The property market in Australia has seen many changes in the first few months of this year. The Reserve Bank of Australia (RBA) has cut the cash rate down even lower to 0.50%, a historic low. We’ve seen dwelling values in Sydney and Melbourne reach and go beyond their last peaks after nine months of growth.
How have prices moved in Brisbane recently?
Though Brisbane hasn’t seen as much growth as the nation’s two big capitals, there has been moderate price increases. According to CoreLogic, in February, houses values went up by +0.6% and units went up by +0.3%. This works out to be an overall +0.6% increase in dwelling values for the month and +1.7% for the quarter. The median dwelling value now sits at $503,265, a record high for the market.
In terms of rental yields in Brisbane, they have gone down, potentially due to the recent increases in dwelling values or due to seasonal factors. In February, rental yields moved from 4.6% to 4.5%. Despite the increase, these values are still strong and many areas in Brisbane are worth considering for investment.
What’s expected for Brisbane’s future?
Predictions for Brisbane’s property market have varied. However, there seems to be a general consensus that at the very least, dwelling values will continue to have moderate growth for the rest of the year. BIS Oxford Economics analysts are expecting bigger price jumps from 2021 to 2022.
Moody’s Analysts expect house prices to grow by +1.9% and unit prices to grow by +5.8% this year. Though we might be on track for the house price growth, units haven’t performed too well so far. Trent Wiltshire from Domain is estimating that houses will grow +3-5% and units will grow +0-2%.
What metrics to look at before buying or selling
If you’re hoping to sell and/or buy property in the near future, you might be looking for the right signs and signals. You can get a free property report online for your suburb that will give you information such as how much your property is valued, recent sales nearby, suburb trends and average days on market.
Those looking to sell would be hoping for strong demand and low supply in your area. Combined with property prices trending upwards and a low average days on market, it’s generally a good sign to sell. Remember that speaking to local real estate agents is always helpful to give you a better understanding of your local market.
On the flip side, those looking to buy would have more bargaining power in areas that are low in demand and have high supply. Prices would generally by trending downwards, however, of course, you might not want to be living in a low demand area. Suburbs that have historically performed well will likely continue to do so in the future.
Ultimately, there are many different factors to consider depending on the reason behind your desire to sell or buy. Make sure to consider all the metrics that could affect your decision. On top of looking at property reports and speaking to local real estate agents, you can also keep up-to-date with real estate news and blogs.
Guest author: Ellen Orton is the Head of Business Operations at OpenAgent.com.au, an online agent comparison website helping Australians to sell, buy and own property.