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