This Blog is designed to provide information about buying or renting apartments in Brisbane, Australia.
Friday, May 1, 2009
29 April 2009
"First home buyers continue to drive the property market, for the time being at least, while tenants wait for the investors to return and increase supply. We wrote earlier this year about a potential first-home buyers’ bubble.... There is now little doubt that such a bubble exists. Brokers, banks, valuers and agents cannot keep up with demand. ...prices for stock under $500,000 have risen by over 10% (and often more) since the introduction of the boost late last year. Assuming the boost is canned come budget time, we believe that there will be a short-term negative impact on the market, but one that will only really be a bump in the road. The reality is that low interest rates and rising rents will continue to make first home buyers want to enter the market and this, combined with high rental yields, will eventually entice investors back. This is supported by a record low vacancy rates in rental properties. If the boost is extended, we should see investors come back to the market quickly as they cannot afford to sit on their hands and watch the market move away from them. This will promote strong competition in the market place and drive values as we make our way through 2009."