Wakerley & Gumdale Top Land Value Growth Suburbs

The Valuer-General’s Report 2017 places Gumdale (30.1%) and Wakerley (29.4%) at the top of Brisbane suburb increases of land values over the past 12 months. We’ve seen significant price rises in houses over the past year also, and I would anticipate this increase will result in further growth of prices, as buyers begin to realise that buying an established property is better value than building.

The full report is available here: http://bit.ly/VGBrisbane2017

Table 1 – Median value of residential land*

Residential localities Previous median value as at 1/10/2015 ($) New median value as at 1/10/2016 ($) Change in median value (%) Number of properties
Acacia Ridge 237,500 237,500 0 2474
Albion 450,000 495,000 10 488
Alderley 500,000 540,000 8 1683
Algester 310,000 310,000 0 2551
Annerley 460,000 500,000 8.7 2291
Anstead 270,000 270,000 0 87
Archerfield 227,500 227,500 0 225
Ascot 840,000 880,000 4.8 1303
Ashgrove 570,000 620,000 8.8 3896
Aspley 370,000 405,000 9.5 3948
Auchenflower 510,000 560,000 9.8 1152
Bald Hills 237,500 242,500 2.1 2426
Balmoral 590,000 600,000 1.7 1114
Banyo 320,000 350,000 9.4 2178
Bardon 590,000 620,000 5.1 3055
Bellbowrie 225,000 225,000 0 1694
Belmont 355,000 425,000 19.7 1192
Boondall 242,500 265,000 9.3 3092
Bowen Hills 600,000 660,000 10 89
Bracken Ridge 285,000 285,000 0 5544
Bridgeman Downs 415,000 415,000 0 2580
Brighton 340,000 375,000 10.3 3513
Brisbane City 530,000 560,000 5.7 4
Brookfield 350,000 405,000 15.7 470
Bulimba 650,000 680,000 4.6 1596
Bulwer 405,000 405,000 0 63
Burbank 295,000 310,000 5.1 1
Calamvale 320,000 395,000 23.4 3922
Camp Hill 530,000 600,000 13.2 3888
Cannon Hill 470,000 500,000 6.4 1676
Carina 430,000 500,000 16.3 2581
Carina Heights 425,000 500,000 17.7 1579
Carindale 455,000 550,000 20.9 5037
Carseldine 310,000 310,000 0 2653
Chapel Hill 380,000 455,000 19.7 3449
Chelmer 600,000 620,000 3.3 1058
Chermside 350,000 420,000 20 1432
Chermside West 335,000 385,000 14.9 2416
Chuwar 180,000 190,000 5.6 27
Clayfield 680,000 710,000 4.4 2053
Coopers Plains 380,000 420,000 10.5 1762
Coorparoo 560,000 590,000 5.4 3485
Corinda 440,000 450,000 2.3 1488
Cowan Cowan 415,000 415,000 0 68
Darra 255,000 280,000 9.8 1303
Deagon 300,000 330,000 10 1456
Doolandella 265,000 265,000 0 1332
Drewvale 270,000 320,000 18.5 1313
Durack 235,000 235,000 0 1809
Dutton Park 570,000 600,000 5.3 423
East Brisbane 485,000 530,000 9.3 1289
Eight Mile Plains 400,000 450,000 12.5 3488
Ellen Grove 149,000 149,000 0 616
Enoggera 455,000 490,000 7.7 1380
Everton Park 365,000 420,000 15.1 2718
Fairfield 450,000 485,000 7.8 817
Ferny Grove 340,000 340,000 0 1830
Fig Tree Pocket 455,000 480,000 5.5 1300
Fitzgibbon 227,500 250,000 9.9 2050
Forest Lake 255,000 255,000 0 7724
Fortitude Valley 690,000 695,000 0.7 140
Gaythorne 420,000 440,000 4.8 663
Geebung 340,000 340,000 0 1703
Gordon Park 475,000 500,000 5.3 1073
Graceville 520,000 530,000 1.9 1556
Grange 550,000 590,000 7.3 1399
Greenslopes 475,000 495,000 4.2 1834
Gumdale 365,000 475,000 30.1 298
Hamilton 750,000 830,000 10.7 1086
Hawthorne 750,000 790,000 5.3 1369
Heathwood 275,000 275,000 0 1047
Hemmant 310,000 310,000 0 732
Hendra 620,000 610,000 -1.6 1601
Herston 500,000 550,000 10 401
Highgate Hill 630,000 690,000 9.5 1046
Holland Park 455,000 530,000 16.5 2681
Holland Park West 435,000 480,000 10.3 2024
Inala 215,000 215,000 0 4786
Indooroopilly 520,000 560,000 7.7 2678
Jamboree Heights 320,000 320,000 0 1188
