Has COVID-19 impacted property prices in Toowong?
Six months since the pandemic started, we find out if it has affected property prices in Toowong.
Here, we take a look at how suburbs like Toowong, Taringa, Indooroopilly and St Lucia have fared in the wake of the global pandemic.
Queensland has done well to contain any outbreaks in our sunshine state, which has allowed open homes, auctions and property sales to continue with some sense of normality.
These are some of the big questions homeowners are asking us right now.
Are buyers expecting a bargain?
If buyers are in their initial stages of research or are just entering the property market, they may have a perception that they can pick up a bargain due to the current crisis.
Buyers have been forced to adjust their ‘bargain price’ expectation and meet the market in order to secure a property within Brisbane’s inner-western suburbs; – particularly for houses under $1M.
What are buyer activity levels like?
Numbers through open homes have been high and we’re seeing good levels of buyer enquiry across most property types.
At pre COVID-19 open homes, we would expect to see 8-10 groups attend the viewing. Currently, some of our properties are attracting close to 25-30 buyers through just one open home.
19 Mount Street, Toowong which has just come to market for auction, attracted 23 groups through the first open home and over 2,367 online views in 7 days.
Buyers are obviously feeling confident in the Queensland property market which has been evident with the high levels of buyer activity we’re currently seeing throughout Brisbane’s inner-western suburbs.
Has the pandemic caused property prices to drop?
The uncertainty of COVID-19 left many homeowners concerned about property prices and how they would be affected by the pandemic.
Surprisingly, property prices throughout Brisbane’s inner-western suburbs have remained stable, if not increased.
Leading property data experts CoreLogic have reported subtle levels of growth, since the pandemic took hold in March.
These figures are based on the most recent data available from CoreLogic which analyses sales up to May 2020.
However, preliminary indicators from Realestate.com.au suggest the median sale price for these suburbs may now be even higher.
The resilience of property prices in Brisbane’s inner-western suburbs has been underpinned by the continual demand from buyers, the lack of property for sale and the easing of COVID-19 restrictions throughout Queensland.
Are banks lending?
Yes, however the application stage of the lending process is more intense and is taking on average, double the amount of time, if not longer.
Two of the big four banks for example, have gone from 14 days finance approval to 30+ days.
In addition to the lengthy processing of applications, the banks are requesting more comprehensive information from buyers and are scrutinizing loan applications more than ever before.
In this market, as a Seller, if you are presented with a cash offer without a finance clause, it is certainly worth the consideration.
Buyers who do require finance will also need to be proactive with their loan application.
Speaking with a mortgage broker will not only help them find the best interest rate available, but also determine which banks will be able to process their finance approval quickly and on time.
Has there been an influx of properties for the Spring selling season?
Spring is typically one of the busiest selling seasons in Brisbane, with many homeowners looking to take advantage of the optimal climate and their gardens being full of colourful flowers.
However, this year there was speculation that a backlog of properties which would have otherwise sold during Autumn or Winter, may flood the Brisbane property market during Spring.
So far, this does not appear to be the case.
The number of properties coming to the market for sale is still well down from previous years.
What can we expect for the remainder of 2020?
If demand for suburbs like Toowong, Taringa and Indooroopilly continues, we may well see a stronger end to 2020 than we would have predicted six months ago.
We have had an overwhelming response from buyers registering for pre-market opportunities with us and market indicators suggest buyer activity is likely to remain strong for our inner-western suburbs.
As Queensland borders inch their way closer to welcoming our southern counterparts, interstate buyers may also look to head north and further drive demand.
Want to talk to us about your property?
This year has left everyone a little unsure of how Brisbane’s property market will be impacted by COVID-19.
However, as an agency with over 17+ years’ experience in Toowong, Taringa, Indooroopilly and St Lucia, we understand how market changes can affect our local property market.
We would love the opportunity to discuss your property and help you decide what’s best for your family. Feel free to call Byrony any time on 0412 132 480 or contact us below.