Everyone is talking about Brisbane’s property market, where the landscape is as hot and bustling as a summer day. So, grab your hats and let’s explore what’s really happening.

The Current State: A Supply-Driven Market

It’s an interesting time in Brisbane. Unlike what some might expect, the current property market boom isn’t driven by a surge in buyers. Instead, it’s all about supply, or the lack thereof. Simply put, there are the same number of people wanting to buy, but with far fewer properties on the market. This imbalance between supply and demand is creating a significant upward pressure on prices.

Why is there a lack of properties?

The pandemic has been a game changer in many ways, including the property market. Three main areas saw significant cost increases:

  • The Cost of Money: Interest rates and inflation went up, making borrowing more expensive for developers.
  • The Cost of Materials: With a global construction boom and pandemic-induced disruptions, material costs skyrocketed.
  • Labour Costs: A drop in unemployment rates led to higher labour costs.

Moreover, many developers, facing increased costs and longer council approval times, have found their projects financially unviable. This has led to a significant reduction in new developments, further tightening the supply.

What is the result?

To truly understand the market, one must look beyond the lagging official data and focus on anecdotal indicators. These indicators provide a real-time pulse of the market. Developers in Brisbane are now pushing for unconditional exchanges, indicating a shift towards favouring more certain buyers due to the reduced property availability.

The current boom in Brisbane is a classic case of supply and demand economics. With fewer properties available and steady buyer numbers, the equation is clear: prices are likely to rise.

What’s Next for Brisbane’s Property Market?

As we look ahead, keep an eye on interest rates. A drop in rates could further influence the market dynamics. Additionally, the impact of developments that never started over the past 12-18 months contributes to the ongoing supply shortage.

Action Time: The Market Awaits

This is not the time to sit back. The market is moving, and opportunities are ripe for those ready to take action. Speak to a Teach Me About Property expert, read our research, and be prepared to make the most of Brisbane’s current property market.

In conclusion, Brisbane’s property market is experiencing a unique phase. It’s a supply and demand-led boom shaped by the aftermath of COVID-19, economic changes, and developmental challenges. For anyone looking to engage with this market, now is the time to act smartly and decisively. Remember, in the world of property, timing is everything. So, as we like to say, play time’s over, and the real game has just begun.