The Brisbane property market is finally turning a corner, after years of lacklustre growth.
The Brisbane median house price increased by 1.5 per cent over the past month – more than any other city in the country. Brisbane’s median is now $429,000 and this is great news for Brisbane investors, according to RP Data. They say the strong result could mark a turning point for the Brisbane market, however still worth noting, values are still almost 10 per cent lower than their previous peak in 2009.
More good news – property investors are returning to bricks and mortar in a big way. Last month, nearly 50 per cent of processed home loans in New South Wales were for investors, according to mortgage broker Australian Finance Group. This implies investors are quickly coming back to the market and far outnumbering owner occupiers.
Around a third of all loans processed in Victoria, Queensland and South Australia were for investors and AFG says they believe investors are anticipating the next property cycle and are getting back in while they can. Just over 25 per cent of new borrowers are fixing their loans to make the most of the low interest rates on offer right now and as if that’s not enough good news, properties are selling faster as well.
Weekend auction clearance rates for Sydney in September showed an 84 per cent success rate which is pretty much back in ‘boom territory’. Melbourne auction clearance rates were also strong at 75 per cent and Adelaide is improving at just 67 per cent. Brisbane and Perth clearance rates by comparison are still low at 40 and 25% respectively. But that is almost normal for both of those markets. Hopefully all of that adds up to a sign of better things to come.