• Daniel Hooper

Kedron and Surrounding Suburbs Weekly Market Update⁠ 11.02.22

Weekly Property Wrap Up by Daniel Hooper of One Percent Property




11th of February 2022

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Daniel - 0424 585 391⁠

Hi, this is Daniel Hooper from One Percent Property, coming to you with your Weekly Property Market Update for Kedron and the surrounding suburbs on Friday the 11th of February 2022. So what has been happening in the last week in property across our beautiful area? 1,531 sales in Queensland, which is a good number, 81% auction clearance rate, which again is very high, up on 55% this time last year. Now 55%, we were already well into the boom this time last year, so we're not comparing to a cool market anymore or a COVID market. This is comparing to what was thought of as quite a hot Brisbane market compared to now, which is just insane. In the North, we had 34 sales, which is again, it's a very good figure, quite a lot more than we've had in the last few weeks. That can be attributed probably to the slow wind back up after Christmas. So notable sales:

  • 7 Hamilton Street in Gordon Park—three-bedroom home, fairly average, not renovated, 875 square meter block of land, sold at 2,000,050, which is a very good price.

  • Also, we sold Erskine Avenue—four-bed, one-bath, original home on 810 square meters, backing onto Gympie Road. We got $1.4 million for that, which again, was a pretty good price based on the location of the property.

As far as in the media this week, Brisbane is up 0.5% in the last seven days. We're up 8.2% in the last three months. And we're up 30.4% in the last 12 months. Now, that is obviously taking into account apartments, houses, all areas, all types of properties. If you look at specifically, say houses around Kedron, it's more like 45% in the last 12 months, and it is continuing to rise. As far as what else is in the media this week? Obviously, everyone's talking about the rate rise. As far as the rate rise goes, do I think it's going to happen? Yes, a hundred percent. Do I think it's going to have a massive effect on the property market? I really don't. It's my opinion. Now there's two parts to that. Do I think it's going to slow down buyers for a while? Probably, yes. Because once rates start to go up, people get nervous. So some people will make the decision to not purchase property for a while and just see what happens. Probably very heavily weighted towards investors because if you are looking for a family home, you don't really care, as long as you can afford the rate increase, you're still going to buy a home because you need somewhere to live. But investors might take a step back. Now that's one side. So short-term slowdown. Sure, maybe. As far as long-term effects, the rate would have to rise so much in Brisbane to actually have a really significant effect on people, to the point where it's forcing them to sell their homes and property prices are going down. Yeah, you know I saw an article that said 1% rate rise in Brisbane would equate to around $160 a month in additional fees to the average homeowner. Now, if you live in a house, it's your family home and you're raising your children there, the last thing you will sell is that family home. You'll fight tooth and nail to keep your family home. So if the rates go up and you cannot afford them, you will do other things. You'll sell a car, you'll reduce credit cards, you'll stop eating out. There's a whole bunch of other things that people will do before they're resorted to selling their family home. And this is what the doomsday sayers are talking about, is the market crashing because people are having to fire sale, but what rate does it have to go up to for people who actually have to fire sell their home? As far as I'm concerned in Brisbane, I feel like it would have to go up at least 2 or 3%. And to go up 2 or 3%, you're talking in the little incremental raises that the RBA raises the rate 0.1, 0.25, that sort of thing. That's a whole lot of raises. And I just don't feel like it's going to happen in the next couple of years, if ever. I could be wrong. Obviously, a hundred percent could be wrong, but I just don't feel like it's going to go up to the point where it's going to put strain on the Brisbane market. Now, other parts of Australia, potentially yes. I mean the average property price in Brisbane is around 750 to $800,000. The average property price in Sydney is $1.6 million. Their wages are 25% higher than ours. So it makes a lot of sense that they're going to be under a lot more stress with rate rises than we are because we have much more affordable property compared to our wages. So that's all little things that, obviously, need to be watched over the coming months. But I don't feel like the rate rises are going to have a massive effect on the market. Certainly in the short term, 6 to 12 months, maybe in the longer term they will. One thing that I read about this week, which again, it sort of backs up what I just said, is loan approvals are at their highest ever. They're at record, record levels. So more people getting mortgages than ever before. Now, to give you an understanding of how high—71% higher than pre-pandemic levels. If people were really worried about what's going to happen in the next 6 to 12 months, those loan approval rates would be going down because people would not be getting their pre-approvals because that's only valid for three months. So I believe people have pretty good confidence in the local market. And I think we've got a pretty good run for the next 6 to 12 months at least definitely. As far as One Percent, in the last week, it's been another big week.

  • We had 14 Erskine Avenue in Kedron. I spoke about that one at the start. We launched it last Wednesday, had it under contract on Saturday with multiple offers, and for quite a bit more than the owners were expecting. And it's already gone unconditional. Went unconditional on Tuesday, in six days. So between putting it on and actually having an unconditional contract—six days. We settle next week. It's a two-week settlement. So people are definitely still keen in the market from what I've seen. They're putting in good offers. They're putting in good contracts and vendors are leaving the process feeling very, very happy and very satisfied.

  • This week, we've got 19 Gail Court, that is in Burpengary East. It's a little outside of the area, but it is a stunning property. Four beds, it's on 4,000 plus square meters. It's been incredibly popular. I'm confident that's going to sell in five or six days as well. Coming soon we have 34 Sovereign Place in Bridgeman Downs. It's on one of Bridgeman's newest streets. The whole street is only about eight, nine months old. The house itself is seven months old. It's a beautiful home. It's got a pool, lovely backyard. Everything is brand new and it's still under warranty so that one's coming next week.

  • We've got 31 Ramsay Street in Kedron, 670 square meters. It's a low-medium residential. It's got a two-bedroom home at the front and a one-bedroom granny flat at the back. Lots and lots of opportunities and possibilities to make that one your own.

  • Also, 309/50 Lamington Avenue in Lutwyche. Two-bed, one-bath, one-car apartment. Very clean, ready to move in. It's in great condition. It's in a good area. It's just a stone's throw away from the Kedron Brook. So very, very good part of Lutwyche. Also, coming in the next couple of weeks, we have number 4/9 Railway Parade, which is in Nundah. That one is a two-bed, three-level townhouse, which will be on the market in the next couple of weeks. And also 1403 at number 25 Charlotte Street in Chermside. One bed, one bath, one car apartment. It is in a great, very, very accessible area. And that will also be launching in the next few weeks.

If you have any questions, if you'd like to get more information about these properties, or if there's anything else I can do to be of assistance, please do not hesitate to give me a call. My number is 0424-585-391. Otherwise, I hope you've had a fantastic week so far and I hope the rest of it is even better.

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