Alex Jordan | Indooroopilly Market Report FY 14/15

InDOOROOPILLY MARKET REPORT ALEX JORDAN | FY 14/15

A word from Alex Jordan

What a difference a year makes. At this time last year, our market was experiencing lower buyer confidence – a contrast to this financial year where our team led a strong local recovery.

We have seen prices strengthen while supply has contracted, resulting in a distinct seller’s market. Despite recent price increases, Brisbane’s inner western suburbs still offer value buying with great lifestyle options suitable for a wide range of demographics.

We are seeing increased demand from interstate buyers, particularly Sydney investors who have benefited from the growth in their market and built considerable equity. The Indooroopilly market is largely driven by families looking to buy property close to reputable schools. We are fortunate to have Brisbane’s best schools such as Ironside State School, Indooroopilly State School and the renowned St Peter’s Lutheran college all located within close proximity.

There is a reason why I chose to specialise in selling properties in Indooroopilly – because I believe in it whole heartedly and cannot think of a better suburb to raise a family.

The short term outlook for growth remains positive and we expect to see higher prices in the months ahead.

D 07 3088 1538 M 0410 424 749 E alexjordan@mcgrath.com.au

Top 20 Sales in Indooroopilly 2014/2015 No.

Address

Bed

Bath

Car

Sold Date

Land Size

Sale Price

1

41 Glencairn Avenue

5

3

2

25 Aug 14

918sqm

$3,050,000

2

66 Lambert Road

10

7

6

19 Dec 14

1,601sqm

$2,700,000

3

19 Neulans Road

4

2

1

02 Feb 15

2,023sqm

$2,459,000

4

20 Gilgandra Street

5

4

4

20 Dec 14

1,560sqm

$1,800,000

5

26 Blackstone Street

6

3

3

27 Mar 15

1,439sqm

$1,800,000

6

30 Gladstone Street

5

3

3

29 Nov 14

810sqm

$1,750,000

7

62 York Street

-

-

-

20 Jan 15

810sqm

$1,700,000

8

93 Harts Road

4

4

2

21 Apr 15

488sqm

$1,700,000

9

7 Jilba Street

5

4

2

23 Aug 14

1,993sqm

$1,680,000

10 48 Ivy Street

5

3

4

06 May 15

1,654sqm

$1,672,500

11 5 St Andrews Place

4

4

2

24 Sep 14

1,009sqm

$1,600,000

12 83 Lambert Road

4

2

2

28 Sep 14

759sqm

$1,495,000

13 46 Volga Crescent

5

3

2

02 Sep 14

1,009sqm

$1,437,750

14 27 Gordon Terrace

5

5

5

16 Aug 14

625sqm

$1,430,000

15 29 Castile Street

3

3

2

10 Nov 14

711sqm

$1,400,000

16 10 Marston Avenue

4

2

2

04 July 14

845sqm

$1,370,000

17 40 Gilgandra Street

4

2

-

04 Jul 14

754sqm

$1,365,000

18 42 Neulans Road

4

2

2

26 Aug 14

645sqm

$1,350,000

19 2 Bougainvillea Avenue

4

2

2

05 May 15

994sqm

$1,350,000

20 8 Charlane Avenue

4

2

2

10 Aug 14

706sqm

$1,295,000

This information in this report is being provided by CoreLogic RP Data and MARS (McGrath’s CRM System), its accuracy cannot be guaranteed. Parties should rely on their own enquires and McGrath will not be liable for error or admissions herein.

"I have been a commercial/property lawyer for just over 25 years. I have practiced in four jurisdictions. In my time I have dealt with hundreds of real estate agents. Alex Jordan is the best I have come across – by a country mile. He is the consummate professional, honest, pro-active, and can be totally relied on to act in your best interests. Alex not only helped us sell our house in record time, but was invaluable in helping us purchase two other properties. I will not use another agent again."

