Brisbane Emerges as Property Powerhouse

Brisbane’s property market could hit Christmas at a sprint off the back of soaring Olympic fervour after another weekend of reserve-smashing auction results revealed just how much buyer firepower remains.

Fears prices will further rise ahead of the 2032 summer games sparked strong bidding action at 78 reported auctions on Saturday. However, in Melbourne and Sydney, experts report the real estate fever has finally broken.

Across the Queensland capital, local and interstate buyers forked out $58,216,500 for bricks and mortar with 85 per cent of homes cleared at auction on Saturday, compared to 63 per cent and $36,598,500 just five months ago, according to Domain auction records.

Of those, an old three-bedroom cottage primly positioned to reap the benefits of major Olympics infrastructure and transport spending – at 9 Blackall Terrace, East Brisbane – sparked an all-out bidding war among 12 registered bidders, which led to a sale price $300,000 over the reserve.

Of those, an old three-bedroom cottage primly positioned to reap the benefits of major Olympics infrastructure and transport spending – at 9 Blackall Terrace, East Brisbane – sparked an all-out bidding war among 12 registered bidders, which led to a sale price $300,000 over the reserve.

Property 1

9 Blackwell Terrace, East Brisbane QLD 4169

The weatherboard abode, which sits on a snug 410-square-metre block, fetched $1,432,500 under the hammer despite being in desperate need of a full renovation, said selling agent Paula Pearce of Place Estate Agents Bulimba.

“It was a phenomenal auction and it’s an indication of just how hot the Brisbane market is in this area thanks to the Olympics,” Ms Pearce said.

“The family who bought it said what drew them was infrastructure and schools and they did talk about the games too.”

Bidding for the cottage kicked off at $900,000 before leaping in $50,000 and then $20,000 increments to $1.3 million, Ms Pearce said, with the buyers throwing down $1000 bids to kill the competition, who were a mixture of professional couples and families.

The city’s inner east – according to the Domain House Price Report for the September quarter – had the highest rate of annual house price growth in Brisbane, with prices soaring by 35.3 per cent to $1,258,500.

“I feel it [high buyer activity] will continue like this until Christmas, we are not seeing a downturn at all. In fact, we are seeing the opposite and buyers won’t care about Christmas at all this year – they’ll think about buying a property instead,” Ms Pearce said.

Over in Coorparoo, a “once-in-a-generation” three-bedroom cottage sold for $1,877,500 at auction after 12 registered bidders fought tooth and nail for a home that selling agent Cliff Tarr of Place Estate Agents Coorparoo described as a blank canvas.

Property 2 

83 Buena Vista Avenue, Coorparoo QLD 4151  

“This is a special street and it’s on a ridgeline with fantastic city views. So, while this one didn’t have great views, it was on an 809-square-metre block and the house can be removed … and that’s what drew the buyers in,” Mr Tarr said.

“Most of the bidders wanted to knock it down … and most were families. But a Brisbane investor got it in the end.”

Bidding kicked off at $1.3 million and quickly shot up to $1.7 million at which point it was declared to be on the market, Mr Tarr said.

“This result tells me things are still super strong. In fact, it was fantastic this weekend. No buyers are dropping off and there’s still no stock.

“And the owners are stoked; they had this family home for more than 60 years, so it was emotional.”

In Sydney, the looming silly season sparked a drop in buyer traffic, said Ray White Carnes Hill agent Shafeel Haq, with many home hunters choosing to hold off on purchasing until the new year.

Despite the drop, he managed to sell a striking five-bedroom home at 5 Settler Court, Carnes Hill, for $2.05 million – $100,000 over the reserve – to a local businessman who was so confident about buying the home he parked his Lamborghini in the driveway ahead of the event.

“We had 16 registered bidders on this one and most of the feedback was $1.6 million to $1.7 million prior to auction. But on the day we had this buyer with a lot of ego – one that every agent loves to have – and he started the opening bid at $1.75 million as he was keen to show that this was his property,” Mr Haq said.

“When he threw down that bid there were three left and one was the owner of Marco Gianni shoes, so he was pretty cashed up. The buyer is 28 and he owns a few Red Roosters … and then there was a family left and they all battled it.”

Mr Haq said homes were tightly held in that exclusive pocket of south-west Sydney and this fuelled the voracious bidding war.

“But at other open homes [we held over the weekend] a lot of groups have dropped off and I think a lot of buyers now will hold off until the new year. They want to relax with their families.”

Closer to the city centre, at 3 Union Street Newtown, a tiny two-bedroom, one-bathroom home on an 82-square-metre block fetched $1.05 million in post-auction negotiations.

The rundown abode, which sits in a row of three Victorian cottages, last sold for $125,000 in 1989, with just two bidders duelling it out on Saturday for the keys.

Selling agent Andrew Fanos of First National Real Estate Newtown said while a lot of people were in attendance, affordability fears had resulted in a growing number of buyers who were happy to sit on the fence.

“The numbers have dropped off and no one is in a hurry to buy now. This house is a Newtown classic and they do come up [fairly often],” Mr Fanos said.

“It was also a difficult property because the bedrooms didn’t have any windows … and there were no bids, so it passed in and an investor snapped it up after.”

Throughout the city, 497 homes sold on Saturday, resulting in a clearance rate of 75 per cent and just over $556 million transacting. The median sale price was $1.61 million.

In Melbourne, 73 per cent of homes were cleared at auction in 624 transactions totalling a little more than $514.56 million with a median sale price of $1.02 million.

At 148 Brown Street, Heidelberg, a modest two-bedroom house on a 680-square-metre block sold for $1.43 million – an eye-watering $325,000 over the reserve.

Source: Domain