What’s Really Happening in the Brisbane Property Market 2015 at a Local Level?
When it comes to real estate, there tends to be a bit of a disconnect between what we read in the press or see on the news and what is happening on the ground. This comes down to a number of reasons – one being that most news reports are based on national property prices, with a strong emphasis on the Melbourne and Sydney markets.
While this is a good starting point, and may meet the needs of economists and policy makers – this news can be of little use to local property buyers and sellers – who need to know what is happening in their suburb.
The current sentiment nationally is that the property market is booming, all based on renewed desire for property investing after years of stagnation. What I have noticed particularly in the Tarragindi, Annerley, Yeronga and surrounds real estate market is that activity is actually being governed by the low levels of supply and this has had a flow on effect which has seen some strong sales results for home sellers. The most noticeable area for this activity has been with well priced homes in the $450K-$800K range selling in fairly short periods of time. This in turn has started to show prices in this inner area of Brisbane are steadily rising.
Another obvious factor driving of our current market is the fact that the cost of money is cheap – ie home loan rates are low, allowing buyers to borrow more easily and further increase their offers. Affordability is the key and newly listed, competitively priced properties are receiving a lot more attention from buyers in the first 1-3 weeks that they are on the market with great numbers at Open Houses.
Now, this is good news for sellers, who are looking to maximize the returns on the sale of their property. However, when we look at the picture a little more closely we see that the ‘reported’ heightened activity is also being driven largely by newly built stock, rather than existing homes. There is about to be an influx of new units into the Brisbane Property Market place with many new building projects already experiencing high demand for ‘off the plan’ sales. A casual glance at the cranes on the city skyline will confirm this!
There is no doubt that property is in an upward trend at this time – I am seeing this in the Tarragindi, Annerley, Yeronga and surrounds real estate market and these sentiments are echoed in the media. What buyers and sellers need to be aware of is that there is a local aspect to the real estate market that should not be ignored, as local considerations can be vastly different to those that are presented on a national scale.