Brisbane Property Market Report November 2021 by Alistair Kelsall, Brisbane Buyers Agent. This Brisbane Property Market is an explanation of the changes I am seeing in the market place and the short term future of property prices.

The purpose of this Brisbane Property Market Report November 2021 is to give you an on the ground overview of the Brisbane property market and the trends and changes I am seeing

Brisbane Property Market Report November 2021

Brisbane Property Market Report November 20201 Special Note

We are generally guided by property reports from the major property market reporting and observer websites. But these reports are based on history and do not look into the future or if they do, they base their future predictions on historical data. The secret to being successful in the property market is to be able to see what is happening on the ground, take into account current media announcements or trends then use that information to make are far more accurate property market prediction and that’s what this post is all about. I have been holding off my investors telling them November will be the time and here it is and it is performing as I thought it would,

The Market is Changing

For those that have spoken to me in the last couple of months, I would have been advising you to hold off purchasing an investment property till around November this year. November is here and I am seeing changes in the marketplace that I have not seen for a number of months. These changes are as I predicted, the media would start warming the public to the idea of potential interest rate increases as well as the change to the servicing ratios lenders use to calculate your borrowing capacity. Both these changes are designed to slow the market down and there effect is being felt right now.

I last months Brisbane Property Market Report I mentioned the key property price increase in Brisbane was being driven by the high number of potential buyers attending open homes and placing offers on properties higher than the market value in order to secure themselves a home. My advice to all my investor clients was to hold off purchasing a property in that type of market. My reason behind that advice was the fact that you would be purchasing a property at the very peak of the property price cycle and I as conscientious Brisbane Buyers Agent could not justify or bring value to my clients by purchasing in that parket.

As an example of this I purchased a very good property in Fred Pham Crescent Doolandella for a client at $575,000. With 2 weeks 5 Fred Pham Cres, an inferior property sold for $606,000 and currently there is a similar property on the market for $625,000. Again inferior to the property I purchased for my client. This property has now been on the market for around a month and has not sold yet.

Normally there would have been multiple offers on this property during the first open home, such was market demand, but the market is slowing and these are the very early signs of that slow down and a price correction. This property to me is worth no more than $570,000 and if I came in and purchased that property for an investor simply to sell them a property, then I could not live with myself for starters but I would also not have 100% faith in my property market predictions.

As this property has now sat there for over a month the agents will be desperate to move it, they will have made promises to the owner that the market is very strong and they can achieve over $600K for the property yet after a month it is still there. On the weekend I will visit the property and count the number of groups visiting the property and if they are low I will put together a purchase strategy for that home at the right price.

Actual Observed Market Activity

These are 3 real properties that I have observed during the last 3 months. The first 2 properties sold immediately, the third property has now been on the market for over a month and is just about ready for me to start working with the agents to achieve a more realistic purchase price.

Golden Rules

One of my golden rules I tell all my clients which is listed in my Top Ten Tips for Property Investing is don’t listen to the media. Everyone else does and follows what they say blindly, where as if you are educated and can anticipate these moves and announcements, you can take advantage of the effect on the market and secure a property at a good price, or at least secure a property in the right part if the property price cycle.

Brisbane Property Market Report November 2021 Changes

Firstly I have never been presented with more off market properties in the last 6 months than I have in the last weeks. The agents have not needed to announce properties early to people like me when they know they would be overrun by attendees and offers from the first open home.

I am seeing a significant drop in the number of people attending open homes.

Results of These Changes

The result of these changes in the marketplace will and is leading to reduction in demand on available properties. Property prices are driven by demand and I expect to see a slight drop in prices over the coming two months as properties do not sell as fast as they have been selling. There will be a short period of time as we change phases where owners who have not sold their homes as fast as they anticipated will have to recognise the change and drop their prices.

Property Price Cycle

This is where I see the current property price cycle phase.

The Agents

Many agents do fully understand the indicators that lead up to market change. This is one of my greatest skills that I use to target both properties and suburbs within Brisbane for my investor clients. If I have told a client to hold, then there is a very good reason and being able to see future changes in the marketplace means we can take adavanagte of those changes to our benefit and pay the right price for a property.

Future Property Prices in Brisbane

Prices are going to drop by a little, not much but they will drop as there less buyers in the market who have been put off by the media hype of potential increases to both interest rates and affordability calculations. I am seeing it right now and it will continue into the near future.

The price drop will only be reflective of the recent spike in property prices due to demand.

When is the Right Time to Purchase

We are now coming in to the right time to purchase, we still have a couple of weeks to a month before agents and owners start to reduce the potential sales value they could achieve and start to accept lower offers. But now is the time to start talking to the agents.