Brisbane sales slumping but ‘good vibe’ home nets $1.3 million
A downsizer hoping to score a deal amid a slowing market in Brisbane has splashed out $1.3 million on a modest brick house in Runcorn as buyers return to property basics for fear of overpaying.
At least three of six registered bidders competed for the low-cost four-bedroom house, with officials saying wary buyers were looking for safe suburbs, solid homes and long-term value.
The sale took place during one of Brisbane’s weakest auction weekends in history. Domain results show only 10 homes sold under the hammer.
Located on a 465 square meter block at 32 Premworth Place, Runcorn’s home is a 10-minute walk from two schools and close to shops and transport.
The campaign attracted a mix of mostly first home buyers, downsizers and upsizers, with an opening bid of $900,000. Several increases of $100,000 followed, up to $1.1 million. The pace slowed after that and bids dropped until the auction paused at $1.25 million.
Ray White Rochedale’s Benny Liu was left to negotiate with the highest bidder, who offered $50,000 more.
The buyer, a local downsizer, liked the home’s low-maintenance layout, Liu said.
“He was very happy with the outcome because he could see the buying opportunities in a market like this. He knew there wouldn’t be that much competition,” he said.
“But there were a lot of families interested in it. It’s not a big house, but it’s in a good location, close to schools, shops and transport.
“I think another reason it’s been so successful is that it has a good vibe.”
Liu said the sellers renovated the kitchen and retiled and painted it about five years ago.
“The price we received was as we expected. We think it is reasonable from a market perspective,” he said.
Records show the home last sold in 2020 for $623,000. Runcorn home medians rose 23.9 per cent in the 12 months to March, Domain figures show.
Liu said that the market has slowed down in the past two months and the number of inspections has halved.
“Buyers were confident in the location of this home… And these items are the backbone of the real market,” he said.
“But buyers are generally concerned about overpayment and resale value.”
Runcorn’s house was one of 135 planned auctions in South East Queensland. As of Saturday evening, Domain had recorded a preliminary clearance rate of 13 percent from 78 results reported, with 18 homes withdrawn. Withdrawn auctions are counted as unsold when calculating liquidation rates.
A young family in Murarrie paid $1.6 million for a modest four-bedroom house on a 450 square meter block.
Seven bidders signed up for the low-priced home, and two bidders participated by phone.
Bidding started at $1.2 million and only a few bookmakers bid up to $1.4 million. Other bidders won about $1.4 million, narrowing it down to two: a Singaporean buyer and a young couple bidding through a buyer’s agent.
Selling agent and auctioneer Chris Lawsen of Harcourts Inner East said the house at 41 Moonie Avenue was one of the most popular houses they showed.
“We weren’t sure where it would end up. There seems to be a lot of properties on the market in the $2 million-plus price range, but this one didn’t have a pool or a fifth bedroom.”
Although the home needed an update, it had another valuable point, Lawsen said.
“It is suitable for those who enlarge and those who reduce,” he said.
Lawsen said although Murarrie had been performing consistently, his side’s viewing figures had also fallen.
“I haven’t seen any reason to be overly concerned. If the trend continues it could be concerning,” he said.
A large two-bedroom flat with lush views in Bardon sold for $50,000 above reserve, raising $1.1 million.
One person trying to downsize outbid another bidder who was bidding through a buyer’s agent.
The 90-square-metre unit at 76/390 Simpsons Road belonged to an investor who bought it new in 2017 and sold it to build a new home.
Bids opened at $900,000 and moved in rapid increments of $50,000. It was sold within minutes.
Ray White West End sales agent Matt Sale said 27 groups, mostly downsizers, inspected the home.
The treetop views, space for two cars and high, sloping ceilings outweigh the fact that he’s a tenant, he said.
“The reserve was at fair market value and recent sales there showed similar units selling for anywhere from $900,000 to $1.2 million, so it landed right where it needed to be,” he said.
“But buyers are now being selective and have slightly more choice, and tenanted properties are generally less popular.
“Not everything can be sold in the current market.
“But city view and river view units are being sold…as well as older ones with more space.”
AMP chief economist Dr Shane Oliver said the city had outperformed many capital cities over the past few years but could fall further due to rising rates, tax changes and a decline in consumer confidence.
“The 13 percent clearance rate is dismal. I wouldn’t be surprised if prices start going negative,” he said.
“FOMO seems to have evaporated.”
