With all the headlines about real estate in the other capital cities it’s natural to wonder if there will be a Brisbane property market crash.
Gott Realty, is here to talk about the current and future market changes and whether there is potential for growth or a crash in Brisbane.
To find out more about what’s happening in the market please continue reading below.
Will the Brisbane Property Market Crash?
The crash theories have been mainly raised from the southern states and the massive boom Brisbane is expected to have, has come from the media. They have been predicting unbelievable growth over the next year or so without giving credible cause for this price growth.
To find if this theory has weight, we first need to look at the cause of the market movements in the southern states. Migration from overseas, and infrastructure growth creating jobs, has created a massive demand for property.
Market movement is simple supply and demand, the more demand and competition for property, the higher the prices go. When there is suddenly an oversupply, of housing for the people that can afford it, a crash will occur.
Will Brisbane see a crash?
The short answer is no. Providing the world stays stable I very much doubt that we will see a crash in Brisbane. The main reason is that we have stayed stable with modest price growth for the last 10 years.
With the help of population growth we may see slight growth continuing but that is about as far as I can see prices growing. There is no massive development or infrastructure projects happening to draw southerners to the north.
Reasons why we won’t see a crash in Brisbane
- Brisbane hasn’t had the same intense price spike that the other capital cities have experienced.
- Interest rates are unlikely to rise.
- The demand for homes is still strong, and there is not an issue of oversupply.
Why we might see a property crash in Brisbane
The biggest danger to Brisbane is unemployment climbing. If unemployment goes up this may cause financial stress on those without work and cause mortgages to fall behind. The knock-on effect of this may create a few forced sales, which in turn could lower the sale price of some properties.
Brisbane suburbs showing signs of being unaffected
Some of the best suburbs on the northside to purchase a home in are:
- Bray Park
These suburbs have been overlooked by buyers for some time creating opportunity for many buyers. Last year saw some growth with the median sale price increasing by about $50,000 across these suburbs in the last 2 years.
Brisbane Property Market Crash
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