Review June 2022

Review June 2022

• Posted By David Brown

Herron Todd White (HTW) is the leading property valuers in the country. Each month they release a monthly update ad property clock. This gives a fair idea as to what to expect from the property market in the coming months.

When looking for a reliable insight into the property market, HTW gives an unbiased review of the current state of the market and what to expect in the coming months. After all they are the finance valuers that determine if people get finance or not.

Here is the latest property clock and the Meridien view on what is happening in Australia’s property market. It has been long expected that some markets will decline but no one knew just how long this property boom would last, but as evident below it is clear that some markets are beginning to slow.

Northern Gold Coast

Northern Gold Coast had a very strong start to the year looking at suburbs in Northern Gold Coast such as Coomera, Upper Coomera, Pimpama, Ormeau, and Eagleby, it is evident that the demand for properties has either stagnated or begun to cool over the past couple of months. When looking at Pimpama it seems that house prices have begun to fall as much as $30,000 when comparing sales back in February. In the neighbouring suburb of Upper Coomera, agents are reporting that demand has still remained steady at its current rate and prices are not showing signs of decreasing. Agents in the Northern Gold Coast are still reporting that properties are moving fairly quickly, but selling periods are now three to four weeks, compared to two weeks that was seen six months ago. The obvious sign that the market is cooling is buyers are now submitting offers below the asking price. For the past 12 months many buyers have been making offers that were far above the asking price or looking to make off market offers to entice owners to sell. With the recent RBA announcement of interest rate rises and more increases expected to come in the second half of this year, there may be an influx of panic sellers should property prices weaken. This could increase the amount of renters looking to get ownership of a property and out of the rental market.

South Brisbane

Over the past two years South Brisbane has seen prices grown substantially. Recently there has been a strong interest in duplexes. It is understandable why as they are seeing gross yield now firming at low five per cent region. This shows that investors are showing great interest in this market and many of them coming from interstate. Brisbane has reached the peak of the market and some suburbs are showing evidence that it is beginning to slow. This can not be further for the truth for southern Brisbane, agents are reporting that most properties are getting multiple offers and some selling after the first open home, or in off-market situations. Land is still in high demand in this region, with some buyers with agreements to purchase in places for allotments that won’t be available until at least 2023, and in some cases 2024.

Brisbane Western Corridor and Ipswich

When looking for an affordable option in the Brisbane region many turn to Ipswich. Over the past ten years Ipswich has become a thriving city location. The region is offering land without having to fork out exorbitant amounts of money. As land prices increase and the supply in Brisbane continuing to decrease more and more people are moving to the outskirts of Brisbane as it is a more affordable option. Although activity has begun to slow compared to the beginning of year, Ipswich is still seeing a good demand for real estate. Affordable properties are still the main thing buyers are searching for but appear less anxious about missing out. Townhouses have experienced very good growth of the past 6 – 12 months, seeing price gains of up to 50%. That still hasn’t slowed the demand and it is expected that this is to continue into Q3 of this year.

Canberra

As we the second half of this year, construction has come back stronger than ever after many delays due to the pandemic over the last 18 months. Newer suburbs such as Whitlam, Taylor, and just over the border in Googong are seeing a lot of redevelopment and major renovations throughout the capital. Existing dwellings are still limited coming to market and we are yet to see prices reduce. However, the auction clearance rates are lower each week with April ending in 72% compared to this time last year at 91%. This market will be one to watch in the coming months to see how interest rate rises, the federal election with housing affordability, and cost of living increases affects the market.