20% Growth Forecasted For Brisbane Property!
The property market is constantly changing and the Brisbane market is changing rapidly as well. Today I have with me Simon Everingham to a bit about what it feels like on the ground in the Brisbane market.
0:00 – Introduction
1:21 – What have the last 6-7 months been like in the Brisbane market
3:50 – Has there been a massive decline in the Brisbane market? Why not?
5:10 – Internal migration may put pressure on South East Queensland
8:05 – Are there hot pockets in the Brisbane market?
9:25 – Take this as one data point
10:25 – Brisbane forecasted to increase 20% over the next 3 years!
the property market is constantly changing and the brisbane market is changing rapidly as well with so much uncertainty in the market this year so many things that have happened it can be difficult to keep your finger on the pulse and to say okay where are things actually at so today i got with me simon everingham buyer’s agent from pumped on property who specializes in the brisbane and southeast queensland market to talk a little bit about okay what’s it feel like on the ground what’s happening in the brisbane market on the ground because sure we can get a figure from corelogic of here’s where the market’s been at on average for the last month or three months but sometimes being on the ground and actually talking to agents negotiating deals buying properties you can get a better feel for what’s actually happening so hey simon thanks for coming on and sharing this news today no no worries super excited there has definitely been some interesting things happening over the last couple of months yeah so the last couple of months for us in our businesses have been intense and crazy so many clients wanting to work with us so many clients wanting to move and invest in the brisbane property market and southeast queensland so i know that you guys are crazy busy over there trying to secure deals for all these people how’s it feel like in the market what’s happened what’s kind of changed in the last few months if anything um so it’s been an interesting ride from from sort of march through to now so the last sort of six seven months it’s been pretty crazy um you know we saw at the beginning basically listings and buyer activity drop really fast really quickly and then what we started to see from there is a little bit of a pickup in in listing activity and a massive pickup in buyer activity as we start to see a lot of the restrictions ease up here in queensland it starts to give a lot of people some confidence especially those owner occupiers out there you know i was going through the process buying a property up here on the sunny coast and then we’ve been buying on average two to four properties every single week in brisbane for the last few months so what we’ve found is that it’s quite difficult to find good properties um the listings are down a little bit um especially in comparison to sort of this time last year or this time a couple of years ago generally what you find when it comes into springtime is a bit of a pickup in listing activity which could potentially happen now that we’re starting to feel a little bit more positive sentiment in the market so you know that’s been the biggest issue is finding quality properties and and securing them because there is only a few properties coming onto the market that we see value now there’s lots of properties coming down to the market don’t get me wrong but because we’ve got a very strict criteria we would only buy probably 10 to 20 percent of the properties that come onto the market so it really pulls that down a fair bit uh so you know these quality properties we’re dealing with owner occupiers that are trying to capitalize on the situation get a property at a great price we’re dealing with local investors that are just trying to get themselves into the market we’re dealing with interstate investors that are buying property side unseen and paying crazy overs and we’re dealing with other buyers agents that are trying to help other people purchase properties in the market so there is a lot of pressure um but what we’re finding is that the value of those relationships with the agents the ability to source often pre-market listings has been an absolute savior throughout this time and the property market hasn’t risen in value especially if you look at the data from corelogic fqm we can clearly see that there hasn’t been a decline in property value but we haven’t seen an increase in property values either either so you know there is pressure but it hasn’t related in an increase in prices yet but you haven’t seen the massive decrease in prices that somewhere like melbourne seen obviously with their lockdown more economic pressure there because of the outbreak that happened there it’s a very different so someone’s sitting in melbourne at the moment in that market thinking okay brisbane’s the same obviously it’s very different at the moment completely and one thing that you’ve got to remember there is just look at the previous 10 years you know if you’re sitting there in melbourne right now and you’re looking at the property market properties are 60 to 80 more expensive today compared to 10 years ago so it’s been through a really strong short-term growth cycle where brisbane over the same 10 years has sat completely flat so it’s in a completely different stage of the property cycle properties are much more affordable in brisbane we’ve dealt with the coronavirus a lot better we haven’t gone to those crazy stage four lockdowns and obviously more affordable property prices much stronger rental yields looks really interesting for a number of people so brisbane hasn’t had the huge run up that sydney or melbourne had which puts it in an interesting position and we’ve been talking about this for years now basically saying saying this it’ll be really interesting to watch it obviously we don’t know how the future unfolds we don’t know how the economy as a whole is going to do in australia and in the world something that is really interesting is i guess the internal migration and people wanting to move into queensland now i feel like that has definitely stepped up a notch to the point where you know when the sydney market was going crazy back in 2016 2017 and everyone’s talking about it and friends of friends no friends who are buying a property and made a hundred grand i feel like that is what people are talking about with interstate migration towards queensland now it’s happening man and and we’ve actually just found out how crazy it is so um ben’s wife lisa was talking to a friend that lives down in melbourne uh last week like this is brand new this data and um she’s committed finally to moving up to southeast queensland which is awesome um so that’s one person but she was going through the process she was on the phone to the government getting everything organized ready to move up once the borders opened back up and when she was talking to the government she found out that there had been 20 000 applications from people in melbourne alone that are looking to move to southeast queensland as soon as the board is open so that’s 20 000 that have actually committed to it actually applied to do it you know let alone all the other people that are thinking about doing it you know then you think of the rest of victoria you think of sydney the rest of new south wales so when you look back in 2019 1817 brisbane