Kedron & Surrounding Suburbs Weekly Market Update 24.06.21
Weekly Property Wrap Up By Daniel Hooper Of One Percent Property⠀⠀ ⠀⠀
2021 KEDRON AGENT OF THE YEAR WINNER (RATEMYAGENT)⠀ ⠀⠀
✅ KEDRON, WAVELL HEIGHTS, EVERTON PARK & SURROUNDING SUBURBS ✅⠀⠀ ⠀⠀
24th of June 2021
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Daniel - 0424 585 391⠀
Hi, I'm Daniel Hooper from One Percent Property here with your Weekly Property Market Update for Kedron and the surrounding suburbs on Thursday, the 24th of June 2021.
It's been another great week, another interesting week in our local property market. In Queensland, we had 1,455 sales, which is a good number, lots of properties changing hands. The auction clearance rate was 88% which is massive. 33% this time last year to put that in comparison.
In the inner North Kedron and the surrounding suburbs, we had 30 sales. A couple of notable sales: 22 Koolewong Street in Stafford Heights, that one settled last week. That was a sale of mine. He bought it in April 2020 for $735,000. I sold it without going on realestate.com, just through my database in two days for $867,000—which is about a 15% gain. He did not do any renovations or any changes to that property, so not bad for one year of owning a house.
Another good result over the last seven days was 3 Costello Place in Stafford Heights, a four-bed, two-bath home, nice and tidy. That one achieved $911,000. It's really good to see Stafford Heights starting to pick up and get some really, really great prices as well which is obviously fantastic for homeowners in the local area.
Something interesting I wanted to talk about this week. I'm sure you've seen it on the news, but there are big issues in Australia with supply of construction equipment. Really, really big issues, to the point where some developers are saying things like aluminum are costing 100% more than they were six months ago. The problem that this is causing, aside from bill costs going up, is that all these builders and these developers that have got fixed-price contracts from six months ago or three months ago are now... the price of the bill has gone up massively.
So what that means is builders are potentially either collapsing contracts or you know, basically... well, they have to. They're either walking away from contracts, renegotiating, or just not doing it at all because otherwise, they're going to lose money. What that means from what I can see and what I'm, I guess, expecting in the market is that potentially, it's actually going to stifle the amount of new properties and the amount of renovated properties that are coming on the market in the next 6 to 12 months because no one's going to be able to get materials. And if you were planning on doing a project and it's gone up by 30 or 40% in cost, you can't just add 30 or 40% of the price of property because the price of property is dictated by the market.
So if it does do that and there is a restraint on new stock coming to the market, then potentially, over the next 6 to 12 months, obviously, that's going to reduce new properties which is actually going to further reduce the supply which could actually force prices up even more because the other side of that is people start to increase their costs... sorry, their sale price because they've got to match the costs which, again, would then push prices up.
So I think this restraint on the building industry, aside from causing massive issues for property developers around Australia and around Brisbane, is potentially going to be another factor that may actually push prices up over the next six months. That is just my input, but we will have to see what happens. It's going to be interesting to see how that one plays out.
As far as One Percent this week, we've had another great week. 7 Emerald Street in Kedron, which is a beautiful home just off the Kedron avenues—we launched it on Saturday, under contract... sorry, we launched it on Monday last week, first open home on Saturday, under contract on Sunday. So six days on the market, got a fantastic result. Very, very happy vendors; very, very happy buyer, and it was a real pleasure to work on such a beautiful home.
67 Bristol Road in Kedron and 4 at 313 Lancaster Road in Ascot are still on the market. Two fantastic properties. If you're interested, you're looking for an entry-level home in Kedron or a really great investment property in Ascot, please give me a call.
Also, 49 at 33 Lagonda Street in Annerley is on the market. It's under 300k. It's a fantastic investment. It's near the train station, returning around 6% rental yield, so a really, really good investment for that entry-level buyer. As I said, under $300,000 which is quite rare, especially in the current market.
Coming to the market next week is a beautiful property that I'm very, very excited to work on because it is very, very unique: 172 Gympie Road in Kedron. We would have all driven past it and seen it. It is commercial/potential for residential. It's got an office or an office space at the front which can be used for anything from a real estate agency to a dentist, or it's fully fit out for something medical or something like that. And then at the back, there's another office space which actually has city views as well, so it could be potential for office space upfront, house at back, and there is opportunity to renovate and add further office space. Current rental income around $100,000 a year, so it's got a really good rental cash flow. It's got good possibility for growth. It is one of the best exposure sites in Kedron. It has got fantastic exposure for traffic coming up over Gympie Road, and it is a really, really cool property, and I think it's going to sell really fast.
If any of these properties sound like something you might be interested in, or if you want to have a chat about your home and get an update on the value based on all of these crazy figures we're getting at the moment, please give me a call 0424 585 391.
Otherwise, I hope you've had a fantastic week so far, and I hope the rest of it is even better.