Steady as She Goes

The latest news from those experts in the property market is Queensland is the place to be a property owner in the next few years. Recent data released by RPData has shown Brisbane has as of the end of June seen a month increase in average values of 1.7%; a quarterly change of 1.4% and a year on year change 3.4%.

This is not as good as Sydney & Melbourne with 16.2% & 10.2% respectively yearly growth. But it does show Brisbane house prices are keeping pace with inflation so in real terms property values are remaining static.

So what about the year ahead? Well there are some headwinds such as the Greek debt issue in Europe and signs the Chinese stock market and housing is over inflated. We have already seen a 30% drop in the Chinese stock market over the last few weeks. And every pundit is saying Sydney and Melbourne cannot have the same level of increases they have been having.

If we are to believe the economists and property Guru’s then Victoria and New South Wales are going to see steady decline in house prices over the next few years. Some are of the opinion this will be less of a steady fall but more of a collapse. Time will tell where this is concerned and this will be subject to factors beyond our borders (Possible Greek exit from the market and the effects this will have on the world markets as a whole).

What the property market guru’s are saying is Queensland is going to see steady growth in real terms when all other states will see decline.

Why do they feel this will be so? Well growth has been slow in property prices in Queensland and overall prices have just only kept up with inflation on average since the 2009 crisis, in fact house prices on average have only just got back to pre 2009 levels. This will make it very attractive to those who are bailing out of the New South Wales and Victoria property markets, as they will be able to see capital growth in their investments.

So while the other states may have a correction, it now look less likely that this will happen in Queensland. So it would appear this would be a good time to buy and even sell in the months and years ahead in Queensland; but as always you need to do your research.

Fox and Co will provide you with a honest appraisal range for your home based on the current market conditions. If you would like to have a free no obligation appraisal of your home then call 3289-2828.

Article by Craig Corner -Managing Director Fox & Co