Brisbane Market Overview
The borrowing power of people has been challenged recently with the recent Royal Commission into banking practices cracking down on banks and their lending around the country increasing costs and reducing lending. This has had an effect on buyer numbers, however we have still seen good prices for sales in areas that have continued to see steady growth. There is some uncertainty surrounding the Melbourne and Sydney housing market, Brisbane and Adelaide are still tending to be the slow and steady movers with certain suburbs within reach of first home buyers and established home buyers that are bringing some great prices.
Many of the newer unit complexes in the Brisbane City Council region are selling for prices from $470,000 upwards, we’re starting to see the older units become more attractive for people looking to get out of the rent cycle. Units priced from $250,000 up to $450,000 are starting to move with the FHOG being seen as just an increase in selling price on the newer units vs the valuations via the banks.
I’m very active in Geebung, so I focus much of my information around Geebung Real Estate. For those of you not familiar with this suburb you can read more here Geebung Real Estate
Would you like to see what your suburb has done over the past few years, here is a simple table to check.
Queensland Market Overview
Queensland as some would expect has areas dominated by the mining industry. Towns and Cities like McKay, Townsville, Mooranbah, Chinchilla and Roma have all taken a hit to match the resources industry.
The Lockyer Valley and Somerset regions have both gone through a period of loss in median house prices, though not to the extent of those listed above.
As the mining industry starts to slowly pick back up and even as investment in Solar farms begin to take off we will see different areas having growth again.
Australian Market Overview
Although no one has a crystal ball, I would hazard a guess that Melbourne and Sydney’s growth in property value is unsustainable. Just the other day a friend of mine missed out on a termite ridden property for $1.3 Million approximately 1.5 hours from the CBD.
With the job market in Adelaide being the worst performing with all the car manufacturing and coca-cola factory ceasing operations, I’m sure there will be some uncertainty in coming months, as people begin to move for work.
Perth is similar to Queensland as it has a large relationship with mining and oil and gas. This market has taken a massive hit with a lot of employment casualties. Perth has seen some big declines in price over the last couple of years, and similar to Queensland as the industries pick back up the people will return and the market will return. People struggling to find tenants for their properties may need to consider taking a hit per week to keep the return from rent coming in – the market will not return to what it was 3 years ago very fast.
With a forecast 8 rate increases from the RBA within the next 2 years, I’d expect to see some properties needing fast sales prior to foreclosure as people who have spent more than they can afford as interest rates go up. There will be some bargains to be found, but there will also be the steady growth in most areas where conscientious buyers have bought within their means.