The Brisbane property market has been quietly chugging along in the background, while Sydney (and now Melbourne) have been the talk of the real estate sector for the best part of four years.
In all fairness, the Queensland property market has had a fairly rough ride ever since the GFC. In fact, parts of its have jumped up and down all over the place, it’s really quite hard to keep up.
During the aftermath of the global economic wobbles, property markets in Queensland’s mining regions were in the midst of a speculative bubble, courtesy of the booming resources sector.
Alas, what goes up unsustainably must also come down spectacularly, so a few years down the track – when that unusual spike in resources demand disappeared – those markets started falling and haven’t actually stopped yet.
In the meantime, the southeast Queensland market did very little, and then softened somewhat after the 2011 floods and Cyclone Iasi, but nowhere near as dramatically as some uneducated commentators expected it too.
It’s only been over the past two to three years that the Queensland market has firmed but its numbers are still streaks behind the other two major capital cities.
According to the Domain Group House Price Report for the June quarter, the Brisbane house market has grown steadily in recent years and, this quarter was no different, with the median price rising 1.2 per cent to a relative paltry $521,915 (when compared to Sydney).
By contrast, unit prices have fallen 1.8 per cent to a reasonable $370,251, which will no doubt start attracting more investors.
According to the report, buyers looking for more affordable options should consider diversifying their search to include both houses and units. With unit prices at the lowest since 2013, it’s a prime time for first homebuyers to break into the market and find a gem at a modest price.
There is a well-publicised oversupply of new units in Brisbane’s inner-city, however there are also signs that developers have started putting projects into hiatus or attempting to on-sell their sites.
Experts say that while there is likely to be more new unit supply than demand in a small number of city areas over the next six to 12 months, this is a normal part of the cycle and it will return to an equilibrium once supply has reduced.
The inner-city house market of Brisbane remains in hot demand with local upgraders taking advantage of today’s “cheap money” via historically low-interest rates to make a move into a nicer suburb or bigger home.
More interstate investors are looking to Brisbane, and Queensland generally, given its affordability compared to Sydney and Melbourne. The Sunshine State is also offering far superior yields to the southern states.
However it’s important that any non-local buyers do thorough research, and perhaps source local experts, to best understand which parts of the state are set to fire and which are set to continue to tank.