Queensland's property market rose 13.65% per year, far exceeding the national average
Queensland house prices are rising sharply. According to the latest data, the average increase over the past year reached 13,651 TP3T, far exceeding the national average of 6,771 TP3T. Amidst high housing prices, many buyers are seeking alternatives. One Brisbane couple opted to buy land and build their own home, successfully completing a four-bedroom house for AUD 860,000, exceeding the city's median house price.
Avoid the auction boom and build your own home to be more resilient
Emilie Mahony, the homeowner, and her partner, Jordan Routledge, recently gave up bidding on the auction listing and instead bought land and built a house in the Moreton Bay suburb of Burpengary. She said current listing prices were high and it was difficult to find a suitable family home.
She said: "Housing prices seem to be going up and up, with no chance of turning back. We feel it's more worthwhile to build a home that suits our needs rather than spending a fortune on one that doesn't suit our needs."
Land prices have soared, with land costs exceeding the total price of existing homes.
Mahony bought a three-bedroom townhouse for A$380,000 before the post-pandemic property price surge. She revealed that the new house, which sits on 500 square metres of land, has already cost A$410,000, exceeding the total price of her old home.
"A few years ago, $410,000 was enough to buy land and build a house, but now the land price alone is just a waste of money," she said.
Brisbane's outer suburbs are popular with first-time homebuyers, with Burbungalee seeing a median price increase of 10.71t/3T over the past year. The area's remote location but convenient transportation make it a popular destination for families. PropTrack data shows that Queensland's overall price increase was 13.65t/3T, significantly higher than the national average.
The total price of self-built buildings is $860,000, slightly lower than the Brisbane median
Mahony and her partner ultimately chose Creation Homes to build a four-bedroom home. The total cost of land and construction was A$860,000, slightly lower than the Brisbane median house price of A$870,000. Mahony admitted that she had originally hoped to purchase a larger piece of land, but due to budget constraints, she had to "adjust her expectations."
"But at least this is a house we really wanted to design, rather than just accepting a ready-made building."
It is recommended to consult a financial advisor first to clarify your "needs" and "wants".
She advises prospective buyers to seek professional financial advice as soon as possible to understand their affordability. "Having a professional to discuss the situation will greatly clarify your path. Everyone needs to rethink what they truly need."
Peter Ryan, General Manager of Creation Homes in Queensland, said that many clients are currently buying homes with down payments ranging from less than 5% to 10%, and the company is also advocating that the government allow citizens to use their retirement funds to buy homes. He pointed out:
"Property ownership is fundamental to building a stable and vibrant society. However, in many states, approximately 50% of a property's sales price goes towards taxes and regulatory fees. We believe institutional reform is necessary to reduce the burden on homebuyers."
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