CBD Property Brisbane

Australia’s real estate market is markedly different to the real estate markets of other developed nations, particularly property markets in the United States and the U.K.

The big difference is that while the USA suffers from an oversupply of property, Australia suffers from an acute shortage of property, especially in the rental sector.

The United States allowed people who could not really afford to repay loans to take them on at low initial interest rates. The lending practices of Australian banks have been much more shrewder, providing some protection for the Australian residential property market.

Queenslands capital city, Brisbane, has fared particularly well. Brisbane has enjoyed a steady population growth of around 3% per annum – at a time when developers are finding it tough to get banks to approve development projects.  Brisbane CBD Properties have been especially strong.

The undersupply of new housing stock, combined with increasing population growth, and hence demand, usually means rising prices. Wages are now growing again at a healthy pace, according to reports from Commsec.

The combination of an Australian economy now rebounding, property vacancy rates at historically low levels of 1-2%, rising wages, current low interest rates and stamp duty concessions, it would be a surprise if property prices in premium suburbs did not rise.

Single bedroom investment property in Brisbane CBD is renting for over $500 per week in some cases and yet people are still willing to pay to rent property. Demand outstrips supply throughout Brisbane, vacancy rates are falling, and rents are rising.

Competition for what rental accommodation is available is fierce. There are some Brisbane suburbs where the cost of the typical mortgage is less than the cost of renting. Under these conditions, it would not be surprising to see investors returning to the market.

Once this starts to happen, momentum starts to build, and property prices will experience upward pressure – especially Brisbane CBD Investment Properties. This is a real boon for property investors looking to build wealth through residential property investment, but of course tough on tenants,