Dakota Peters
Inspections Officer
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.
Why do mortgage brokers suggest the help of a buyer’s agent? Get expert advice to help you find your dream home faster with Universal Buyers Agents.
SUFFERING from buyer fatigue, stress navigating the buying process or numerous pre-approval lapses? It might be time to call in the help of a buyer’s agent.
In the same way that mortgage brokers help buyers find the best loan for their budget, buyer agents such as Universal Buyers Agents, find the best property for the right price allowing you to get into your dream property faster.
If your mortgage broker has recommended the help of an expert, UBA property expert Simon Clarke said it could be because you’ve encountered a few hurdles in your property search.
“Why would a mortgage broker refer their clients to a buyer’s agent is a common question we’re often asked,” Mr Clarke said.
“Ultimately it is in cases where buyers have been preapproved one, two, three, multiple times and the preapproval has lapsed because they haven’t found what they’re looking for, they’ve grown frustrated with the buying process and they need help.”
Mr Clarke said some brokers will often suggest the help of a buyer’s agent from the outset if their customer is a first home buyer or “are really nervous and need someone to help them through the buying process.”
“If a mortgage broker refers you onto someone like ourselves we can expedite or speed up the process and demystify some of the pain points and find them best possible property,” he said.
“Another reason they refer you to us is if you want access to more properties than those you find online.
“We have access to a huge database of off-market and pre-market properties the general public just don’t get to see.
“We work with a network of sellers and real estate agents and can connect you to opportunities before anyone else.
“Sometimes being first can be the difference between getting your dream property and losing out to a herd of bidders who drive the price up and add stress to the process.”
Buyers agents represent the interests of the buyer and will chase the best possible outcome for their client. They can help with sourcing, researching, bidding and managing properties or help navigate the auction process.
Buyers who are nervous about the buying process, uncertain about bidding, living interstate or need some help to develop a detailed analysis of the investment potential of a property can benefit from the expertise of a buyers’ agent.
Universal Buyers Agents offers an experienced and professional buyer’s advocacy service for those looking to buy a home or property. Contact us now to find out more information.
Queensland’s property market is fast becoming the state’s economic engine room, powering ahead and defying predictions of a COVID-induced downturn.
Despite uncertainty, waning consumer confidence and on-going restrictions plaguing real estate markets in the Southern states, Queensland’s trifecta – Brisbane, Sunshine Coast and Gold Coast – are reporting record levels of activity.
Such is the demand for property, interstate and international buyers are snapping up real estate sight unseen and enlisting the services of buyer’s agents to secure deals off market to succeed in an increasingly competitive landscape.
But is this economic property boom likely to continue? Or will Queensland’s real estate market succumb to COVID induced pressure and force housing prices to retract like Sydney and Melbourne? And if the boom continues where are the opportunities for investment?
If you’d like advice on the best areas to invest, help buying a property or understanding more about Queensland’s property market, help is right here.
You’re not alone in feeling uncertain about the future, but there are strong signs of stability in Queensland’s housing market.
Despite a bleak economic outlook at the start of 2020 when COVID-19 restrictions came into force, Queensland’s property sector has defied nationwide trends with a surge in buying activity.
Sydney and Melbourne property prices have seen a steady slide, but CoreLogic data has consistently shown strong growth for Queensland despite uncertainty and waning consumer confidence during the pandemic.
So why is Queensland’s market seeming impervious to economic pressure?
The property sector has in large part been bolstered by a steady inflow of migration into the state. More than 30,000 new residents have been registered in the past six months from interstate migration and expats returning home to Australia.
The hard border restrictions, though contentious, have allowed Queensland’s business community to remain functioning. And although the unemployment rate remains high, it has held steady without large fluctuations month to month.
Add to that, record low interest rates from the banks and it’s easy to see why an increasing number of buyers are casting their eye to Queensland’s key property markets – Brisbane, Sunshine Coast and the Gold Coast – where prices are still in reach compared to inner city markets of Sydney and Melbourne.
Universal Buyers Agents property expert Simon Clarke predicts Queensland will weather the economic storm of COVID-19 better than other states who are already seeing signs of a downturn.
