The Gabba Insider | February 2020

Market Update

2020 the year to sell as buyers flood open homes

As 2019 came to a close, vendors in the Brisbane property market welcomed improved results which has shaped the success we have seen so far in 2020. As front doors opened for a new wave of home buyers in January, so they came in droves.

The Place Woolloongabba team opened 35 Brisbane Avenue at Camp Hill across two Saturday’s in January, with records showing 47 groups viewed the $1.3 million property – an increase of inspections in November and December of more than double.

Not far away, 85 Sydney Avenue at Camp Hill also welcomed attendees which were double that of late last year, and with no adjustments to the listing’s marketing or price point.

Place Woolloongabba Co-Director Denis Najzar said that luxury homes like this really offer everything in terms of lifestyle, so it’s all about scoring optimal value for money for buyers.

“From what I can see, buyers are looking for homes they can add value to, whether they’re on slightly bigger blocks or have alternative development potential, homes of this nature within 8km of Brisbane city have been and continue to skyrocket in demand,” Denis said.

“Brisbane is certainly becoming an international city. The investments being made on infrastructure and amenities coupled with the lower real estate price point compared to Sydney and Melbourne is really giving Brisbane further room to grow.”

To see Place Woolloongabba’s full range of open homes, click here.

MARKET UPDATE

Market update

Impending 'Wealth effect' tipped to influence Australia's property market

One of Australia’s big banks has confirmed personal spending is on the rise and with that comes an increase in the perceived value of purchases.

The Commonwealth Bank recently released data showing the ‘wealth effect’ is tipped to influence the property market this year amid the national construction cycle showing, resulting in a boost to retailing and buying intentions and therefore, home values.

Time Home Loans Managing Director Ruan Burger said, “People’s spending habits are now a strong focus for lenders after changes handed down by APRA (the governing body of lenders) after the Banking Royal commission.”

“The focus is on responsible lending and what way to be more responsible than ensuring that you are looking at what a client is currently spending and making sure that a new loan won’t impact adversely on their current lifestyle,” he said.

“Now, nearly a year on from the Royal Commission findings being handed down, monthly living expenses is a major focus when assessing clients’ borrowing capacity. For every extra $100 per month you spend, your borrowing capacity is dropping between $15,000 to $20,000 depending on lender.”

With all banks scrutinising spending differently, it’s important to talk with finance professionals to make sure that you are ready to buy.

“If you’ve had a big three months travelling, this can greatly impact your ability to borrow if you don’t have someone in your corner who understands your circumstances and is able to mitigate to a lender your situation,” Mr Burger said.

The Place Woolloongabba team has been working with Time Home Loans for years, and consulting with the professionals has proven value to buyers and sellers because they spend the time to break down monthly living expense, discretionary verse mandatory.

“We believe that people who had a great opportunity for lending 12 months ago still have this, as long as they take the time to engage a good Broker to assist them with the best presentation to their chosen lender.”

Finance Update

Property Insights

Marketing your home in 2020

There is a lot more to selling property than throwing the listing up online. Undertaking tactful marketing techniques can not only increase buyer appeal but can even improve listing prices and potentially the final sale.

From social media advertising, to professional photography and home styling, making your home stand out from the bunch is the work of the professionals.

Place Woolloongabba Co-Director Denis Najzar said it’s all about being skilled in local property and really knowing who the potential buyer is.

“A knowledgeable team can tap into buyer preferences like location and turn them around in favour of lifestyle, if that’s what‘s more important to them,” Denis said.

“If people are looking for a luxury home with city views on a large block on one side of Brisbane River, we can catch their interest with a home like 42 Beanga Street in Camp Hill thanks to it possessing those major lifestyle attributes like space and outlook.”

“Platforms like online advertising, drone photography, styling and optimising the aesthetic are important for us to reach those buyers, and we have a team with decades of experience who have proven results in impeccable marketing campaigns.”

42 Beanga Street features four bedrooms, two bathrooms and rests on a huge 930-square-metre block. To see the listing in detail, click here.

