The Brisbane Property Cycle has received a lot of attention recently. Part of this is because Brisbane is just at the beginning of its growth cycle. The Real Estate Institute of Queensland (REIQ) Housing Market Review for the June quarter has depicted a blossoming Queensland property market powered by strong growth in the states capital, Brisbane.
Here is an article found on PropertyObserver.com.au showing John McGrath’s opinion on the Brisbane property cycle
Given Melbourne and Sydney’s strong growth, John McGrath says that it may be wise to turn attention elsewhere – specifically, Brisbane and South-East Queensland, where he expects to see the best capital growth of all the major cities over the next three years.
He suggests that it will be a fantastic opportunity for southern state-based investors, downsizers and seachanging families.
Upgraders are driving most markets in Queensland, with increasing interest from Melbourne and Sydney investors chasing better yields and value,” he noted in his most recent McGrath report.
“Last year, the sub-$1 million was the standout sector, this year it has extended to sub-$1.5 million. The $500,000 to $700,000 bracket is very strong, with lots of families selling to upgrade to $1 million plus properties and lots of buyers ready to compete for their homes.”
The Brisbane Property Cycle is just at the beginning of its growth period.
This is shown by the following seven factors:
- More local and out of area investors
- More families upgrading while value remains
- First home buyers looking to get out of the rental cycle
- Returning developers
- Number of sales goes up
- Days on market goes down
- More buyers attending opens and registering to bid at auctions
“All of this is happening in Brisbane right now and it’s finally starting to have an impact,” he said, noting that as Sydney and Melbourne’s growth slow down, we can expect Brisbane’s to ramp up.
The inner ring markets, that is five to six kilometres from the CBD, were noted as being in “strong demand” followed by the middle ring, 10 kilometres out.
“We are starting to see that classic ripple effect as more people expand their search to the middle ring where they can get bigger blocks at slightly better prices yet still with easy access to the CBD,” he said.
“More buyer’s agents are setting up in Brisbane – indicative of increasing demand from interstate clients.”
Larger infrastructure projects, including hospitals, are also likely to drive growth over the next few years.