The Brisbane real estate plane has left the airport…

Don’t be left at the terminal!

We’re always asked where Brisbane is in the property cycle: “Are we at the bottom yet? Is now the time to buy?” Perhaps this update might help answer some of these questions.

A plane is a good analogy. In the second quarter of 2012 we started seeing the Brisbane property market preparing for takeoff – passengers buckling belts, flight attendants stowing away luggage and pilots undertaking a final check.

By the end of last year the market had taxied to the runway and was bouncing along the tarmac. But reduced buyer confidence held it back from accelerating to takeoff speed.

The past six months has seen a rapid shift in acceleration. The Brisbane market is now airborne and still climbing. Don’t despair though you haven’t been left holding the luggage at the terminal. Quickly make your way to the gate to board the next plane.

[sam id=34 codes=’true’] As the market starts to recover from a flat period, understanding the property cycles is very important.

It means having a strategy in place so you know when to buy, renovate, land bank or develop before it’s reported in the property investment media.

Be first at the gate, not stuck in the back of the queue.

Because our Metropole buyers’ agents are hunting and researching properties daily, we know well before the media does what phase the market is at, what investors should be looking at and where.

Below is a great example of where we’re seeing the property cycle positioned right now. The black line represents reality and the red line perception.

This time last year the Metropole team positioned the market around the ‘A’ location, but the general public positioned the market around ‘B’. Twelve months on perception is catching up with reality.

Understanding property cycles

Are you standing at the gate? Jump on the next plane and get into the market!

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Want more of this type of information?


Shannon Davis

About

Shannon is director of Metropole Properties Brisbane and as a successful property investor and licensed estate agent, his years of industry experience helps his clients maximize the performance of their investment properties. Visit www.BrisbaneBuyersAgent.com.au


'The Brisbane real estate plane has left the airport…' have 4 comments

  1. July 4, 2013 @ 9:25 am Adrian

    I hope you’re right as I bought in Brisbane mid 2012. Does Liz have any data or other evidence to support the view ?

    Reply

  2. July 4, 2013 @ 3:20 pm Liz Wilcox

    Adrian
    As the Brisbane Property market covers a huge range of suburbs and it is segmented, so it would depend on where your property is and the style of the property but in the growth areas we are buying our clients there is definitely a shift in the market.
    How can I say this: as we are out in the market every day and we buy a few properties every week for our clients and from what we are see and experiencing is the following points/ indicators:
    1. Over 10 groups at open homes were as 6 months ago there was lucky to be 4 groups
    2. The right properties are selling within 10 days of going out to the market. (we are even seeing properties selling in 24 hours)
    3. Shortage of good properties
    4. Auction clearance rates have increased
    5. Multiple offers on properties
    6. Properties are selling over asking price
    But please remember we are only talking about the right properties in the right locations not just any old property in the Brisbane market.

    Reply

  3. August 3, 2013 @ 7:51 am Laurence Fahy

    Data to support the view. According to a recent article in the Courier Mail, Brisbane’s average values are predicted to increase by 17 per cent over the next three year period. Land sale specialist like http://www.oxmarproperties.com.au/ have reported an average increase of over 20% in enquiries to purchase land and properties in the Brisbane area.

    Also I think that it is important to to consider what Liz said about the trend applies only to “the right properties in the right locations not just any old property in the Brisbane market.”

    I strongly think that now would be a wise time to invest in predicted “boom” suburbs in Brisbane and that kind of information can be polemic at the best of times.

    Reply

  4. February 11, 2014 @ 6:27 pm Justin Hagen

    The rate or properties goes up and down year by year in brisbane but this is the right time to deal in properties.

    Reply


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