BY MARC SORRENTINO, PLACE ESTATE ANGENTS, MANLY
Marc Sorrentino, Principal of Place Estate Agents Manly, says he hasn’t seen a market like this in all the 19 years he has been a local agent.
Sure, our suburbs have always had a steady growth of around 4 per cent year-on-year, however in the past 12 months suburbs like Manly have seen growth of 27.6%, and Wynnum a whopping 29.7% (source: CoreLogic). This is not taking into account properties that I have sold that have not yet settled such as 101 Petersen Street, Wynnum, which I sold for $3.3million, creating a new suburb record, and 96 Cedar Street Wynnum for $1.985million, just to name a few, so the increase is possibly much higher than 30%.
What’s creating this increase in price, where are the buyers coming from, and what is the best way to sell? In simple terms there are a few factors which are driving these prices: migration from southern states, supply and demand, and FOMO ( fear of missing out).
Yes, for sure I am seeing buyers from Sydney and Melbourne wanting to move to Brisbane; employers are getting very little productivity from these lockdowns, so they are moving their staff to Brisbane. As interstate buyers are in lockdown, they have plenty of time to surf the net looking for their Queensland dream home.
I’m also seeing many buyers from Bulimba, Hawthorne and Ascot – all those suburbs have been affected by the airport’s newly built second runway and they want to get out before international travel resumes.
Another factor is lack of stock. So when is the best time to sell? When others aren’t on the market! My sellers are selling not because they want to move, but because they want to cash in on this market. Every time I sell a property and I’m presenting the contracts to my sellers it’s like winning the lotto.
What’s the best way to sell? Of course, I would say through me as I have strategies to maximise this boom, I have local knowledge second-to-none, and I’m extremely well connected to motivated buyers.
What about off-market? In a market where there is lack of stock and buyers willing to outbid others to secure houses, why would you want to keep your property a secret? As I deal with most buyers when they eventually buy, they often call me to thank me for trying to help them buy a house. When they do, I always ask what they have purchased and every time they have purchased off-market, they tell me what a great deal they got.
All good things must come to an end, and we all know this boom won’t last forever. My guess is as soon as international travel resumes and spending on holidays become a major purchase once again, all those who have been sitting on the fence will put their houses on the market, and the supply will increase as demand slows, and that’s when I feel we will go back to a normal market.