Brisbane Property Market Insights
Brisbane Property Market Insights March 2022 from Brisbane Buyers Agent Alistair Kelsall. Brisbane is changing right now from a sellers market to a buyers market. This Brisbane Property Market Insight contains revelations about the current market conditions. Brisbane Property Market Insights March 2022 from Brisbane Buyers Agent Alistair Kelsall. Brisbane is changing right now from a sellers market to a buyers market. This Brisbane Property Market Insight contains revelations about the current market conditions. This report is not based on facts or figures as those figures reflect can only ever show historical information based on results and market activities that have already transpired in the market place. My Brisbane Property Market Insights are based on actual market place observations from myself Alistair Kelsall a Brisbane Buyers Agent.
The month of March 2022 has seen a significant slow down in the Brisbane Property market, there are far fewer people attending open homes and there is far less urgency on submitting offers on properties and whilst real estate agents are still talking the market up as very busy still, the evidence is not there to support these claims and there is clearly fewer buyers right now than there were a month ago.
If we understand the market drivers, any factor that increases local housing market pressure will therefore see an increase in property prices. Take the pressure away and we see property prices go back to normal.
Brisbane Property Market Phase
The current Brisbane Property Market Phase and changed from a Sellers Market to a Buyers Market.
What Has Been Driving Brisbane Property Prices Up
The number 1 factor that has been driving property prices in Brisbane is Demand. Increase in Demand places pressure on the local housing market stock which therefore leads t0 increases in sales prices. Reduce the market pressure and the exact opposite occurs and we see property prices maintain their current values.
I have attended open homes in the last few months where there were up to 40 groups of people interested in purchasing the home. Many of these buyers have been looking for a long time and had placed offers on homes only to be told they were outbid. This then leads these potential buyers placing higher than normal offers on properties in the attempt to outbid the competition and it is this factor that has been driving property prices up in brisbane.
Current Brisbane Property Market Observations
There is definitely fewer buyers and less urgency in the Brisbane Property market right now. The reduces market pressure which will keep the prices at a normal level.
Normal market conditions for Brisbane are based on immigration, families migrating from other parts of Australia to live here in Brisbane. This has been the historical driver for property growth for many years now and is one the of the mains reasons why Brisbane is such a good city to invest in. We will not see a decline in the numbers of people relocating to Brisbane and this factor will continue to drive the Brisbane Property market at it’s normal state of a minimum 4% capital growth per annum year in year out.
Where we should see strong growth is in the rental returns. Rents are rising and some estimates put rental increase up by 15% this year.
Factors Affecting the Brisbane Property Market
In a normal world our decision to invest would be driven by one major factor affecting Australia. For example, after 20 years of working in the property and finance fields, I have come to know that the market will always slow in and election period. But this is not a normal world right now and we are under the influence of not just one major factor but 5. These factors effecting the Brisbane Property market right now are elections, inflation, potential interest rake hikes, disease and war. A set of factors we have never experienced before.
So these are factors that effect the investment drivers in people and result in a state of wait and hold until they feel confident about the future.
What Does This Mean for the Brisbane Property Market
It’s rare to have so many factors affecting the Brisbane Property market and all of them slow down the market place as people choose to be safe and adopt a wait and see what happens. It’s the reduction on the local housing market which will keep housing prices steady until after the election and any interest rate movement.
Tips on Financing an Investment Property
It is always best practise to fix your investment property loan. The simple explanation is any increase in interest rates results in an increase in your loan repayments but does not increase the rental return of the property. So if you fix your loan, it makes it very easy to budget, you know exactly what your loan repayments are for a given period of time and to you know exactly what your rental income is.
Another recommendation is to set the loan for Interest Only Repayments for as long a period as you can. The reasoning behind this structure is to maintain the tax deductible debt, which is good debt, whilst paying off the loan on the home you live in first.
Brisbane Property Market Insights Means
What does this mean for a potential investor. Now is the time to buy, property prices in Brisbane are not going to go backwards. Immigration will ensure the Brisbane Property market is always very stable and out prices have not achieved the high amounts of Sydney & Melbourne, so Brisbane is still very affordable and offers good returns on your investment. But when demand drops, so does the pressure on the local housing market and that leads to steady property prices in comparison to the period we have just seen where there were over 40 people at an open home all trying to lodge an offer that was higher than everyone else’s. The only properties I have been purchasing during this period are Off Market properties from my local agents.
Real Life Example of Current Market Conditions
I attended an open home this morning for a property that was within 9 kilometres of the Brisbane CBD in a very good suburb. This property has immense development potential as it sits on 2048 m2 of land and can be split into 4 blocks. In normal market conditions, I would expect to see at least 30 people at the open home, there was just 1. That clearly shows the current market conditions as I have stated in the above Brisbane Property market insight are true and market activity has dropped significantly.
Now is the time to Buy
If you understand the factors that drive the Brisbane Property Market then you can take advantage of the current market conditions by choosing to invest when market demand is lower. You will pay the right amount for a property rather than having to compete with other potential buyers. This is simply logical sense. Now is the Time to Buy.