Airbnb Pushing Brisbane Renovation Boom

brisbane-airbnb

In the last few years, Brisbane’s prestige market has experienced a boom in sales. The market is benefiting immensely from the massive influx of investors from the Melbourne and Sydney. According to experts, then increasing appetite for the Brisbane’s prestige market is attributed to the excellent value it represents to the investors. Among the factors driving the demand is the rise of Airbnb rentals as an attractive investment opportunity. According to agent Frank Gosdschan, of McGrath Bulimba, at the moment, about 50 per cent of the buyers are from Sydney.

Positive Impact of Airbnb on Home Improvement

Most of these investors are buying homes for short-term rentals (Airbnb). According to Mr Gosdschan, the trend could be the reason why Brisbane’s prestige market in Brisbane is doing better than other parts of the market. He is currently marketing Adelaide Street East estates and houses and expects to secure better deals considering the recent sales deals sealed around this place. From reputable sources, some of the price-setting sales include $2.61 million for Number 119, which spans 959 square metres while a Number 125, which covers 2281 square metres of land, sold at $4.35 million.

Property owners are doing home renovations in Brisbane so they can have the property listed on Airbnb. According to Alma Clark, of Alma Clark Real Estate, he believes that these effects on the Brisbane’s market are as a result of strong Sydney Prestige price. He also mentions that investors are also gaining a lot more confidence as an ideal investment market. Buyers are also impressed by the much, much lower prices than for lesser properties in Melbourne and Sydney, said Mr Clark. It makes no sense to buy an expensive property in Sydney and still charge almost the same Airbnb prices as Brisbane investor.

Airbnb and Real Estate

Brisbane AirbnbAccording to Dr Andrew Wilson, Domain Group chief economist, numerous Brisbane suburbs are already benefiting from these developments in the marker. As of today, there is a number of city suburbs with medians over a million dollars. According to Mr Wilson, some of these suburbs include Ascot at $5,545,000, Hawthorne at $1,162,500, Bulimba at $1.05 million and Clayfield at $1.04 million amongst many others. According to him, this year, the prices could have gone up by 1.8 per cent. He also mentioned that the prices dipped at the beginning of the year but have picked up very well, and there is no doubt that the year will end on a high note.

This has been a great season for both the buyers and the real estate agents in Brisbane. With the prices being much lower than in Sydney and Melbourne, the appetite on Brisbane prestige market will not end any soon as long as Airbnb rentals are in high demand. The ripple effect will be felt in the entire real estate economy and the wider economy. “This is indeed one of the best economic environments,” said Mr Scott Darwon, Ray White New Farm Agent.

Reference:

https://www.domain.com.au/news/booming-brisbane-prestige-market-lures-sydney-and-melbourne-buyers-north-20170803-gxfcwo/

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