The upper end of Brisbane’s real estate market is incredibly busy right now.
Properties worth more than $2 million are in high demand. Many are selling before auction, sometimes within a matter of days.
So what is driving the activity at the top of the market?
Who is buying properties over $2 million?
There are two main demographics that we’ve noticed out in force at the moment.
The first group are upsizers who have cashed in around the $1-$1.5 million mark and are currently renting or looking to make the jump to the $2 million+ bracket to a bigger property.
The second group are downsizers on the other side of the property journey. These are buyers who have sold a larger family home or property and are looking to move into an easier to manage lock-up-and-leave lifestyle property in the $2-$5 million bracket.
168 Harts Rd-Indooroopily SOLD in 10 Days for $2.4 Million
What kinds of properties are in demand?
In the $2 million-plus price range, we are seeing strong demand for three kinds of properties: freestanding houses, luxury apartments and Riverfront houses.
Listing volumes for these properties are low and they’re also selling well, with far fewer days on market than average.
Upsizers are snapping up larger freestanding family homes within 10kms of the CBD. Comparatively, we’re seeing more demand for these prestige $2 million homes than those in the bracket below, priced at $1-$2 million.
Downsizers are a huge force in Brisbane – dominating the top end of the small home market, and pushing up the luxury apartment market. They are competing for coveted luxury apartments from Hamilton to Indooroopilly, or high spec luxury houses in inner areas like Indooroopilly, Chelmer, Highgate Hill, St Lucia and Paddington.
36 Morley St-Chelmer SOLD for $2.48 Million setting a new price record for a block under 700m2
And overall the market is delivering particularly good results right now for Riverfront and properties of these kinds.
What’s driving activity this price point?
Because we’ve had such a strong market in the past year, many upsizers have received a great price for their property, and now have more money to spend. The competition in the market, and strong prices received below $2 million, has allowed more buyers to take a step up the property ladder.
On the other side, downsizers have deeper pockets than many of their competitors, and there simply aren’t enough luxury, high end, smaller properties in Brisbane to meet the demand from them. So this demographic is also competitive and fiercely fought.
The combined pressure from both these demographics acting at once is driving up demand for all properties over $2 million.