Brisbane's Best Businesses

What a difference 12 months makes, especially in the property market. Welcome to the New Year, we have included a good article here from Realestatae.com.au on their view of the Australian Property Market for 2023.  Let us know what you think. In 2021, national property prices increased by 22.8% year-on-year, although price growth had started to slow. Inflation was looming but not seen as a pressing concern and most people thought interest rate hikes were some way off. Fast forward to the end of 2022 and  property prices fell by 1.9% over the first 11 months of the year and official interest rates shifted from 0.1% throughout most of the pandemic to 3.1% between May and December as inflation continued to surge. As a result of the rise in interest rates, borrowing capacities have reduced by around 25%. This means a lender will allow you to borrow 25% less than they would have before the interest rate increases. Many purchasers no longer have the c

Property researchers have aided buyers and sellers over many years in the timing of their decisions based on the positioning of a market in the property cycle. Hicks Real Estate principal, Justin Hicks agrees that knowing information about the stages of the property cycle can be useful. “The first element to recognize is that a market cycle can be spoken and written about in terms of a national perspective, also a city perspective and right down to a single suburb’s performance. ‘The second consideration is that it is indeed a cycle and forever moving.” Source: Herron Todd White The Brisbane market can best be described as declining and approaching the bottom. The peak occurs when demand exceeds total supply, and both prices and rents can be expected to rise.  Which we saw during 2021 and 2022. The opposite is when there is an oversupply of properties for sale, or there is lower levels of demand (possible caused by increasing interest rates).