South­side dis­counts dis­ap­pear

Bris­bane’s river­side prop­er­ties are in de­mand again af­ter years of lan­guish­ing on the mar­ket, writes Kieran Rooney

The Courier-Mail - Property - - REALESTATE -

FLOOD-HIT sub­urbs in Bris­bane’s in­ner south are be­ing re­vi­talised, with data show­ing home­own­ers in the area are now more likely to sell for their orig­i­nal ask­ing price.

Red­land Bay has led a statewide drop in ven­dor dis­count­ing, with river­side ar­eas hit by the Jan­uary 2011 floods also fig­ur­ing heav­ily. Ac­cord­ing to RP Data’s Sub­urb Score­card for the 12 months to Novem­ber 2013, Yeerong­pilly, Fair­field and Yeronga had some of Queens­land’s low­est dis­count rates for units.

Fair­field has un­der­gone the big­gest change, with dis­count­ing for houses drop­ping from -15.7 per cent this time last year to -3.1 per cent, the low­est fig­ure for houses in the state. Units in the sub­urb have the sec­ond low­est dis­count rate for units at -2.6 per cent. Place An­ner­ley lead agent Kristy No­ble said buy­ers had stopped avoid­ing flood-hit sub­urbs.

“Fair­field was hit quite hard by the floods but now buyer de­mand has in­creased dra­mat­i­cally,” she said.

“With more and more people look­ing for prop­er­ties people are com­ing back to the ar­eas they avoided af­ter 2011.

“Prices are go­ing up for flooded and non-flooded homes be­cause they see the value of the area be­ing close to the city, ameni­ties and trans­port.”

Ms No­ble said many ar­eas along the river were re­cov­er­ing quickly.

“People are see­ing the growth, in­clud­ing new unit com­plexes and other in­fra­struc­ture, and want to get in be­fore prices go up even more.

“A lot more in­vestors are look­ing which is why in that data you can see units are do­ing so well.

“People don’t tend to move be­cause it’s a good area and you have lo­cals who have been here for both the 1974 and 2011 floods and con­tinue to live in these sub­urbs.”

Aver­age ven­dor dis­count­ing has dropped for both houses and units across the state. Since this time last year dis­count­ing for houses has dropped from 9.9 per cent to 6.4 per cent, while units has moved 9.5 per cent to 5.8 per cent.

Res­o­lu­tion Re­search man­ag­ing di­rec­tor Diana Howes said there were two main fac­tors be­hind the data.

“We’ve seen a very strong in­crease in de­mand and we’ve also seen a pull­back in prices back to af­ford­able lev­els,” she said.

“Ba­si­cally sell­ers are re­al­is­ti­cally pric­ing their homes. Con­fi­dence is also com­ing back to the mar­ket, with very strong in­creases in con­struc­tion fi­nances and lend­ing fi­nances.”

Ms Howes said dis­count­ing was low in sub­urbs such as Mitchel­ton and Fair­field be­cause of in­ner-city de­mand.

“It makes sense that wher­ever there is strong in­ter­est sell­ers will get the prices they want,” she said.

“Units in sought-af­ter ar­eas will al­ways do well and you may even find that the data has been in­flu­enced by pres­tige sales as the high-end starts to move more.”

Ms Howes said she ex­pected dis­count­ing across the state would only im­prove as time went on.

“Sit­ting around 3 per cent is an ap­pro­pri­ate bench­mark so we may get to that point even­tu­ally,” she said.

“I don’t think we’re go­ing to see the fig­ure in­creas­ing on aver­age over the next two years.”

An apart­ment at 18/21 Fen­ton St, Fair­field, is cur­rently listed for sale at $340,000.

This house at 64 Mearns St, Fair­field, will go to auc­tion on site at 12.30pm March 15.

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