Apart from “middle-ring” suburbs well-connected to the CBD via better transport and infrastructure links, the Brisbane residential market underperformed and remained soft over 2012.
At the start of the year, valuers from Herron Todd White had tipped the Brisbane market to firm up over 2012.
However, while things “may have hardened up some towards the end of this year on the back of interest rate cuts, most of the year remained 'Tontine soft',” says HTW in its December year-in-review wrap.
HTW was “decidedly bullish” at the start of the year but said “a 10% drop across a broad range of the market is far from bullish” with investors instead keeping their heads down.
The outlook is somewhat better for 2013, with a few more investors “fronted up in November in response to the stronger rents and lower interest rates”.
However the best HTW can say about 2013 is that “maybe next year will be more agreeable”.
The only market that lived up to expectations were “mid-ring, well serviced, transport accessible localities”.
“It may seem like a lay-down misère, but frankly we think this patch has continued to be a good investment.
“Those hubs that are now much closer to the CBD in travel time due to the infrastructure boom are feeling the love.
“Once again these markets didn’t make you rich right away, but they certainly performed better than most,” says HTW.
HTW also notes some improvements in sentiment towards property in flood-affected regions of the city.
“We also made one very brave call for the coming year, and that was flood-affected property. In 2011, you could barely get a nod of recognition from purchasers when listing in a suburb that flooded, and woe betide the property that actually copped some water.
“We thought as the mud started to settle, a few speculative types might pop out of the woodwork.
“To some degree, we were right. Whilst it couldn’t be said that fortunes have been made on investing in the flood affected areas, it is fair to say that the market is becoming more comfortable with the risk."