Classic Queenslander sells for $1.96m as Brisbane clearance rate slides to 18 per cent

Enoggera home beats reserve before a cheering crowd, but agents report thinner buyer pools and stalled prices across south-east Queensland

By LineZotpaper
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A classic Queenslander in Brisbane's north-west sold for $1.96 million on Saturday, comfortably above reserve, in an auction that drew a roaring crowd despite a week in which south-east Queensland's preliminary clearance rate sank to 18 per cent.

The three-bedroom home at 13 Orchid Street, Enoggera, sits on an 810-square-metre block in a tightly held pocket close to schools and parks. Four bidders registered for the auction, which opened at $1.85 million, and three competed as the price climbed in $20,000 and then $10,000 increments before a buyer from regional Queensland prevailed.

The home had been held by one family for decades. Selling agent Andrew Degn of Place West said the parents had passed away and left the property to their children, and there were tears as well as cheers when the hammer fell.

"We tried to push him to pay $2 million, but he said he didn't want to bid against himself," Degn said. "Then when the hammer fell the crowd roared and clapped. The whole street was there. Still, we were very happy with the result. It sold very comfortably over the reserve, it really was a once-in-a-lifetime buy."

The result stood out against a difficult week. Of 161 scheduled auctions across south-east Queensland, Domain recorded a preliminary clearance rate of 18 per cent from 100 reported results by Saturday evening, with 17 homes withdrawn.

At 8 Westgate Avenue, Springwood, a three-bedroom, two-bathroom home with a pool on a 708-square-metre block sold for $1.09 million, just shy of its $1.1 million reserve. A phone bidder opened at $850,000, and after a flurry of $50,000 and then $25,000 rises, bidding slowed to $10,000 increments.

Agent Johnson Teo of Ray White Springwood said he consulted the auctioneer and sellers before accepting the near-reserve price. "In this market, this result was gold," he said. The buyers, a family with young teenagers, were drawn by the pool, while the vendors planned to upsize in another suburb.

Teo said median prices in Springwood had fallen by about 15 per cent, mirroring the broader market. "Some economists are saying it's the worst drop in 40 years, but we're not at the point of distressed listings yet," he said.

At Camp Hill, a four-bedroom home on a 1014-square-metre battle-axe block at 98 Perth Street sold for $1.625 million after a brief two-way contest. Shane Hicks of Place Camp Hill said about 30 groups had inspected the property over four weekends, mostly families.

"A year ago there would have been investors and builders, too, and we would have had eight to 10 bidders," he said. "Around 41 per cent of the mortgages out there are investors and to turn off that tap is a big sledgehammer."

Hicks said prices were unlikely to rise until "we have a change of government". AMP chief economist Shane Oliver said Brisbane sat at the bottom of the capital-city pack for clearance rates. "The only thing preventing even lower (clearance rates) is listings remain lower than they were a year ago," he said. "But if the economy continues to slow we'll see a rise in unemployment."

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Analysis

Why This Matters

  • The 18 per cent preliminary clearance rate puts Brisbane at the bottom of the capital-city pack, in the words of AMP's chief economist, and shows how far the downturn has cut demand.
  • Well-located classic homes can still command strong prices, but with 17 of the week's scheduled auctions withdrawn, sellers are being tested on whether they will meet the market.
  • The buyers now are mostly owner-occupiers rather than investors. With around 41 per cent of mortgages held by investors, according to one agent, the absence of that buyer class shapes where the market goes next.

Background

Brisbane's housing market has cooled over the past year under higher interest rates and cost-of-living pressure. Agents in Saturday's report described a market in stalemate: median prices in suburbs such as Springwood are down about 15 per cent, some economists describe the fall as the sharpest in 40 years, and the investor and builder buyers of a year ago have largely stepped aside. Auction clearance rates are watched closely as a gauge of housing confidence, and the latest week's figures are among the weakest of any capital.

