with Queensland the state most would like to buy in. Many say they have already reduced their costs by taking advantage of the current low interest rates to refinance their loans.
