When is the right time to buy in Brisbane?

You might have noticed that things are heating up in the Brisbane property market. We have been commenting for some time that the conditions are right for the Brisbane property market to finally break out of its current dull drums. Here, we’ve bought together all the reasons why we believe that the Brisbane market is looking up.

Last week we reviewed the JLL Advisory article on the Brisbane market which looked at the underlying supply and demand factors of the Brisbane market, and it was very positive. The overall market conditions across the country are also a significant factor in our predictions for the Brisbane market growth. The Australian Prudential Regulation Authority (APRA) relaxation of credit lending restrictions has been a big factor is bringing life back to the property market across the country. Coupled with historically low interest rates and some subtle, but important, changes to how financial institutions use credit scores (the ‘Comprehensive Credit Reporting System’ basically now provides more overall information to lenders, including positive/supportive data) has all resulted in better lending conditions letting a range of buyers get back into the market. The new First Home Loan Deposit Scheme set to begin in January 2020 and is also set to strengthen the overall market further.

What is the 2020 outlook for Brisbane?

Respected market commentators are predicting that the Brisbane property market is set to have its apartment market grow roughly 5% in 2020. This is due to a number of reasons, although primarily — according to recent CoreLogic and Moody’s reports — down to apartment and housing approvals in the moving from oversupply to a slight undersupply for the first time since 2013.

These supply and demand factors will lead to apartment values further increasing from 2020 onwards. Interestingly, predictions have apartment prices expected to perform better than house prices over the medium term. Growth will be further driven by positive interstate migration and improving affordability factors as well.

^ % change year ago.
^% change year ago. From CoreLogic

The Corelogic house and apartment forecasts above are great reading for owners of apartments in the Brisbane market in particular. The Brisbane inner city, which has suffered significantly over the past 5 years due to over supply issues, is particularly strong with forecast 5.7% and then 5.6% growth in 2020 and 2021.

As a whole, Brisbane is expected to perform strongly, offering exciting opportunities for buyers. A further particularly pleasing figure for Brisbane buyers is the current rental vacancy rates. As we have previously reported, Brisbane rental vacancies are at their lowest point in recent years. As rental availability tightens, rental rates increase which then pushes returns up prices. This price growth is also supported with the overall state of the Brisbane market in general. According to respected valuers Herron Todd White, Brisbane is currently at the bottom of the property clock currently, a further strong indication that strong price growth should be ahead.

Brisbane Inner City Market Status

The Brisbane inner city is currently going through an amazing renaissance which is set to transform Brisbane into a truly international city. A whole host of major infrastructure projects are underway which will make the Brisbane inner city an increasingly exciting place to live, or to invest. The Queens Wharf Project, Brisbane Live, the Cross River Rail, new international cruise terminal, the new Howard Smith Wharves and the 2nd Brisbane Airport runaway are all going to give the entire city a huge boost, but Brisbane inner city the biggest boost of all. You can read more about the huge infrastructure boom that Brisbane is about to receive here.

Queens Wharf
Queens Wharf

When is the right time to buy?

Experience property investors know that buying property is a medium to long term investment. Chasing the property cycle can be a dangerous and unforgiving past time. Having said that, we can all look at underlying factors to create an informed decision on where a market is at and then create an opinion on whether that market is set to move up or down. As we have identified above, we are firmly of the opinion that the Brisbane market is ready for a solid upswing. But when is the right time to buy? Do you buy now or do you wait for 6 month, or even a year?

If you follow the HTW Property Clock, we are at the bottom of the market. If you believe in the old adage ‘buy low, sell high’, then perhaps now is the time to buy. With an off-the-plan apartment purchase often taking months and even over a year to settle, it represents an easy way to get into the market now and benefit from price rises even whilst you can wait for settlement in the future.

(render provided by BriStar)
West End, a Brisbane inner city suburb is set for good growth (Project image of Atlas in South Brisbane)

If you’re looking to move now or in the coming months, then all of this has been good news for you. A project worth considering is Atlas South Brisbane, which sits on the opposite side of the Brisbane River to the quickly growing areas mentioned above (like Queen’s Wharf). With Southbank, the Brisbane Convention Centre and every type of public transport within walking distance (CityCats included), Atlas is ideal for those who want to be close to the action in Brisbane. The one and two-bedroom apartments in Stage Two are now all complete, meaning buyers can move in as soon as they are ready to. Click the button below to learn more.

Written: 13 November 2019, Updated: 6 April 2020

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