If there was any doubt in my mind just how things were going to go this year for Brisbane’s property market, there were clear signs last weekend!
We arrived at our first auction for 2019 to find that there were 45 people registered to bid and what must have been a crowd of around 100 people crammed into the backyard!
Strong Ave, Graceville
As you can see, there is nothing all that special about the house we were planning to buy, in fact it is a knockdown.
However, it was located in one of the best streets in Graceville and is a rare flood free 822 sq m site that can be developed into two new homes, each on smaller low maintenance 411 sq m blocks.
We had a feeling the property was going to be very popular as these rare flood free sites, close to schools, train and shops always are.
But lining up to register to bid with 44 competitors, took it to a whole new level!
The line up to register
Then it was taken to another level again when we entered the backyard, ready for the auction to commence, only to be met head on with a crowd of around 100 spectators.
I was speechless and called an urgent meeting with our team and the client to finalise our auction bidding strategy.
Auctioneer and some of the crowd
Our auction bidding strategy
We knew that there were definitely bargain hunters out in force as it was a public trustee Auction.
The Public Trustee tends to deal with deceased estates and mortgage stress properties that sell for bargains in outer, low demand areas, but the difference this time round was that this property was in a prime location.
My first step was to take out these bargain hunters and with them, take the emotion out of the Auction with a strong opening bid.
You see…prices can get out of hand once people start to bid with their hearts rather than their heads.
With that achieved, it was down to 4 other serious bidders and the strategy remained the same – larger, strong and quick incremental bids, to give the perception we would not give in at any cost.
We hit our final bid of the day at the top range of our budget, which because we’d done our due diligence was enough to secure this amazing asset for our client.
Had emotion crept in or had it appeared to the other bidders that we were close to our maximum budget, we may have missed out by the slightest of margins.
I always stick to our tried and proven Auction strategies.
The Metropole team with our happy client
The Brisbane Market
So clearly there are strong and positive signs for the Brisbane market early on in 2019.
It was not just this site that attracted a lot of interest.
Another home in the exclusive Teneriffe pocket attracted 35 bidders and sold for a strong price and numbers are up generally across the board.
There is high demand for quality, blue chip properties with a twist or something special about them and buyers are willing to pay for the opportunity.
With infrastructure, construction, jobs and our population continuing to grow over the next few years in Brisbane, it may not be the last Auction we go to with record numbers this year.
Brisbane is tipped to grow about 4% – 5% this year, but in these types of locations capital growth will be far greater as demand is considerably higher than the supply of good properties.
You just need a team of professionals to help you find these opportunities and then the right team to put you in pole position to secure them!
Currently there is a healthy level of affordability in Brisbane at a time of increased interstate migration from Sydney and Melbourne and the return of local and interstate investors seeking strong rental yields plus capital growth should help make 2019 a good year for Brisbane property.
Our Metropole Brisbane team has noticed a significant increase in local consumer confidence with many more homebuyers and investors showing interest in property.
At the same time we are getting more enquiries from interstate investors there we have for many, many years.