2013 paddington 2014 property report brendan mayles
A word from Brendan Mayles
What a difference a year makes. Our last McGrath report indicated the Brisbane market was on the cusp of recovery with 2014 likely to be the first year of the next growth cycle. In Paddington, the market is stable with steadily increasing demand coming from all corners – local upgraders, investors, sea changers from Sydney and Melbourne and an increased demand from returning expats in United Kingdom, Singapore and Hong Kong. The diversity of demand is resulting in improved sale prices, which in turn is raising confidence. On some campaigns there have been 30-40 groups through a single open which is very high for Brisbane. The premium end of the market in Paddington has seen impressive results and bounce back, with 27 properties selling above $1,250,000 this financial year compared to 19 properties the previous year and 9 properties in FY 11/12. This year also saw the first home since 2009 selling above $3,500,000. I firmly believe that who you work with in today’s market is critical to the outcome of your real estate sale or purchase. Engaging an agent who can leverage the full spectrum of buyers and up to date market intelligence - drawn upon in the sensitive final discussions that determine the maximum possible sales price - is vital. As much as it could be argued the Paddington area should sell itself, the reality is that our record prices are the result of a powerful combination of many unique factors that we bring to the table. I hope you enjoy this report and it assists you with your future property decisions. Brendan Mayles M 0402 659 010 D 3088 1520 E brendanmayles@mcgrath.com.au
Top 10 Paddington Sales* - Financial Year 2013/2014 Address
Bed
Bath
Car
Sold Date
Land Size
Sale Price
1
14 Reading Street
5
5
6
4 Apr 14
839sqm
$3,700,000
2
39 Garfield Drive
-
--
-
29 Mar 14
604sqm
$2,800,000
3
24 Perrott Street
4
2
3
19 Sep 13
711sqm
$2,730,000
4
30 Collingwood Street
6
3
2
11 Mar 14
845sqm
$2,400,000
5
40 Fernberg Road
5
3
3
1 Mar 14
514sqm
$2,348,000
6
43 Wilden Street
4
2
2
18 Sep 13
405sqm
$2,200,000
7
321 Given Terrace
5
4
2
27 Feb 14
486sqm
$2,000,000
8
99 Howard Street
6
3
1
28 Mar 14
405sqm
$1,800,000
9
8 Bernhard Street
4
4
2
27 Feb 14
405sqm
$1,715,000
10 114 Enoggera Terrace
12
9
-
10 Oct 13
694sqm
$1,645,000
*Settled sales
Paddington Statistics Houses No. Sold
Median
Highest
Lowest
Average Rent
Average Yield
146
$880,000
$3,700,000
$570,000
$600pw
+3.6%
No. Sold
Median
Highest
Lowest
Average Rent
Average Yield
87
$485,106
$885,000
$226,000
$410pw
+4.4%
Apartments
“We contacted Brendan after we noticed he was selling another property in our street. He then proceeded to run us through the sale process and the different options we had to sell our property. He was always polite and understanding and went out of his way to make sure we understood what was going on right through the whole process. Brendan is not only one of the most genuine real estate agents we have dealt with but he is also one of the most genuine people we have ever met. We are so happy with the result that we are already working with Brendan towards the sale of our next property.” The Cunningham’s - 30 Morris Street, Paddington
Paddington Median Price Movement for Houses $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 2005
2006
2007
2008
2009
2010
2011
2012
2013
Where do the buyers come from? Local
5%
Inner City
11%
Brisbane North Brisbane East Brisbane South
4%
Brisbane West Country Qld
10%
48%
Interstate Overseas
5% 4% 9%
4%
Number of Houses Sold in Paddington 300 250 200 150 100 50 0 2005
2006
2007
2008
2009
2010
2011
2012
2013
Median House and Apartment Prices Median Apartment Price
$267K
Hobart
Median House Price
$343K $345K
Adelaide
$420K $385K
Brisbane
$480K $440K
Perth
$532K $420K
Canberra
$561K $445K
Darwin
$570K $480K
Ave Capital Cities
$580K $468K
Melbourne
$620K $586K
Sydney
$800K
$0K
$150K
$300K
$450K
$600K
$750K
$900K
The information in this report is being provided by RP Data, Price Finder and MARS (McGrath’s CRM System), its accuracy cannot be guaranteed. Parties should rely on their own enquires and McGrath will not be liable for error or admissions herein.
A word from John McGrath
It’s certainly been an exciting year for real estate with new momentum occurring in Queensland as buyers priced out of Sydney look to other nearby markets offering better value. However South-East Queensland’s recovery is off to a much slower start than Sydney. RP Data recorded 5.3% growth in Brisbane house prices for the 2013 calendar year, with apartments up 3.5%. In 2014 year-to-date, house prices are up 2.3% and apartments are up 1.7%. So we’re seeing the market move in a positive direction but there’s certainly no frenzy as yet. Our agents on the ground in Brisbane report more investor activity from both locals and southerners in 2014. Finally, the value on offer is being recognised, with Brisbane’s median house price year-to-date at $480,000 compared to Sydney’s $800,000. I think Brisbane offers more opportunity for capital gains in the near future, with yields across many Queensland markets pretty close to cash flow neutral and even positive in some cases. As Sydney home prices rise, investors are seeing reduced yields which is making Queensland more attractive.
John McGrath CEO, McGrath Estate Agents
OWEN AND VOKES AND PETERS
ARCHITECTS
www.owenandvokesandpeters.com