Friday, January 16, 2009

Market Wrap

Market Wrap from Residex

"Saying we have passed the worst is a brave call in an environment where the world economy is in such a poor state. The risks that remain for us are that unemployment increases significantly and immigration is slowed as a consequence of government reacting to the higher level of unemployment. The balance to this is the lower interest rates which will reduce defaults while people continue to hold down a job."

"As a blanket rule you should stay out of the Gold Coast market, Western Australia and Brisbane units unless you are very well researched. These markets will be ripe for the picking late in 2009 when we should have passed their bottom but currently they look as if the risks are too high and the bargains will not yet be presenting sufficiently. Sellers will still be holding unrealistic expectations."

Reports 7.06% growth in Brisbane apartment prices in 2008, and 10% rent growth for same period. Sales volume drops from 16,000 to 12,370 Brisbane apartment sales (comparing 2007 and 2008 years).

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