The month in review: Brisbane
By Herron Todd White
December, 2009
Heading into this annum, we Brisbanites thought things
were looking a bit shaky. Our call was that First home
owners were likely to prove the best of a bad bunch in
a market set for potential slaughter. Ever the masters
of understatement, Herron Todd White Brisbane were
good for direction but hadn’t had enough Weeties for
breakfast. First home owners were the runaway success
for 2009 and have driven the accessible second hand unit
market and outer area detached housing sector to such
an extent that the stimulant grant was probably eaten
up by capital growth for those buyers who came in late.
The effect also flowed on dramatically. Second and third
home buyers keen to move up in the world, sold off to
the newcomers, and the last six months have seen a surge
in areas offering comfortable homes on good size blocks
with plenty of family facilities nearby. In fact, at the start
of 2009, we predicted that pricey real estate was set to
soften – and we were right… in part (OK.. we were half
right). The first six months of the year were dragging on
for agents in the second/third home buyer market, but as
the year closed out there has been a real kick on. Areas
such as Wilston/Windsor/Grange in the city’s north are
typical of the scenario as our valuer’s report new sale
price and number records being set on an almost weekly
basis.
Interestingly the line between Prestige and Premium
property became more defined during 2009. New Farm
(arguably our most desirable urban cool address) had
those professional level buyers keeping the mere mortal
purchaser out of the market in 2008, but as we thought,
the financial crisis had a dramatic and sudden impact.
During the year, there was a period of about 7 months
where agents couldn’t get away a property over the $1M
mark! This was an area where buyers were stomping over
each other in Manolo Blahnik heels in order to secure
an ultra minimalist piece of city sheike just six months
previous. It appears, however, that confidence is king.
Our valuers now report that sales in Brisbane’s coffee
cool centre are back with a vengeance with at least six
contracts in the past few weeks breaking the $1M barrier.
That said, the ultra premium property has continued to
perform below par. Buyers above $3M are continuing to
be discerning and sales are still relatively soft compared
to market peaks 12+ months ago.
Another of our brilliant calls was a softening rental
market – an easy get really. The growth in rentals was
absolutely unsustainable, and managers are now letting
us know that average vacancy periods are extending a
few weeks for most property types and landlords should
stop expecting a $20 per six month increase on their lease
renewals. Mind you it probably means that the wheat
and chaff have been sorted, and good tenants are now
getting their just rewards as owners look to keep them in
situ by not raising their rent.
So here’s to another year down. Herron Todd White
Brisbane would also like to take this opportunity to say
Merry Christmas and a Happy New Year to all our readers.
Have an enjoyable season but please stay safe and well.
|
