Locate Brisbane Market Update 18 November 2022 – What makes for an A-Grade property?

When it comes to purchasing a property, most buyers will strive for quality. The appeal of owning a fantastic home with excellent long-term capital growth potential can’t be beat.

As a result, we find demand for A-Grade homes remains fairly constant regardless of what’s happening in other residential sectors, and this week’s key sales are a reminder of this premise.

Across the market at present, we’re in the downward sector of the property price cycle. As a generalisation, most homes are seeing less buyer demand and vendors are having to be flexible on terms in order to meet the market.
But despite the current slowdown, there are sales that buck the trend. Just this week I saw two homes go under contract that demonstrate how A-Grade homes continue to enjoy great demand.

The first was 8 Odessa Street, Holland Park West which sold for $3.915 million – a record result for the suburb. This is a beautiful, brand-new home of striking design and finish. It is an outstanding looking property with exceptional views across Brisbane and through to the CBD. The property offers five-bedroom, four-bathroom, six-car accommodation on 607 square metres of land. It showcased the very best of suburban family living in Brisbane’s south.

The second sale was 54 Buckingham Street, Ashgrove. This five-bedroom home on 771 square metres sold for $2.42 million. While not a new construction, this property was beautifully finished and would be considered a “classic” style for this inner-west suburb. The home itself had excellent flow and layout. The sort of thing that would suit most family buyers with ancillaries such as landscaped garden and an inground pool.

So, what makes for an A-Grade home like these, and why are they still going strong when the market is softening for entirely livable B-, C- and D-Grade listings?

It’s because quality elevates above all else, even in times of trouble. A-Grade property is a rare offering with limited supply and excellent demand, and that helps keep its price buoyant when others are struggling.

I believe there are four components that determine the grade of a listing:
1. Price – the vendor’s price expectation is a reasonable reflection of market value.
2. Position – the property is in a desirable position. For example, fronting a quite cul de sac rather than a noisy road.
3. Dwelling – this relates to the quality, layout, style and finish of the house itself. Will it have broad buyer appeal, particularly for families?
4. Land – all the physical components of the site including size, slope, elevation, aspect and views.

An A-Grade home will tick all four of these boxes and, as such, attract maximum buyer interest which helps drive competition and boost the price.

On the other hand, B- C- or even D-grade homes will come up short on some of the four aspects.

It could be an elevated block but with a severe slope and a new home that’s of awkward layout. It could be that the house is beautifully finished, but it fronts a busy suburban street and is near an all-night service station. It could even be that all the physical boxes are ticked, but the seller’s price expectation are just too unrealistic.

Whatever the reason these properties are having a tough time selling in today’s softer market – which also means they could present a buying opportunity for the right purchaser.

Given this, it’s crucial in the current market to have an expert on your side. Someone with the experience and knowhow to unearth the right property for your needs and secure it at a great price.