HTW October Property Clock: Is now the right time to buy?

With the Herron Todd White Property Clock now released for October, it’s time to see what the property market is doing in both Queensland and the Australian Capital Territory. By looking at both the housing and apartment markets, we’ve got the data to help you figure out if now is the right time to buy or if you should wait a little while.

All in all, it is a great time to be an investor in Brisbane. The market is beginning to recover, and this means that investors are able to buy low and use the strong rental market to ensure that they are paying off their mortgage. As highlighted in the Herron Todd White report for the city, some areas are experiencing incredibly high yields, from between 5 to 10%! As experienced investors will know these high returns can not last medium term. As rents are highly unlikely to go down, this should means price appreciation in the immediate future.

Houses

HTW October Property Clock 2019 Houses
HTW October Property Clock 2019: Houses

As is evident on the HTW Property Clock for houses, Queensland and the ACT are at very different stages. This is not a bad thing though, as it just means that the markets are more attractive to different types of buyers — for example, investors and first home buyers are best off looking at Brisbane, as the recovering market makes for (slightly) lower house prices than normal. Professionals might find Canberra or the Sunshine Coast most attractive right now due to the fact that the city sits at the top of the market at the moment. Downsizers might check out the Gold Coast, because as it approaches the bottom of the market they can look for the projects where they want to downsize to in the coming years, after it has rebounded.

Apartments

HTW October Property Clock 2019 Units
HTW October Property Clock 2019: Units

If you’re looking to buy an apartment, the above Property Clock may look discouraging — after all, Brisbane, the Gold Coast and Canberra are all either in declining markets or at the bottom of the market. However, this is not terrible news for buyers (for sellers though, it’s a different story). Buying at the ‘bottom of the market’ may be a little harder if you’re looking for older apartments or houses, but it’s definitely a good time to look at new or off-the-plan projects.

As we mentioned in the above section on the house markets, yields are high right now. For investors of apartments, the same is true (although don’t expect the crazy highs of houses and townhouses: apartment yields sit at about 5-6% due to slight oversupply).

All-in-all, as we head further into spring, it is becoming clear that it is a good time to buy property in most parts of Queensland and the ACT, especially if you are an investor.

Written: 15 October 2019

avatar