After a positive start, the second half of 2019/20 financial year proved to be a bit of a dumpster fire of fear for the property and financial markets, almost mirroring the timing of previous fiscal years pre-election negative gearing scares. On a positive note, and great news for the economy, Queensland is now moving to Level 3 restrictions July 3 and opening the borders July 10 (except for Victoria).
During the shutdowns, the Brisbane property market was steady and is continuing to hold up remarkably well. According to SQM Research, Brisbane Vacancy ratesare almost back to May 2019 levels (2.4%) at 2.5%, compare to Sydneys 4% and Melbourne 3.1%. Brisbane rents also seem to be on the increase on both a monthly and yearly basis as well. Around the nation, capital city CBD’s and areas with a firm reliance on tourism have experienced the most significant increases; however, hopefully, these markets will bounce back somewhat with an easing in restrictions.
Although there isn’t a lot of stock on the market, we see large attendances at open for inspections and asking prices being met or exceeded through competition. Our thoughts are confirmed by SQM Researches asking price index showing steady price rises for Brisbane houses as well.
As with the previous years Banking Royal Commission, due to the Covid19 effect on jobs and the economy, we are seeing long wait times for finance approval (up to 6 weeks). If you are thinking of making a move to purchase a property this year, get all your ducks in a row, see a good mortgage broker and get your finance approved early on in the piece. You get incredibly frustrated if you miss out on a purchase because the bank wasn’t ready, and you lose negotiating power by not being ready.
As always we are here to help with any property related queries so feel free to reach out anytime.
If you would like to arrange a time for an obligation free discussion about you, or your client’s property buying requirements you can access my calendar by clicking HERE