‘Brisbane is a smoking gun’: $2.25m record deal before house price correction

A Morningside home sold at auction on the weekend for $2.25m, making it the richest 405sq m block in the eastern suburb.

The final auction weekend of the year had more than 70 homes head under the hammer across Greater Brisbane, with bidder numbers up as buyers worked hard to put a signed contract under the tree for Christmas.

The engine room of the auction market in 2022 has been in Brisbane’s south, particularly where pre-boom buyers have capitalised on demand for new homes by splitting blocks and either building or renovating existing homes before returning them to market.

Brisbane developer Rita Bechara did just that on Saturday when she took a brand new five-bedroom Morningside house to auction at 31 Lawson St after splitting a larger block and moving the existing house to one side to make room for a second residence.

Morningside home sold at auction
The house at 31 Lawson St, Morningside that went to auction on Saturday. The original house on the former 810sq m block can be seen on the left. Picture: supplied

Four buyers saw value in the 405sq m property and registered to bid – a regional bidder from Townsville, a family from interstate, buyers from Brisbane’s north, and locals looking to upgrade close to where they currently live.

Ray White Bulimba’s Brandon Wortley carried the Townsville bidder in his ear as he paced between the kitchen and the lounge in his Pigs Might Fly novelty socks.

“What’s it worth for an opening bid, bidder offer to start,” Ray White auctioneer Haesley Cush asked from his spot beside the dining table in the open-plan living area. “Buyers in the room, buyers on the phone. Where do we begin?”

The regional buyer kicked off the auction swiftly with an opening bid of $1.8m via Mr Wortley.

A reply of $1.9m came from the outdoor entertaining area where a family from Newcastle on a work transfer to Queensland were bidding at their first auction.

Mr Wortley’s bidder took the property to $2m and from there the two bidders dropped their increases to $50,000 apiece until the Newcastle family offered $10,000 more to take the bid to $2.21m and the auction paused to negotiate.

“There’s work to be done,” Mr Cush said before leaving the crowd of 40 with his trusty auctioneer’s hat for company as he worked with Ray White Bulimba agent Amanda MacDougall to strike a deal.

The auction resumed with an increased offer of $2.25m and the house sold to the Newcastle family for that price with an extended settlement of 90 days.

“I thought it was important to get in now because I think the economy will correct itself toward the middle or the end of next year and houses will be going up,” the winning bidder said. “I think Brisbane is a smoking gun. Wages are comparable to Sydney and Melbourne but real estate hasn’t caught up. I wanted to get in before the Olympics for those reasons.”

Ms Bechara said she had thought the property was worth $2.5m but that it was important to adjust expectations to meet the market.

Article source: Queensland Property Investor

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