Brisbane sellers pocketing half a million in profit on home sales

Brisbane sellers in the city’s inner west and Carindale gained the biggest profit when offloading their homes this year, with new data revealing vendors pocketed a median profit of more than half a million dollars.

Family-friendly suburbs such as Toowong, Paddington and Indooroopilly topped the list, with sellers gaining an average of $557,500 come sale time, according to the Domain Tenure and Profit report, while Carindale earned silver after sellers snaffled an average profit of $520,000.

Experts put the top performance down to rapid-fire property price growth across the suburbs, alongside their abundance of top schools with both local and interstate buyers prizing coveted catchments and big blocks.

Outside of the Queensland capital, Gold Coast haven Coolangatta fared even better, with vendors in the border town pocketing an incredible median house profit of $590,000 – which was the biggest across the state. Broadbeach and Burleigh sellers weren’t far behind after the report revealed they gained a profit of $571,000, while Sunshine Coast pocket Maroochy also earned a spot in the top 10 with sellers fetching a median profit of $540,000.

The Domain dataset further showed the average tenure of home owners across the state, with Brisbane West’s Centenary region and Central Queensland’s Biloela the highest, at 14 years.

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Vendors in Coolangatta pocketed a median profit of $590,000 on sales, new data shows. Photo: Tourism Queensland

Brisbane inner-west specialist and McGrath sales agent Alex Jordan said the remarkable profit stats in his leafy patch were fuelled by interstate migration from Melbourne, Sydney and Canberra – with top education options driving growth.

“Brisbane’s western suburbs outperform others when it comes to school catchments – and that’s for primary, secondary and tertiary,” Jordan said.

“When you look at the NAPLAN (National Assessment Program – Literacy and Numeracy) scores, some of the highest are in this area. So, that’s a big driver.

“We’re also noticing strong buyer appetite from Sunnybank, too. Families are moving here for their kids’ education.”

It’s a trend that’s gathered momentum over the past few years, Jordan said, with the area recently performing stronger than expected thanks to its bang for buck compared to the NSW capital – particularly in the prestige sector.

“While the Sydney market is one and a half times what ours is in general, in the prestige end it’s 10 times higher.

“We recently sold 75 Duke Street in Toowong, and it was listed with a price guide between $2.75 and $2.95 million. It went into multi-offer scenario between Melbourne and Sydney buyers before getting a cash offer of $2.98 million.”

According to property records, the home last sold in June, 2000, for $355,000.

Jordan said the high tenure of home owners also attributed to those strong profits, with the Domain Tenure and Profit dataset showing the average tenure for houses there is nine years.

“They stay until the kids finish school and then they downsize,” he said.

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Buyers are seeking properties in Toowong, attracted by good schools. Photo: Plum Property

An impressive average tenure of 10 years, coupled with strong demand and price growth over the past five years has contributed to the high sale profits in Carindale, said Torres Property director Will Torres.

He said the suburb clocked up remarkable growth during the pandemic and had continued to gain higher than average house price increases ever since.

“If you look at the demographics of the area, it’s very family orientated … and Carindale accommodates that lifestyle for growing families in terms of larger blocks, schools, parks and trains. Yet you’re still within a 10-kilometre radius of the CBD,” Torres said.

“A decade ago, people didn’t know where it was. And as little as 25 years ago it was farmland.”

“I’d say most of the vendors here now are downsizing but they’ve been here for some time. And as for buyers, it’s younger families looking for a lifestyle change.”

Place Camp Hill Lead Agent Joanna Gianniotis said the Carindale region was fast becoming an upgrade mecca, with its proximity to Mansfield State High School and top private schools attracting buyers in their droves.

“Demand has increased because home values increased so much in neighbouring Camp Hill and Coorparoo. The suburb’s also come off a lower base and that’s why sellers are seeing such great growth,” she said.

“We sold a home at 8 Waverley Port for $2.62 million on Tuesday and it last sold in 2012 for $845,000. The vendors basically tripled their money.”

Down at Coolangatta, McGrath Coolangatta/Tweed Heads agent Kelly Holt attributed the eyewatering median house sale profits to the sheer lack of stock and the fact the seaside pocket straddled the NSW and Queensland border.

“When someone buys here, they’re unlikely to sell it,” she said.

“But it’s also the border town factor that attracts buyers. I have buyers from NSW who don’t want to buy in Queensland and buyers in Queensland who don’t want to buy in NSW.

“The charm of Coolangatta is also in the beaches and the natural environment. Plus, you have the international airport yet you don’t have the Gold Coast highway going through it.

“So, homes don’t come up that often here.”

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Maroochydore is a popular spot for Sunshine Coast buyers. Photo: Supplied

Holt said locals led the buying charge, with Sydney and Melbourne house hunters also heading north in increasing numbers.

Further north, on the Sunshine Coast, Reed & Co director Adrian Reed said pockets such as Maroochy and the Noosa Hinterland – where the latter returned a median profit of $495,000 – had also clocked up stronger numbers after coming off a lower price base.

“The tree-change trend is driving that growth in the hinterland … and it’s also got the blend of proximity to the beach while being a bit of a secret source,” he said.

Buyers, he said, were also typically staying in their homes much longer than previously in the Noosa region, with the Domain dataset revealing the house tenure in Maroochy is nine years and seven in both Noosa and the Noosa Hinterland.

Article source: Queensland Property Investor