Kedron & Surrounding Suburbs Weekly Market Update 15.07.2020
Daniel from One Percent Property here with your weekly market update.
Another fantastic week in the Brisbane Inner North property market!
This week I discuss:
- How is the property market getting on?
- What do I think is going to happen in September?
- What is the "Post COVID" buyer searching for in their new home?
- How can you improve your homes value?
- What has been happening locally?
Do you have any questions or would you like to get an updated value on your home?
Call Daniel - 0424 585 391
Hi, this is Daniel from One Percent Property here with your Wednesday weekly market update for Wednesday, the 15th of July, 2020. So residents of the inner north area of Brisbane, what has been happening in our local property market over the last seven days? Well, we had 929 sales in Queensland and we had a 44% auction clearance rate. So, 32% was the auction clearance rate at this time last year and the sales are very much on par. It's really, really encouraging to see the market moving back to pre-COVID levels, to see buyers out, to see sellers out, to see a lot of activity and to see no change to date in prices, maybe even a little increase, which is really, really encouraging for homeowners in our local area.
Population growth has slowed in Brisbane over the last few months, obviously expected. But at 1.5%, we are now the second highest city as far as population growth in the country. So, we're behind Melbourne; we are ahead of Sydney. So, it really shows that people are still finding a lot of attractions in Brisbane and that people are moving here and that we're continuing to grow. We're continuing to develop as a city, which is always really, really good news.
Consumer sentiment was quite high over the last few weeks. It is a little shaky at the moment as you can expect, because of everything that's happening in Melbourne and Sydney, people are really just sitting back and hoping and praying that it does not come back up to Queensland. Because obviously, that will have an effect on the economy. It will have an affect on jobs. It will have an effect on everything.
On that note, what is going to happen, this thing that everyone's talking about the cliff in September. It's an interesting topic because obviously there's a lot of different views. There's a lot of different media out there about it. My point of view, and please keep in mind this is just an opinion, is that this cliff idea is something created by the media because it sells newspapers or gets you to click on their website, gets you to watch the news. When people are scared, they watch the news. I've said this so many times. And the idea of a cliff and everything collapsing, that's scary. So people are going to obviously watch the news. They're going to sell more advertising and they're going to be very happy.
Realistically, do you think that our government, after spending all of this money and all of this time and all of this energy on stopping the economy collapsing, that in September, they're just going to go, okay, you're on your own and let the economy collapse? It would mean that everything today has just been a waste. All the money spent has just been a waste. I just cannot see that happening. APRA and the banks have already extended the mortgage break period by four months, which is a step. And I see more things happening, maybe industry specific, maybe more testing before getting job keeper, but I just don't see them letting things collapse and letting people start having to sell their homes and everything go up in flames after they've already done so much.
It's also important to remember that if you take away COVID, cash is the cheapest at the moment that it has ever been. Mortgages are the cheapest they've ever been. And Brisbane property also has very, very good fundamentals. Our wage to property price is much stronger, much stronger than Sydney and Melbourne. So obviously issues with the economy and issues with jobs and things like that are going to hit Sydney and Melbourne a lot harder than they're going to hit Brisbane. And I really think that all of this talk in the media, it's always on a national level, but you just can't look at it on a national level because the property markets and all the comparables are so different between Sydney, Brisbane, Melbourne, and all of the other cities in Australia.
So what is going to happen? What do I believe is going to happen? Look, again, this is just my opinion, but I really just think not a lot. We were forecast for double digit price growth. I don't think that's going to happen. I think it's going to be pretty flat for quite a while, maybe a small drop, but I really don't see any big dents in our property market coming. Again, just my opinion. But it is interesting that if you look at the news, you look at the media now, no one's talking 30% anymore. Two months ago, NAB, CBA, they're all coming out and saying 30% drops. Now the same people that said 30% from NAB are saying around 5%. So obviously, the doomsday forecasts that were happening seem to have been sort of revised quite a bit. And I think if it's 5% in Sydney, it's going to be less than that in Brisbane because we have better property fundamentals in Brisbane.
On that note, there's a lot of things that we can do selling property and you can do as an owner, selling your home to really stay relevant and make sure you get a quick sale and make sure you get a good price on your property. So an interesting article that came out this week from Domain looked at the searches on that property. It discussed what people are searching for when they're looking for a house and changes in keywords. So there's some really interesting changes in keywords, probably what you would expect.
Home office as a search increased by 830%. That is massive. Obviously you would expect it, but a lot of people are searching for home offices. Granny flat increased by 287% and retreats, balconies, that sort of thing increased by 122%. So what does that mean? What does that show us? It shows us that buyers are working from home, obviously. So when they're buying a house, they're now thinking, okay, I've got to have a home office or at least the space that I can use as the home office, because I cannot work on the dining room table anymore. I'm driving my family nuts.
Granny flats showing me that buyers are also not as confident that with their jobs and that they're going to be able to pay their mortgages ongoing. So the granny flat thing really shows that people want to supplement their mortgage and they want to potentially have that as a fallback in case they lose their job or they have to take a reduced income.
The final one of the retreats and the balcony is simply people are spending more time at home. So whereas before they would spend a lot of time out of the house, they didn't really care what the house was like, small bedroom, it's all good. Now they're spending a lot of time at home. They need their balcony, they need their courtyard, they need their parent's retreat. They need things like this in the property.
And it really presents a lot of opportunities to target your buyers and to target and present your home and do your marketing on the sale to really target this new post COVID buyer profile. If you know what you're doing and you know what people are searching for, it presents massive opportunities. It's really quite exciting.
On that note I'm going to start releasing over the next few weeks a number of learning segments based around the idea of how to improve and grow your home's value without doing huge renovations and things like that. So the first segment is based on presentation, which is obviously one of the most important parts about getting a great price for your home. It'll come out over the next week. It's going to talk about all sorts of things from how to present your home, staging, cleaning up and decluttering and all that sort of stuff. They have some really good points in there to help you add thousands and thousands of dollars of value onto the sale of your home.
In the local market, we've had a crazy week. So this week we had 4 Hebe Street in Bardon, which we launched a week ago on Wednesday. That property had more than 20 groups through the first open home. We had more than 60 inquiries in the first three days. So much interest in the markets. So many buyers out in the market. We've also settled on 6/186 Petrie Terrace. Congratulations to Denise and Sandra. And we've also settled on 13 Sylvia Court in Eatons Hill for a street record. So congratulations to Tony and Georgia and congratulations to Leigh and Evelyn on your purchase.
If you have any property questions, you have anything I can help with, or you'd like an update on the value of 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 second half is even better.