It is hard to fathom we are already one eighth of the way through 2015.  At the start of the year we covered a few market predictions for the year so today we have decided to delve a little further and take more of a look at what Brisbane can expect for the next ten months.
 
To help us paint a clear picture, here is a review of five fundamentals that are expected to come into play:
 
1.     All eyes on Brisbane
Over the past 10 years, the Brisbane market has recorded a slower price increase than other Australian capitals such as Sydney, which some experts are reporting has grown ’too much, too fast’ and could now see many priced out of the market.  While this is not so great news for New South Wales, Brisbane investors are likely to benefit as we see more of a focus placed on Brisbane and as switched on purchasers turn to our city for well priced investment opportunities with a forecasted market increase for the coming year.
 
2.     Brisbane’s affordability is the best it has been since 2003
One of the biggest factors contributing to Brisbane’s expected price growth is its massive affordability. Over the last six years (2008 to 2014) the percentage of mortgage repayments on a median priced property in Brisbane, as a proportion of monthly disposable income, is significantly less (17 – 27 per cent) than other states around Australia. Comparatively Perth is showing at 19 – 34 per cent, Melbourne fluctuates between 23 – 42 per cent and Sydney is consistently the highest at 32 - 52 per cent. Thus, with affordability on our side, it’s no wonder buyers and investors are starting to notice the huge financial potential that the Brisbane CBD offers.
 
3.     Rental yields for Brisbane CBD units are attractive and vacancy rates low
Good news investors! When it comes to Brisbane’s CBD rental units, Brisbane has boasted an average low vacancy rate of 2 – 2.5 per cent since 2011 – leading the way when compared to Australia’s other major capital cities. Furthermore, Brisbane’s gross rental yields are also significantly higher than fellow Eastern states, thus making Brisbane an attractive option for those buyers looking to invest.
 
4.     Sales volumes and borrowing is up
Recent activity shows that the Brisbane CBD is witnessing an ongoing increase in the number of property sales. Additionally, finance for owner-occupier property has been on the rise since 2011.
 
5.     New developments no competition for existing complexes
Brisbane is expected to see a lot of new building projects going up in the city fringe during 2015,  whilst CBD developments are limited to a few up market projects.  This tells us while the areas around the city are worrying experts with the whispers over ‘over supply’ - the CBD will remain in a much better position going forward.

“The established buildings in the city offer a great investment and are hard to beat in terms of value and return.  The small amount of new developments coming up in the city over the next few years are essentially a completely different type of product, they are directed at the luxury market with higher pricing, so they are going to be attractive to a select market and not detract from the existing complexes – which is good news for investors as this short supply should lead to increased prices and continuous, solid returns” said Hannah Schuhmann, Principal of HS Brisbane Property.

“New inner city developments simply don’t present the same selling features as existing CBD buildings. For example, units in those new developments are often smaller and some don’t have balconies (a sought-after feature in the CBD), they come with a higher competition in regards to resale and renting, and the existing complexes are generally better positioned and with many boasting outstanding views of the river and across the city” she said.

To ensure you’re on the front foot and make the most of Brisbane’s forecast upturn, contact Hannah on 0419 782 133 and schedule an appointment now.