“Mate, how are you coping? I heard online that the market is getting a hiding!” This is what a mate of mine said on the weekend. A lot of people have a lot of opinions about the property market, so it’s important to know where they are speaking from and what they are talking about, if you are going to listen to them. One example is my good mate Tom Panos. He has been online and quoting about clearance rates recently. Tom supports real estate agents across the country, but he calls auctions across Sydney.
Another example is David ‘Hughesy’ Hughes. If you read an article about property prices from him, not knowing that he is in Melbourne, you’d start growing potatoes in the backyard that afternoon. Both are giving a true and accurate account of their markets. But, of the three capital cities, Melbourne and Sydney have had a much larger impact from the budget announcement and other recent events than up here in Brisbane. So let me tell you what is happening up here on the ground level.
The property market has been hit with a few challenges this year. First was the interest rate rises, then the fuel price increase but nothing has affected it more than the budget announcement (which was their intention). But what does affected mean? In the weeks after the announcement, buyers paused, meaning open house attendees dropped and clearance rates decreased by about two thirds to 30 per cent. As the budget was on the eve of school holidays, the lull was dragged out a further four weeks.
Since the return to school we have seen open house numbers increase, enquiry rise and clearance rates up to around 60 per cent. Prices are down from the high around March to a level equivalent to about mid last year. Brisbane prices are currently heavily protected by our lack of supply, our cost of construction and our strong interstate migration. With more labour needed to build our strong infrastructure pipeline, you can start to see why Brisbane only has a winter sniffle while a number of others have the flu.
In Brisbane’s competitive real estate market, standard off-the-shelf cabinetry is no longer cutting it for prestige buyers. As our city’s median price holds at record highs, buyers are looking for bespoke craftsmanship and fluted, ribbed timber detailing has emerged as the clear mark of a luxury home. Here is how vertical timber ribbing and curved … […]