When it comes to local real estate, the Brisbane CBD (like any inner-city space) is a fast moving market  - one which continuously experiences constant change to the landscape. For local buyers, this mean they always need to have their finger on the pulse in an effort to get the most benefit out of their investment.

Question is how? When investing in the Brisbane CBD, what is the best way to remain on the front foot? One of the most effective tools is observation; simply observing the market and increasing your awareness of statistics. But, where do you begin? Which stats carry more weight when it comes to detecting market changes? Good question! To help you, we have compiled a list of some of the most vital stats to observe; used collectively, they could certainly indicate a shift in the local Brisbane market.

However, as it’s a rather long list, we have broken it into two parts. Here is Part 1:

Median Price

A change in median CBD apartment prices can be quite indicative of market change. For example, a slight rise in the cost of apartments in the CBD may be signalling a forthcoming major shift when it comes to the local market and a period of high growth for investments. Consequently, a lower median price suggests that cheaper apartments have been built or sold, or that first home buyers are moving into the CBD. While monthly reports on median price changes are available, watching longer term trends (12 months up to 10 years) and figures can also prove quite revealing.

Market Stock

Like any area, how much stock is available in the CBD market is a quick indication as to whether it’s a buyers’ or sellers’ market. It also signals whether this has been shifting in recent times. For example, when fewer apartments are available it’s a sign that the market may be heating up. Alternatively, if more apartments are entering the market it perhaps indicates that buyers have more choice and that owners are cashing in on their capital gains.

Market Time

The length of time an apartment spends on the CBD sales market can also denote change. This figure is quite useful in gauging potential buyer demand for the apartment as well as indicating how long it may take to sell in the future. Typically the length of time on the market is reduced when the CBD market is hot or when large new apartment complexes launch strong marketing campaigns to push quick sales – whereas market time increases when the market is cold and slow-moving.

To be continued….

USEFUL TIPS

• In order to get the most from statistics it’s important to understand what is considered the ‘norm’ for the Brisbane CBD market. For example, being a fast paced market, you can expect the statistics to swing more.
• Take the time to understand statistical reliability  – it will pay off in the long run!
• Make sure you always look deeper to find what caused the changes. Was it a result of a small number of apartments as opposed to a CBD market trend?  Talk to us to explore this!

While these tips and statistics can help you predict possible changes in Brisbane’s CBD market, there is no greater benefit than speaking to a local real estate professional. That said, prior to purchasing an apartment within the Brisbane CBD or placing one on the market, we recommend you consult with Hannah Schuhmann – she understands Brisbane like the back of her hand. To set up an appointment call 0419 782 133.