Buyers could have purchased a house in some of Queensland’s most prestigious suburbs just a decade ago for the same price as an unliveable hoarder house in Brisbane now.
The latest PropTrack Home Price Index revealed that the median house price in Greater Brisbane hit a new record high of $1.203m last month, an increase of 14.7 per cent in just the past year.
A hoarder house at 77 Nioka St in Brookfield recently sold for $1.281 million after attracting 40 registered bidders
A decade ago, that price would have seen a buyer able to purchase a home in well-heeled suburbs such as Bulimba, Mermaid Beach, Hamilton, Clayfield, Brookfield and Alexandra Headland.
The median house price in Greater Brisbane in 2016 was $490,000.
A decade ago you could have picked up this house in sought-after Bulimba for $642,000
Now, a buyer would be considered lucky to get a hovel for around the current median house price in Brisbane.
PropTrack senior economist Anne Flaherty said this was the new norm.
“Ten years ago, a home over $1 million was a lot of money but now, it is the average,” she said.
“What you can get now versus what you could get a decade ago is wildly different.”
PropTrack senior economist Anne Flaherty
And Ms Flaherty said that the housing affordability crisis would only get worse due to the “massive undersupply” of homes across Queensland.
“What we are seeing is a reset of what an insane price looks like,” she said.
“Those who bought before Covid, when the interest rate was extremely low, will be sitting on significant equity and likely lower mortgages, and the fact is we saw values increase significantly in 2021/22 in particular, and since then.
“What you can get now versus what you could get in 2016 is markedly different.”
A hoarder house at 77 Nioka St in Brookfield recently sold sight unseen due to the “overgrown and unsafe nature of the property” at auction for $1.281 million – $78,000 more than the city’s current median house price.
Not even the pool at this Brookfield property is salvageable
It was sold by the Queensland Public Trustee (QPT) and included hundreds of kilograms of junk piled high in the rooms and strewn across the 1ha block.
The auction attracted a jawdropping 40 registered bidders.
In contrast, a modern four bedroom home at 2 Lomandra Court in Brookwater sold for $645,000 in 2016. It had a private putting green, pool, deck and cubby house.
The median house price in Brookfield is now $2.07 million.
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2 Lomandra Court, Brookwater, sold for $645,000 in 2016
But the Nioka St auction is not the only jawdropping sale to make a 2016 buyer blush.
A decade ago, $750,000 could get you an entire town – Allies Creek in Monogorilby in the North Burnett region – with 16 houses, a school, church hall, water treatment plant, power station and an old mill.
It was bought by retirees for $550,000 in 2018.
Aerial view over the houses of Allies Creek,. Photo Lachie Millard
For $331,000 more today, it can get you a boarded up, derelict house in Woodridge, complete with a swamp for a pool.
The three bedroom house on a 696sq m block at 9 Jean St sold for $881,000, sight unseen.
9 Jean Street, Woodridge, recently sold for $881,000
Similarly, a derelict house at 704 Samford Road, Mitchelton, sold for $888,000 on January 23.
704 Samford Road, Mitchelton, recently sold for $888,000
And on February 13, an unliveable house at 8 Swansea St in Annerley sold sight unseen for $1.125 million at auction.
8 Swansea Street, Annerley, recently sold for $1.125 million
Ten years ago, the median house price in Annerley was $655,000.
On the Gold Coast, arguably Queensland’s smallest ever vacant block at 89 sq m sold for $550,000 at Southport – or almost $6200 per square meter.
Catherine Leon recently bought an 89sq m block of land at Southport for $550,000 – finally getting into the market. Picture: Nigel Hallett
To put that in perspective, a 506sq m block at 48 Little Norman Street in Southport sold for $540,000 in 2016, or $1067 per square meter.
A 506sq m block at 48 Little Norman Street in Southport sold for $540,000 in 2016
On the Sunshine Coast, a house at 7 Elrond Court at Coolum Beach sold under the hammer for $1.058 million on December 8 despite no internal inspections being allowed for safety reasons.
7 Elrond Court, Coolum Beach, recently sold for $1.058m
A decade ago, that would have got you a five bedroom house with beach views at 1590 David Low Way for $1.05 million.
1590 David Low Way Coolum sold for $1.05m in 2016
Up north, an “unliveable” one bedroom house in the Townsville suburb of Aitkenvale is under offer after being listed for $430,000.
16 Patrick Street, Aitkenvale, is under offer after being listed for $430,000
A decade ago, and for $30,000 less, you could pick up a character home on a 645sq m block in the sought-after suburb of North Ward, which is now Townsville’s second most expensive suburb after Castle Hill with amedian price of $1.27 million.
41 Warburton Street, North Ward, sold for $400,000 in 2016
Ian Clarke of Ian Clarke Real Estate, who often auctions deceased estates across Townsville, has made a fine art out of selling the seemingly unsellable.
He has sold hoarders houses and unliveable hovels under the hammer, often drawing in registered bidders in the double digits.
One sight-unseen auction drew a staggering 41 registered bidders.
“Families (of deceased estates) seem to be holding onto them longer and putting in some work because they can see the rising house values,” he said.
“Builders and flippers are still active, but we are also seeing a percentage of first home buyers.
“There is no shortage of buyers for these houses and that’s probably because there is not a lot of supply and everyone knows someone who has made money from real estate.
“In the current market, even some minor upgrades to a tired house will make money.”
And due to the current FOMO playing out across Queensland’s property market, the hovel hysteria is likely to continue, with the QPT set to take a delapidated workers cottage at Woolloongabba to auction on March 28.
It is described as “in a generally poor state” but at least buyers can actually look through this one.
23 Peterson Street, Woolloongabba, will go to auction on March 28
Hot Property Buyers Agency co-founder Zoran Solano said that outside of the Covid boom, this year was shaping up to be their busiest yet.
“We are seeing a lot more buyers seeking out a buyers agent due to fatigue,” Mr Solano said,
“They are getting three to six months into their search and realising that their budget to buy is no longer applicable.
“And in the current market, time is money.”
Hot Property Buyers Agency co-founder Zoran Solano.
Mr Solano said the average time from engagement to contract with the help of a buyers agent was four to six weeks, whereas for buyers trying to crack the market alone it was often taking three to six months.
He said that he was encouraging buyers to “consider the diamond in the rough”.
“Cute, as in move-in ready, even if its needs a renovation, is selling for a premium,” he said.
And Ms Flaherty said that home prices in southeast Queensland, and Queensland in general, were likely to continue on an upward trajectory.
“The fact is we are still seeing strong migration, both interstate and from overseas, into Queensland,” she said.
“The Olympics (in 2032) will also have an impact what with the infrastructure projects and visibility as a global city being elevated.
“And as more people are priced out, that will have a flow on effect to the regions like Cairns and Townsville, where they have their own strong economies.
“Townsville, for example, has been one of the nation’s strongest home price growth areas, and, as it is still more affordable than the southeast, and continues to attract owner occupiers and investors, including rentvestors priced out from their own regions, that will continue.
“For those wanting to get onto the property ladder, making significant compromises may be the only option.”
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