Property Clocks are always an interesting way to look at the property markets. They are an easy way to understand where a particular commentator or statistician thinks the various property markets are at. HTW, one of Australia’s largest property valuation firms, publish a property clock which we regularly keep an eye on. We don’t always agree with them, but we always think it is worthwhile taking their perspective into consideration.
So below we have included the May 2019 Property Clocks for Houses and Units.
We would certainly agree that the Brisbane market is generally at the bottom of the cycle. Sales are being made, particularly for properties that suit owner-occupiers, and in general, the market has been quite resilient even with all of the negative press affecting the Sydney and Melbourne markets.
HTW have the Gold Coast as a declining market which we don’t necessarily agree with. Consistent with the Brisbane market, quality owner-occupier properties are still selling, certainly not at the speed Sydney and Melbourne experienced in their recent booms, but they are selling and we expect this to continue. The key point to understand when comparing the South East Queensland markets to Sydney and Melbourne is that the SEQ market has not experienced the extraordinary boom that the southern markets did. With a large boom inevitably there comes a large bust, and quite simply the Gold Coast, Brisbane and the Sunshine Coast did not experience the boom — so we should not be expecting a bust. Even though we disagree with HTW when it comes to the current state of the Gold Coast market, we must remember that any decline the Gold Coast would experience if they are correct would be insignificant to those that Sydney and Melbourne have been experiencing for the reasons outlined above.
As we have been saying for some time the Brisbane market continues to look prime for sustained price appreciation, as HTW also indicate with Brisbane being at the bottom of the property clock. With the current national economic client will Brisbane property get the appreciation that is due? Perhaps…