Madonna Boon
Property Manager
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The topic that is top of mind for many buyers at the moment is, what are the Sydney property predictions for 2023?
Chris Clarke from our Sydney UBA team is here to present his beliefs on the upcoming Sydney market.
Chris says, the consecutive rate rises last year had put the market into “a bit of a holding pattern” for the majority of 2022.
“Stock was tight last year and is still tight at the start of 2023, however buyers that were sitting on the fence are now starting to make a move,” he says.
“As a business, we have hundreds of buyers that we’re actively talking to that are going to buy in 2023 and the majority are now focused on buying in the first half of the year, it’s just a case of when not if.”
Chris believes February-March 2023 is a turning point.
“Whilst the media is highlighting that there will be at least two more rate increases in 2023… buyers on the ground are increasing their buying sentiment. With so much uncertainty in 2022, those buyers who wanted to buy succumbed to the fear and failed to pull the trigger. Now, with more certainty and prices down by more than 10% yr on yr – they are looking to strike sooner rather than later.”
“I believe the stock will remain pretty tight and the buyer pool will significantly grow and that will push prices as it did 18 months ago,” Chris says.
Chris believes the current shortage of quality Sydney stock will persist throughout the year.
In Sydney, Chris says first-time property buyers have been active in recent months and their numbers will continue to increase next year.
Chris is seeing a trend where buyers are looking for “turnkey” finished properties. As a result, he says, unrenovated homes represent good buying opportunities for those who are able to wait out the market’s current trade-related challenges.
So, if you are planning to buy this year and waiting for that ‘drop’ to hit, we believe you may be waiting a while.
Just be mindful, if you are intending to hold this new property for the next 5-10 years, it is likely your property will grow in value, provided you purchase the right property at the right price.
Just think, what is it costing you to wait?
If you need, support, guidance and knowledge about your Sydney purchase in 2023, give us a call on 1300 710 957.
The topic that is top of mind for many buyers at the moment is, what are the Brisbane property predictions for 2023?
Our founding Director Darren recently sat down with Domain to discuss our thoughts and predictions for 2023.
So here are our thoughts from Domains feature article…
Consumer confidence
Darren Piper, founding director at Brisbane-based Universal Buyers Agent, says the consecutive rate rises have put the market into “a bit of a holding pattern”.
“Stock is still tight, but buyers are sitting on the fence,” he says. “As a business, we literally have hundreds of buyers that we’re actively talking to that are going to buy, it’s just a case of when, not if.”
Piper thinks February-March 2023 will be a turning point.
“Everyone is waiting to see exactly what that last rate rise looks like … and then once they’ve got complete clarity around being able to crunch the numbers, they’re going to jump back into the market.”
Which way will prices go?
“I think stock will remain pretty tight and the buyer pool will significantly grow and that will push prices like it did 18 months ago,” Piper says.
Stock levels
Piper says the current shortage of quality Queensland stock will persist next year. (in 2023)
Who will buy?
In Queensland, Piper says entry-level investors have been active in recent months and their numbers will continue to increase next year.
What will they buy?
Piper is seeing a similar trend in Brisbane, the Gold Coast and Sunshine Coast where buyers are looking for “turnkey” products. As a result, he says, unrenovated homes represent good buying opportunities for those who are able to wait out the market’s current trade-related challenges.
So, if you are planning to buy this year and waiting for that ‘drop’ to hit, we believe you may be waiting a while.
Just be mindful, if you are intending to hold this new property for the next 5-10 years, it is likely your property will grow in value, provided you purchase the right property at the right price.
Just think, what is it costing you to wait?
As a buyer, we get it, you want to ensure you are securing a great deal on the property you decide to buy.
You want to avoid overpaying and ensure it has some good opportunity for growth.
So, where are the current buying opportunities within the Brisbane market?
Auctions, Auctions, Auctions.
Our team have witnessed several properties over the past few weeks that have gone under the hammer at a bargain price.
While it is known that the market is dropping, slightly, we are finding your best opportunities are within the Auction space.
You know exactly who is bidding and you can typically gauge how much they may have to spend. It is a very different environment to placing an offer behind a computer to placing a bid looking into the eyes of your competitor…
So, what this means under Auction conditions is the average buyer is becoming more hesitant and conservative with their bids. On top, if these buyers are not pre-approved, they are in some cases flying blind in how much they can actually spend.
Being pre-approved under Auction conditions provides you with clarity to make confident bids. Being a confident bidder at Auction is key to walking away with a great result.
Trust us, you can spot the hesitation a mile away.
So when the average minimum settlement period is 30 Days with a traditional sale, many sellers are opting for an Auction Sale Method.We find many sellers do not wish to carry their property over into the new year which is why we find there are more auctions, because once that hammer falls, the property is SOLD.
So with sellers not wanting to wait it out, as a buyer, your chances for a seller to be lenient or drop their asking price is greater.
Auctions have clear terms that are set and must be adhered to. Unlike a traditional sale, once that hammer falls, the property is yours. There is no cooling off periods, no time for building inspections and no time to re-negotiate a contract.
Because of the ‘final’ nature of Auction Terms, we find this can be a turn off for buyers, resulting in them avoiding auctions all together.
So with less buyers attending auctions, you may just find you have less competition.
