Realestate has released the most sought after streets in Brisbane, with property experts confirming it’s time to buy – East Brisbane streets can be accessed immediately after clicking on the property search site. The total value of residential property in Australia is more than double that of listed securities. Sydney and Melbourne are rising every year until March 2020, but the fall in prices in Brisbane and Adelaide is expected to be less severe. In Melbourne and Perth, the model predicts only 0.5 per cent and 1.2 per cent increases respectively.
This means that Queensland’s property market is likely to suffer, but it is not as bad as Melbourne’s, unlike regional Queensland, which is on several pillars and has suffered from the collapse of its property market. Brisbane is not one of those property markets, however, so be careful when looking at postcode values. While townhouses, villas and single-family homes should hold up well and most Melbourne residents will still have jobs and not sell because of the Corona virus, some of Brisbane’s more expensive properties, such as high-end apartments, will suffer. Queensland property markets: Queensland property market: Regional Queensland is the country most affected by Queensland’s property market, with the Brisbane property market suffering under several pillars.
The long-term outlook will reflect the steady upward trend that markets in Melbourne and Sydney have experienced in these conditions over the past decade. Australia’s housing markets are stable, but are unlikely to fall in the long term, owing to high unemployment and low interest rates in Australia.
Let’s take a look at some data and real-time observations to summarise what has happened in the Brisbane property market over the past 12 months, as you can see from the property chart below. The Sydney and Melbourne home price indices have risen significantly since the previous 12 months, but as we read before we finish, Brisbane home prices have fallen by just over 5-10 per cent. In Sydney, this is the first time in more than a decade that this has happened in a single year and the second time this year. If you believe the future of Brisbane’s property market is developing, don’t forget that you will be looking for smart investments from today.
This is because Perth’s property market is more exposed to stock price volatility and average household debt relative to home value is higher. In other words, stock market volatility will cause investors to view real estate as an alternative safe investment vehicle to support Australia’s 7 million homeowners. The stability of Brisbane’s property market is becoming a threat to the type of investors who are being driven out of their homes and have to invest in riskier investments such as equities.
Markets in Sydney, Melbourne and Brisbane have all experienced modest falls in recent years and have recovered as they have experienced high volatility in stock markets and high household debt. Brisbane experienced a property boom before the outbreak but has since recovered to pre-outbreak levels.
Brisbane property prices are now 55 per cent higher than in Sydney, while household incomes are only about 12 per cent lower, underpinning the value of Brisbane properties. Brisbane’s house price is now 55 per cent higher than Sydney’s, while household income is only 12 per cent lower, propping up Melbourne and Sydney’s housing markets and high household debt.
Brisbane’s rental market is recovering, although there are still risks to the market across the city. Cohen Handler is a real estate professional who can help you make the right decision for your home, business or investment in the Brisbane housing market. If you are looking for a Queensland buyer’s lawyer who will be your eye and ear, or just want to learn more about Brisbane’s fast, mobile and high-risk property market, look no further than Cohen’s Brisbane Real Estate Advice.
For as long as I can remember, REIQ has been the source of news, training and information specifically related to the QLD property market. While real estate investment has fluctuated over the years due to various downturns, the overall trend has always been toward high allocation of real estate. We’ve seen that trend reversed for some reason, but Melbourne properties are holding up and are very resilient.
This trend is also evident in the Brisbane property market, particularly in the housing sector. It seems Brisbane will see a boom in investment that competes with that of offshore investors who have flocked to the city from Sydney and Melbourne over the past decade. Recent analysis by BIS and Oxford Economics also supports the potential for a rising Brisbane property market.
Property commentators, including AMP chief economist Shane Oliver, have said house prices could fall by 20 per cent across Australia, and other banks such as CBA have agreed that a 5-7 per cent fall in Brisbane is possible in the short term. On the other hand, Queensland’s economic and property market should benefit from more local travel by Australians if the travel ban is lifted, although it is likely that overseas travel will continue to be restricted. Property analysts at BIS and Oxford Economics and the Australian Bureau of Statistics say Brisbane house prices could rise by up to 20 per cent over the next five years as economic growth and affordability become factors holding back Sydney and Melbourne.