Brisbane Real Estate market update August 2023
Read most media articles and you will be told the Brisbane property market is cooling.
I’m calling BS.
First and foremost, anyone with more than 5 minutes experience in the industry knows there is no ‘Brisbane property market’. Just as there is no Australian property market.
Yes. Prices for cookie cutter, oversupplied investor stock and low-grade properties are taking a hit. They had to. The investment fundamentals for these properties were never there but FOMO raised their attractiveness and artificially inflated their prices. But remove that rubbish from the mix and we’ve got a pretty big issue with under supply and an increasing level of demand.
At the heart of it, the Brisbane LGA is still severely undersupplied in certain locations for specific property types and demand is not abating. In my 20 plus years in the industry I’ve not seen supply so low. Remember I am talking about quality property in the Brisbane LGA.
How have we got to this point?
Years of short-term knee-jerk poor policy and amazing weather.
Yes, I jest but, in all seriousness, people have been flocking to Queensland over the past 2 and a half years, but no one is leaving.
Pre-COVID, population fluctuations were common – people would come, and people would go. One of the common reasons for departure was to seek higher paying job opportunities interstate or overseas.
But with the ability to secure well-paying corporate jobs that have work from home, or hybrid arrangements, the requirement to relocate away from the Sunshine State has disappeared.
The challenge for quality established housing supply is that no-one is selling until they can buy something else. But no-one is leaving. We now have a bottle neck of owners who won’t sell until they can buy but can’t find anything to buy until someone leaves. And no-one is leaving! And around and around it goes.
Our lead buyer’s agent, Nathan Wunsch, lined up to register for an auction on Wednesday night to bid for a local buyer. He and about 15 other bidders. A reasonable appraisal was $1.05m but it sold under the hammer for an eye watering $1.25m.
That is feet on the ground, real life experience. It certainly isn’t indicative of a softening market that is based on a wrapped up median price.
We have an undersupplied highly competitive market that is under pressure from strong population growth and poor policy over the long term.
If you are an owner, enjoy the ride. But if you are a buyer you are still facing tough times.
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