As market conditions in Queensland continue to improve, homebuyers are being warned that property prices are likely to increase.
Buyer’s agent, author and CEO of Oasis Property, Gavin McPherson, predicted property prices in Brisbane would take off in spring as emotionally driven first-home buyers re-entered the market.
The latest RP Data statistics show home values for the Brisbane and Gold Coast regions decreased by 1.5 per cent over the past month, but there was an annual increase of 5.4 per cent.
“Prices will go up over the next 12 months,” Mr McPherson said. “Brisbane is so obvious for value for money that there is no other choice but for prices to go up.”
He said the first wave of buyers – investors who were smart with their money – had already hit Brisbane, and the region was now experiencing a second wave, which was predominantly second or third-time investors who bought wisely.
He predicted that first-home buyers and inexperienced investors would appear in spring and put a push on prices.
“If everything occurs in Brisbane the same as it did in Sydney last year, it should be a very busy spring,” Mr McPherson said.
He said that prices would increase gradually into 2015.
Century 21 Australasia owner and managing director Charles Tarbey said the southeast Queensland market was “going to start to move”.
He predicted a boom for the Sunshine Coast and said that Brisbane was enjoying a steady growth market that should continue for the next few years.
“Some areas are hot now because of (a lack of) supply,” Mr Tarbey said.
“From all indications, there are plenty of buyers out there”.
He said more homes had been listed for sale at higher prices in Brisbane over the past 12 weeks. “Clearance rates are now sitting in their 40s and 50s. We’re already seeing movement in the market – it started in early-November (last year),” Mr Tarbey said.
However, the market was being held back by conservative buyers taking their time to
consider properties before paying higher prices, wary valuers who were stung in the GFC fallout and banks starting to look more closely at responsible lending.
Mr Tarbey said the market would stabilise this year on the Gold Coast, with a take-up of old stock over the next 12 months to two years.
“I don’t see the Gold Coast going crazy, but I do see investors coming back because of the opportunities there,” he said.
Mr McPherson said he was “very bullish” about the Gold Coast market.
“The Gold Coast is now indicative of Brisbane six to nine months ago,” he said.
“People who get in now will be good for the long term.”
Mr Tarbey said that in the current market, it was important to buy and sell at the same time.
“If you’re selling to cash up, it’s not the right time,” he said.
“If you’re selling to buy again, it’s a good time.”
Buyers should factor in a possible rate rise in the two years – and his No.1 tip was “don’t hesitate to negotiate”.
Originally published as Spring price rise predicted . www.couriermail.com.au by Teela Jurgensen, The Courier Mail, 6/6/2014