Brisbane Pain

Did anyone watch the finance expert on 7 discuss the implication of COVID.
She cited the following for why buyers were holding back;
- Lack of stock
- Affordability
- Fears over job security
- Lenders tightening standards

Brisbane could be in a spot of bother it seems.

 

Thanks for sharing this

I expect this will not be the only market effected for all the above reasons you mentioned

 

Brisbane is unaffordable?

 

I KNOWWW ahaha we have an issue if BNE is unaffordable lol

 

Lack of stock says people arent desperate to sell. If anything that puts a floor on prices. If a small number of properties sell at firesale prices It doesnt matter.

 

-8.6 for 2021 houses! Why are Brisbane and adelaide affected so much more than the other cities? Is unemployment worse there?

 

This "expert" might as well be picking numbers out of thin air. Nobody has any idea what 2021 is going to look like at this stage, least of all house price movements.

 

How long have you been following the market to place faith in any "expert" opinion?

Remember to do the absolute opposite of what you read/see on tv

 

Channel 7 and expert don’t fit the same sentence.

I think a lot of those numbers actually make sense, for now. Luckily property isn’t a liquid asset class.

 

Some parts of Brisbane will do poorly, others will do much better. The price decline/maintenance/rise will depend on a number of factors however the key question I ask is:

• Supply = Demand = price maintained
• Supply > Demand = price drops
• Supply < Demand = price rise

Here it mentions there is a reduction in the stock available (supply), what is the drop in demand?

 

Hi all,

It seems that all states/cities will be affected, not just Brisbane/QLD.

Does anyone have thoughts regarding specific suburbs/areas in QLD that are reasonably well priced with future growth drivers? Coomera and Upper Coomera areas were looking like good potential a few years ago, with yields around 6-8%, particularly for town houses.

If someone could share thoughts regarding future Brisbane/QLD that would be good, along with some decent suburbs worth considering. Of course, keeping in mind current COVID situation, which is the backdrop of all this.

Thanks.

 

IMHO, I think Brisbane will grow more to the Beach suburbs as COVID will/may affect the investors who come to settle, and have more choices from all areas from Sunshine Coast - Brisbane to Gold Coast .

 

I don’t foresee much if any growth along that northern corridor. Far too much supply to out weight any perceived “growth drivers”

it’s true it’s a fast “growing” area, by population and industry going in, shopping precincts etc. But there’s no scarcity and the area has been lucky to track inflation this last decade.

 

Hi iloveqld,

What are the rough median prices for the coastal/beach areas you are referring to in QLD/Bris?

Thanks.

 

Hi Codie,

Yes, agree about the fact that although it is 'growing', there is a fair bit of supply around there.
Compared to last decade, do you think it there will be better growth in next decade? Eventually demand should catch up with supply?

 

One example only but property across the street from my IP in Brissy (7 clicks from the city) sold a few days ago for $680K. I thought in this market, maybe $600, early $600s max. Nothing particularly remarkable about it either.

 

In theory yes it should, however who is that demand coming from? It’s not a hugely high income area, a large mixture of brand new builds and renters. The median house price is all ready $520K + so given there will be supply within a small radius for decades, without the incomes to support growth I think it’s an area that will continue to plod along with inflation.

 

I am not an expert. But as you can see from Sackie's post, it is a market in market situation in Brisbane, and I usually go to the target suburb a lot. Catching a new hype area is hard but it gets much better returns.

 

Hi Lacrim - out of interest, which suburb was it in Brisbane?

 

Local agent has had crickets for 2 months around Bulimba/Hawthorne/Norman park=1 sale.

Now 6 sales in the last week since a bit of news around relaxing has happened, local cafes are buzzing (at a distance of course)

Human sentiment is a funny thing. It changes so quickly once the media changes.