John Palermo - 330 Indooroopilly Road, Indooroopilly

Indooroopilly Summary FY14/15 Houses Number sold

Median

Highest

Lowest

166

$794,000

$3,050,000

$402,000

Number sold

Median

Highest

Lowest

136

$461,000

$1,015,000

$218,500

Apartments

Indooroopilly House and Unit Sales Summary Houses 2011/2012

2012/2013

2013/2014

2014/2015

$700,000

$690,000

$700,000

$794,000

$2,400,000

$4,500,000

$3,400,000

$3,050,000

Number Sold

104

119

164

166

Volume Sold

$86,925,937

$110,138,680

$157,430,188

$177,312,832

2011/2012

2012/2013

2013/2014

2014/2015

Median Price

$477,045

$425,500

$475,000

$461,000

Top Sale

$755,000

$759,000

$875,000

$1,015,000

Number Sold

100

102

153

136

Volume Sold

$84,172,389

$71,009,950

$79,694,185

$65,898,804

Median Price Top Sale

Apartments

18 days My average days to sell a home. The industry average is 54 days in Indooroopilly.

$3.05M 7th highest sale in Indooroopilly History.

Indooroopilly House & Apartment Trends (Volume) Year

House

Apartments

2014/2015

166

131

2013/2014

164

153

2012/2013

119

102

2011/2012

104

100

2010/2011

76

100

2009/2010

107

109

2008/2009

87

136

2007/2008

98

135

2006/2007

117

132

2005/2006

74

102

2004/2005

84

95

200

Houses Apartments

150

100

50

0 04/05

05/06

06/07

07/08

08/09

09/10

10/11

11/12

12/13

13/14

14/15

"Thank you for your professional approach resulting in the successful sale of my waterfront property at Indooroopilly. I was most impressed with your integrity, skills, attention to detail and determination resulting in the excellent result. I look forward to a continuing business relationship with you and McGrath. I have no hesitation to recommend you to any of my friends wishing to sell a prestige property."

Nicholas S Girdis CBE - 41 Glencairn Avenue, Indooroopilly

"We can't thank you enough for the way you handled the sale of our house. To sell in less than a week and for a premium price was beyond our expectations and our dreams.

At all times you were solicitous, concerned for our well being and empathetic. We were amazed by your knowledge and instincts. You made us feel we were your only clients that week, yet you sold four other houses at the same time! You advised us regularly of progress on the sale and we were blown away by your nerves of steel, and by the way you were so intent and concentrated on securing the best possible result for us. Everything you advised turned out to be right. You know the market extremely well, and thoroughly understand all elements of your profession. On a personal level, we have so appreciated your reassurances, advice on presentation of the house, kindness, honesty and integrity, and your enthusiasm."

Ann and Richard Merson - 1 Wynyard Street, Indooroopilly

The relationship between interest rates and property prices Historically interest rates and property prices trend in unison and there is a distinct correlation between them. What is interesting about today’s market is that whilst interest rates are trending lower, property prices have been trending higher. The below chart shows the relationship between Brisbane property prices and the RBA cash rate, year on year from March. $600,000 8%

Brisbane property prices RBA cash rate

$525,000 7%

$450,000 6%

$375,000 5%

$300,000 4%

$225,000 3%

$150,000 2%

$75,000 1%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

The relationship between wages and property prices There has been a historic trend that suggests 3.5 times annual income equals average property price, this has been the mean ratio throughout the world for many centuries. As markets fluctuate, this ratio will move higher and lower however history shows that it will come back to this mean again at some point. The chart below shows the ratio of average income to average property price for Australia from 1971-2014.

1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0

1

2

3

4

5

6

7

8

"I selected Alex after having spoken to three other agents who are active in the Indooroopilly area. Before engaging him I asked a series of questions, from the state of the market to how we should approach the sale. In all of the areas he had a ready and positive comment. Though it wasnยนt until we started on the sale that I realized what such a consummate professional he is. Some twenty years ago I was State Managing Director of one of the biggest real estate groups in Australia, I had about 150 franchisees that I oversaw and during that time I saw some of the best in the business. I can honestly say no one was better than Alex."

Ron Bland - 2 Nindethana Street, Indooroopilly