Real Estate Without Borders: Brisbane, Australia Real Estate with Dan Lee

Episode Release Date: March 22, 2025

Introduction

In this episode of Real Estate Without Borders, host Dave Hutch is joined by Dan Lee, an experienced real estate professional from Brisbane, Australia. Broadcasting live amidst a cyclone (Australia’s equivalent of a hurricane), Dan provides unique insights into Brisbane’s real estate landscape, contrasting it with other global markets. This detailed summary explores their comprehensive discussion, highlighting key points, strategies, and market dynamics in Brisbane.

1. Dan Lee’s Background and Current Situation

Dan Lee introduces himself as a seasoned real estate agent with 17 years of experience. He began his career as a junior associate, progressing to lead his own team before founding PLUM Property in Brisbane.

• Dan Lee [00:38]: “I’ve been in real estate for about 17 years. I started as a junior associate for a high-performing agent... eventually, I left that business and started my own real estate company called Plum Property in Brisbane, Australia.”

At the time of the recording, Brisbane is facing an imminent cyclone, causing the city to shut down in preparation for the severe weather.

• Dan Lee [01:26]: “Our whole city is shut down today. It’s like COVID all over again. Total panic stations, no toilet paper, supermarkets cleaned out...”

2. Overview of Brisbane’s Real Estate Market

Dan explains that Brisbane is currently the most sought-after city in Australia, boasting a tropical climate and a reputation for safety and livability.

• Dan Lee [03:21]: “We are hosting the Olympics too, and it’s kind of put Brisbane on the map worldwide... Brisbane is just a beautiful place to live. It’s a great place to raise a family. It’s very safe.”

He contrasts Brisbane’s rarity of cyclones with other natural disasters common in Australia, such as floods and heavy rains.

• Dan Lee [02:04]: “We do have cyclones, but they’re very rare. The last cyclone to hit Brisbane was in 1958.”

3. Impact of COVID-19 on Brisbane

The pandemic significantly influenced Brisbane’s real estate market, making it a refuge compared to other Australian cities like Melbourne, which suffered from strict lockdowns.

• Dan Lee [04:00]: “Since COVID, Brisbane has become the city to move to... It’s just really become the hottest city in Australia.”

Unlike other cities that experienced downturns post-pandemic, Brisbane maintained its market strength.

• Dan Lee [05:24]: “We kind of just went way up and then sort of just sat at the same price. We haven’t really come back much... Sydney and Melbourne have experienced much bigger downturns.”

4. Property Pricing and Market Trends

Brisbane’s median house price has surpassed Melbourne’s for the first time in history, signaling a robust market.

• Dan Lee [07:13]: “Brisbane’s caught up to Melbourne now and so we actually have a higher median sale price compared to Melbourne, which is crazy because it’s never been in the whole history of ever.”

He estimates the median house price at approximately 1.1 million Australian dollars (~$750,000 USD).

• Dan Lee [07:39]: “It sits at about 1.1 million Australian dollars, which, with the American exchange rate, is about seven.”

For condos, new units average around 850,000 to 900,000 AUD, while established units range from 700,000 to 750,000 AUD.

• Dan Lee [07:53]: “A standard two-bedroom, two-bathroom unit would sit around brand new at about 850,000 to 900,000 AUD, and secondhand in good condition might be 700,000 to 750,000 AUD.”

5. Sales Strategies: Auctions vs. Offers

A significant portion of the discussion centers on sales strategies, particularly the prevalence and effectiveness of auctions in Australia compared to private treaty (offer-based) sales.

• Dave Hutch [08:30]: “What do we call it? Resale used house.”

• Dan Lee [09:29]: “Auctioning properties is a long-standing strategy here, prevalent in major cities like Sydney and Melbourne. It’s not the majority method everywhere, but in key urban areas, it’s embedded into the culture.”

Dan elaborates on how auctions drive higher sale prices due to their transparent and competitive nature.

• Dan Lee [14:14]: “That’s why it can be super successful when you have two or more bidders that really want it and are willing to pay a great price for it.”

Notable Quote:

• Dan Lee [11:33]: “We’re not allowed to disclose another party’s offer. It’s actually illegal under Queensland law to do so.”

6. Role of Buyer’s Agents in Australia

The episode delves into the distinction between seller’s agents and buyer’s agents in the Australian market.

• Dan Lee [16:19]: “Buyer’s agents are used usually for people that are really busy... They often get early entry to properties.”

Dan points out that unlike North America, where buyer’s agents are common, Australia’s market is predominantly driven by seller’s agents, with buyer’s agents constituting about 5% of the industry.

• Dan Lee [18:42]: “Most transactions are not done with the buyer’s agent. We really all just work for the seller.”

7. Real Estate Practices and Agent Dynamics

The discussion highlights the competitive nature among Australian realtors, contrasting it with the collaborative environment in North America.

• Dan Lee [25:30]: “It’s very infrequent that we collaborate with other agents because we’re all just out there competing to get the listings.”

Dan notes a general negative perception among agents towards each other, lacking the camaraderie often seen in other markets.

• Dan Lee [25:45]: “Agents in Australia generally don’t like each other. They see other agents as competition rather than collaborators.”

Notable Quote:

• Dan Lee [25:45]: “Most agents have this like, puffed up chest. They see another agent, they’re like, look at that douchebag.”

8. Foreign Investment and Regulations

Foreign investment plays a crucial role in Brisbane’s real estate market. However, regulations have tightened, reflecting global trends towards nationalism and restricting foreign capital flows.

• Dave Hutch [30:06]: “Canada has banned foreign investment... What would be the biggest foreign investors in Australia?”

Dan responds by outlining the primary sources of foreign investment, emphasizing proximity to China but also addressing regulatory measures to control capital inflows.

9. Rental Market and Investment Trends

The rental market in Brisbane remains strong, with prices on the rise but stabilizing compared to the volatile first-time buyer market.

• Daniel [28:00]: “Are there a ton of investors? Who is the main purchaser of properties right now?”

Dan explains that the primary purchasers are individuals looking to reside rather than investors seeking quick returns, aligning with trends observed in markets like Toronto.

• Dan Lee [29:13]: “Rental prices have been on the rise for a couple of years now, similar to conversations we have in Toronto.”

10. Marketing and Staging Costs

The conversation touches on the financial responsibilities in property sales, particularly who bears the costs of staging and marketing.

• Dan Lee [23:54]: “Sellers pay for staging and marketing. Our fees are separate, averaging around 2.5% plus tax, with marketing costs between $3,000 and $6,000 AUD.”

Dan emphasizes that these costs are typically absorbed by the seller upfront, mitigating financial risks for the agency.

11. Conclusion and Key Takeaways

The episode wraps up with Dan Lee’s appreciation for the opportunity to share insights and his active engagement with the audience through social media.

• Daniel [32:42]: “We appreciate you so much, honestly... If you’re not following Dan on Instagram, you’re missing out.”

Key Takeaways:

• Market Resilience: Brisbane’s real estate market remains strong post-COVID, outperforming cities like Melbourne in median house prices.

• Sales Strategies: Auctions are a prevalent and effective strategy in Brisbane’s major cities, fostering competitive bidding and higher sale prices.

• Agent Dynamics: The Australian real estate market is highly competitive with less collaboration among agents compared to North America.

• Foreign Investment: While significant, foreign investment is now more regulated, reflecting global shifts towards restricting capital flows.

• Rental Market: The rental sector is robust, with rising prices and stable investment trends.

For more insights and updates from Dan Lee, follow him on Instagram as mentioned in the show notes.