Brisbane property market stuck in a downswing as investors seek unit bargains: WBP Property Group

There are some signs of a recovery in the Brisbane property market, but it still remains firmly in a downswing , with investors seeking bargains in the unit market as new apartment projects are completed, says WBP Property Group.

WBP places the Brisbane housing and unit market at five o’clock on the property clock.

• At 12 o’clock the market is at its peak (demand exceeds supply)
• At 3 o’clock the downswing has set in (an evenly supplied market)
• By 6 o’clock it has bottomed out (an oversupplied market).
• At 9 o’clock the market is rebounding (supply tightening)

“The housing market within Brisbane is considered to be nearing the bottom with no obvious signs of recovery,” says WBP.

The valuation and advisory firm says that while recent changes in state government legislation, in particular stamp duty concessions, have improved sales activity and enquiry, Brisbane market conditions will remain as they are until the end of the year.

“Potential buyers and investors are keeping an eye on the effects of the mining boom, which continues to fuel growth, and also public sector job cuts announced by the Newman state government.

WBP says future market factors to watch out for include changes in pricing within the commodities sector and cost cutting within the government.

Looking more closely at the unit market, WBP notes that there are a number of new unit developments in Brisbane that are nearing completion and due to settle.

“Many purchasers who have bought off the plan have seen prices come off from original date of contract. Investors still remain wary as to when the bottom will be and are on the lookout for a bargain buy,” says WBP

“This market trend is due to continue till the end of the year and perhaps into 2013.

“The Queensland government has introduced a $15,000 concession for first-home buyers looking to buy a new property.

“The unit market in the sub $400,000 range still continues to be strong amongst professionals looking for lifestyle, inner-city locations,” it says.

In his property clock assessment, Michael Yardney, director of Metropole Property Investment Strategists, said the Brisbane inner-city apartment market was heading into a downswing due to the large numbers of off-the-plan projects currently being marketed in the Brisbane CBD and surrounding suburbs.