Jindalee 290,000 290,000 0 1878
Kalinga 590,000 650,000 10.2 604
Kangaroo Point 570,000 570,000 0 528
Karana Downs 185,000 195,000 5.4 910
Kedron 445,000 510,000 14.6 2528
Kelvin Grove 495,000 520,000 5.1 1085
Kenmore 370,000 405,000 9.5 3221
Kenmore Hills 415,000 475,000 14.5 592
Keperra 345,000 375,000 8.7 2505
Kholo 167,500 175,000 4.5 1
Kooringal 235,000 235,000 0 159
Kuraby 320,000 385,000 20.3 2296
Lota 375,000 405,000 8 1148
Lutwyche 455,000 500,000 9.9 548
Macgregor 425,000 450,000 5.9 1787
Mackenzie 375,000 450,000 20 576
Manly 490,000 510,000 4.1 1335
Manly West 350,000 385,000 10 3768
Mansfield 425,000 485,000 14.1 2870
Mcdowall 360,000 395,000 9.7 2335
Middle Park 330,000 330,000 0 1350
Milton 497,500 525,000 5.5 386
Mitchelton 415,000 435,000 4.8 2756
Moggill 247,500 255,000 3 1377
Moorooka 415,000 435,000 4.8 2987
Moreton Island 340,000 340,000 0 1
Morningside 510,000 550,000 7.8 2287
Mount Crosby 202,500 217,500 7.4 69
Mount Gravatt 370,000 415,000 12.2 971
Mount Gravatt East 415,000 475,000 14.5 3432
Mount Ommaney 540,000 540,000 0 703
Murarrie 420,000 430,000 2.4 1364
Nathan 305,000 350,000 14.8 274
New Farm 890,000 890,000 0 1322
Newmarket 530,000 570,000 7.6 1229
Newstead 840,000 840,000 0 7
Norman Park 540,000 580,000 7.4 1869
Northgate 420,000 445,000 6 1217
Nudgee 365,000 365,000 0 1301
Nudgee Beach 415,000 420,000 1.2 126
Nundah 455,000 480,000 5.5 1642
Oxley 295,000 335,000 13.6 2707
Paddington 590,000 620,000 5.1 2590
Parkinson 350,000 395,000 12.9 3002
Petrie Terrace 485,000 510,000 5.2 405
Pinjarra Hills 212,500 212,500 0 1
Pinkenba 220,000 255,000 15.9 125
Pullenvale 275,000 275,000 0 7
Red Hill 560,000 590,000 5.4 1620
Richlands 240,000 240,000 0 372
Riverhills 275,000 275,000 0 1370
Robertson 530,000 640,000 20.8 1174
Rochedale 400,000 425,000 6.3 611
Rocklea 210,000 210,000 0 618
Runcorn 340,000 375,000 10.3 3514
Salisbury 360,000 415,000 15.3 2255
Sandgate 395,000 435,000 10.1 1479
Seven Hills 510,000 640,000 25.5 760
Seventeen Mile Rocks 310,000 310,000 0 897
Sherwood 570,000 590,000 3.5 1368
Shorncliffe 440,000 485,000 10.2 643
Sinnamon Park 350,000 350,000 0 1938
South Brisbane 560,000 620,000 10.7 305
Spring Hill 610,000 640,000 4.9 490
St Lucia 670,000 700,000 4.5 1503
Stafford 405,000 460,000 13.6 2114
Stafford Heights 390,000 450,000 15.4 2721
Stretton 470,000 495,000 5.3 1286
Sumner 230,000 230,000 0 191
Sunnybank 445,000 530,000 19.1 2890
Sunnybank Hills 400,000 480,000 20 5133
Taigum 290,000 290,000 0 1307
Taringa 600,000 650,000 8.3 1233
Tarragindi 470,000 520,000 10.6 3827
Teneriffe 910,000 910,000 0 366
Tennyson 455,000 455,000 0 268
The Gap 395,000 415,000 5.1 5602
Tingalpa 335,000 380,000 13.4 2555
Toowong 475,000 520,000 9.5 1802
Upper Brookfield 252,500 252,500 0 14
Upper Kedron 340,000 340,000 0 1390
Upper Mount Gravatt 385,000 455,000 18.2 2700
Virginia 360,000 385,000 6.9 895
Wacol 197,500 197,500 0 231
Wakerley 340,000 440,000 29.4 2376
Wavell Heights 455,000 480,000 5.5 3641
West End 650,000 720,000 10.8 1420
Westlake 390,000 390,000 0 1528
Willawong 650,000 650,000 0 1
Wilston 610,000 670,000 9.8 1099
Windsor 500,000 540,000 8 1691
Wishart 405,000 465,000 14.8 2916
Woolloongabba 465,000 465,000 0 1213
Wooloowin 510,000 560,000 9.8 939
Wynnum 380,000 410,000 7.9 4328
Wynnum West 330,000 340,000 3 3743
Yeerongpilly 440,000 485,000 10.2 391
Yeronga 500,000 550,000 10 1432
Zillmere 270,000 310,000 14.8 2241
All Residential Localities 390,000 430,000 10.3 300,018

New Price Record in Manly!

