Brisbane property bouncing back
Brisbane’s residential property market appears to be strengthening, with the sub-$1 million price bracket leading the way.
Leading Queensland real estate agency Place is reporting more than $80 million worth of residential property was sold in transactions negotiated by just two of their offices in October; a record month for sales.
More then 80% of sales were in the $600,000 to $1 million range, with auction clearance rates sitting at 81%.
Damien Hackett, Place CEO, said Brisbane’s residential property market was firmly on the way up, with mid-range buyers moving on more affordable properties.
“These buyers are increasingly confident in the economy and their economic circumstances – their employment is relatively secure and their salaries are stable, and this, combined with record low interest rates is propelling them into the market,” he said.
“Essentially, the strength in the market that we are witnessing in Brisbane is contrary to recent reports that suggest the recovery is only taking place in Sydney. The Brisbane market is exceptionally strong, and we expect to see it only improve from hereon in, with all the fundamentals lined up for a solid 2014.”
Time on market is also decreasing for Brisbane properties under the $1 million price bracket, with listings being snapped up faster than in the last six months.
Mr Hackett believes the Brisbane market is benefiting from pent up buyer demand that has been building since the city’s floods in 2011.
“Buyers were extremely cautious after that, and sellers were also reluctant to put their properties up for sale, fearing they would be sold under value, so across the board activity was subdued,” he said.
“That period of uncertainty is now behind us however. We have been seeing a gradual improvement in the market since it bottomed in 2011, but now it is clear that it has well and truly turned a corner.
Many see Brisbane as the next area to enjoy capital growth, and investors have a shrewd eye on the city. RP Data reports that Brisbane property values increased 2.6% over the past quarter, taking the median property price to $429,000. However values have a way to climb to reach their previous high in November 2009.