Brisbane has been labelled the “capital city poster child” with strong fundamentals as the market prepares for an upswing off the bottom of the price cycle.
This as the latest national property clock by valuation advisory firm Herron Todd White showed the Queensland capital was at its lowest price level in the latest cycle, which has seen a rise in interest from buyers priced out elsewhere.
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Brisbane, Ipswich, Bundaberg, Rockhampton and Toowoomba were at the bottom of the market pricewise for houses, according to the HWT property clock, while Cairns, Gladstone, Mackay, Townsville and the Whitsundays were at the start of recovery in prices. Emerald was a rising market, while the Sunshine Coast was at its peak for prices and the Gold Coast was a declining market.
Herron Todd White Brisbane managing director Gavin Hulcombe told The Courier-Mail there was impetus for Brisbane price rises given the Queensland capital had been “bouncing along the bottom for some time now”.
“I think it will be steady rise but my suspicion is in a couple of years’ time we might look back and think it (now) probably wasn’t a bad time to buy. Some areas are likely to perform better than others,” he said.
The property clock showed that for units Brisbane was at the bottom of the price cycle, along with Ipswich, Bundaberg, Mackay, Rockhampton, Toowoomba and the Whitsundays. Cairns, Emerald, Gladstone and Townsville were already seeing unit prices start to recover (rise), while the Sunshine Coast was at its peak and the Gold Coast was declining.
The latest HWT report said “Brisbane is the capital city poster child of how property fundamentals drive values”.
Brisbane was labelled as having “plenty of property with the right fundamentals to attract all buyer types” and was “regarded as relatively affordable by large capital city standards” with multiple drivers of real estate values.
“The old rule of property economics has broadly applied — if all else is equal, then the closer a suburb is to the CBD, the more valuable its land per square metre,” it said.
But other fundamentals were working for Brisbane properties including proximity to the river “especially if you have a frontage or a view” and school zones had “certainly become a key draw card too”.
Plus, it said, “cafe hubs are excellent indicators of desirable suburbs”, with many lifestyle buyers looking to be “within five minute’s walk of a decent cuppa”.