42 Beanga St 2

Suburb Snapshot

South Brisbane

Immersed in history and sitting on the banks of the Brisbane River, real estate in South Brisbane leaves something to be envied by those who value a picturesque waterside lifestyle with the abundance of conveniences the city metropolis has to offer.

Directly connected to endless transport options and with world-class dining and shopping right on your doorstep, South Brisbane is a pulsating inner-city hub where each day’s activities can be worlds apart from the last.

South Brisbane’s Lead Agent Ting Xi said South Brisbane offers entertainment options, cultural experiences and convenience galore, and with interest in the suburb’s apartment living at a peak.

“South Brisbane offers inner-city living at its best - it’s 1km from the CBD, there is a huge range of sought-after educational institutions within easy reach and it’s perfect for city commuters. There are many historic architectural gems in South Brisbane and with a mix of premium apartments and traditional old Queenslanders lining the streets, it really is the ultimate area for vibrant day-to-day living.”

Population: 7,196

Population growth: 33% over five years

Proximity to CBD: 1km

Median apartment price: $574,000 for two bedrooms

Median apartment rent: $560 per week for two bedrooms

Average visits per open home: 406

Heritage-listed sites: 19

South BNE

Agent Profile

Ting Zi

Agent profile: Ting Xi

Q: We’ve seen some outstanding results from your sales of apartments in Brisbane. Tell us about your area of expertise…

A: I specialise in South Brisbane, West End, Brisbane City and Woolloongabba. I’m looking forward to watching the market steadily improve over the next 12 months. Preowned apartments with owner-occupier appeal will perform very well in the next few years.

Q: Have you noticed specific buyer trends in this area?

A: Buyers are looking for a good floor plan with nice views which are relatively large in size – two or three bedrooms are always in high demand. Buildings with good facilities often appeal to buyers, too. Also, with the historically low interest rate, I find people start buying instead of renting, as the cost to own a property is lower than rent repayments.

Q: What are some key characteristics of property in the area?

A: Apartments are often in a great location, close to retail and public transport. People choose apartment living because of the vibrant lifestyle and convenience. Buyers sacrifice space for proximity.

Q: Does this area boast particular features which make it popular?

A: South Brisbane and West End have a top school catchment and parents with kids will buy for their children’s education. Brisbane City is great for young professionals or the older generation who value the distance to work and city lifestyle. Woolloongabba is undergoing a large infrastructure update with the Cross River Rail and the suburb is being redeveloped. Buyers are seeing this suburb has the X-factor for future potential for growth.

Q: And finally, if you could include anything in your ideal home, what would it be?

A: Personally, I would really want a unit 150m2 or more in size with nice river and city views. With the future $3.6 billion Queens Wharf project at Brisbane CBD, our city skyline will look even more beautiful in two to three years’ time. I also find people want to buy units close to the Queens Wharf project to enjoy the convenience for shopping, dining, boutique shops, and at a cheaper price point compared to new projects.

Renting the right way

There’s nothing worse than entrusting your property to an agent to oversee its rental, only to be left disappointed with communication or management, and potentially even legal issues.

Place Woolloongabba Property Manager Hayley Mills prides herself on her shining track record in the field of rental management and thanks her success to treating her client’s homes as if they are her own.

“The fundamental values I have as a property manager are to be proactive and maintain solid communication. Success in renting a home stems from receiving ongoing feedback and having an agent who personally values your property as much as you do,” Hayley said.

The Place Wooloongabba team has an impressive track record of securing sustainable tenancies thanks to their exceptional customer service and being in tune to what their clients want.

“We are in a position where we can advise home-owners on what is in demand when it comes to rentals and can achieve a healthy return by matching up valuable amenities in sought-after areas with long-term renters.”

“A lot of renters are looking for air conditioning throughout the home and low maintenance yards. We’re seeing great popularity in Camp Hill, Highgate Hill, New Farm and Woolloongabba.”

To discuss renting your property with Hayley, call 3153 2999.

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