Brisbane Property Market News June 2021 from Alistair Kelsall, Brisbane Buyers Agent. This information is based upon what I am seeing on the ground within the Brisbane property market and the factors that I see that are having a dramatic effect on the value of properties or the price people are willing to pay for a Brisbane property.
Property values are based on supply and demand, the fewer homes available in a region will cause property values to rise. With such low interest rates, the Brisbane property market has seen a very high number of people attempting to purchase a home and it is not uncommon for an open home to attract up to 60 people for an open home viewing. This then leads to multiple offers from members of the public trying to secure the property which then leads to property value increases. We call this a seller’s market and it’s a great time to sell your home but can be a struggle to purchase a new home at a reasonable price. In some popular suburbs, I have seen properties increase in value by $10,000 per month in March and April.
If you have purchased a property through me or in Brisbane then this is great news for you as your property is now worth much more than you paid for it.
There are 2 main drivers to the Brisbane property market, local buyers looking to purchase a new home and people moving from the Southern States to Queensland to secure a lower priced home and a better lifestyle. Brisbane grew by 1.9% in the 2019 to 2020 period, the highest growth rate of any capital city. This means that there is always going to be strong demand for homes in the Brisbane region for the coming years.
Purchasing a Brisbane Property in this Market
There is only one way to purchase a property in Brisbane right now at a good price. You must purchase a property that is off-market and by that I mean it has not been advertised or made available to the public as yet. This is the only way to ensure you purchase a property without market competition from the public. An example is a property I recently purchased for a client in the suburb of Durack, just 13 kilometres south of the Brisbane CBD. It is a 4 bedroom 2 bathroom brick and tile home on 450 m2 of land. My client required an investment property for around $500K. I then sent out a notification to my list of agents and was given access to what I considered to be the most suitable property matching my client’s requirements. The owner wanted a fast sale so we inspected, researched and placed an offer on the property $20K under his asking price but with very good terms and conditions. The offer was accepted and we secured the home.
Using this method I had no other offers to compete with mine. My offer was fair with conditions that met the owner’s needs.
Off Market Purchase
This is the most successful and cost-effective method of purchasing a property in Brisbane right now and is one of the main features to seek out a Brisbane Buyers Agent who has the right contacts in the right areas to secure you an investment property at the right price.
Below is another example of an Off-Market Purchase in Brisbane. This property is in Doolandella and is the most perfect investment property anyone could ask for. I call these types of home Bread and Butter Investment Properties. They meet the most basic requirements for an investment property in Brisbane:
- 4 Bedrooms
- 2 Bathrooms
- Double Lock Up Garage
- Ceiling fans in all rooms
- Air conditioning to the main living area and master bedroom if possible.
- Land size 400m2 or greater
- Located within 20 kilometres of the Brisbane CBD.
- Cash Flow Positive
- Returns above 4.4%
The Future Outlook for the Brisbane Property Market
The future outlook for the Brisbane property market is strong and property prices will continue to rise whilst interest rates are this low. If and when the RBA decides to increase interest rates then that is the time the market will level off as that will be the time when demand starts to decrease. I do not expect to see a drop in housing prices as they are still very low when compared to the Sydney and Melbourne Marketplace.
The Brisbane Unit Market
The Brisbane unit market has not experienced the same level of price increases as the residential housing market. This is due to the high number of units available still in the inner city region. The units that are performing well are the older units further out from the Brisbane CBD. These units are experiencing slight growth in values and returns.
A fixed option mortgage for an investment property is a very good idea right now. Firstly it aids budgeting, you know exactly how much rent is coming in and you have a fixed payment amount that doesn’t change. There are fixed rates out there as low as 1.9% fixed for 4 years and I cannot imagine them going any lower. If you want to talk about your finance structure, I am a fully licensed Mortgage Broker and hold financial planning qualifications.
Best Brisbane Suburbs
Right now the best Brisbane suburbs to purchase an investment property around the $500K mark are in the South Side of Brisbane within 15 kilometres, but they must be in the right location and they must be purchased Off Market as that is where you will avoid competition from other buyers and secure a property at a good price.