The first quarter of 2016 has been a mixed bag for the Brisbane market, with some sections of the market performing well with steady growth recorded, but in other sectors demand from buyers has dropped and time of market is starting to extend resulting in minimal capital growth.
Several factors have been affecting the performance of these markets, but the main two we have seen are, Supply and Demand, and Consumer Confidence.
Consumers have been seeing a lot of negative publicity in relation to the unit / apartment market, which has been hit the hardest with buyer inquiry dropping due to a stigma of oversupply, this stigma is certainly justified with around 50,000 units either currently under construction, DA Approved, or Pending DA approval, around the inner city area. This glut of new unit stock is already showing signs of decreasing buyer confidence and also prolonged time on market and vacancy for rental stock.
But it’s not all bad news, the established house market continues to show upward movement, with healthy competition every weekend at open for inspections across the inner and middle ring suburbs. First home buyers and upgraders are starting to be more of an influence in the market looking as investors appear to be reviewing their current property holdings and reorganizing there portfolio to Prepare for the next swing of the property cycle.
Investors in a position to purchase are currently being put under the microscope by lenders who are taking a firm stance on serviceability, during the month of February Hot Property undertook around 50 Portfolio reviews for client who want to evaluate the performance of their current portfolio to take the next step in their investments. This has led to some clients selling off underperforming assets via our Vendor Advocacy service in order to free up serviceability and look at a better performing property via our Buyers Agency services.
Remember if you’re a current or previous client of Hot Property you are eligible for a Free Portfolio Review and Property Health Check, for those who have not used the Services of Hot Property you can enquire about this service by Emailing firstname.lastname@example.org or calling 07) 3170 3760