Well, what an exciting start to 2021!
The Bribie Island and surrounds property market has been fascinating to study. Without a doubt, you would have noticed a lot of SOLD and LEASED signs in our area. If we listen to the media coverage and the word on the street, it would have us convinced that Bribie Island Road is now blocked by interstate NSW and VIC buyers escaping the COVID 19, bad weather and their governments. Our office is one of the largest sellers of properties in our area. Our data should be the same to most offices.
So, let’s have a look at the factors in play and the actual numbers:
- Bribie Island is running out of land.
- Bank interest rates are at a record low.
- There are not many homes currently on the market.
- New land prices in 2021 have risen dramatically.
- People have changed to lifestyle over inner city living.
- COVID 19 lockdowns have enabled us to work from home.
- Large numbers of interstate buyers are choosing to make SE Queensland their home.
NOW the real numbers of where people are coming from!
Origin of buyers who have purchased property in our area:
- 44.9% of buyers have come from South East Queensland.
- 27.6% of buyers have come from Local (4507 & 4511).
- 20.7% of buyers have come from another state.
- 3.4% of buyers have come from Greater Queensland.
- 3.5% of buyers have come from Overseas.
Origin of tenants who have taken out leases in our area:
- 50% of tenants are from local (4507 & 4511).
- 40% of tenants are from Interstate.
- 10% of tenants are from South East Queensland.
Now, an interesting fact is if you listen to all the media coverage and people on the streets, you would be convinced that 70% of sales were from interstate buyers. Based on our current data (the media and banks use companies like Core logic for property update which can be over 90 days old at the time of its release) interstate interest is around 20% which is similar the past years.
So, if the interstate buyers are not pushing up our real estate market, what is driving it? In our opinion, it is a combination of all the factors above plus the interstate buyers are moving to Brisbane, Gold Coast and Sunshine Coast. As a result, these have created a strong activity of buyers with cash in hand but with limited properties to purchase.
On the rental side, it is a different story.
Currently, 50% of new leases have been taken by locals with a further 10% from people living in South East Queensland. Looking closely at the 40% of interstate tenants, most of them have moved here to try before they buy. These people come from various demographics and have not done anything creative to get chosen over other applicants for example: paid a year’s rent up front or offered more than the asking rent. They have been simply chosen by the landlord. The past three months, we had tenants offering more money than the asking price or even offer to pay months up front. At the end of the day, the tenant who has excellent references, a great history for paying on time and is likely to create the least damage/wear and tear on a property is the one normally selected by the landlord. There is currently a shortage of rental properties. The fact that last year, a lot of landlords sold their rental properties to take advantage of prices, nervous about tenant laws during COVID 19 or have suffered financial hardships due to COVID 19. We are also experiencing more buyers who are investors coming into the market with the attraction of high rental returns and low vacancy rates on offer.
On a very good ending note.
Our average sale price for 2021 so far is $753,000.00 and our average rent on a new lease is $453.00.
If you are considering of buying, selling, leasing or just in need of some advice, our team of local property professionals are here to help. Call (07) 3408 4071 or drop in our office at 2/2 Eucalypt Street Bellara (our kettle is always ready for a cuppa).
RE/MAX Advanced Bribie Island
*These numbers are based on Remax Advanced’s actual sales and lease data from January 1, 2021 till March 23rd 2021.