Brisbane sales slumping but ‘good vibe’ home nets $1.3 million

A downsizer hoping to nab a deal amid Brisbane’s slowing market has splashed $1.3 million on a modest brick house in Runcorn, as buyers return to real estate basics amid fears of overpaying.

At least three out of six registered bidders battled for the low-set four-bedroom home, as agents say cautious buyers are chasing safe suburbs, solid homes and long-term value over bells and whistles.

The sale came on one of Brisbane’s weakest auction weekends on record. Domain results show just 10 homes sold under the hammer.

Set on a 465-square-metre block at 32 Premworth Place, the Runcorn home is a 10-minute walk from two schools and close to shops and transport.

The campaign attracted a mix of mostly first-home buyers, downsizers and upsizers, with bidding opening at $900,000. A couple of $100,000 rises followed until $1.1 million. From there the pace slowed and the bids dropped until the auction paused at $1.25 million.

It left Benny Liu, of Ray White Rochedale, to negotiate with the highest bidder, who offered another $50,000.

Liu said the buyer, a local downsizer, loved the home’s low-maintenance layout.

“She was very happy with the result because she could see the opportunities of buying in a market like this. She knew there wouldn’t be as much competition,” he said.

“But we had a lot of families keen on this. It’s not a big house but it’s in a good position close to schools and shops and transport.

“I think the other reason it did so well is that it has a good vibe.”

Liu said the vendors had updated the kitchen and retiled and repainted about five years ago.

“The price we got was what we expected. And I think for the market we are seeing it’s reasonable,” he said.

Records show the home last sold in 2020 for $623,000. According to Domain figures, Runcorn house medians climbed 23.9 per cent in the 12 months to March.

Liu said the market had slowed and inspection numbers had halved in the past two months.

“Buyers had faith in the location with this house … And this stuff is the backbone of the real market,” he said.

“But buyers in general are worrying about over-paying and resale value.”

The Runcorn home was one of 135 scheduled auctions across South East Queensland. By Saturday evening, Domain recorded a preliminary clearance rate of 13 per cent from 78 reported results, with 18 homes withdrawn. Withdrawn auctions are counted as unsold when calculating clearance rates.

In Murarrie, a young family paid $1.6 million for a modest four-bedroom home on a 450-square-metre block.

Seven bidders registered for the lowset house, with two bidders joining by phone.

Bidding opened at $1.2 million with just a couple of punters exchanging bids until $1.4 million. Other bidders jumped in about $1.4 million before it boiled down to two: a Singaporean buyer and the young couple bidding via a buyer’s agent.

Selling agent and auctioneer Chris Lawsen, of Harcourts Inner East, said the home – at 41 Moonie Avenue – was one of the more popular homes they’d shown.

“We weren’t sure where it would end up. There seems to be a lot of properties in the $2 million-plus range on the market, but this one didn’t have a pool or a fifth bedroom.

Lawsen said while the home needed an update, it hit another valuable sweet spot.

“It suited upsizers and downsizers,” he said.

Lawsen said while Murarrie had remained a consistent performer, viewing numbers on his end were also down.

“I haven’t seen any reasons to be too concerned. If the trend continues, it could be concerning,” he said.

In Bardon, a large two-bedroom unit with leafy views sold for $50,000 over reserve – collecting $1.1 million under the hammer.

A downsizer outmuscled one other bidder – who was bidding via a buyer’s agent.

The 90-square-metre unit, at 76/390 Simpsons Road, was held by an investor who bought it new in 2017 and is selling to build a new home.

Bidding opened at $900,000 and moved in quick $50,000 rises. Minutes later it sold.

Selling agent Matt Sale, of Ray White West End, said 27 groups, mostly downsizers, had inspected the home.

He said treetop views, two car spaces and high, raked ceilings outweighed the fact it was tenanted.

“The reserve was at fair market value and recent sales in there showed similar units selling for anywhere between $900,000 to $1.2 million, so it landed where it should have,” he said.

“But buyers are picky now and they do have a little bit more choice – and tenanted properties are typically less popular.

“In the current market not everything is saleable.

“But what does sell are units with city views and river views … also the older ones with more space.”

AMP chief economist Dr Shane Oliver said while the city had outperformed most capitals over the past couple of years, it could have further to fall amid rising rates, tax changes and slumped consumer confidence.

“The 13 per cent clearance rate is depressing. It wouldn’t surprise me if prices start to go negative,” he said.

“FOMO seems to have evaporated.”