Generally speaking, the real estate market has been quite a mixed bag for the most part of 2010 to date. In speaking with many clients throughout the course of the year thus far, I have heard time and time again that the effects of the Global Financial Crisis (GFC) are still being felt and a general lack of confidence is still one of the hurdles that many of those actively buying and selling in the current market are in the process of overcoming.
With my experience in the inner city and fringe market this year, I have witnessed a very unsettled premium product segment – those properties on the market listed above $1 million have endured long ‘days on market’ periods (beyond 120 days in many instances) and in most cases, have only sold if Sellers are prepared to meet the market. The harsh reality has been that sale prices achieved have been up to 10% below the prices achieved for comparable properties in the months prior to the onset of the GFC .
Brighter news can be reported for the property market between the price bracket of $350,000 and $800,000 in the inner city and city fringe. In the past eight weeks, I have witnessed a strengthening of this segment with, on average in my New Farm office, properties priced within this price point going to contract within 17.5 days of being listed and unconditional within 23.1 days – all private treaty sales.
Even more significant at this time has been the buoyancy of the ‘off the plan’ market. With the number of development projects hitting the market drastically reduced as a consequence of the GFC a great deal of pent up demand from investors ready to buy in good quality ‘off the plan’ developments has been created.
I have received an overwhelming amount of enquiry from the recent launch of a development project in the South Brisbane area that I am marketing. With price points starting from $335,000 and so close to the Brisbane CBD, this has been an extremely attractive offering for the investment segment.
Localities earmarked for urban renewal and are enjoying local and state government expenditure like South Brisbane and Albion present investors with an excellent buying opportunity.
