After a period of blistering growth over the last decade, Brisbane’s property market has had a significant slowdown this year.
According to RPData, along with Perth, Brisbane is the country’s weakest performing capital city with values down 2.5 per cent in the three months to the end of July.
RP Data’s research director, Tim Lawless, said that the July index results are further evidence that Australia’s housing market has experienced a controlled soft landing after a resounding recovery during the course of 2009.
“In the period between end 2008 and March 2010, Australian home values rose by 16.3%. Yet monthly growth rates have declined consistently since the start of the year. RP Data and Rismark expect to see the market track sideways over the second half of the year. There is the possibility of modest gains if mortgage rates remain in check and economic conditions continue to improve,” he said.
At the coalface, we asked some of our most experience Brisbane brokers for their observations, predictions and tips for property hunters in Brisbane.
“Agents report they have plenty of stock and not enough buyers,” he said. “Our Clients looking to sell their properties or refinance are finding lower than expected values are causing problems.”
The situation is the same in the city’s southern Bayside region, with Aussie Capalaba owner Andrew Ward reporting values have dropped around five per cent this year.
Mr Taylor said he did expect things to improve as the economy starts growing again.
“I’m expecting a pick-up,” he said. “Brisbane normally follows the southern capitals, sometimes there is a significant time lag for this to happen.”
Mr Taylor believes this lull in the market is an excellent time for bargain hunters to secure a property.
“If you are in a position to buy now I think you will pick up a bargain, it’s not a good time to sell but it is an excellent time to increase your property portfolio with some quality properties that will regain their strong values once the cycle turns again,” he said.
Alan and Andrew’s top tips for those in the market for a home:
- Do as much research as you can. Get RP data reports on any properties you are looking at and use the information to your advantage in bargaining a great deal.
- If you don’t get the property for the price you want to pay then move on there are plenty to choose from.
- Do the research and know the area you are looking at. That way when you do find that bargain you will recognise it straight away.
- Cash/preapproval talks! There are bargains to be had if there are few conditions on the contract
- See an accredited broker