Flat Brisbane market means opportunities for property investors

Recently, I discussed what a decrease in building approvals means for the future Brisbane property market – namely a shortage of available property and an increase in values in years to come. However, at the moment, reports are showing that the currently flat property market will not actually pick up until spring this year.

We are currently seeing a number of reports emerge that indicate large quantities of properties on the market, and low auction clearance rates. RP Data, for example, has recently reported that there are still substantially more homes on the Brisbane market than this time last year – 27.9 percent more in fact – with many of those suburbs being in Brisbane’s outer suburbs,  including Forest Lake, Caboolture and North Lakes. This in itself is unsurprising as demand will continue to exist, albeit perhaps at a lower level, for property closer to the CBD.

Low buyer demand is not only a trend in the Brisbane property market, with last weekend’s auction clearance rates in Sydney and Melbourne still flat. According to Australian Property Monitors, over the weekend, Melbourne and Sydney clearance rates both dipped into the high 50s and low 60s. The result suggests buyers are still scarce, fearing interest rate rises.

We are hearing more reports of increased vendor discounting too, offering the perfect environment for both buyers and investors right now.  Once the market picks up in Spring, as predicted, there will be less bargains to come across and fewer properties to choose from. I would suggest buyers and investors take advantage of the current situation – fewer buyers, more properties and less competition – to really find a good buy.