Strong Growth in Brisbane

[Andrew_A]

Latest House and Unit data from Residex for Brisbane current to end November 2010. A good reflection of the total market this year however there are many sub-markets behaving differently as a part of the whole.

Brisbane houses
31-Dec-2009 H Brisbane 12.6175
31-Jan-2010 H Brisbane 12.7116
28-Feb-2010 H Brisbane 12.5423
31-Mar-2010 H Brisbane 12.3346
30-Apr-2010 H Brisbane 12.4198
31-May-2010 H Brisbane 12.5138
30-Jun-2010 H Brisbane 12.5122
31-Jul-2010 H Brisbane 12.4304
31-Aug-2010 H Brisbane 12.3976
30-Sep-2010 H Brisbane 12.2235
31-Oct-2010 H Brisbane 12.2309
30-Nov-2010 H Brisbane 12.215

Brisbane units
31-Dec-2009 U Brisbane 10.2474
31-Jan-2010 U Brisbane 10.1897
28-Feb-2010 U Brisbane 10.0946
31-Mar-2010 U Brisbane 10.39
30-Apr-2010 U Brisbane 10.4062
31-May-2010 U Brisbane 10.4299
30-Jun-2010 U Brisbane 10.5062
31-Jul-2010 U Brisbane 10.3134
31-Aug-2010 U Brisbane 10.4027
30-Sep-2010 U Brisbane 10.2698
31-Oct-2010 U Brisbane 10.3109
30-Nov-2010 U Brisbane 10.2548

Residex indices

 

[eggnog]

sorry andrew but could you explain how to read this residex index. what does the numbers mean? they are trending downwards for houses. What does this mean?

 

[Perp]

sorry andrew but could you explain how to read this residex index. what does the numbers mean? they are trending downwards for houses. What does this mean?

The index is relative to the median price at some point in the past, so yes, house prices appear to be trending downwards. Total drop for the year 12.215/12.6175 = 96.8% ie prices down 3.2% over the year.

 

[Andrew_A]

sorry andrew but could you explain how to read this residex index. what does the numbers mean? they are trending downwards for houses. What does this mean?

There's some more information about the indices here

I believe the best way to look at them is to think in % change terms as perp mentions.

 

[julesinnovation]

Hi Grant,

Been reading your posts for a while now and your insight and knowledge is fantastic. i wanted to ask you a question? I have been looking at an investment property. Trying to keep the budget around 450k if possible. Have been considering new house and land on the north side near upper kedron and banyo. What areas would you reccommend that would be close to possible rezoning or are undervalued. I am looking for capital growth and was considering new for the depreciation benefits. But if a pre established bargain comesup in a good area, would be great to have your advice. Kind regards

 

[julesinnovation]

Northgate property

Hi Andrew,

Thank-you for your help recently. I have been looking at northgate for an investment property. I have read some previous posts and there's doesn't seem to be any issues with the airport being so close and its proximity to the cbd seems good. The northgate to banyo area appears to have a good feel about it. This is the property I have seen, may I ask your expert opinion. Property No. 107001594. At present it is a 405m2 block at 754 nudgee rd, with a suggested Dixon build on it. Dixon have proposed a 4/2/1 on there 16m2 but I think a 4/2/2 with possible 2 living areas would rent better. It seems to be priced under the median although most blocks are larger in the area with older homes on there.

Please let me know what you think.

 

[willair]

Please let me know what you think.

Just have to ask the question,why build these days when in Brisbane Norths Side you can still buy for under 300k,on above 800sq metres
and rentable from day one,just think outside the main way..

http://www.pt.qld.gov.au/auctions-sales/house-sales.aspx

 

[julesinnovation]

Hi Willair

Thanks for your advice, I have been looking around for 800m2 blocks with older places but most seem to be around $450/$500. What areas would you suggest?

 

[Andrew_A]

Hi Andrew,

Thank-you for your help recently. I have been looking at northgate for an investment property. I have read some previous posts and there's doesn't seem to be any issues with the airport being so close and its proximity to the cbd seems good. The northgate to banyo area appears to have a good feel about it. This is the property I have seen, may I ask your expert opinion. Property No. 107001594. At present it is a 405m2 block at 754 nudgee rd, with a suggested Dixon build on it. Dixon have proposed a 4/2/1 on there 16m2 but I think a 4/2/2 with possible 2 living areas would rent better. It seems to be priced under the median although most blocks are larger in the area with older homes on there.

Please let me know what you think.

I agree there aren't any issues with airport noise in Northgate, some issues with train noise and arterial roads in places, also there is a mix of industrial around the place.

Generally with the market over the last month or so there have been a few anecdotal reports of strong listing activity from agents (more stock on market) and I'm noticing better yields start to appear (more discounting in list prices than increased rents).

 

[Andrew_A]

April 2011 update

A graph current till April 2011.

Since the peak in March 2010 at $475,204 the Brisbane house price median has fallen 5.83% to $447,500 in April 2011.

Some areas have done well, others have property that has fallen 15%+ (mortgage belt/interest rate sensitive areas often), in total I believe the Residex data is an excellent summary based on what I'm seeing on the ground.

 

[Andrew_A]

Latest update

Residex have the Brisbane median at $442,500 which is 32k or 7.4% off the 2010 peak of $475,204.

Units have done well on a relative basis.

 

[eggnog]

Thanks for the updates Andrew A, please keep them coming

 

[Andrew_A]

May 2011 update

Current till 31/5/2011

Brisbane house median: $442,000
Brisbane unit median: $359,000

Also included a graph from the latest RBA chart pack

 

[start-up]

Thanks for the updates Andrew A, please keep them coming

+1.

(message too short)

 

[scottandjoy]

Interesting to see how Brisbane and Melbourne medians were on par for a few years but now have diverged significantly.

 

[VDK]

Hi Andrew,

I am currently living in Brisbane Northside (Bald Hills) and am getting married in October, with my future wife moving down here around then (we are both from Melbourne originally).

We are thinking about buying something small and cheap on the North side to live in.

I work at Lawnton and would prefer not to drive more than 20 minutes to get to work.

What is your opinion on Bald Hills/Aspley even maybe Chermside? Is it worth looking at some of the <350,000 houses on offer? We might be moving back to Melbourne in 2/3 years time, so I am looking for a property that can become cashflow positive (or very close) in that time frame.

Regards

 

[Nth Brisbanite]

Hi Andrew,

What is your opinion on Bald Hills/Aspley even maybe Chermside? Is it worth looking at some of the <350,000 houses on offer? We might be moving back to Melbourne in 2/3 years time, so I am looking for a property that can become cashflow positive (or very close) in that time frame.

Regards

Not much available under $350000 for houses in Aspley or Chermside. You might be lucky to get something in Bald Hills but unlikely that it will be cash flow positive.

You need to look at units for cash flow positive

 

[VDK]

Oh well, maybe I'll just wait another month. With the way things are going property prices will drop some more - especially once the double stamp duty comes in.

 

[StefanA]

Oh well, maybe I'll just wait another month. With the way things are going property prices will drop some more - especially once the double stamp duty comes in.

What makes you think prices will only drop for a month, and not 2-3 years?
If they keep falling, you could avoid the risk altogether of buying here before you move back to Melbourne.

 

[VDK]

You are absolutely right, there is no guarantee we won't have a long drwan out decline in property prices.

But if the cost of buying gets close enough to the cost of renting, there is no reason not to buy.

And on the outskirts of Brisbane that gap is not huge.