Spring Market Update 2017
The most common question we hear – whether it be from a buyer or around the weekend BBQ – is “what is happening in the market in Brisbane?”.
If you prefer an investment that behaves like a ‘bucking bronco’ then Brisbane may not be the place for you.
I like to think of Brisbane as the Clydesdale of the Australian property market. We have a consistent, reliable and stable housing market. Since 2003 we haven’t had any extreme ups or downs. Not overly exciting, but if you like your hair to stay the same colour, rather than going grey, then Brisbane is one of the most steady property markets you can look at. Couple that with a country that has one of the most stable economies in the world – 25 years without a recession. Now that is something we should celebrate!
The median house price in the Brisbane Local Government Area (LGA) to 30 June 2017 was $655,000, up from $632,000 in June 2016. This represents a 5 year cumulative growth of 29.7%.
Teneriffe is our only $2 million suburb with 146.9% growth over 5 years. Now if you think you can jump on this band wagon, there were only 400 houses in Teneriffe and a tiny 5 sales in the June quarter. Most of the sales in the past 4 years have been off-market so don’t wait for these to arrive in your Inbox, you have to work incredibly hard to get access to them.
There are more than 15 suburbs with a median over $1 million.
Let’s break down the big 6 economic factors currently influencing the Brisbane property market:
Economy: Australia has not fallen into recession in 25 years.
Supply vs Demand: Brisbane is very balanced with a good supply of quality freehold houses and buyer demand.
Population growth: OK but not great. We are just starting to see the greenshoots of interstate migration off the back of high property prices in Sydney and Melbourne.
Employment: This is the main issue for significant property price growth in Brisbane. Expats want to come home and interstate migrants want to move here, but they are not able to find many high paying corporate jobs in Brisbane.
Interest rates: Remain low across the country.
Regulation / Legislation: Australia has a sound banking system and a strong legislative framework.
Our observation is that the supply and demand equation is quite balanced in the Brisbane house market. It is the primary reason that we have a steadily growing market but a market that is not racing ahead.
We believe that the X Factor for the future of the Brisbane property market is to attract more national and multinational companies to locate their headquarters in Brisbane, which will in turn provide an array of employment opportunities. The Queensland State Government is the key to this solution and must come up with policies that will drive significant business investment in the state.
Meighan Hetherington, Director
More articles from the Spring Update:
Expats on the move: Aussies flocking back to Brisbane with Diana Edwards
Luke and Alissa talk about moving back to Brisbane and searching for a new home with Nathan Wunsch
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