Don’t let an Auction deter you from securing your perfect home. If you are nervous or unsure about bidding at auction, we are here to help and support you through the process.
Many buyers are wondering, should I buy now or wait? We are finding that many buyers are pulling the hand break, deciding to wait until early next year to buy their home or investment property.
The sentiment is that buyers are waiting for the market to drop, even further, and are fearful of overpaying in the current market.
But, are you aware of the hidden risks of waiting it out?
From our years of Buyers Agents in Brisbane experience, we see this all too often and the outcome is the same every time. Instead of listening to the media hype, become a smart buyer and understand ALL the risks and opportunities to navigate this Brisbane market.
Here are the 5 RISKS to be aware of if you are choosing to wait for the market to ‘drop’.
Over the recent months, we have experienced a drop in the number of active buyers in the Brisbane market.
This tells us that many buyers that were actively looking to buy at the start of the year are now choosing to wait.
But, if the majority wait, it is likely that they will also all enter back into the market at the same time.
When the interest rate rises finally begin to settle, we anticipate that a crowd of buyers will flock back into the Brisbane market.
One of the key drivers of increased property prices is competition.
We all experienced that throughout covid.
While no one has a crystal ball, our advice is to buy now.
As more and more buyers are deciding to wait, the competition in the market is becoming less, leaving YOU with a greater buying advantage.
Don’t run the risk of entering back into a crowded market.
Take advantage of the opportunities that exist now, with less competition and more negotiating power.
While you may be waiting for property prices to drop, so will your borrowing capacity if you wait too long.
As the interest rates rise, banks will begin to re-evaluate their lending capacity for home buyers as their repayments will be increasing.
So while you may save a few thousand dollars IF the market continues to drop, you will very easily pay this regardless within your increased mortgage repayments.
OR you may not be able to purchase within the price bracket you were first looking at…
So, while buyers are waiting for property prices to drop, potentially, so will their borrowing capacity.
Buyers that are ‘waiting’ are risking not only coming back into a crowded market but they are also back in with less money to offer.
In the lead-up to Christmas, people begin to switch off on the ‘big plans’ and start preparing for the holiday season ahead.
Within this time, we find buyers also begin to ‘switch off’ from the property search.
A theme we notice with many buyers is the need and want to get IN before Christmas.
As we near closer, the likely hood of that occurring is slim and so, the pool of buyers active in the market begins to decrease…
This provides the smart buyer with a great opportunity to secure a property with less competition.
So, in our opinion, NOW is the time to switch ON and BUY, otherwise, you risk missing great buying opportunities due to the reduced buyer demand…
While everyone else is buying into the media hype and fear, at UBA our feet are on the ground daily. This provides us with the ability to consider the current ‘actual’ market trends while also looking back on past trends to ensure our team and clients are remaining 1 step ahead.
One of the biggest consistent trends in the property market over the past 30 years is the spike after a fall. Dating back to the 1974-5 Recession, while property prices plateaued, they all spiked back shortly after.
This rise in property prices after a major economical event has occurred time and time again throughout the last 30 years.
So while no one has a crystal ball, we are predicting that this market will follow suit once again and begin to rise once it gets through this property lull.
Will your ‘wait’ be too long?…
We often refer to the classic and widely relevant quote from Warren Buffett,
“Be fearful when others are greedy, and be greedy when others are fearful.”
Right now, other buyers are fearful. Fearful of overpaying, the market dropping, the list goes on.
But, the true reality is, a smart and successful property deal is made by firstly understanding the difference between a great opportunity and the wrong opportunity. A great deal can also be created through strategic negotiations. You just need to be informed about all aspects of the market, not just the media narration.
The market conditions are not the only thing you should consider to identify when the right time to buy is.
A great deal can always be found, sometimes you just need to know where to look or who to talk to.
So, listening to family, friends and the media’s advice on when you should buy should all be taken with a grain of salt unless they have been there before and experienced the market.
As Warren Buffett said, now is your time to be greedy!
The Brisbane property market is performing very strongly with the number of sales being significantly higher than pre the Coronavirus pandemic. Brisbane will start the new year with a surge of pent up demand for home buyers and investors.
Here are some of the most recent forecasts that came out at the end of last year:
But digging deeper into the stats some properties have far outperformed others and freestanding Brisbane houses with 5-7 km of the CBD or in good school catchment zones have grown in value strongly. Properties located in the inner ring suburbs, particularly in gentrifying locations, will outperform cheaper properties in the outer suburbs. The reason being, Covid19 has adversely affected low income earners to a greater extent than middle and high income earners who are likely to recover their income back to pre-pandemic levels more quickly, while many have not been hit at all.
The Brisbane property market is now at a new high and will continue to record positive growth due to the many underlying strong market drivers. The affordability factor, with Brisbane’s median house price now far lower than Sydney and Melbourne, as well as higher rental returns, is likely to drive more interstate investment into the city.
If you’re wondering what will happen to property in 2020–2021 you are not alone. Rest assured you can trust the team at Universal buyers agents to help with your next purchase.
2020 hasn’t come without its challenges but Universal buyers agents has gone from strength to strength given our teams determination, perseverance and focus on world class customer service. We would like to thank our client and referrers for such a strong year. We look forward to knocking 2021 out of the park.
Call us today for a no-obligation discussion.
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