September 1, 2015
Whether you’re looking to enter the real estate market or are already a seasoned home-buyer, it pays to know the trends and predictions within this often-fickle industry. Profile keeps you in the know for all things real estate.
It’s a good time to buy
Most Australians believe now is a good time to buy property, according to a CoreLogic RP Data survey. The survey shows 60 per cent of respondents agree now is a good time to buy real estate. When asked if they thought foreign buyers were making it difficult for Australians to own their home, 73 per cent say “yes”. The surveya found 48 per cent expect home prices to rise over the next six months, while 45 per cent are tipping prices to rise during the next year.
Helping first home buyers by increasing supply and ending stamp duty
Real Estate Institute of Queensland CEO Antonia Mercorella says housing affordability issues would be eased by releasing land to create a greater supply of housing stock, ending stamp duty and helping first home buyers improve financial literacy and use their own superannuation for a house deposit. Mrs Mercorella says while Queensland has not hit the critical levels of housing affordability, as seen in Sydney and Melbourne, pent-up demand will inevitably push up Queensland’s prices. ABS data found the average home loan for a first-home buyer in Queensland was $302,000 and REIQ data revealed there are 25 suburbs in greater Brisbane with a median house price below $300,000.
“60 per cent of respondents agree now is a good time to buy real estate.”
Rental sector faring better in most of the state
Regional Queensland’s rental market is starting to improve while the south-east corner such as Brisbane, the Sunshine Coast and Gold Coast are powering with healthy-to-tight market ratings. The data sources have revealed good news for investors and for the broad property sector across these areas. REIQ has revealed data showing positive results for traditional mining towns, while heading up north has also seen an improvement with vacancy levels, as local real estate agents say the market is still stabilising.
Brisbane fast becoming a hotspot for property investors
Southern property investors have been looking to Queensland, as markets such as Sydney and Melbourne are growing too expensive. With the latest BIS Shrapnel report warning both Melbourne and Sydney house prices will start to decrease in 2016-2017 as the interest rates are starting to rise, Brisbane, the Sunshine Coast and the Gold Coast are becoming more desirable for investors. The city’s median house prices are expected to grow by 13 per cent over the next four years, with apartments rising by six per cent. The Brisbane apartment market has been hot for some time and it will be the only city where apartment prices will be stronger in 2018 than present.