Herron Todd White have released their monthly property clock update, and it is great news for the Brisbane market! It is now officially at “bottom of the market”.
How can that be good news did I hear you ask? If you are a buyer of property this means this is the ideal time to start looking. Property is such an inefficient asset class to trade in as entry and exit fee’s are high, so you must always look at a property investment as a medium to long term investment. Having said that if you can “buy low and sell high” why wouldn’t you!
In the above property clock, you can see that Brisbane is sitting at the ‘Bottom of Market’. Whilst this seems like an inherently bad thing — after all, Brisbane has now clearly missed out on the huge boom that Melbourne and Sydney enjoyed in the past decade, prices for houses, be they townhouses, singles in large developments, or otherwise, are now the cheapest they’ll be for quite some time, as the market is expected to begin bouncing back soon.
The apartment market in Brisbane is in the same spot as the housing market according to HTW, however the industry has been particularly hard-hit by recent news of projects going bankrupt or being devalued due to the markets stagnation. Overall we consider the Queensland apartment market can be separated into an owner-occupier marketplace and an investment marketplace. The two are travelling very differently at present, with solid demand for quality owner occupier apartments leading to strong sales results in project such as 443 Queen, whilst investment oriented projects are finding sales hard to come by. Quite simply international investors have been scared away due to new taxes and an unfortunate perception that they they are not welcome, and domestic investors have been slow to come back to the market after the relaxation of lending criteria by APRA and the Banks.
The take-away from all of this is that buying now in the Brisbane market offers excellent value at present. As the HTW property clock indicates the cycle timing is right to buy, and there are also potentially very good buying opportunities with Developers at present
If you decide to jump in, ensure you read our guide on what to look for when buying off-the-plan, and make sure you safe-guard any deposits you put down by ensuring that they are held in a trust account until settlement.