With all the noise around budgets, interest rates and fuel you’d think the market would be more distracted than a toddler at church. But it has continued to show strong signs of resilience. I am too exhausted to have another chop at the government’s intervention again this week.
The bell ringing and magic tricks all to distract from the main issue which is a shortage of housing. If the headline is to fix intergenerational wealth, then why did they stimulate first home buyers with an extra $250,000 which has just flown straight in to existing home owners pockets, teasing developers that they could now (maybe) get close to a profitable development only to then remove investor confidence by playing around with capital gains tax and negative gearing.
At least now that the dust has settled and we have a clear view on the changes, I believe we will see Brisbane for what it is. A place where prices have risen and you’ll need to accept that price if you want to live here. Because that’s the price you pay for a city with a limited amount of houses, a great quality of life and a world leading forward outlook.
The high end market, above $5 million, has almost stepped up to the challenge. Over the last three weeks we have contracted a number of homes in the luxury market including an apartment under the hammer at auction last week for $6 million and a prestige home in Paddington for over $10 million plus a number of others. We have seen a slow down of first home buyers.
The first home buyer pond was heavily fished over the last six months and the slow down is largely due to how many of them have now purchased and the now increase in repayment costs. That market is now firmly re-established around $1 million and with interest rates moving up that makes repayments on a 90 per cent lend over $1000 per week out of your purse! That doesn’t include the rates or body corporate fees, if it’s unit.
In Brisbane’s prestige property market, flat painted gyprock walls are quietly being replaced. Discerning buyers searching for turnkey luxury are drawn to spaces that offer tactile warmth and architectural permanence and microcement, limewash, and Venetian plaster have taken center stage. Here is why hand-crafted wall finishes are driving premium values in suburbs like New Farm, … […]
Last Saturday I called over 30 auctions at The Calile. The properties ranged from entry level to some of the best homes in town. Our October and November auctions have historically been our biggest events. They provide a great macro view of market performance and, more specifically, who’s confident right now. As I wrote last … […]