Those who plan to buy a house in Brisbane this year should rethink their options if they have a limited budget, as the median price cost is $675,000 as of December 2018.
It might be better to search for homes in other cities of Queensland, such as residential real estate in Townsville. According to the Real Estate Institute of Queensland (REIQ) Market Monitor, annual median property prices in Brisbane only rose 1.1% during the previous year. However, industry analysts considered this to be a significant jump given that prices in other cities like Melbourne and Sydney have declined constantly.
Why Brisbane is Popular
Brisbane has become more popular for real estate investors and home buyers because of the current situation in Sydney and Melbourne. Prices have fallen yet the monetary value of homes remain expensive, with some properties in Sydney costing more than $1 million.
As a result, nationwide prices also fell since a majority of the country’s housing supply are in these two cities. REIQ said that the market in Brisbane has weathered the decline because of more people moving to the city, which consequently increased the demand for homes and corresponding prices.
Historical Price Movement
If you plan to buy a house as an investment, Brisbane could be a good destination because of the positive historical price movement. Home prices in the city have been increasing slowly ever since the market slowed down in December 2012. In fact, the average price in the local government area rose almost 26% from $535,000 to the current price in December.
However, it will not be easy to find a house in Brisbane even if you have the money. As it is a seller’s market, you should expect home values to reach above the average asking price. Some homeowners will cling to their properties for as long as they can, just so that they could maximise the potential return on investment. For this reason, looking for a cheaper place makes more sense, especially if you end up not selling the house in the future.
Where Prices are Cheaper
CoreLogic listed average prices at Balgal Beach in Townsville as the cheapest suburb to buy a house not only in Queensland, but also in the country for 2018. It cost as low as $49,000 to buy an 809-square-metre land in the coastal community. Some residential lots even sold for at least $20,000 last year, so it is possible to build your own home by hiring a contractor.
As of March, the cheapest house and lot that went for sale cost around $185,000. The house looked like a granny flat, but the value of the lot holds more potential because of the possibility of building a bigger house.
Brisbane’s housing market has bucked the trend of a price slowdown in other capital cities, mostly because of prices that did not increase at an exponential rate. Before you look for a house in the city, take time to consider other cities in Queensland where prices are more affordable.