The federal government introduced the New Regional Home guarantee bringing a much needed relief to those wanting to buy regionally in Brisbane market. Under this guarantee, 10,000 home buyers put down a 5% deposit on a new build in regional areas. This is due to the right in construction work with the availability of materials and labour being scarce. With new build home owners getting easier deposits, the market for original standing homes has seen a rise in prices with housing being scarce.
Not only have original housing prices have risen by 30% but interest rates are up. Bidder numbers have also taken a turn with auctions seeing a drop of 50% in attendees. One auction that brought this to attention is 18 View St, Kedron, which sold for a massive $1.2 million putting the value of the original 3 bedroom 1950s home up by 10.9% within the last three months and 22.9% in the last 12 months. Its new owner, Mr Andersen made comments saying ‘“I would have liked to have got it cheaper to be honest,”.
Similar to this, 40 Kenmore Rd, Kenmore sold at auction for $1.295 million with 12 registered bidders. Just next door, 42 Kenmore Rd sold for $10,000 more with only 4 bidders. The market is seeing less of a quantity of bidders, however the quality is there with buyers bidding higher to score the best properties.
Those bidders choosing to forgo both original and new build housing have instead turned towards townhouses, units and apartments. This can also be seen with new developments being snached up by this wave of potential buyers flocking to the scene. Along with this new surge in townhouse activity comes along a larger price tag. Townhouses such as 2/56 Real St, Annerley are selling big with this particular listing selling for $740,000 on Saturday.
As interest grows in this market it is important to keep an eye on the new schemes, guarantees and policies that are being forged to help homebuyers in their quest.