building and pest inspection brisbane What next for the 'Red Hot' Brisbane Property Market Everyone agrees that the Australian property market right now is red hot. With record auction clearance rates, huge demand and limited supply, there seems to be no end to increasing property sales – and values. The short-term outlook: Any sentiments that the COVID-19 epidemic would negatively affect the housing market are now well and truly banished. According to data released by CoreLogic, since the onset of the pandemic, property prices in Brisbane have increased by 15.5%. For a capital city that has a great lifestyle and economy, Brisbane still offers good value when compared to Sydney and Melbourne. Couple this stat with the so-called ‘sea changers’ fleeing lockdowns and restrictions, and it’s likely that demand and values will continue to rise throughout 2021 and into 2022. This is also why the demand from interstate property investors is high – seasoned investors are well aware that prospects for return are higher in the sunshine state, and this in itself drives demand and prices up.
In the longer-term The Reserve Bank of Australia (RBA) has consistently said that the current historic-low cash rate of just 0.10% would not fall any further. The RBA also says it plans to raise interest rates beginning 2024, and not before. This would suggest that for the foreseeable future, there is no immediate threat of mortgage repayments – or the cost of borrowing – increasing (though it is worth remembering that Australian Banks could decide to increase new mortgage rates themselves). The Olympics Having won the honour of hosting the 2032 Olympics, and the infrastructure development and other forms of government and private investment that comes with it, alongside the increased migration and population growth, the prospects for Brisbane’s economy – and long term property market – look very good indeed.
Coming to you by 2032: Brisbane's 80,000-seat stadium. Photo courtesy of Austadiums Post-Covid As early as late 2022, many economists are predicting that there will be a post-covid economic boom. Of course, this is predicated on the pandemic having been resolved or that workarounds and other measures permit a return to relative normalcy. Where and what you buy still counts: Housing vs. Units Housing is, and always has been, more popular for investors and residents alike in Brisbane. Despite record-high rental demand, units continue to lag behind and are seen as higher-risk investments compared to housing. High rise apartments and off-plan units are currently the worst-performing segment of the Brisbane market, yet have increased by 5% since Covid began. Compared to the house price value increase of 15.5%, the difference is significant. Gentrifying locations and houses within suburbs close to cities will continue to outperform outer city suburbs. Outer suburbs are set to see less property value increases as these areas are inhibited by lower-income earners that are more adversely affected by Covid changes. Final thoughts: This is just a snapshot of Brisbane and does not relate to the whole vastness that is Queensland. Not all of the region is going to be performing like southeast Queensland, and even within Brisbane, there will still be areas to avoid and better properties if you are forecasting where to invest. That being said, with continued record low-interest rates, unprecedented demand, the ever-present lifestyle benefits and an Olympics to plan for, the short and long-term future of the Brisbane property market is looking bright!
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