This apartment at 3/81 Moray St, New Farm, sold to a cash buyer for $4.8m.
BUYERS hamstrung by COVID-19 are pouring their life savings into bricks and mortar instead of shares or holidays, paying cash for multi-million dollar properties across Brisbane.
With more buyers than listings and money cheaper than ever, local agents are seeing a growing trend in the number of home hunters “with money in the bank” who are not prepared to wait out the pandemic to secure their dream home.
And local agents say now is the time to buy without having to compete with interstate buyers for the best homes on the market.
Joseph Lordi of McGrath Estate Agents sold a home on Brisbane’s bayside this week for a whopping $8.5 million — and the local buyer paid for it in cash.
This property at 32 Sentinel Court, Raby Bay, has sold for $8.5m in a cash deal.
Mr Lordi said the sale of the five-bedroom home on 2300 sqm of beachfront land at 32 Sentinel Court in Raby Bay attracted seven offers — all from cash buyers — before selling to a middle-aged couple with “money in the bank”.
“Cash is king right now,” Mr Lordi said.
“At this price point — north of $4 million — there’s a lot of cash buyers.”
The view from the property at 32 Sentinel Court, Raby Bay.
Mr Lordi said he had started to really notice the trend in the past 12 months, when his agency sold four properties for more than $3 million each to local buyers, and all were cash contracts.
“We’re finding interstate buyer inquiry is pushing up the local buyers’ (prices),” he said.
“The inquiries from interstate are still there, but they just can’t get here. I have one lady with a budget of $10 million who has sold in Toorak and is now renting, but can’t wait to get back to Brisbane to buy because that’s where she’s from.
“The window of opportunity to buy without having to compete with interstate buyers is now. That’s what we’re telling (buyers) and I am noticing more urgency.”
Brisbane’s bayside is attracting cash buyers, according to local agents.
Mr Lordi said smaller sales around the $1 million to $3 million price bracket were to buyers who had either sold their previous home earlier in the year or had pre-approval and cash ready to go.
He said some buyers were even taking their money out of shares and putting it into property instead.
“I sold another one this week for $1.29 million in cash,” he said.
This townhouse at 5/1 Cross Lane, Cleveland, recently sold for $1.46m in cash.
The five-bedroom home in Tarragindi is yet to go unconditional.
Mr Lordi said he sold another property — a four-bedroom townhouse at 5/1 Cross Lane, Cleveland, prior to auction earlier this month for $1.46 million in cash, and another at 36 Raby Esp, Ormiston, for $1.225 million in cash, also prior to auction.
“I think people are seeing the value for money in the bayside, and the lifestyle,” he said.
“We’re getting a big feeder market from inner-city suburbs like New Farm, Bulimba, Ascot.
A knockdown property on a double block at 36 Raby Esp, Ormiston, recently sold for $1.225m to a cash buyer.
Especially downsizers who have sold their home for $2.3 million and are getting a waterfront property with a pontoon here for the same sort of money.”
“I feel people are seeing the advantages of having cash at the moment,” Mr Lordi said.
Place Kangaroo Point agent Simon Caulfield said buyers were turning to property because they were getting such low returns for having their money sitting in the bank and or in the volatile sharemarket.
“I think this might be the new norm,” Mr Caulfield said. “It makes sense economically, and from a lifestyle perspective.
“If you do the maths on $4 million and buy a property with it versus having the money in the stock market or getting a 1 per cent return from having it in the bank, you might as well buy something nice that you can also live in and get further enjoyment from.”
This apartment at 7/2 Scott St, Kangaroo Point, has sold for $4.4m in a cash deal.
Mr Caulfield has just sold an apartment in Kangaroo Point for $4.4 million to a younger cash buyer, who wanted an amazing property to enjoy because they could no longer travel.
“It’s hard to comprehend that level of funds and not think; ‘Wow, that’s a lot of money to put in one asset, but it shows the level of confidence,” he said.
The view of Brisbane CBD from the apartment at 7/2 Scott St, Kangaroo Point.
Mr Caulfield said buyers at the top end were no longer prepared to wait out COVID-19 to secure their luxury home.
“I think the reality has sunk in for people who have been sitting on their hands for six months. If you’ve got a lot of money, what do you do with it?” he said.
“There a lot of cash buyers, but not a lot of stock, so that’s starting to create a bit of competition.”
Patrick McKinnon of Place Ascot recently sold a home in Hendra for $2.4 million in a cash unconditional deal to a local family.
Mr McKinnon said the five-bedroom property at 36 Newmarket Street was on a 506 sqm block, with a pool and pool house.
This home at 36 Newmarket St, Hendra, sold for $2.4m cash.
He said he had three offers on the property before the vendors settled on the price.
“As long as COVID stays away, I think we’re going to have a cracking Spring,” Mr McKinnon said.
“Because people aren’t going on overseas holidays, they’re restructuring their lives and deciding where they want to live.”
Mr McKinnon said a number of sale-ready properties that had been put on hold a few months ago were now coming back on the market as vendors regained confidence.
“It’s just crazy money,”
“I just think all these people who are now buying are saying; ‘We want a nicer house, money’s cheap, let’s buy now’.”
The front of the house at 36 Newmarket St, Hendra.
And when it comes to properties, the bigger the better it seems, with the coronavirus changing buyer preferences.
“I think people are very mindful they need room to be able to work from home now,” Mr McKinnon said.
But buyer’s agent Lauren Moore of Lauren Moore Property said she did not recommend her clients buy with cash.
This apartment at 3/81 Moray St, New Farm, sold to a cash buyer.
“Unless a buyer literally has the full amount of cash for the purchase sitting in their bank account, it’s an extremely risky move in any market, but especially in a market like this,” Ms Moore said.
“There are purchasers that are prepared to take the risk, but as a buyer’s agent we guide our clients on the risks associated with making a cash offer and always recommend they discuss with their solicitors.
“If one party loses a job, or the valuation doesn’t stack up and they only have pre-approval, they need to find the rest of the money to complete the purchase.”
A render of The Oxlade penthouse, which sold to a cash buyer for $7m.
BRISBANE’S BIGGEST CASH HOME DEALS OF 2020
Address Sale price
32 Sentinel Court, Raby Bay $8.5m
Penthouse at 80 Oxlade Dr, New Farm $7m
404 Bowen Tce $2.24m
3/81 Moray St, New Farm $4.8m
7/2 Scott St, Kangaroo Point $4.4m
36 Newmarket St, Hendra $2.4m
5/1 Cross Lane, Cleveland $1.46m
36 Raby Esp, Ormiston $1.225m
3 & 4/59 Byron St, Bulimba $3.075m
1102/59 Byron St, Bulimba $1.95m
(Source: Place Estate Agents, McGrath Estate Agents)
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