Our Housing Market
Corelogic (RP Data as most of us know it) report that overall the Brisbane market has softened in recent times, which does have some truth, dependent on where you own a property in Brisbane and what type of home you have.
I’m confident now that after years of unit market downturn, we as homeowners are all aware that this market hasn’t recovered just yet. We still have tens of thousands of units on offer for sale through the inner city suburbs, however approvals for new construction has slowed since 2016. This means we will continue to see new projects approved, but there will be less and less over time, which will slowly be adsorbed by the market. Overall the oversupply is still effective and a considered approach should be taken for such big decisions that need to be made if you are buying or selling a unit today.
Sydney & Melbourne have taken some pretty heavy hits in recent times, however Brisbane just doesn’t suffer the same aggressive downturn simply due to the fact that we never had the same gains. Our values didn’t go up as much or as fast, we have had a much more stable market with steady growth, and as such we aren’t due to take as hard of a hit as our southern neighbours.
Brisbane’s Growth & Our Future
Brisbane overall has been predictable, steady and reasonably easy to navigate. As they say, what goes up must come down, but Brisbane has plenty of population growth, jobs and infrastructure development which is reflective of our still reasonably positive position.
We boast numerous projects putting us on the map for future growth such as Queen’s Wharf, Howard Smith Wharves, Cross River Rail and the second airport runway. The sunshine also seems to help.
Property Values Decline & Days On Market Increase
Corelogic report that Brisbane house values slipped -1.1% lower in the first quarter of this year and are down 1.3% over the last 12 months.
Days on market have pushed out from 38 days 12 months ago to 68 days at present.
Rents did pull back a little last year, giving the power for a short time over to the prospective tenants however we are back to increasing rents at our renewal stage, which we weren’t able to implement a year ago. We reduced our rents to keep our tenants in place or to attract new ones. Up until then, I don’t remember a time in the 2000’s where we didn’t have rental growth in Brisbane making us very satisfied as landlords.
Brisbane Property Predictions
The age old adage Location Location Location rings true and freehold land increases in value while the property / dwelling itself is slowly depreciating over the years. Please don’t complain when your rates go up, provided it is justified of course, this is your pot-o-gold. When the tide rises all the ships sail.
Over the 6 months just gone, the Brisbane property market did soften. We paused at the Banking Royal Commission, we held our breath waiting to see if the Election would effect some extremely impactful influences for price growth. The entire Brisbane market however is a vague and broad collective of a lot of property you don’t own. Many markets within the market performed very differently.
Freestanding houses in the inner to middle ring as well as those particularly in school catchment zones have continued to attract high demand from buyers continuing to push pricing north. Looking at these high demand areas – well located homes, good positioning on the block, quiet or leafy spot and conveniently close to amenities, these happy home owners have seen over 10% growth. In fact 68 suburbs saw better growth than the overall reported figures.
Choose wisely when you purchase and highlight these when you sell.
Data compilation and narrative by Karen McBryde LREA.
Karen is a Lead Agent for Place Estate Agents in Brisbane.