Paddington Attracting Cashed-Up Foreign Property Buyers Post-COVID

Several industries might be grappling with the impact of the coronavirus lockdown but the property market in Brisbane, particularly in Paddington, is attracting significant interest from cashed-up international and interstate buyers, who are looking to live in a community that could better handle the pandemic.

Alex Jordan of McGrath Paddington noticed the increasing numbers of expats interested in buying in Brisbane, considered an economic safe haven “because of the way we handled COVID.” 

Aside from this, Mr Jordan said that what’s luring buyers from abroad or other regions are Paddington’s good lifestyle and affordability compared to other regions. What’s more interesting is that these property buyers from abroad are not actually able to see the site physically. The transactions and communications are mostly done on Facetime or Zoom. 

“The ones that I’m exposed to and talking with are looking at properties above $1.5 million and they are looking for something modern or brand new and in a good location – typically in the more affluent pockets such as the inner west that’s close to quality schooling,” Mr Jordan said. 

Photo Credit: Gerd Altmann/Pixabay

Place Brisbane CEO Damien Hackett also said that whilst there’s a rise in foreign buyers, Brisbane’s property industry, in general, is carrying forward amid the pandemic. REIQ’s last quarterly report revealed a stable market and minimal changes in house prices given the circumstance. 

Investors are apparently confident in Brisbane’s housing market, which has prevailed amid the unpredictably. There’s also an increasing number of listings of properties for occupancy or ownership. 

Mr Jordan, however, said that demand is greater than the supply in Paddington by at least 30 percent year on year. 

Brisbane’s Paddington Sees Influx of New Residents from Sydney

Located about 2km west of Brisbane’s CBD lies the inner city suburb of Paddington. Its close proximity to a wide range of shops, restaurants, and other recreational establishments has made buying into the suburb quite a steal, and Sydney residents are taking advantage of it.

Recently, Urban Property Agents reported a spike in the interest of Sydney residents to relocate to this particular area in West Brisbane, due to the rousing mortgage prices in Sydney.

Daniel Argent, the principal of Urban Property Agents said, “We started to notice [a surge in interest from Sydneysiders] at the end of last year. Just before Christmas it started and it has continued quite strongly into this year.”

Their estimate shows that 10 percent of their sales so far this year came from people who have relocated from Sydney. This doesn’t come as a surprise considering that Paddington houses in Brisbane are considered really good buys. One can get a three-bedroom house for more or less $800,000 based on sales data from sales data. In comparison, three-bedroom houses in the similarly named Paddington suburb near Sydney are priced much higher at more than $2 million.

This recent spike in Paddington house sales has brought about prices that are 6 percent higher, a trend that Argent believes will continue as the market conforms to the growing demand from the Harbour City.

Photo credit: CC-BY/bertknot/Flickr