Last week we looked at how observing certain statistics can help you to get the most benefit from your Brisbane CBD investment. We covered several stats worth monitoring, including: (1) median house prices, (2) time spent on the market and (3) what stock is available on the market – all of which play a vital role in understanding current (and historical) shifts in the real estate market.

However, while these are great, they’re not the only figures worth keeping a close eye on. To finish off, this week we are focusing on the following remaining stats; four indicators we feel are imminent when it comes to detecting a shift in the local Brisbane CBD real estate market.

Rental Yields

When it comes to following rental yield figures, it can be a rather interesting exercise. For example, if you witness a drop in apartment rental yields, while the median price for an apartment remains steady, then this may suggest that tenants aren’t paying as much rent. On the flipside, should rental yield figures start to increase this could be a clear indication that apartment stock is low in the CBD for numerous reasons – e.g. more owner-occupiers are entering the CBD market or there has been a rise in the number of people looking to rent in the city and consequently this had driven the price of rental apartments up.

Vacancy Rates

Following vacancy rates provides buyers valuable insight into better understanding the current demand for inner-city rental apartments and how new developments affect the local CBD market. To ensure you get the most accurate information pertaining to local CBD vacancy rate reports it’s really important you know your stuff. This means doing your homework on Brisbane’s CBD to familiarise yourself with seasonal shifts and changes. Doing so will help you understand the makeup of the local CBD area and your investment will be all the more beneficial for it.

Demographic Makeup

Insight into Brisbane’s CBD demographical makeup is certainly something to be aware of before purchasing an inner-city apartment. For example, CBD apartments offer the ideal living space for young professionals… with this information you now have the power to buy an apartment located somewhere in the CBD where young professionals are on the rise. Invaluable info when you think about it!  

Vendor Discounting

As the name suggests, vendor discounting is the amount a seller reduces the listed price of their apartment by. Typically a percentage figure, vendor discounting can tell you a lot about the local CBD market. For example, low vendor discount often indicates competition; put simply the market for CBD apartments is hot. In contrast, heavy vendor discounting is identifiable with a cold market and may suggest that further discounting is on the cards.

So there you have it. That completes our two-part article on How to Detect Market Changes. Hopefully we have provided you with some insight and best practices on how to predict shifts within the local CBD market – now and in the future. For more great tips and professional advice when it comes to Brisbane inner-city real estate, why not call 0419 782 133 and set up a one-on-one consult with Hannah Schuhmann.