Kedron and Surrounding Suburbs Weekly Market Update 20.05.22
Weekly Property Wrap Up by Daniel Hooper of One Percent Property
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20th of May 2022
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Hi, this is Daniel Hooper from One Percent Property coming to you with your weekly Property Market Update for Kedron, Gordon Park and the surrounding suburbs. So what has been happening over the last seven days in our beautiful area? Well, I can update that the auction clearance rate is actually holding fairly steady. At the start of the week, it was reading around 60%, but as more results came in, it seems to be edging up towards that 70% range. Now it was around 60% this time, last year. So, that actually shows that bucking the trend of what we've been seeing in the last few weeks. Properties still do seem to be selling. We had 1,347 sales in the last seven days. Again, that is the highest we've seen in recent weeks. In the inner north, we had 27 sales, which is a good number, pretty much on par with what we've been seeing, and certainly shows that there are a lot of properties still changing hands. Some notable sales are:
54 North Street, which I sold in Kedron. That one went under contract and it's not quite unconditional yet, but when it is, I'll reveal the price.
39 Highland Street in Gordon Park. It's an unrenovated 1990s build townhouse, which sold for $860,300. That's a very good price for that sort of townhouse. Obviously, Gordon Park's an attractive area, but still it's a good price. It shows that certainly the townhouse market has still got a lot of strength.
6 Rigby street in Woolooin. It is a four bed-home on 400 square meters. It sold for 1.65. Again, it is a good price, showing that we are still getting very, very solid prices in the inner north.
39 Watcombe Street in Wavell Heights. That is a three-bed on 617 square meters, low set, 1.21. Again, it's a fantastic price. It definitely shows that there's still good prices being achieved in the market, which is very positive.
In the media prices in Brisbane are up around 1% in the last month. In the last week, they only went up 0.1%. So some conflicting information. Not a lot can be read into that at this point, but we'll obviously monitor that and see how it progresses over the next few weeks and the next few months. The undersupply, which is a big factor that I always talk about, is still around 19%. It was 30% at the start of the year, undersupplied. Brisbane is one of three major cities that is still undersupplied. The other's being Perth and Adelaide. Every other city in Australia or every other capital city in Australia is now oversupplied with more stock than buyers or higher numbers of stock on the market than the average year, which, obviously, means prices are going to struggle to maintain the level that they are at. But at this point in time, we are still 19% undersupplied, so still quite a lot of strength in the Brisbane market, as far as I see it.
So what's happening obviously, is the market is softening. Rates are going to continue to rise. There's no doubt about that because inflation is high. It's higher than it's been in a very long time. Rates will continue to rise. It will put more strain on people. It'll mean people can borrow less. Certainly investors might sit out of the market.
What I'm seeing at the moment, at this very point in time is it's that pre-election jitters. A lot of people do not buy just before the election. I think that'll obviously soften as we get into the next two to three weeks. Once everything's settled down and the election's finished, people realize that everything's not going to implode, I think that we'll get on and the property market will continue. However it is going to soften. Now, when I say soften, what I mean by that is it's going to go back to normal. So if we go back to say 2019 before COVID, before all the madness, the auction clearance rate on an average week in Brisbane was 30 to 40%. During COVID, during the boom that we've had, we've seen it jump to 90%. But right now we're sitting at 70. It might go back down to 50. It's a normal Brisbane market. It's not doom and gloom. I'm certainly not someone that thinks the market is going to crash in Brisbane.
What I do think is going to happen, it's going to become more difficult to sell property. Now, what I mean by that is six months ago, any property sold immediately, whether it was in a flood zone, whether it had main road issues, massive renovations, extremely unique, whatever the property was, it was selling because buyers didn't have a lot of choice and they were getting priced out of the market. Prices were going so crazy that they were getting fear of missing out. They were seeing their deposit of $200,000, which could buy a million dollar house. Suddenly, that million dollar house is now 1.3. They can't afford it anymore. So people were just purchasing, which made it incredibly easy to sell property. What's going to happen in the next six to 12 months is we're going to go back to a normal market, which means the clean cut properties, well-renovated, brand new, well-presented, flat block, whatever it is, they're going to continue to sell quickly, as they always have. The properties with difficulties, such as main road, flood, renovation, those sorts of things, they're going to take longer to sell. And I've already started to see that. We're still selling them. We're still getting very good prices, but they're not selling in three or four days like they were. They're just taking a little longer to find the right buyer, have that negotiation and make sure we get the property over the line. What I see for my industry is that a lot of these people that joined the industry over the last 12 months, trying to chase that gold rush that they saw, are probably going to drop off, because it's going to be more difficult to get properties sold and to deliver the right results. You're not going to be able to just throw it in the market with no strategy. It's going to have to have a strategy. And as a homeowner, that's important, because if you're thinking about selling, you need to look at an agent that has got a solid strategy, not an agent that comes in and says, they're going to get a crazy price for your house. Because at the end of the day, that agent could be lying. It needs to be someone that has a rock solid strategy to actually get the result over the line. As far as at One Percent Property, over the last seven days, again, it's been an interesting time because I personally have been holding off on launching new properties, because in my opinion, the best thing for my vendors was to wait until after the election. So we haven't launched any new properties in the last two weeks. We've had 1403 at 25 Charlotte Street. That has settled today. We sold that in a couple of weeks. It was a long settlement period as the tenant had to have time to move out. But that property actually settles today at two o'clock. So it should be happening anytime now. 21004 at 37 Kyabra Street in Newstead. That property is unconditional. It took a while to sell that one. It was a challenging property. It had a few issues with it, but we got it over the line eventually, and that one is now unconditional. So, coming soon, because we have been holding off on launching properties, I've got a long list of beautiful homes that is coming in the local area over the next few weeks.
We've got 54 Bertram Street in Stafford. The property is a three-bed. It's on 301 square meters, very manageable, maintainable block. It's in absolutely pristine condition. It was only built in the nineties. It is a great entry level home into Stafford. Very, very difficult to get a freehold home in Stafford for under a million dollars now. So this property, it's unique and it's certainly a very good opportunity.
331 Ellison Road in Geebung. It's a three-bed home plus a two-bed granny flat, all on one block. It's battle axe, so it's back away from the street, lots and lots of parking, plenty of opportunity with this property. You can obviously get a high rental return. It's renting for $900 a week at the moment. There's potential to have multiple family units living in the property. There's a lot of different things you can do with the property that really make it great for potential investors and homeowners.
224 Appleby Road in Stafford Heights. It's an 809 block. It's already got a DA for a one into two split. It's a fantastic opportunity for both developers or someone wanting to buy a big home to live in.
We've got 25 Calida Street in Boondall. This is truly one of Boondall's best homes. It was built in the early two thousands, high quality home. It's got vaulted void ceilings over the dining, five bedrooms, three living spaces, two dining. It's got a pool. It's really a fantastic property, will be coming in a couple of weeks.
67 Homebush Road in Kedron. It is a beautifully renovated three bed, one bath, 405 square meter block of land. This one will go quick. It's in a very, very good area and it's just presented perfectly. So that one I'm sure will sell very, very fast.
And also 39 Emerald Street in Kedron. That's a couple of weeks away. It's a three bed, one bath. It's on a small lot code. So it's a very easy to maintain lot. It is freehold. And again, I think that will be very popular because it is in the Kedron State High and Kedron State School catchments, as well as being walking distance to the Kedron Brook.
So lots and lots of things coming up. If you're interested in one of these properties, you potentially think it might be what you're after, or you'd like to get an updated value on your home, please give me a call. Otherwise, I hope you've had a fantastic week so far and I hope the weekend is even better.