Kedron and Surrounding Suburbs Weekly Market Update 03.06.22
Weekly Property Wrap Up by Daniel Hooper of One Percent Property
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✅KEDRON, STAFFORD HEIGHTS, EVERTON PARK & SURROUNDING SUBURBS✅
3rd of June 2022
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Daniel - 0424 585 391
Hi, this is Daniel Hooper from One Percent Property, coming to you with your Weekly Market Update on Friday, the 3rd of June 2022.
So what has been going on across our beautiful area Kedron and surrounding suburbs over the last seven days in property? So in Queensland, we had 1,375 sales over the last seven days. That's pretty consistent with what we've been seeing for the last month or so. The auction clearance rate was 61%. It is slowly creeping down 64, 67. It's edging down, but not fast. And that's probably similar to what I'm seeing and what I'm feeling in the market, is that it's edging down, but not fast.
In the Inner North, we had 14 sales, that's significantly lower. We've been seeing 20 to 30 sales, so that is lower than we've been seeing. But again, it's not regular week on week, it's probably just a quiet week in our area. Some notable sales:
65 Byth Street. That's B-Y-T-H in Stafford. It's a two bedroom home, fully renovated, 602 square meters that sold for $1.12 million, which is a good price for a two bedroom home in Stafford.
36 Kinmond Avenue in Wavell Heights. That's a four-bed semi-renovated on 631 square meters that achieved 1.29. So Wavell Heights still very, very strong, achieving very, very good prices.
In the media this week, look, it's a very interesting market because obviously last year was just crazy, the hottest market certainly in my lifetime in Australia. Now we're in a shifting market. We're just analyzing week on week as things are changing and they are changing week on week. So Australia house price has dropped over the last month for the first time in more than 12 months. So across Australia, the average house price has dropped. That is led in big part by Sydney and Melbourne, which dropped fairly significantly. Brisbane actually went up by 0.8% which obviously shows we are slowing, but we are not dropping. So over the last three months, Brisbane has gone up by 4.6%, which is very, very healthy growth. But compare that to the peak quarter when growth was at its highest, it was 8.5% in a single quarter. So it shows that although the Brisbane market is actually holding strong and being quite robust, we are certainly slowing down. We're definitely, definitely slowing down, we're not getting the craziness that we're used to.
One interesting statistic is rents are continuing to grow. There's still a rental crisis. There's not enough rentals. Rents have raised by 12.8% year on year in Brisbane, which is a lot. Something that isn't really being talked about, but that I'm interested in seeing whether it happens is more favorable rents, higher rental yields, obviously, mean property is going to be a more favorable investment for people looking to put their cash somewhere. So what I see happening over the next couple of years is stocks, I don't think are going to do very well. Everything's been going up for so many years, there's got to be a retrace. So I don't think stocks are going to do particularly well. Interest rates are rising. Other investments are potentially, traditional investments are potentially not going to do amazing over the coming years. So if rental rates continue to go up, property becomes much more attractive even with no growth because you've got that cash flow, that income asset, whereas, say, stocks, if there's no growth, you make nothing, you don't get that income. So I think if rentals continue to rise, especially if they rise faster than property prices, I think a lot of investors will be attracted back into the property market, which then may in turn, may obviously make prices rise again. I do think in the short term, it's probably shaky, the outlook...certainly for Australia. But I think even Brisbane, the next couple of years is going to be fairly stagnant, but I am very, very, very positive on the long term direction for Brisbane's property.
One big positive aspect is population growth. Obviously, population growth in essence drives price growth because the more people that need to buy homes, especially in an area like Brisbane where there's not an everlasting supplier for homes means prices go up. Now over the last 12 months... Sorry, in 2021 this was, the average population growth across Australia was 0.2%. So, obviously very little international migration, but in Southeast Queensland, the population growth was 1%. So we're getting five times the growth of Australia's average. And, obviously, once the border's open, we're going to get more as will the rest of Australia. But certainly 1% growth compared to 0.2 average makes me very, very positive on the long term outlook for Brisbane's property. I think Brisbane real estate is going to have a very good decade, even though I don't think the next few years are going to be particularly exciting. At One Percent Property it's been another great week.
So we sold and settled on 17 Saint Clair Street in Kedron. That one we sold in three days. It's a two bedroom cottage on 415 square meters, sold it in three days for a suburb price record for a two bedroom home on under 600. So that was, obviously, a very good result. We're very happy with that.
8 at 11 Kingsmill Street in Chermside, that one is a two bed, two bath apartment. Again, we sold that in about a week. Just a note, there are properties in that building very similar properties to this that have been on with other agents for some of them close to 12 months. So, obviously, the owner was, was skeptical and scared that that property was not going to sell. We found a buyer within seven days. Had quite a long settlement, but due to head requiring foreign investment approval and that sort of thing. But we found the buyer, we got the property sold and we got the price the owner wanted, and we did it very quickly.
For sale at the moment:
we launched last week, 331 Ellison Road. That is a house plus granny flat, it's in immaculate condition. It was built in 2015. It's returning $900 a week in rent, which is a fantastic rental yield looking at sort of 1.3 plus for that property.
54 Bertram Street, it is again, an immaculate house built in the '90s, only had one owner, it's in very, very good condition. It's on a 301 block, easy to maintain, but still some usable yard, looking at the mid nines for that one. Just how a first offer come through this morning so we'll be presenting that over the weekend.
Also, launched this week 67 Homebush Road in Kedron, three-bed, one-bath, beautiful flat, 405 block with stunning vegetation in the backyard, looking at 1 to 1.1 for that property.
224 Appleby Road in Stafford Heights, three beds, it's an 809 block. It already has a subdivision, one into two approval, development approval already done and looking at sort of 1.1 to 1.2 for that one.
And then also coming soon, we have a stunning home in Boondall, probably one of Boondall's best houses. We've got a very, very good value and entry level renovator in Everton Hills. We've got a cracking investment property in Chermside. Those are all launching next week all three of them. We've also got another beautiful home in Kedron, another beautiful home in Wavell Heights signed up and ready to go in a few weeks time. So lots and lots of exciting things happening, lots of property ready to go. If you're looking for a home, if you have any questions about what I've said today or anything about the market, or if you'd like to get a value update on your property, please give me a call, 0424 585 391. Otherwise, I hope you have had a fantastic week so far, and I hope the weekend is even better.