According to the latest housing sentiment survey by CoreLogic and TEG Rewards
, 67 per cent of Australians believe that today is a good time to buy a dwelling, even though property values are becoming increasingly unaffordable.
However, perceptions around whether now is a good time to buy a property have improved over the past 12 months, with just 58 per cent of respondents this time last year thinking that it was a good time to buy.
However, in Sydney, the majority of respondents felt that buying a property today would be a bad idea due to the affordability constraints. In spite of this, more than half the respondents of the survey believed now was actually a good time to be buying a property.
Delving further, mature aged buyers were typically more optimistic about buying conditions today, whilst the younger age groups were less optimistic. This is mainly due to younger buyers being less likely to already own a property and are more affected by the affordability constraints in the property market, despite interest rates at an all-time low.
In spite of this, the consumer housing market sentiment survey, which comprised 2,442 respondents showed that residents of Sydney and Melbourne were more optimistic about selling conditions here, with almost 75% of respondents stating that now was a good time to sell, and 70% of Melbourne respondents felt now was a good time to sell. However, this perception has weakened over the past 12 months with 62% of respondents believing that this was a good time to sell, compared to just 59% this year. This is mainly attributed to the slowing housing market conditions across many markets.
Both cities are still seeing strong auction clearance rates around the 80% mark, whilst private treaty sales are seeing minimal discounting.
One city that is experiencing optimism is the Brisbane property market, with 67 per cent of people believing now is a good time to buy property in Brisbane compared to 61 per cent for Melbourne and 52 per cent for Sydney.
Over the last few years, Brisbane has not experienced the same price growth surge that has hit Sydney and Melbourne. Brisbane is currently in a rising market and is expected to see property prices increase in value as it reaches the peak of the market.
The Queensland economy has also seen improvements and has major development plans for the future including Brisbane Airport Redevelopment, Queens Wharf and Brisbane Live. Interstate migration coming to Queensland has also seen a rise, creating higher demand for housing, due to property prices here much more attractive compared to their counterparts in Sydney and Melbourne.
According to CoreLogic head of research Tim Lawless, “You are seeing the pricing difference between Sydney and Brisbane – Sydney prices are now more than 70 per cent higher than Brisbane’s.
“I think when we start to see that imbalance, and that very large pricing gap opening up, it does suggest that Brisbane is undervalued and Sydney is overvalued, in comparison.
“It is also simply the fact that rental yields are still very healthy in Brisbane, and that the housing market cycle hasn’t really kicked off, so you have to think that Brisbane still has some fuel in the tank for further price growth.”
Even the Mayor of Brisbane has written to Brisbane residents about the South-East Queensland Regional Plan, with the State Government setting Brisbane City Council the target of approving more than 223,000 new homes over a 30-year period to keep up with the city’s growing population.
The letter stated that “with a lack of available land, nearly all of these new homes can only be delivered through redevelopment of existing properties.”
5 Reasons why now is a good time to buy property in Brisbane
- Rising population helped by interstate migration
- New developments – Brisbane Airport Redevelopment and Queens Wharf to create new jobs
- Low interest rates
- High demand with more than 223,000 new homes required
- More affordable compared to Sydney and Melbourne
To find out more about why now is a good time to buy property in Brisbane, it’s best to get in touch with the iBuyNew team. Call us today on 1300 123 463
Published on 18th of November 2016 by Marty Stanowich