Tide turning for river real estate

BRISBANE River property prices are tipped to nearly double in the next three years from their low point after the January 2011 floods.

Buyers are coming back to the river, according to real estate agent Josephine Johnston-Rowell, who markets many prestige riverfront properties.

She tips the average price for riverfront homes in Brisbane will reach $5 million by 2015 as a result of low supply and growing demand.

Mrs Johnston-Rowell said that last year the average sale price for riverfront properties in Brisbane was $2.675 million.

That has lifted this year to $3.2 million.

"Our research shows that in post-flood 2011 there was an annualised 24.5 per cent price correction in average riverfront house prices, down from $3.5 million to $2.675 million,'' she said.

RP Data figures for the year to April show mixed results for Brisbane's riverfront suburbs during the past quarter.

Graceville did not have enough sales to record a median, while New Farm's median house price rose 0.4 per cent to $1.145 million.

Chelmer recorded a 3.6 per cent increase in value to $715,000 after a 27.7 per cent drop in its median house price over the year to April.

Mrs Johnston-Rowell said price drops for riverfront properties that sold last year were mainly a result of people panic selling or selling cheaply because they were getting large lump sum insurance payouts.

"The total value of riverfront property sales was also down a significant 43 per cent last year to just over $88 million,'' she said. In 2010 it was $155 million. Mrs Johnston-Rowell said not everyone looking at properties she is marketing on the river asked about flooding.

She said potential buyers still come in her door with the main criteria of living on the river.

"The floods is not an all encompassing thing, I don't think,'' Mrs Johnston-Rowell said.

"I think there have been four sales so far in Chelmer. It was a fairly hard-hit area; I think people are aware that it happens.''

Mrs Johnston-Rowell believes part of the pick-up in sales this year was the result of low prices.

"It is a good time to get in the market, I think there is more confidence in people,'' she said.

"People are actually making decisions and doing things a bit more.''

SALES WATERSHED

Top five Brisbane residential riverfront house sale prices for 2012 up to July 26:

RANK SALE PRICE LOCALITY

1 $4,800,000 St Lucia

2 $3,100,000 Chelmer

3 $3,050,000 Bulimba

4 $2,200,000 Fairfi eld

5 $1,703,000 Tennyson

Source: http://www.news.com.au/realestate/investing/tide-turning-for-river-real-estate/story-fndbarft-1226436382419