A Brisbane man outbid three other locals to buy the 1920s Queenslander he spent hours playing in as a child, across the road as he was growing up, for $4.9 million at auction on Saturday. The six-bedroom property at 11 Watson Street, Newmarket, was one of 168 scheduled auctions across South East Queensland over the past week and fetched nearly double its 2009 price after about 30 minutes of negotiations.
The buyer had texted agent Alistair Macmillan on the morning of the auction to say he would not participate, but the agent urged him to attend. “I told him, ‘you’ll kick yourself if you’re not there – so just come and see what happens,’” Macmillan said.
The Queenslander, built in the 1920s, sits on 1,124 square metres on Windsor Hill with sweeping city views, six bedrooms, a wine cellar and a teenagers’ wing. It has had only a handful of owners over the past century, last selling in 2009 for $2.6 million. The current owners were downsizing.
Macmillan said the outcome “could have been stronger if they sold six months earlier”, but described the current market as ruthless. Construction costs were benefiting the high-end sector: “People are getting quotes [to build or renovate] and nearly falling off their chairs.”
In Sunnybank, a 1970s home on 859 square metres sold for $1.6 million, $300,000 above reserve, after being in the same family for almost 50 years. Agent Miranda Cheang said the location and land size drove the result. In Kangaroo Point, a three-bedroom house sold for $1.4 million under the hammer.
AMP chief economist Shane Oliver said Brisbane’s preliminary 23 per cent clearance rate indicated a weak market, compared with 68 per cent this time last year. “Demand continues to be hit by the RBA’s rate hikes. And while I think they have probably finished hiking, there’s a 30 per cent chance of another one.” He said clearance rates could fall further if distressed listings pick up.
Analysis
Why This Matters
- The sale highlights the divide in Brisbane’s property market: strong demand for prestige homes but a slump in overall clearance rates.
- The auction outcome shows how personal attachment and location can command a premium even in a cooling market.
- The clearance rate drop signals potential further price weakness if distressed listings increase.
Background
Brisbane’s auction clearance rate has fallen to 23 per cent from 68 per cent a year ago, according to Domain data cited by AMP chief economist Shane Oliver. The Reserve Bank’s interest rate hikes are curbing demand, while rising construction costs are supporting prices in the high-end segment. The 11 Watson Street home last sold in 2009 for $2.6 million and has had only a few owners over a century.
Key Perspectives
- Agent Alistair Macmillan: Described the market as ruthless but noted that sky-high construction costs are buoying the prestige sector.
- Agent Miranda Cheang and Karen Pierce: Observed that location and land size are still driving prices, but buyer attitudes have become tougher, with some offering unrealistic low bids.
- Chief economist Shane Oliver: Stated that the 23 per cent clearance rate is weak, with demand being hit by RBA rate hikes, and warned of a possible further rate rise and a risk from distressed listings.
What to Watch
- The RBA’s next move on interest rates, which Oliver says has a 30 per cent chance of another hike.
- Whether distressed listings increase in the coming months, which could push clearance rates lower.
- Upcoming auction clearance rates as a gauge of whether the market stabilises or continues to weaken.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedMacmillan told the buyer, “you’ll kick yourself if you’re not there – so just come and see what happens,”The Age - Latest News: ““He actually texted me in the morning and said he’d changed his mind and wouldn’t be participating … I told him, ‘you’ll kick yourself if you’re not there – so just come and see what happens’,” Macmillan said.”
- SupportedMacmillan said, “People are getting quotes [to build or renovate] and nearly falling off their chairs.”The Age - Latest News: ““People are getting quotes [to build or renovate] and nearly falling off their chairs,” he said.”
- SupportedOliver said demand was being hit by RBA rate hikes and there was a 30 per cent chance of another hike.The Age - Latest News: ““Demand continues to be hit by the RBA’s rate hikes. And while I think they have probably finished hiking, there’s a 30 per cent chance of another one.””
- SupportedThe buyer texted Macmillan on the morning of the auction saying he would not participate, and Macmillan urged him to attend.The Age - Latest News: ““He actually texted me in the morning and said he’d changed his mind and wouldn’t be participating … I told him, ‘you’ll kick yourself if you’re not there – so just come and see what happens’,” Macmillan said.”
- SupportedA Brisbane man paid $4.9 million for the Queenslander across the street from where he grew up, after spending hours playing in it as a child.The Age - Latest News: “A Brisbane man has splashed $4.9 million to reclaim a piece of his childhood after outbidding three others for an “iconic” Queenslander that was across the road as he was growing up.”
- SupportedThe buyer outbid three other locals at the auction.The Age - Latest News: “A Brisbane man has splashed $4.9 million to reclaim a piece of his childhood after outbidding three others for an “iconic” Queenslander”
- SupportedThe home sold for nearly double its 2009 price of $2.6 million.The Age - Latest News: “The renovated home has only had a handful of owners over the past century – last selling in 2009 for $2.6 million.”
- SupportedThe sale followed about 30 minutes of negotiations.The Age - Latest News: “About 30 minutes of negotiations later, the buyer walked away with the keys to the home he spent endless hours playing in as a kid.”
- SupportedThe home is a 1920s Queenslander at 11 Watson Street, Newmarket, on 1,124 square metres, with six bedrooms, a wine cellar, a teenagers’ wing and city views.The Age - Latest News: “The 1920s home, at 11 Watson Street, Newmarket , sits high on Windsor Hill with six bedrooms, a wine cellar, a teenagers’ wing and 1124 square metres of land with sweeping city views.”
- SupportedThere were 168 scheduled auctions across South East Queensland over the past week.The Age - Latest News: “The Queenslander was one of 168 scheduled auctions across South East Queensland over the past week.”
- SupportedThe preliminary clearance rate was 23 per cent, and Oliver said Brisbane’s clearance rate indicated a weak market; it was 68 per cent this time last year.The Age - Latest News: “By Saturday evening, Domain recorded a preliminary clearance rate of 23 per cent from 114 reported results, with 20 homes withdrawn.”
- SupportedThe Sunnybank home sold for $1.6 million, $300,000 above reserve, and agent Cheang said location and land size led to the result.The Age - Latest News: “In Sunnybank, a two-storey 1970s relic that had been in the same family for almost five decades fetched $300,000 over reserve after an investor paid $1.6 million.”