Properties in Brisbane


Properties in Brisbane
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In Brisbane, the property market is now at its most buoyant, with demand outweighing supply. Historically, there has been a shortage of properties in Brisbane that suits the needs of tenants and satisfies landlords. On top of this, the Brisbane apartment market has been plagued by high property values, making it hard for potential buyers to get into the market and stay within their budget. This article will focus on some of the factors that contribute to these issues in more depth below. Property prices in Brisbane have risen steadily over recent years fueled by a strong economy and employment rates and low-interest rates which have increased purchases led by first home buyers (FHBs).

1. What are the causes of higher property prices in Brisbane?

The main cause of the Brisbane property market being hotter than the national average is the high demand. Although housing affordability has increased, which is an indicator of a healthy market, it is still more expensive as compared to other capital cities around Australia with rental yields currently sitting at 7%. This is a frequently mentioned issue by many people who are looking for a move to Brisbane. The main investors that play a role in driving up prices are foreign buyers and FHBs. The majority of them have been from China and New Zealand who have invested in properties over the past few years and have witnessed the rising value of their investments.

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2. What are the consequences of this?

The consequences of this trend are many, especially for first home buyers (FHBs) who cannot afford to purchase a home on the current market. FHBs typically make up a considerable proportion of buyers in an active real estate market. The Brisbane market has been particularly fierce in trying to convince them to stay and buy due to their strong demands. This has resulted in low sales and vacancy rates increasing significantly since May 2014 where there were only 726 homes available for sale at the time, however, more homes were on the way as they generally take up to 12 months to be completed. As of May 2017, there are now 1,398 homes for sale which has drastically reduced the competition in the market.

3. What is causing a rise in foreign buying?

There have been many reasons that contributed to making Brisbane attractive to foreign investors who have been encouraged by its strong rental yield which is currently at 7% and the lack of supply in comparison to other competing cities around Australia. There are many factors that make Brisbane particularly attractive such as its low vacancy rate, good job market potential, strong economy, and climate among others. That being said, there has also been a general increase in foreign investment across most Australian capital cities due to Asian investors who have put a lot of their money into global real estate. They look for good returns and still see Brisbane as a good market in Australia to invest in as property prices are rising.

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4. What are some of the potential causes that could reduce these effects?

The main potential cause that could affect these properties comes from the increase in the cost of construction and the major supply issues they currently have in connection to the need to bring them up to code which is another added cost and has resulted in escalating construction costs. The main reason why Brisbane property values have been increasing is because of this demand, however, there is also a limited supply of homes and this might be one of the main factors that could potentially slow down this demand.


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sanket goyal

Sanket has been in digital marketing for 8 years. He has worked with various MNCs and brands, helping them grow their online presence.