Why Hasn't Brisbane BOOMED

In general I'd guess that its because the local economy hasn't really performed very well over the past 3-5 years. In all the spruiking about Brisbane in recent years on the forums, its failed to really go deep diving into its economic fundamentals.

Look at Hobart, Sydney & Melb - all economies that have been relatively buoyant in the past 5 or so years.

Perth, Brisbane, Darwin - economies that have been relatively weak in recent years, hence there hasn't really been a boom despite nominal rates falling so much inflating asset prices across most asset classes around the world.

IMO if there's a boom to the Brisbane economy over the next few years and unemployment falls down to Sydney levels, prices will rise relatively quickly. In the absence of that, you'll see prices move along without much to sing about (relatively this will be better than Sydney & Melbourne, despite their growing economies, these cities have overshot after tripling/quadrupling(?) the growth rate of Brisbane for a few years).

 

The boom is coming as the wick has been lit. It is just a slow burning wick.

 

You can't be serious about placing Hobart and a buoyant economy in the same sentence.

 

I get where your coming from, if your from Sydney, Brisbane will probably always feel like a sleepy city. Likewise, if your from NY, Sanfran, Singapore, Sydney will feel similar.

Comparing economic performance is usually relative to itself and its prior performance. Hobarts had an economic upswing thats driven its recent growth. Its had a jobs boom thats driven down its relatively high unemployment rate. Big part of its house price growth story is its stronger economy/fundamentals.

 

Where’s Hobart?

 

If you look at the podium of state capitals growth over the past 12 months, just look at the highest level on that podium and you should see Hobart looking down on everyone else.

 

Is it part of Australia?

 

Yes, I know. It has been going gang busters for so long that THEY have a bubble and it is due to pop.

 

Hardly think so, economic, population & tourism growth are all strong.
Building is yet to catch up.

 

Do you think it is a short term "hill" that will be overcome, or is it more so a permanent change in the credit environment?

 

Lots of refugees from Sydney and Melbourne heading to Brisbane/GC....you should see it tick up well within 2-3 years. The tipping point will be next late next year....

 

Not sure ?? All I know is current credit squeeze is impacting on all markets

Best to probably find out what is current stock on a particular suburb and demand, amount of days on market... volume
Markets are all about supply and demand
Real estate agents should have the answers, dont phone one agent phone many
It wont be hard to work out

 

Its depent if this soaks up supply??

 

I think even if Mexicans move up to Brisbane, some of them will choose to buy apartments (rather than houses) to live in.

There's still an oversupply of apartments in Brisbane and the demand for houses from interstate migrants in some areas of SE Qld is possibly not going to shoot the lights out. I think PPOR buyers still have a lot of choice in general.

 

Can't..they will need a visa.. Unless they jump the fence...

 

I tend to agree with this. I think notable gains in bne are a long way off. I'm quite bearish on the entire Australian property market at the moment I think Brisbane is going to be affected by the same sort of factors that Sydney Melbourne because it still over valued in relation to a lot of fundamentals it's just not going to have the sort of dropped at Sydney and Melbourne will

 

Melbourne & Sydney have a lot of greed if you ask me, affects the type of boom/bust culture seen there. People willing to put a lot more on the line in order to profit from property, always looking at quick rich capital gains rather than steady returns.

 

If you live in the southern states, it's easy to overlook that;

The CBD is quite a way from the bay, and just inland enough to miss the afternoon cool breezes that the coastal areas get, so can be quite humid and sticky in summer

Much of the bay and river is like a chocolate milkshake

There is no real beach

Many areas have a lot of sandflies through summer

I believe the gold and sunshine coasts have absorbed most of the sydbourne sellups and retirees looking to live in SEQ because of the lifestyle advantage, and pay is similar everywhere.

It's only really been we investors propelling Brisbane's CG, and now that's crippled I agree with Whitecat too

 

Off with her head, or deport to USA where Mr Trump lives.

 

Perth had a boom from 2013-14, nothing to do with economy whatsoever, it was driven by FHB market and change to government policy/ incentives
not many on PC aware of this