or southeast queensland had the strongest rate of interstate migration so it was already starting to happen people were choosing to move north i think one the weather lifestyle and affordability is much stronger up here so there’s a number of different draw cards but you know 20 000 people coming into the market at the exact same time in the exact same month it’s just going to be you know crazy and that’s obviously going to put pressure on the property market yeah and so my my auntie and uncle are thinking of doing the same thing so as soon as the board is open they’re down in melbourne they’re just gonna move up rent out their house for a year live in queensland for a year they’ve got some family up there and then they’ll decide whether they stay or whether they come back but it’s just kind of like okay they’re a bit older they just want to escape coronavirus and escape lockdown and just you know spend that time up there while they can and as you mentioned interstate migration if you look at people moving already australian citizens or already living in australia where are they moving internally and the bulk of that movement was queensland so queensland had positive interstate migration sydney and melbourne were largely propped up because of all the international migration the majority of that was actually going into sydney and melbourne obviously given the world situation at the moment there’s hardly any international migration into sydney and melbourne but we’re still going to see that interstate migration up towards queensland and southeast queensland so it’d be really interesting to watch how that plays out how that affects the brisbane market i think it’s really important to say that yes we’re going through uh well we may be going through a recession maybe not but obviously the situation and what’s happening here but it’s going to affect different markets differently brisbane sydney melbourne are all going to be affected differently would you say that there’s pockets of the brisbane market at the moment that are really hot right now and there’s pockets that aren’t or is everywhere hot or what’s the go yeah so we’re looking in a bunch of different areas throughout brisbane we’re looking within 10 kilometers we’re looking within 10 to 20 kilometers and we’re looking sort of 20 kilometers or more so um we’re seeing heat in all these different areas at the moment you know the affordable market at that sort of sub 400 range where you’re looking about 20 kilometers plus from brisbane super hot right now with investors and first home buyers and even that higher quality blue chip market you know buying properties within 10 cases of brisbane cbd for like 700 000 that have massive upside potential seeing a lot of pressure on that particular market as well once again both from owner occupiers more so from owner occupiers in that market especially people releasing their equity selling their homes from sydney and potentially moving up but then also investors as well that see that capital growth potential in that inner ring yeah so we don’t know how it’s going to perform in the future we don’t have a crystal ball but just wanted to give you a little update on what it feels like in the brisbane market at the moment take this as one data point one little interesting snippet of information that you can mix in with all the other research that you’re doing to decide whether or not brisbane is right for you and if you want to look at investing this market or not if you are interested in investing in southeast queensland and you need some help with that then simon and ben and the team are pumped on property do offer free strategy sessions they’re currently booked out about a month in advance but you can go to on-property dot com do you forward slash strategy to learn more about those over there you can book in a time that suits you if there’s any available um otherwise you’ll have to keep checking back until some are available that’s just i guess the situation we can only help so many people and there’s just so many people interested at the moment but yeah check that out if you want to is there anything else you would want to say about the brisbane market before we close this off yeah definitely you know like um we we actually received an article from a client of ours who signed up to the australian financial review and this once again just just a couple of weeks ago and it was the australian financial review of breaking down westpac forecast over the next three years for the australian property market so they looked at all the different capital cities and areas around australia and what was found is that westpac believed that brisbane could increase by 20 over the next three years which was higher than any other market like more higher capital growth rate than any other market in australia so i found that really really interesting um you know they’re kind of expecting for the rest of this year to be relatively flat even the beginning of next year to be relatively flat and then from h2 so july next year is when we’re going to start to see some some positive improvements in the property market with brisbane being the potential frontrunner at 20 which would be amazing so you know we’re just trying to take advantage of the market right now get those properties while we’re still buying them at a 12-year low and maximizing our potential to be exposed to that capital growth as much as we possibly can so it’s just more and more good news you know that’s that’s westpac predictions but cba is saying the same thing from h2 next year they start they’re expecting to start to see a bit of an improvement uh phil anderson talking about the same same time frames as well um so you know one thing i say just don’t listen to the news you know and what they’re saying what they’re predicting um look at these more credible more reliable resources and you know westpac’s got a lot to lose by throwing out those types of predictions and obviously only time’s going to tell i’d love to have that crystal ball and know whether or not it’s actually going to happen but it’s just more positive sentiment and all of those economic fundamentals look really solid in brisbane right now yeah and we’ve been saying me and ben have been talking about the mid-cycle slowdown for years now and how brisbane tends to perform better after the mid-cycle slowdown compared to sydney and melbourne so that’s kind of been on the cards i know phil anderson talks about the mid cycle slowdown and stuff as well i’ll link up to a video that i’ve done on that with ben talking about that that was recorded way before coronavirus and everything happened but it will it’ll be really interesting to see it play out it’ll be interesting to see how things go and hopefully the people out there can take this information take advantage of it again don’t just take our word as gospel or as canon you know go and do your own research make your own investment decisions and just use this to help you on that journey so we wish you the absolute best out there again if you are interested in those free strategy sessions go to on-property dot com dot u forward slash session they’re super booked out but hopefully there’ll be some there for you uh if not you’ll just have to wait a bit and they’ll come up again in the future but yeah go check those out if you want to otherwise check out one of our other videos and until next time stay positive