A Zoom boom is drawing sea-changers to the Sunshine state causing a surge in transaction activity in markets such as the Sunshine coast.
Universal Buyers Agents property expert Simon Clarke said demand for coastal properties have skyrocketed since the pandemic as more buyers choose lifestyle over commute.
“With so many people working from home and conducting business differently we’re seeing a lot of buyers move to sunnier shores rather than around the CBD,” Mr Clarke said.
“The Sunshine Coast in particular has recorded consistent dwelling growth for both houses and units while population growth is at its highest in almost a decade.”
The median house price on the Sunshine Coast increased by 3.8 per cent in the year to June 2020, and median unit prices jumped 2.4 per cent.
“If you look closer at certain suburbs those increases are even more phenomenal,” he said.
“The median house price in Sunshine Beach, just outside Noosa, rose 16 per cent in the July quarter and about 27 per cent in the past year.
“Minyama is up 23 per cent in the year to July, typical house prices are now above $1.1 million.”
Regional Queensland has managed to achieve something few markets across Australia have managed; it’s maintained high levels of well-performing real estate markets in defiance of COVID-19. It is now one of the strongest economic Cinderella stories in the country.
“Although tourism does account for a large part of the Sunshine Coast economy, it has been relatively insulated by ongoing spend in infrastructure including highway improvements, local Sunshine Coast airport and a subsea internet cable link to Asia.”
But is it too late to jump on the band wagon?
“Although house and unit prices have climbed sharply the demand continues to remain strong, now is the perfect time to secure your new home, investment property or consider a sea-change from overpriced markets like Sydney and Melbourne,” Mr Clarke said.
Gold Coast properties are being snapped up sight unseen by a mix of interstate and international buyers as record low interest rates, low Australian dollar and an increasing number of expats fuel demand.
Universal Buyers Agents property expert Simon Clarke said “activity is phenomenal” with buyers from Singapore, Hong Kong, United States and United Kingdom reaching out to local buyer’s agents to help them secure real estate from overseas.
“It’s growing every week and the location on many people’s lips is; The Gold Coast,” Mr Clarke said
“Many buyers are cashed up and having dealt with lockdowns in small city locations overseas, they’re ready to come home.”
Rental vacancy rates on the Gold Coast are the best they’ve been in two years. It’s welcome news for investors who are pulling out of expensive Sydney and Melbourne inner city properties to invest in larger, more affordable homes along the coast.
With so many properties selling off-market, buyers agents are now the weapon of choice for most purchases as the market becomes increasingly competitive.
Mr Clarke estimates one in four homes are now sold off-market before they have a chance to be listed publicly.
But what does the long-term picture look like?
Experts tip locations such as Miami, Elanora, Burleigh and Tweed Heads to grow as much as 7 per cent in the next year and as high as 23 per cent over the next three years.
Sold signs are a common sight in Brisbane’s suburbs these days as an increasing number of properties go under the hammer.
The market has remained relatively resilient in the face of ongoing pressures despite consumer confidence taking a battering in the state.
Property sales are up as much as 20 per cent in the year to July 2020 with prices remaining steady, slipping less than one per cent since the start of the year
Liveability, affordability and a strong pipeline of future projects, such as Cross River Rail and Queens’s Wharf, have helped bolster Brisbane’s reputation as the market to buy.
But in a city with a sprawling footprint, where is the best suburb for your money?
Universal Buyers Agents property expert Simon Clarke said the suburbs of Brisbane are experiencing a surge in demand, likely to drive property prices up over the long term.
“Brisbane is heating up,” he said.
New data from Select Residential Property predicts the top five suburbs to watch are Carina Heights, Mount Gravatt, Mansfield, Chapel Hill and Graceville.
Prices are expected to grow as much as 7.3 per cent over the next year and as high as 24 per cent over the next three years.
“We have a lot of buyers coming to us looking for help to secure properties in the suburbs,” Mr Clarke said.
“It helps to have someone in your corner to help you navigate the market when it gets competitive like this.
“There are a lot of growth opportunities but it can pay to have an expert to ensure you’re making the right choice for your investment in the short, medium and long term.”
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