Brisbane September 2018

The month in review: Brisbane

By Herron Todd White
September 2018

Spring is in the air and Brisbane has the perfect climate for celebrating all things flowering. Sure, mild winters are a hallmark of our river city and diving into the cooling surf at the height of summer is pure joy, but in reality, spring is when Brisbane absolutely glows. It’s that magical time between the extremes where we get to dress lighter as days get longer.

All this poetry has a point, of course. In Brisbane, spring brings out the best in our properties too. While we’re not worn down by oppressive winter cold that keeps buyers away from listings in the southern states, Brisbane suburbs and their extensive yards take on a more picturesque appearance in full bloom when compared to other seasons in our city. Bushes flower up, leaves bud on trees and the first decent falls of pre-summer rain turn the turf to a bushland green.

All this sparkle plays right into the hands of sellers and their agents. In today’s online property portal lifestyle, nothing sells a story quite like pictures of Brisbane homes in the springtime. So, the overall observation is that spring selling season is, in fact a fact!… but the numbers do have a bit of cause and effect about them.

Because properties are looking their best, listings rise as sellers get enthusiastic, so it’s to be expected that there will be more sales taking place.

The other seasonal influence we enjoy in our aptly named Sunshine State is those more-than-welcome interstate migrants who like to prep early for the coming year. If southerners have been toying with the idea of a move north to our city in 2019, many will be gearing up to take care of their accommodation needs in springtime. We have had net interstate migration numbers on the rise over the past couple of years, so the effect of this tide of new residents could be more keenly felt this spring.

There has even been a recent release of CoreLogic numbers which show that spring 2018 might be finally Brisbane’s season.

Over the 12 months to July 2018, home values across the greater Brisbane region rose 1.2% which marked us as outperforming Sydney and Melbourne. While we might be coming from a lower base than those two capitals, it does provide a potential spring board (pun intended) for price gains over the medium to long term. And it is playing out to some extent. Activity in general is reportedly increasing from agents throughout Brisbane – listings numbers are starting to rise just prior to spring. Auction clearance rates also appear to be slightly on the up from week to week getting closer to 1 September.

However, what does all this mean for Brisbane over the next six to 12 months?

This year, we expect spring to have a positive effect, but in the overall scheme of things, its longer-term influence is muted when compared to other more pressing elements.

At the moment, our market shows promise – price movements will be positive but slow and steady. As underwhelming as that sounds, we look better than the vast majority of other capital cities in terms of potential growth.

We continue to believe the affordable end of the market in established locations will be the greenest shoots for this spring. Homes with potential for renovation are always a winner if they’re priced competitively too.

In terms of the upper price bracket, the market looks good, but this has less to do with spring than it does with our relative affordability and the interstate migration mentioned earlier.

That’s why we believe Brisbane’s market is likely to remain relatively stable and to track steadily. Moving further into summer months we may see an increased number of listings and increased buyer demand.

The key is if we can capitalise on all this positive news and create more jobs and infrastructure to help drive our economy. This always translates into positive stuff for Brisbane’s property market.

The future looks bright if you’re patient, so best pop on your shades and enjoy the sunshine.

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