Here’s some good news: Brisbane is expected to overtake Sydney and Melbourne as the hottest area for property buyers in 2015.
While the big southern centres are predicted to see a bit of a slowdown, Brisbane’s growth is expected to increase by 4-5% while still remaining affordable – especially compared to Sydney and Melbourne, whose median prices are much higher (up to 70%!) across the board.
Low interest rates and land prices coupled with healthy interstate migration and a relative glut of inner-city highrises means the property market in Brisbane is suited to buyers and investors at all levels – particularly in the middle to upper categories.
Click through to find out more about why 2015 will be the year for buying property in Brisbane.
If you’ve had your eye on property figures lately, you’ll have noticed that Brisbane had a pretty good 2014. The good news for Brisbane is that this trend is expected to continue well into 2015 and beyond, with Brisbane set to outperform Sydney and Melbourne in coming years.
While the southern capitals have traditionally led the charge in property prices and growth, the boom is predicted to slow down in 2015 – but not so for Brisbane.
Here’s a quick rundown on why 2015 will be the year to buy property in Brisbane.
Sellers are selling
After slow growth in the years following the GFC, property owners and investors in Brisbane had been reluctant to sell. This makes sense – they were waiting for their properties to appreciate in value before letting them go.
But this healthier environment for sellers (a recorded growth in sales of 5-7%) also means a healthier environment for buyers. Because there are more properties available, buyers have more choice than in recent years.
So why should you be looking at buying simply because there are more properties out there?
Interest rates are low
Since the latest Federal Budget update, things have changed. Interest rates, rather than going up as expected, are now pegged to stay low for a little while, which means first-time buyers and investors now have access to better borrowing options.
In simple terms, it’s best to strike while the iron is hot. Securing a decent rate on a mortgage is easier now than it has been for years, and this isn’t expected to last indefinitely, so if you’ve been thinking about getting onto the ladder or expanding your portfolio, now is the time.
Prices are still much friendlier than Sydney and Melbourne
Inner-ring suburbs within about a 10-15km radius of the Brisbane CBD are the place to look, with median house and units still sitting between 30-70% less than down south.
This is good news for first-time buyers and investors alike, as lower entry points mean lower investment and lower risk. Experts nationwide are predicting that this affordability plus the forecast growth in prices are what will make Brisbane the hottest item in the coming years.
CBD highrises are helping
There’s no shortage of cranes on the Brisbane skyline. Highrises and high-end riverside apartments continue to multiply, creating a focus for the luxury end of the market and keeping prices in the suburbs affordable.
Those looking for family homes (whether houses or units) are still looking in the surrounding suburbs, but even with a limited number of plots available, they aren’t getting priced out of the suburbs. This is a plus if you’re looking to buy, as demand is always going to grow outwards from the city.
Tell me more!
It’s no secret that Sydney and Melbourne are too hot to handle. Yes, they have seen outlandish growth in the last few years, but this isn’t a long-term pattern.
The experts are putting their confidence in Brisbane being the leader in 2015 and possibly beyond, and we all know that the property market is about confidence. So seize the moment and start doing your research, because we also know that windows of opportunity don’t come by all that often.
Make sure you talk to your lender about interest rates, do your research on inner-ring suburbs, and give Madeleine a call on (07) 3355 6845 if you have any questions about this article!