Your inner-Brisbane property report by Steven Webster - March 2nd

Hello and welcome back to your inner-Brisbane property report by Steven Webster covering all the property news concerning Fortitude Valley, Bowen Hills, Newstead, Teneriffe, New Farm & surrounding areas.

Days on market extend, but the great sale results continue to flow.

It is no secret that general buyer demand (new home loans) has dropped from what it was before the RBA started increasing rates in May 2022. However, recent data from the February PropTrack report highlights why prices have remained relatively steady in Brisbane. Simply put, there are far less properties on the market than we have seen in the past few years. In January this represented 37% less listings on the market compared to January 2020. The end result is actually an uplift of potential buyers per property by 112% compared to January 2020. This is the 3rd highest nationally, only behind Adelaide (136%) & the ACT (130%).

The biggest adjustment in the market is the borrowing capacity of buyers. Whilst this will continually evolve as the interest rates go up each month, the key fact is that buyers are still buying. What we are seeing though is slightly longer days on market as buyers take their time to see what their fluctuating budget can afford them. It is quite common for buyers to come through the property on week one, then circle back to the listing 2-3 weeks later to commit. Our teams core focus is constant communication with our buyers to remind them of the property, keeping it front of mind and working with them through the buying process to get them to the commitment stage.

Further to that, it is true that in market conditions such as this we are going to see some buyers enter the market believing that they can 'snap up a bargain'. However, the majority of buyers in the current market have factored in future interest rate rises, it is not a shock anymore, so we still have a strong core of them to work with. Our job as the agent representing the property is to expertly manage buyer expectations and continually highlight the unique features of our listing. Through strategic planning, excellent negotiating and plain old hard work, great results are still happening across all price levels.

A little reflection from the last report:

Propertyology released the Brisbane property market statistics highlighting the difference between pre-covid and now. It is easy to see why prices are remaining so buoyant in the area:

HOUSING SUPPLY (available)

???? For Sale ????

31 Jan 2018: 28,882 properties

31 Jan 2023: 18,244 properties

?? 37%

???? For Rent ????

31 Jan 2018: 11,505 properties

31 Jan 2023: 2,845 properties

?? 75%

?? ?? ?? ?? ?? ?? ?? ?? Population Change [2018-2023] ?? ?? ?? ?? ?? ?? ?? ??

?? 230,000

It all adds up to a very fertile property market. Lets recap my current sale results:

1084/18 Manning St, Milton (1-Bed) - Settled on Wednesday for 7.5% more than the same floor plan sold in November and for 30% more than I sold the unit for just 4 years ago. This was sold to a grandfather buying for his daughter who could not find a rental, it was a cash 14 day offer.

Baxter St Apartments at 398 St Pauls Tce, Fortitude Valley (2-Bed) - Unit 502 settled this week for $539,000, this is almost 10% growth in 12-months. This was bought by a father purchasing for his son who could not find a rental close to university.

906/10 Trinity St, Fortitude Valley (1-Bed + study) - Settled for 7.5% more than I sold the direct comparable next door 12-months ago. Bought by an investor.

15/482 Upper Roma St, Brisbane (2-Bed) - Under contract for $55,000 more than another agent sold a comparable property in the building for 6-months ago. Bought by an investor.

If you want to start 2023 with a sold sign, please get in touch with me today so that we can create a winning game plan. Alternatively, if you'd just like an update on where your property is sitting in the current market, or simply want to chat about the general market, please contact me on 0433 984 117.

Yours in property,

Steven Webster