Breaking Square | 25/10

With wars, elections and mixed messages about interest rates and the economy, it is no wonder that buyers are showing signs of being timid and slow to respond and make offers. However, despite all this apparent uncertainty, now is the best time to buy – let me explain.

Unlike the markets in Melbourne and Sydney, Brisbane, Adelaide and Perth continue to grow. Brisbane enjoys the lion’s share of migration in the country and with the 2 larger regional areas of the Gold Coast and Sunshine still enjoying strong migration and capital growth, we are set for what I have previously described as a “Golden Era” of real estate.

So why is now a great time to buy? With buyer activity slightly waining and with uncertainty comes opportunity. Whilst the era of 2-3% interest rates is long gone, interest rates will drop and historically when this happens, prices rise.

Recent Ray White analysis paints a clear picture of what happened after past rate cuts in 2011, 2015, 2016, and 2019. In 414 suburbs, house prices grew by as much as 1 per cent within a month of the cut. If the predicted four interest rate cuts eventuate, we could see house prices in parts of Queensland jump by up to $70,000 in just a few months.

Typically when rates are cut, Sydney enjoys the biggest boost, whilst markets like Perth and Darwin see the smallest. But what about Brisbane? Given the current market conditions, we may likely experience a huge boost to prices – only time will tell.

Here’s the rub. Whilst buyers may be waiting for rate cuts to provide more buying power, this could easily be off-set by increased prices, leaving buyers potentially in a worst position. A rate cut could cost you more next year…

Baby Boomers are and will continue to influence the market like no other time before. Cashed up and on the move. Their influence is being heavily felt in many coastal & regional cities and towns; especially the Gold Coast; which may surpass Sydney prices over the next 3-5 years. Baby Boomers are shaping the style and size of properties being developed, none of which are focussed on first home buyers or affordable housing. It is predominately large, high end apartments near the water or in prestige suburbs.

2025 will be an interesting year; not that the last 4 years hasn’t. With the exception of the war in the Middle East and whomever gets into the White House, Australia largely remains a safe haven. There may be a few bumps in road, but by and large, our prosperity as a nation will continue and we should enjoy the lifestyle we have all become accustomed to. Despite the pressure on household budgets, we do live a great place and afforded a way of life, many are envious of, so I remain grateful.

Just a quick note, we have recently been afforded access to a new project in St Lucia. It is a complex of 8 townhouses, with 6 still available. All of them feature 3 bedrooms, 2.5 bathrooms and double car garaging. They are located within easy walk to UQ and the ferry and only 2 kms from Toowong Village. Construction has commenced with an estimated completion date of July 2025. This may be a great opportunity to buy at today’s prices and let the market do some heavy lifting over the next 8-9 months.