Luxury seekers lead stampede north

A life of luxury is in demand in Brisbane, with top-end properties setting the benchmark for sales and rents.

Doug and Jan Carroll in the home they are selling in the sought-after suburb of Hamilton, Brisbane. Picture: Lyndon Mechielsen

A life of luxury is in demand in Brisbane, with top-end properties setting the benchmark for sales and rents.

Expats returning home, interstate movers looking for a change and Queens­land’s effective health response to COVID-19 helped quicken sales and push up rental and buying prices in Brisbane last quarter, as Sydney and Melbourne struggled.

Real estate firm Knight Frank’s latest Prime Residential Review showed Brisbane was the only major east coast market to report a decrease in the time taken to sell a property in the second quarter, down four days to 112. Prices were up 0.3 per cent over the same period, a change of 2.5 per cent for the year to June.

The movement of people to the city also helped push up weekly rents of luxury rental homes as many look for the right property to buy, said Knight Frank’s head of residential research Australia Michelle Ciesielski.

Brisbane prime rents rose 6.9 per cent last financial year, ahead of the 2.2 per cent growth in Sydney in the same period.

“This trend has been exacerbated by a tightly held sales market, while in Brisbane it is also due to greater demand in the city, with (it) now on the radar of returning expats attracted not only to the balmy lifestyle but the relative value,” Ms Ciesielski said.

Prime or luxury residential property is the most desirable in a given location, generally defined as the top 5 per cent of each market by value.

Ray White New Farm agent Christine Rudolph said Brisbane homes that had struggled to garner interest last year were now selling in days with multiple offers. “We are definitely seeing a massive influx from interstate buyers and I’m getting calls daily,” she said.

While luxury property in Sydney had proved more resilient than first expected as the city emerged from the May lockdowns, time on market increased by 10 days to 82 days.

Ms Ciesielski said difficulties getting finance and a lack of stock may be playing a more of a role than lack of demand.

In Melbourne, it took an extra four days on average to sell high-end homes in the June quarter, now 90 days total. Prices fell 1 per cent over the period, while rents edged down 0.1 per cent.

Former Melbourne locals Doug and Jan Carroll wouldn’t consider heading back south now they have settled in Brisbane.

The couple — now listing their home in the suburb of Hamilton through Patrick McKinnon of Place Ascot — said the pandemic may give them an edge as they look to sell for about $3.75m and downsize. “Brisbane has really grown up. I think a lot of people will want the luxury of space and a big state,” Mr Carroll said.