Buyers hit record high: Here are the hottest suburbs right now

THE number of potential buyers seeking out a new home has more than doubled nationally compared to the same time last year, with searches in Queensland up a staggering 61.7 per cent this month alone.

The eye-watering finding was revealed in the REA Insights Housing Market Indicators Report, which analyses consumer behaviour in real time.

It found that national sales volumes had increased dramatically in 2021, and were a third higher over the first 11 weeks of this year compared to the same time period last year.

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Demand based on the number of views per listing had also reached “historic highs” over recent months, the report found, with searches of Queensland properties soaring 61.7 per cent this month, compared to March last year.

Many of those searches have centered on the Gold Coast, which is in hot demand by interstate buyers and expats.

And it would seem buyers are not afraid to splash the cash, even as the COVID-19 pandemic continues to rage globally, with a spike in demand for blue-chip suburbs.

Eleven of the top 20 most searched suburbs last year were on the Gold Coast, while six were in Brisbane and three were on the Sunshine Coast, according to realestate.com.au

Houses continue to dominate buyer inquiry, with new home buyers also causing a surge in searches for vacant land as a result of the $15,000 HomeBuilder grant, which finishes at the end of this month.

But REA Group director of economic research Cameron Kusher said the number of first homebuyer inquiries is “starting to fade”.

“HomeBuilder has driven an increase in demand from first home buyers while tough rental market conditions due to the closure of international borders has led to relatively low growth in inquiry from investors,” he said.

“With HomeBuilder set to end at the end of March 2021, and investor inquiry rising, it will be interesting to see how these trends evolve over the remainder of this year.”

In Townsville, new dwelling approvals hit 112 last month, compared to just 38 in February last year – a whopping 194 per cent increase.

North Queensland Master Builders Queensland regional manager Emma Peters said the HomeBuilder grant, which was announced at the peak of the COVID-19 pandemic, had been a “lifesaver for North Queensland”, and would result in builders and other trades working solidly for the rest of the year.

“It’s been a lifesaver for the construction industry across Australia,” Ms Peters said.

“It’s been fantastic for us (in Townsville) where we are coming off the back of some very slow years.”

New dwelling approvals in Queensland rose 18.5 per cent in the 12 months to January, according to the Queensland Statisticians Office.

The REA report said that new home inquiry remained strong, with residential estates reaping the rewards.

“Land estate inquiry in February 2021 was 138.7 per cent higher than it was a year earlier while apartment project inquiry was 44.8 per cent higher,” the report said.

Interestingly, the report found that more buyers were searching for properties with higher price tags.

And this was most evident in the regions, with the number of buyers shopping for a home under $500,000 falling 7.5 per cent compared to the same time last year.

Conversely, buyers hunting for property between $500,000 and $1 million rose by 1 per cent, and those shopping in the $1 million-plus club rose by 6.6 per cent.

In Brisbane, Place joint managing director and agent Sarah Hackett said the price point with the biggest turnout at open homes as “undoubtedly in the $1 million-plus” bracket.

“It is interstate buyers, expats moving back to Brisbane, local buyers … I have never seen anything like it before,” Ms Hackett said.

“They are not mucking around and we are seeing properties selling well above the reserve.

“FOMO (fear of missing out) is a real thing.”

Ms Hackett said their own auction clearance rates were at 95 per cent since January 1, a figure she says “Brisbane has never seen”.

“It was up 80 per cent for January this year compared to January last year, and that was before COVID-19 had even hit,” she said.

Meanwhile, the average views per listing across Queensland reached about 1200, marking the largest year-on-year increase in the country, according to REA Group.

While this is expected to ease as more stock comes onto the market, Mr Kusher said he expected demand to remain high.

And this high demand is leading to faster sales.

CoreLogic’s Property Pulse also revealed that this weekend would be the busiest auction weekend since April last year, with over 2700 properties to go under the hammer across the major capital city markets.

In Brisbane, 151 properties are scheduled to go to auction, that report said.

Mr Kusher said that with borrowing costs at historic lows, he expected that sales activity would remain strong, but noted the biggest challenge was the lack of stock for sale.

“However, new supply does appear to be increasing,” he said.

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TOP 20 SUBURBS BY DEMAND

1. Guanaba (Gold Coast)

2. Holland Park (Brisbane)

3. Tugun (Gold Coast)

4. Mermaid Beach (Gold Coast)

5. Palm Beach (Gold Coast) 

6. Newmarket (Brisbane)

7. Burleigh Waters (Gold Coast)

8. Conondale (Sunshine Coast)

9. Currumbin (Gold Coast)

10. Miami (Gold Coast)

11. Tarragindi (Brisbane)

12. Burleigh Heads (Gold Coast)

13. Chandler (Brisbane)

14. Mermaid Waters (Gold Coast)

15. Tallebudgera (Gold Coast)

16. Sunrise Beach (Sunshine Coast)

17. Dicky Beach (Sunshine Coast)

18. Windsor (Brisbane)

19. Holland Park West (Brisbane)

20. Currumbin Waters (Gold Coast)

(Source: realestate.com.au)

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