I WAS in Sydney this week meeting with a series of buyer’s agents, financial planners and accountants.
With so much chatter about a slow down in the Sydney and Melbourne markets, there is renewed interest in Brisbane and what upside still exists in that property market.
I met with these professionals to get a better understanding of their clients needs and give them some information about what is happening on the ground in Brisbane.
What I shared with them was a quick history lesson.
To understand the difference between Brisbane and the other eastern seaboard capital cities you need to look at the market movements before the Global Financial Crisis (GFC).
In 2007 Brisbane experienced a fabulous property boom.
It was unexpected, it drove prices across the city and it was not experienced in those capital cities south of the Queensland border.
However a year later, when the GFC hit, the market suffered a significant decline, while Sydney and Melbourne were not affected to the same extent.
Over the past six years, however there has been worldwide focus on the thriving Sydney and Melbourne markets.
Fuelled by low interest rates, international buyer interest and bullish confidence those regions have roared to unexpected heights, while Brisbane has remained relatively dormant.
But like in every market, they are cyclical and it’s time for those markets to simmer.
Which is why the attention is now on Brisbane. Brisbane house prices did see a correction, our properties are considerably cheaper than our southern neighbours. Our apartment prices have taken a battering over the past four years and they are now at all time lows.
But value alone will not drive a market, there needs to be a spark of confidence to light the fuse first and I believe that comes in the form of the Queen’s Wharf Development.
This casino will change Brisbane from a stop over to a destination. It will create jobs. This means that those inner city units that have seen a drop in rental prices will now be filled with tenants seeking accommodation close to work. Those yields will entice investors to buy and that competition will see rents and sale prices rise.
Those tourism dollars will flow into the housing market, which will see locals and businesses benefit. This confidence will underpin interstate buyers looking for a capital return to back the Brisbane market, it will give locals confidence to continue to compete for their desired property and that should light the fuse on the local Brisbane market.
With Brisbane’s fabulous weather, its location close to sandy beaches and theme parks, and its easy access from Asia it has all the hallmarks of one stop family holiday spot. With infrastructure comes opportunity and I believe the next 12 months will see a lot of interest from interstate and international buyers competing for their own little slice of the Sunshine State.