How much would you pay for water views over the Manly marina and across to the Port of Brisbane and Moreton Island?

Today we saw the price record broken at an auction by Place and agent Marc Sorrentino, of a property on Oceana Terrace. The previous record for a vacant block was held by a property on Royal Esplanade at $1,250,000. Today’s auction delivered an amazing $1,300,000 for the 510 sqm block. A remarkable result and congratulations to the Place Manly team.

Wakerley – Bayside Hotspot

2016 was a very good year for property vendors in Wakerley, particularly in the Mossvale Estate, where from three years ago selling in the $600K’s we are now seeing sales into the $900K’s. That’s almost 50% increase in three years, and while the rest of the suburb has not increased that much, families are recognizing the benefits of a Wakerley lifestyle – the breezes, the convenience to shops, the Bay, the Gateway and top schools such as Gumdale State School and Moreton Bay College. I’ve prepared a report on Wakerley prices which can be downloaded here.

Suburb Report Wakerley

Sold!

 12 Macquarie St, Wakerley

 2/38 Cardigan Parade, Manly

 13 Mountjoy Terrace, Wynnum

Beating the Building Inspector

In my experience, few contracts fall over on finance conditions, but there are frequently issues that need to be negotiated between buyer and seller that relate to matters raised in the building inspection. Many buyers forget that they are buying a second-hand home that has been lived in and will have maintenance issues, even if small, from the time of moving in. As a result, inspection reports are often received with unrealistic expectations about what should be fixed and what should be accepted. So, what are these issues, and how are they best addressed by property vendors before they jeopardise a sale contract?

The Inspector’s Role

Many of the problems with inspectors stem from a misunderstanding of the role of the inspector and the scope of his/her report. The building inspector is not an expert in specifics about structures, electrical, plumbing or pest control and is not able to offer expert opinion. He/she is only able to provide general comments upon the condition of the building, within a limited time of inspection (about 1 hour) and recommend where issues are raised that an expert opinion be sought.

The Inspector’s Report

It is important to understand that the majority of the building inspector’s report uses wording approved by their solicitors or insurance company, because in the past buyers have sued building inspectors for damages when their report has failed to identify a problem or has failed to be explicit enough about its impact. As a result, building reports will often:

  • Exclude anything in areas that the inspector cannot access (ie roof spaces, under carpet, behind furniture). Inspectors don’t comment on what they cannot see.
  • Exclude testing of appliances, air conditioner, water tank, hot water system, pumps, swimming pool.
  • Recommend specialist inspections by experts in areas that have been inspected – for example, if cracks are found the report will often include a recommendation that a structural engineer be engaged to check the cracking. Other specialist inspections might include – roof plumber to check roof, air conditioning technician to check that, electrician to check on electrical appliances and safety
  • Include disclaimers on report results, rendering them generalised interpretations rather than an expert finding.

What are matters that are often noted in building inspections?

