Darwon's Theory | That's a Wrap
It’s that time of year when we take a look at what’s gone on in the property market these last 12 months, and posit some trends for next year. Let’s jump right in.
Since peaking in June, Brisbane home values have dropped 8.1 per cent. Some suburbs have fared worse, others better - but as a whole, it’s the second largest fall after Sydney (where values are down 11.1 per cent since their January peak). On face value, that could seem daunting - but it just goes to show how covid figures can really skew the data. What we’re actually seeing is somewhat of a return to normalcy, off the back of that unsustainable covid peak. Brisbane property values are still 30.4 per cent above pre-covid levels (impressive growth, by anyone’s standards).
You might also have noticed that there’s less properties for sale this December. The number of properties publicly listed for sale has reduced by about a third compared to last year, but again, if you look at the five-year average, volume is actually up 14 per cent. (That said, I will say there is a significant number of sellers keen to take advantage of our ever-growing buyer database - saving on marketing fees, and generating competition from our team’s proactive outreach. So if you’re a buyer wondering where to look for that perfect property, make sure to get yourself on some databases!)
Based on the discrepancies in those figures alone, a good tip for anyone making property moves in 2023 is to zoom out and take a macro view. We know that interest rate hikes and a reduced borrowing capacity have taken their toll, with many buyers and sellers sitting on their hands. All of this has had a knock-on effect on the market in the short-term - but we always recommend playing the long game.
Rather than basing your decisions solely on what’s happened in the last 12 to 18 months, consider the longer-term property cycles - that’s where you’ll spot opportunities for good capital growth. On that note, the big guns are already foreshadowing impressive gains over the next few years. Westpac, for example, recently forecast Brisbane prices to surge 20 per cent between 2022 and 2023. Although there is a group of experts predicting a slight dip before prices grow, all in all, the market is looking extremely positive.
The past year has been a big one for the Brisbane property market. Whether you’re looking to buy for the first time in 2023, considering selling the family home, or expanding your portfolio - our team has you covered. We’re expecting things to really ramp up by mid-January, so if you’re ready to dip a toe in the market don’t hesitate to reach out for a market appraisal, or come along to one of our open homes and get to know the team.
In the meantime, wishing you and your families a very Merry Christmas and a Happy New Year!
Cheers,
S.D.