’MINI-BOOM’: What has house hunters in a buying frenzy
ROCKHAMPTON’S residential market is experiencing a “mini-boom”, with below one per cent vacancy rates, low interest rates and government incentives forcing Central Queenslanders into a property hunting frenzy.
Herron Todd White’s month in review for July 2020 listed the region as a “rising market” in its National Property Clock for houses.
The report stated residential property in the Rockhampton region, including the Capricorn Coast, was continuing to sell.
“Well-presented properties continued to be snapped up by purchasers and Rockhampton and the Capricorn Coast is continuing to see an upward shift in prices,” the report read.
“With the continued easing of restrictions, it is likely this trend is set to continue should the number of COVID-19 cases remain low in our region.”
Principal of Mr Real Estate Rockhampton Jason Rayner said he sold well over 30 properties this month.
He said some of the properties were fetching more than $700,000.
“Rockhampton is in a mini-boom situation right now,” Mr Rayner said.
“We sold three properties this month for $700,000, with an average price of about $320,000. that’s about $40,000 higher than the Rockhampton average.”
He said the large number of sales was being driven by below one per cent vacancy rates, low interest rates and government incentives.
“We only have seven rentals available out of more than 1000 properties,” he said.
“We are getting 20 applications on our rental properties.
“A lot of the buyers are realising, with rents slowly starting to push up, it is a better option for them to look at buying a property, especially with the low interest rates and government incentives. It is probably the best incentives we have seen in the past 30 years.
“Another thing that is pushing the market is jobs.
“The workforce in Central Queensland is pushing ahead with a number of infrastructure projects happening in the region. We are finding a lot of inquiries from people out of town coming into Rockhampton. Those jobs are bringing people and families to the region, and those people are creating the market.”
He said supply was also down by about 3050 to 4000 properties compared to last year.
“People that usually list during this period haven’t because they are worried about COVID-19,” he said.
“So, supply is down, and demand is up, and we are creating this little bubble that is happening in the region with a mini boom taking place.
“I don’t know the longevity of it, but right now we can’t keep up.
“We are meeting in excess of 100 buyers on Saturday, which is phenomenal. Normally we would meet 40 to 60, and we have had two weekends in a row where we have done over 100 buyer groups – it is quite amazing.”
He said buyers mostly consisted of families looking to upgrade, with low-set three to four-bedroom brick homes in high demand.
He said prices were also looking a lot stronger.
“Right now a lot of buyers are snapping up the old stock that has been on the market for 30 days or more, but I can see the next lot of houses to come on the market will be priced about five per cent higher than what they were three months ago,” he said.
“Demand creates a lift in the market.
“We are seeing stock low and demand high and that is creating a great future for the residents of Central Queensland, probably not so much for the tenants, but certainly the landlords and sellers will enjoy a prosperous market from now until Christmas.”
He said Gracemere had surpassed Frenchville and Norman Gardens as the most desirable suburb in the region.
“Gracemere has amazing affordability and great value,” he said.
“Today, we had multiple offers on 14 Belltrees Pl, Gracemere, with four signed contracts that I presented to the owner that were well above the original price.
“A lot of the people that work in the central areas, like Emerald, Dysart and Blackwater, it is the shortest distance for them to come home and see their families, which is why it is so popular.”
He said he hadn’t seen this confidence in the market since about 2008 and believed it would continue with more jobs going ahead and more people moving to the region.
“As long as the infrastructure projects last, the real estate market in Rockhampton will be good,” he said.
“Going by the figures we are doing now I believe we are going to see a prosperous six months and beyond.”
Principal of Yeppoon Real Estate Esme Coren said the residential market on the Capricorn Coast was also experiencing vacancy rates below one per cent, which were pushing buyers into the sales market.
“Property sales have been climbing steadily each month,” Ms Coren said.
“We are seeing more higher end properties selling and more buyer demand for beachfront properties.
“Family homes in all price ranges are selling and with the government building bonus of $20,000, flat land sold really quickly once the announcement was released.”
She said, while a large majority of buyers continued to be locals to the region, there was an increase in buyers from down south.
“The Capricorn Coast offers so many lifestyle opportunities for all ages which is becoming more important to buyers, that is what attracts them to our area,” she said.
“The relaxed coastal lifestyle here continues to attract clients from all walks of life.”
She said August was shaping up to be an exciting time with increased settlements.
“All projections indicate that the Capricorn Coast market will continue to increase and perform at a steady rate.”