  • Water and moisture – if there are areas outside that rainwater accumulates or are subject to moisture from leaks, inspectors will note these as they are potentially attractants to termites. Home owners should ensure there are no areas around the house that have excessive moisture or water retention before selling.
  • Cornice Cracks – quite often there will be small cracks in the corners of cornice work. They are not usually structural problems, but all houses move and this is where cracks will often first appear. Solution: Pollyfilla and paint.
  • Other Cracks – repair any cracks anywhere on the interior and exterior. If you can’t do a decent job, pay a handyman or painter. It will be worth it.
  • Cracked tiles – replace any cracked tiles if possible as these are bound to be commented on by the inspector. Cracked tiles can be only cosmetic but they are a significant negative for buyers.
  • Drummy tiles – inspectors love to run their tap tool over tiles and find some that sound a little “drummy”. This doesn’t necessary mean there is a problem, but it could suggest future cracking or moisture ingress.
  • Sliding doors – often sliding doors are sticky or do not work properly. Before putting the house on the market have all sliding doors fixed so they are sliding well. Fix any windows that are not opening properly.
  • Insect screens broken – pets will often cause tears in insect screens and doors. It is a minor issue, but is something buyers will notice. These should be fixed before sale.
  • Downpipes and drains – leaking or cracked plastic downpipes and external drains. These are not difficult to replace or fix, and if you can’t do it, a handyman can.
  • Roof – cracked tiles, missing roof capping cement, gutters that have signs of possible leaks. It is almost impossible for inspectors to be certain about leaking roofs, unless there are very obvious signs such as water damaged ceilings.
  • Vegetation too close to the house – a common risk that can hide termites gaining access to the house. Ensure that you have at least 15cm clearance from the house to enable inspection of walls for signs of termite entry, regardless of any termite system you have installed.
  • Signs of rust – inspectors will usually note even minor rust, for example on light fittings, metal hinges and fixtures.
  • Loose wiring – any loose wiring should be fixed and enclosed by a licensed electrician as it looks terrible and can be a significant safety issue.
  • Moisture in bathrooms – moisture behind walls and under tiles in bathrooms can be signs of significant problems and cause of contracts crashing under negotiation. Any evidence of moisture problems in bathrooms should be fixed before the sale
  • Air conditioner water outlet not connected to drain – sometimes installers of air conditioners don’t bother to duct the water safety outlet to a drain. This is a simple fix that should be done before the property goes to market.
  • Loose toilet seats – if toilet seats are so old that they are loose, then I would suggest they should be replaced before sale.
  • Loose fences – if fences are loose when pulled by hand this is a sign of potentially wood rot to the fence posts.
  • Uneven ceilings – using a torch, the inspector will check the ceilings in each room and if they are uneven, a comment will be made.
  • Evidence of termites or of wood rot – it should be self-evident that evidence of termites will be a significant deterrent to buyers. Any evidence of termites should be repaired before sale. Any wood rot should be removed and replaced. I recommend that all vendors have a pest inspection (and pest treatment) before selling, just in case. Ensure the house has been sprayed for cockroaches and spiders. It can be the best preventive action you can take.

Ideally, I would recommend that vendors have a building inspection done before listing the property on the market. You can be sure that some issues will be found that could impact on a sale contract, and it is better to address these before the property goes to market rather than when a buyer gives an unsatisfactory verdict through their solicitor.

Housing Affordability – the Real Facts

Isn’t it typical of the ABC to be Sydney/Melbourne biased when it comes to reporting on the issue of housing affordability? One wonders if the journalists there bothered researching other markets, or did they simply ignore contradictory evidence that spoils a good beat up. As the following extract from an REIQ media release shows, the issue of housing affordability is simply not an issue in markets outside of Sydney/Melbourne. Buying a home in Brisbane is now as good a time as it has ever been, with interest rates very low and housing prices not increasing anywhere near what they have in Sydney and Melbourne.

(A recent article in the Australian points out that almost half the ABC content creators are based in Sydney: http://www.theaustralian.com.au/business/media/abc-reform/sydneycentric-abc-ignores-regional-areas/news-story/0a07073c8766ca4ef299f13c41fe0a6c )

What’s missing from negative gearing debate?
(extract of article courtesy REIQ)

Negative gearing is the hot topic and everyone has an opinion, but is everyone getting all the facts?

4 Corners report

On Monday night (2.5.16), ABC’s 4 Corners did a piece on negative gearing that aimed to establish the case that negative gearing was pushing up house prices, making home ownership impossible for young, first-home buyers.

Reporter Ben Knight revealed that Melbourne’s median house price is above $700,000 and Sydney’s median house price is “a tick under $1 million”. Ben also revealed that it takes 10 times the average wage to buy a median-priced home in Melbourne and more than 12 times the average wage to buy in Sydney.

But the 4 Corners report made no mention of any other part of Australia. Not even a passing mention of any other city – nothing on Brisbane, nothing on Adelaide, nothing on Perth, nothing on Hobart, and nothing on Darwin.

What about us?

And this is the single greatest problem with the negative gearing debate. It is being driven by politicians who live in Sydney and Melbourne and it is being debated by a media based in Sydney and Melbourne.

What Mr Knight didn’t mention was that greater Brisbane’s median house price is $498,000 which is around six times the annual average income. In Adelaide, with its median house price of $494,284, it’s seven times the average annual South Australian income and in Perth, where the median is $540,000, it’s six times the annual average WA income (according to ABS data).

Regional Queensland

These are levels in line with conditions in the market a decade ago. Nothing much has changed. And if you go out of the capital cities and venture into the regions, especially regional Queensland, the contrast is much more stark.

In Mackay, $328,000 will buy you a five bedroom home on 800sq m with a pool, just 3km from the town centre. More than 5000 investors in Mackay use negative gearing, but you could hardly make the case that first-home buyers are being pushed out of the market in Mackay. Labor’s proposed negative gearing changes will be detrimental throughout regional Queensland.

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