Brisbane Property Sales Up While Other Areas Down

After five years of unprecedented growth Hobart's property boom is officially over, according to data released by Tasmania's peak real estate body.

The figures are backed up by new data from the property market analyst CoreLogic, which show Hobart's house prices dipped almost 1 per cent in April.

But the new median house price of $452,000 still has Hobart properties more expensive than Perth and Adelaide.

Investors looking interstate

Property trends is being driven by a range of factors, including investors retreating from the Tasmanian market.

Over the past four years, investors have consistently accounted for about 22 per cent of sales, but that shrunk to 16 per cent last quarter.

We have noticed a shift in investment activity in the state … prices have dropped quite significantly in other parts of Australia so investors are looking at options where they can get into those markets.

While the market is down in those regions they're looking to capitalise there, rather than buying at the top of the market as is happening here.

Meanwhile, the Brisbane property market shows year on year growth, Gold coast and Sunshine Coast being the major centres in terms of growth.

The appeal seems to be the laid back lifestyle that beach side livings gives. Houses for sale near beaches is ideal for property investments.

Opportunities for first homebuyers

Yes, we're going back to a normal market, which has its benefits because it becomes a balanced market … it's not all one-sided.

With the investors moving out of the market, it's created opportunities for first homebuyers and we've seen significant growth in the number of first homebuyers in the market.

We've seen first homebuyers go from 11 per cent in the last four to five years up to 17 per cent this quarter, so that's a significant increase, and the median price they're buying property at is around $330,000."

While the report shows Launceston's property market is following Hobart's trajectory towards a normalised market, the state's north-west is bucking the trend.

Some experts say that Brisbane is a good market to invest in if you buy house and land, but not an apartment. They recommend holding off investing in Brisbane for the next two years as there are currently too many apartments being built and too many on the market, with over 15,000 still awaiting council approvals. Other experts believe that most inner to middle-city Brisbane suburbs are in fact under supplied with new boutique-style apartments or townhouses. These types of properties are easy to rent, generate high net yields and high growth rates, and are within most investors’ budgets, which presents an opportunity for agents if they can find and list these properties.

At the moment, there is still a huge demand for investors and owner-occupiers wanting to buy close to the CBD. If yields meet cash-flow requirements and the asset achieves the highest growth rates possible, property investors will continue to buy in Brisbane and agents will need to help them achieve the best possible outcomes. As such, whilst an apartment oversupply is evident, Brisbane still presents many good investment opportunities if property investors and real estate agents conduct their research.

Bill writes is a student at UCLA, studying towards Media and arts. Bill is an avid listener of birds and enjoys watching planes go by.