These are the suburbs you can now afford to buy a home in
IF you have ever dreamt of living next door to Clive Palmer or Libby Trickett, now is your chance.
Neighbourhoods that were once only affordable to buy a house in on a millionaire’s budget have suddenly become more attainable, with a number of Brisbane suburbs dropping out of the million dollar club as the nation’s housing market softens.
Pallara, Fig Tree Pocket and Wilston and are among the suburbs where the median house price dropped below $1 million in the past 12 months and are now hundreds of thousands of dollars cheaper in some cases.
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Most areas to fall below the price threshold are within 10km of the CBD, where some buyers are now able to afford more options than first thought.
The outer suburb of Pallara has taken the biggest hit though, with the median house price falling nearly 28 per cent to $649,000, according to property researcher CoreLogic.
Only a year ago, the suburb had a median house price of $1.63 million as developers moved to snap up rezoned acreage and create new housing product.
The affluent, riverside suburb of Fig Tree Pocket in the city’s west has seen its median house price plummet 27 per cent in the past year to a more affordable $891,750, compared to the previous $1.2 million.
That’s good news for home hunters keen to live in the same suburb of United Australia Party founder Clive Palmer, who bought a house for $7.5 million in Fig Tree Pocket two years ago.
Then there’s the trendy inner-city suburb of Teneriffe.
It still holds the title of Brisbane’s most expensive suburb, but the median house price has dropped from a whopping $2.475 million a year ago to $1.7 million now.
Buyers still need deep pockets to afford a house in the suburb, but it has become more appealing for upgraders keen to live the lifestyle of former AFL player turned real estate agent Jamie Charman and his wife, Nicky, who love living in Teneriffe.
Another suburb that has seen a significant drop in house prices in the past 12 months is Seven Hills in the inner east.
Olympic swimmers Luke and Libby Trickett live in the suburb, which has recorded a 17.5 per cent decline in its median house price to $790,000.
Allan Tillett of RE/MAX – Results said he had recently sold a house to a first homebuyer in Seven Hills who would not have been able to afford it a year ago with his budget.
Nathaniel Groeneveld said he considered him lucky to have paid $800,000 for a five-bedroom house on a 512 sqm block at 227 Ferguson Road.
“I was quite surprised my offer got accepted without negotiation,” Mr Groeneveld said.
“I think the timing of when I wanted to buy helped, especially leading up to the election and all the uncertainty surrounding that.”
Mr Tillett said he had seen interest pick up “slightly” as a result of the market “levelling off a little”.
“It is an opportunity for first home buyers to pick up on that change,” Mr Tillett said.
Among those benefiting from the increase in affordability in some of Brisbane’s most sought-after suburbs are Tom Barrett and Chelsea Firman.
The young couple has just bought their first home in Chelmer for an entry level price of $675,000.
The median house price in the suburb has fallen almost 10 per cent in the past 12 months according to CoreLogic to sit just under $1 million at $982,500.
Mr Barrett said he did not think they would be able to afford to buy a house in a suburb like Chelmer.
“We were always looking further down the train line to Graceville or even Sherwood, so being able to buy in Chelmer and get the size of block we did as well is great,” Mr Barrett said.
“You’ve only got to look at the other houses around us — I think we definitely got in at a good time.”
Selling agent Kerry Bellamy of Place – Graceville said she had been seeing strong interest from upgraders and young couples looking to get in to the Chelmer market.
“It’s in strong school catchment areas so young couples are keen to get a foothold in
Chelmer,” Mrs Bellamy said.
“Also because of its location; we’ve got everything there — parks, transport, shops.”
Hauss Realty principal Charles Wiggett said he had seen an increase in the lower end of the market in Chelmer — between $500,000 and $800,000.
“I call it affordability compression,” Mr Wiggett said.
“Because of the banking royal commission, people’s ability to service a loan is dropping, so they are being forced into a lower price bracket.”
Mr Wiggett said vendors had also started to become more realistic about asking prices.
THE SUBURBS YOU COULD NOW AFFORD TO BUY IN
Suburb Median house price Price drop in 12 mths
Pallara $649,000 -27.9%
Fig Tree Pocket $891,750 -26.9%
Teneriffe $1.775m -21.5%
Seven Hills $790,000 -17.5%
Fortitude Valley $875,000 -14.6%
Chelmer $982,500 -9.9%
Yeronga $802,500 -5%
Wilston $960,000 -5%
Kalinga $1.16m -4.5%