Brisbane’s new inner city villages, and a decade of house price growth, has created a new generation of house price millionaires.
In 2004 360 houses sold in Brisbane for over $1 million – and near 25 per cent of them were in the top end suburbs of Ascot, Hamilton and Clayfield.
Last year, 1250 Brisbane home sales topped $1 million and the most active suburbs were Paddington (61 sales) and Bulimba (61) both neighbourhoods known for their cafes, restaurants and boutique shops, according to The National Property Research Company.
The director of The National Property Research Company, Matthew Gross, said more suburbs now fit the million-dollar-plus profile.
“We’re starting to see more urban villages along the river,” he said.
“These are generally villages which aren’t planned and have been organic in their growth… These suburbs are destinations in their own right and people are travelling 10 to 20 kilometres to have coffee or lunch in these retail strips.”
While Paddington and Bulimba came in equal-first in 2014, New Farm was ranked third followed by Bardon, Hawthorne and Ascot.Rounding out the top 10 suburbs for million-dollar-plus sales were Clayfield, Camp Hill, Indooroopilly, St Lucia and Hamilton.
The top 10 suburbs now account for a smaller percentage of million-dollar-plus sales.
The National Property Research Company figures show the top 10 suburbs accounted for less than 40 per cent of the sales in 2014, compared to 53 per cent in 2004.
Mr Gross said $1 million was no longer a barrier for the Brisbane property market.
“The GFC hurt the Brisbane market significantly and house prices in many of the suburbs had a ceiling put on them,” he said.
“But what we’ve seen now is that there has been a significant change in terms of the number of houses sold in the inner city suburbs above that price point. Many people are finding it’s not the barrier it once was, and now a $2 million a barrier appears.”
Since 2004, the only suburb to completely drop out of the top 10 is Chelmer, which ranked sixth a decade ago. In its place are Indooroopilly and Camp Hill.
Ted Walton, principal at real estate agency Belle Property Paddington, said Paddington had seen big changes in the past four years.
“We finished off 2014 with two of the highest sales in Paddington historically,” he said.
“One property sold for $3.7 million and the other for $5.35 million. Relative to Sydney, these values don’t sound like much, but for our standard of housing it’s quite significant.”
Mr Walton said sales of $2 million were becoming more commonplace.
“This is reflective of the prestigious position Paddington is now recognised for,” he said.
“It’s one of those near-city suburbs which you see all over the world . . . where there is inner-city gentrification. Now the professional market is moving into Paddington.”
Mr Walton said the local council’s decision to create Rosalie village had made the area an appealing lifestyle hub.
“Every evening from 6pm to 10pm, people move into the area from all parts of Brisbane to eat and hang out in the area; it’s accelerated the attractiveness and desirableness of Paddington,” he said.
Mr Walton expected the Brisbane market to achieve growth of around 5 to 6 per cent in 2015.
“I’ve been looking with great envy at the Sydney and Melbourne markets and how they’ve flown in the past 12 months,” he said.
“Brisbane has been far more conservative. There are suggestions that Brisbane could be a hot spot. But we just don’t have the population size to achieve the growth rates of Sydney and Melbourne.”