Thursday, November 25, 2010

Why Are Colliers Optimistic?

In The Australian this week, a story about the Colliers Real Estate Agents Brisbane Apartment Report:

"Its Brisbane apartment report for the September quarter found a 56 per cent surge in the number of inner-ring unit sales, compared with the September quarter last year, for the area within a 5km radius from the central business district.

"Broadly speaking, the Brisbane apartment market is in a similar position in the property cycle as it was more than a decade ago," Colliers International Brisbane-based research analyst Lachlan Walker said. At that stage, "the market was looking more positive and just a few years from a major property boom".

The resounding theme was that the Brisbane apartment market had made strong progress in recovering from the effects of the global financial crisis."

Source: The Australian

Now my personal view: You have to take what Colliers says with a grain of salt. They are real estate agents, who are hired by developers and apartment owners to sell apartments. Of course they would sprout a positive outlook. The Brisbane inner city apartment market at the moment is not strong. Comparing this year to last year (which wasn't a great year) doesn't really say much. There has been little to no capital growth in recent times, and probably a decease in value. At present, there are more sellers than buyers; prices are not rising; it is uncertain what the rental market will be like in 2011, particularly if students do not come to Brisbane. The smart money is waiting on the sidelines -- buying an existing apartment in six months time (when prices will not be more, and will likely be less) looks like a good thing to do.

No comments: