Sydney auction clearance rates
November 30: 81%
December 7: 79%
Clearance rates hovered around 45% at this time last year. Buyers are hot to trot and sellers are motivated to shift properties fast and acquire liquid capital. Having watched the vagaries of the property markets quite closely over many years, we’ve become accustomed to the signs of an upswing in the making.
Sydney is not done yet
Sydney is in great shape right now, and the coming weekend will be the true testament to the shifting trends in Australia’s hottest property market. We firmly believe that the Sydney housing market has plenty of room left to expand, with the prevalence of cheap debt likely to continue to push buyers into the market and high prices likely to encourage sellers to make their move.
Low interest rates globally are contributing to hot markets across the board. As other investment vehicles such as equities become increasingly over-priced, the potential returns (and security) present in the property market become increasingly attractive to investors. Combine these attractive and arguably more stable returns with record-low interest rates and it’s little wonder that money continues to pour into the Australian property market.
The official interest rate will close out the year at 0.75% and it’s anyone’s guess as to where it will go throughout 2020. The Reserve Bank of Australia (RBA) is on record (as of December’s meeting’s minutes) that a slight upswing in the rate of GDP growth is expected towards the end of 2020 and into 2021.
The RBA flagged the fluctuations in new dwelling construction numbers as an area of uncertainty, alongside slow growth in household disposable income. However, in a positive signal, the RBA recognises that the Sydney and Melbourne market is in the midst of a turnaround, despite increased restrictions on the ability of people to borrow to invest in property.
Brisbane’s hottest property growth areas
So, if we expect the turnaround in Sydney to drive renewed interest in the Brisbane property market, where is that interest likely to manifest itself? According to the Residential Property Research Group, there are a few standout suburbs in Brisbane that are expected to benefit considerably from the growth in property prices over the next three years.
Red Hill is one of Brisbane’s most popular inner-city suburbs. It’s seen fairly impressive growth over recent years with a current median house price of over $850,000. However, significant growth is expected over the coming years, with experts tipping an increase in the median house price of over $200,000.
Keperra is a hot growth suburb for Brisbane, with extensive investment in local infrastructure and growth in local business over the past five years. With a current median house price of just over $535,000, Keperra is an affordable location for most people on or around the median Brisbane household income. Keperra is projected to have an increase in median house price by around $130,000 over the coming three years, making it one of the hottest growth suburbs in Brisbane.
The Residential Property Research Group has identified a number of other suburbs that are currently very affordable but for a number of reasons are expected to have significant increases in median prices that greatly outstrip the growth rate of nearby suburbs. Some of these hot growth suburbs include:
- Mount Gravatt
- Rochedale South
- Arana Hills
- Chermside West
Build or buy?
The question of whether to build or buy is as old as the residential property market itself. The fact is, it’s very situation dependent. We always recommend building a property simply due to the flexibility of options and the ability to lock in the long-term value growth of a brand-new home.
Your options for building a new home in Brisbane are broader than ever before, with knock-down rebuilds, greenfield builds and house and land packages giving you a variety of methods to get a new house built. Building new ensures that your property is positioned to capture the higher end of property price increases over the coming years.
Get the right advice
If you want to know whether you should build a new home, or whether you’re in a financial position to do so, speak with us. We’re always happy to give honest advice to help people make the right choice for their own situations.