Brisbane Property Market Update
The residential property market in Queensland’s south-east softened across all classes in 2012, proving a difficult time for local property owners. While the tourism-reliant economy is expected to stablise in 2013, local property performance is predicted to remain flat.
Property values have declined in all subcategories, with the prestige, unit and acreage markets worst-affected.
Price falls have resulted in improved affordability for first-home buyers, who can now purchase properties for under $300,000 in popular Gold Coast suburbs Nerang and Highland Park. Older style low-rise units in Surfers Paradise and Broadbeach and established townhouses in the Pacific Pines locality are also popular affordable options for first-time or budget conscious buyers.
Property values in the $500,000 to $1,000,000 range have also fallen quite notably with numerous sales in sought-after Isle of Capri in the mid $600,000′s – the lowest price for waterfront property in this locality in many years.
While current performance represents a loss for home owners, it presents excellent long-term opportunities for investors prepared to weather the storm. Investors’ response to the lower interest rate environment and improved yields has been positive; however, discrimination towards affordable properties remains high as buyers price gouge.
Gold Coast suburb,Southport is a well-developed residential area serviced by excellent infrastructure including transportation, schools, hospitals, and shopping and entertainment facilities. The area performed above market in 2012 and represents good potential for long-term investment.
Parkwood is another area with strong investment potential. It has experienced improved performance following the development of the new Southport Hospital and expansion of Griffith University. Transportation in the area is set to improve with the introduction of the new light rail system.
The light rail transport system will service the Gold Coast and is a positive contribution to local infrastructure. However, there are reports that the new service has impeded access to some areas, especially in Surfers Paradise, which may detrimentally impact the value of affected properties.
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Trent Hardy, State Manager (QLD)
WBP Property GroupBrisbane, buying property, property values, real estate