Key Perspectives

Selling agents: Quality homes in tightly held pockets still draw competitive bidding. Andrew Degn of Place West called the Enoggera result a "once-in-a-lifetime buy" that sold comfortably over reserve, while Johnson Teo of Ray White Springwood described his sale as "gold" in this market and pointed to an upsizing trend among families who could not afford to move six months ago. Shane Hicks of Place Camp Hill cautioned that conditions remain fragile and, in his view, prices will not rise before a change of government.

Buyers: The active bidders are families and owner-occupiers: a buyer from regional Queensland at Enoggera, a family with young teenagers at Springwood, and family buyers at Camp Hill. The pool is thinner than a year ago, with Hicks reporting about 30 inspection groups over four weekends where investors and builders would previously have competed too.

Economists and market observers: Shane Oliver of AMP said Brisbane sat at the bottom of the capital-city pack for clearance rates, with lower listings the only thing preventing even weaker figures. He warned that a slowing economy and rising unemployment would deepen the downturn. Teo noted that some economists call the decline the worst in 40 years, though distressed listings have not yet emerged.

What to Watch

  • The final clearance rate for the week once all 161 scheduled auctions are reported; 17 homes were already withdrawn.
  • Listings: Oliver says they are lower than a year ago and are the only support for clearance rates. A rise in listings would likely push the rate lower.
  • Unemployment: Oliver's warning is that a continued economic slowdown brings higher unemployment and further price falls.
  • Politics: Hicks argues prices are unlikely to recover before a change of government, tying the market's outlook to the federal political cycle.

Sources

Checked

11 claims in this story checked against 1 source: 9 supported.

Show each claim
  1. SupportedHeadline: the Queenslander sold for $1.96 million.WA Today - Latest News: “sailing past its reserve to sell for $1.96 million on Saturday”
  2. Partly supportedHeadline and opening: a 'clearance rate' of 18 per cent is given as Brisbane's rate.WA Today - Latest News: “By Saturday evening, Domain recorded a preliminary clearance rate of 18 per cent from 100 reported results, with 17 homes withdrawn.”
  3. Partly supportedHeadline: the clearance rate 'slides' to 18 per cent.WA Today - Latest News: “a preliminary clearance rate of 18 per cent from 100 reported results”
  4. SupportedThe home sold comfortably above its reserve.WA Today - Latest News: “It sold very comfortably over the reserve”
  5. SupportedAgent Andrew Degn: 'We tried to push him to pay $2 million, but he said he didn't want to bid against himself.'WA Today - Latest News: ““We tried to push him to pay $2 million … but he said he didn't want to bid against himself,””
  6. SupportedAuction opened at $1.85 million with four registered bidders, three of whom bid.WA Today - Latest News: “four registered bidders turned up for a shot at the keys and three bid after the auction opened at $1.85 million”
  7. SupportedSpringwood home sold for $1.09 million, just shy of its $1.1 million reserve.WA Today - Latest News: “sold for $1.09 million, just shy of its $1.1 million reserve”
  8. SupportedAgent Johnson Teo said median prices in Springwood fell about 15 per cent, mirroring the broader market.WA Today - Latest News: “median property prices in Springwood had mimicked the broader market, dropping by about 15 per cent”
  9. SupportedShane Hicks said about 30 groups inspected the Camp Hill property over four weekends.WA Today - Latest News: “We had about 30 groups come through the four weekends of inspections”
  10. SupportedAMP chief economist Shane Oliver: 'The only thing preventing even lower (clearance rates) is listings remain lower than they were a year ago.'WA Today - Latest News: “The only thing preventing even lower (clearance rates) is listings remain lower than they were a year ago.”
  11. SupportedHicks said prices were unlikely to rise until 'we have a change of government'.WA Today - Latest News: “prices unlikely to rise until “we have a change of government””

Zotpaper

Written by Harper Lane on the Australia & local desk. Claims checked by Ines Fairley, verification. Read for legal risk by Marcus Hale, legal. Edited by Angus Burke, chief sub.

1 source9 of 11 claims matched to a sourcefirst published 19 Oct, 12:51 pm
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