Is it the right time to sell property in Brisbane? (June 2021)
Compared to the Sydney and Melbourne real estate markets, the property market in Brisbane has always been a little more sedate.
If you have to characterise it, you might say it is “slow and steady”. For example, according to CoreLogic, overall home prices rose 1.1% for the 3 months to December 2020, or 0.4% per month, lagging slightly behind other markets in the post-pandemic recovery phase.
But it’s this inherent relative stability and, of course, the attractions of the Queensland lifestyle which appeal to many.
Drivers of the market
Obviously, there are a variety of factors which contribute to the movement of property values in the market, two of the most important of which being demand and supply:
On the demand side, Brisbane’s population is growing faster than the 10-year average, at about 23,000 new residents per year.
And on the supply side, it is estimated that there is a need to build about 8,825 new homes to meet this demand.
Add into these basics the low interest rate environment (and hence the low cost of servicing a mortgage) plus government support such as the mortgage repayment deferral scheme and support for jobs, and the housing market is awash with liquidity.
Then you have other government led economic stimuli including a variety of new infrastructure and other major projects such Queens Wharf (which includes a new casino) and Howard Smith Wharves.
The combination of the aforesaid factors all mean that the strong start to the property market in Brisbane this year is set to continue throughout 2021.
Recent analysis by BIS Oxford Economics also suggests that the market is likely to continue to rise, with prices possibly surging by as much as 20% over the next 3 years as economic growth is maintained.
Another often overlooked factor supporting the Brisbane real estate market is affordability. As a whole it is much more affordable than Sydney and Melbourne with the current price to income ratio in Brisbane at 5.3 times at a median house price of $524,000. This multiple is dramatically lower when compared to Sydney at 10.80 times income, and Melbourne at 8.40 times.
Is selling a good idea right now?
Well, unless you wish to sell to upgrade to a better home, need to sell, perhaps due to a job relocation or change in family circumstances (ie your children have gone to university and your current home is just too big), it might be worth seeing just how far this current surge in prices will go before you decide to sell your property.
Yet, at the end of the day, it’s all up to you!
