A MESSAGE FROM RACHAEL SPINKS The arrival of the halfway point of 2023 presents a perfect opportunity to examine new trends emerging in the Brisbane property market. Last year we saw Brisbane house values skyrocket by a remarkable 42.7% from the COVID-19 trough to its peak in June 2022. By contrast, 2023 has seen the bottoming out of our local property market, with Brisbane house values recording an -11% cyclical fall in February. However, since February, a correction phase has been underway, and the Brisbane housing market appears to be on the rise once again. CoreLogic’s National Home Value Index (HVI) has recorded rises of 0.6% and 0.5% through March and April, respectively. The pace of growth in May has accelerated sharply to 1.2%. This is welcome news to homeowners, but it is important to note that in our experience at SpinksCo Residential, the prestige and lifestyle segments of Brisbane property market have proven to be very resilient. So why are these segments so robust? Well Queensland is currently the fastest-growing state in Australia, driven particularly by interstate migration. And the demand for lifestyle areas and detached houses in Brisbane is underpinning property values. Tim Lawless Director of CoreLogic also reports, in addition to the high demand, advertised supply levels remain extremely low, tracking -39% below the five-year average at the end of April 2023. He says, “With such a short supply of available housing stock, buyers are becoming more competitive and there’s an element of FOMO creeping into the market.” Interestingly, Michael Yardney director of Metropole Property Strategists, reports that after every downturn, moving forward there will be a flight to quality properties and an increased emphasis on liveability. He also believes this strong demand for lifestyle areas, is likely leading to these properties outperforming cheaper properties. We certainly saw evidence of the strength of the Brisbane prestige market recently. One of Brisbane’s finest homes has just made history as the most expensive residential property to ever be sold in the city. ‘Amity’ an historic 130-year-old riverfront property in New Farm, reportedly sold for a record $20.5m to an interstate buyer. And it’s not just interstate migration impacting Brisbane. With international borders now open, Brisbane is starting to see the return of overseas migrants. Forecasts suggest that Brisbane could have an average of 25,000 additional people looking for somewhere to live each year. Interest rates continue to present a challenge to rising house values, however many senior economists such as Eleanor Creagh of PropTrack believe, “strong demand relative to stock on market is seeing home prices lift, and offsetting the downward pressure from continued interest rate rises.” At SpinksCo Residential, we continue to face the challenge of having more buyers than properties to sell. We are currently working with several qualified buyers who are actively seeking Tennis Court and/or Prestige Lifestyle properties ranging in price from $2.5 million to $15 million. If you are considering selling and would like to know if your property would be a match for these buyers, we warmly invite you to contact SpinksCo Residential for a confidential consultation. I look forward to matching many more families with their dream home throughout 2023. Rachael Spinks 0411 10 10 15 www.spinksco.com.au Follow us on Instagram - spinkscoresidential
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