Saturday, February 1, 2014

Low Growth Conditions for Property?

The Brisbane property market is somewhat uncertain at present.  There are fewer apartments on the market, with most property owners deciding to hold on to their property.  Low interest rates are good for investors.   Many of the apartments that are for sale have been for sale for a long time at an unrealistic price.  Price growth has not been magnificent in Brisbane.  And rent grown has been poor.  Currently, there is a higher vacancy rate for apartments (particularly furnished apartments).

The AFR on Thursday (30/01/14, p.3) states:

"Sydney and Melbourne house price growth is likely to slow to half the pace of last year, a leading property researcher says.  ...  But a weaker economic forecast, a lower Australian dollar, combined with rising unemployment and inflation are likely to keep a tight rein on further gains during the year."

But on the same day, Property Observer included the following:

While Melbourne and Sydney slow, Brisbane is tipped to bang.

“The Brisbane market is still in catch-up mode, but the Queensland economy is ramping up with regional centres recording growth. There will be an increase in job seekers in Queensland too, as they shift from Melbourne and Sydney where the jobless rate is higher,” Wilson says.  “Investors will be more interested in Brisbane real estate because of its potential for high yields and prospects of high capital growth.”

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