Brisbane House Prices Jump Due to Limited Supply

Property market prices are on the rise in Brisbane largely driven by the very low amount of real estate for sale.

This is an issue for overseas investors that are cashed up. Real Estate agents in Brisbane have commented that their international clientele were ready to spend millions on homes however due to the lack of supply, they aren’t able to invest in the Brisbane market.

Some are even making the trip here only to leave disappointed and return home empty handed.

Local agents are frustrated in the sluggishness of the high end of the Brisbane market stating that if more people were ready to sell, they could get record prices for their dwellings.In the month of August 2013, property market values in Brisbane increased considerably. According to RP Data released recently, these figures were much higher than any other capital city.

Their data also focused on the 1.5% increase shown in Brisbane home prices in the past month. This rose median real estate prices to a profitable $429,000.
Tim Lawless, an analyst working for RP Data, noted the significance of the turnaround in the city’s market within the last quarter. Mr. Lawless noted, “There has been an evident progression since the housing market underperformance since November 2009.

The global financial crisis lowered home values in that time by 10%. Fortunately, Brisbane’s housing market has reached a positive turning point.”With demand at an all time high, and a supply of available homes low, it’s a reasonable factor in the increased property prices. RP Data has shown a dramatic decrease in property listings in Brisbane of 13.3%. This means that there will not be many homes in the market that will make any investors rich.

Cameron Kusher, another analyst for RP Data, believes that these conditions will be nearly perfect for sales in the spring season. He said, “The activity in the market is caused by the lowered interest rates. The low clearance stock found on the market will make the determination on the results that will be made in spring. It is certainly going to be the perfect selling period.”August Median Housing Prices

BRISBANE – 1.5% increase to $429,000
SYDNEY – 0.6% increase to $587,000
MELBOURNE – 0.2% increase to $507,000
ADELAIDE – 0.7% increase to $380,000
PERTH – 0.2% decrease to $499,500
HOBART – 1.9% decrease to $289,000
DARWIN – 0.7% increase to $495,000
CANBERRA: 0.9% increase to $503,000

*The average median has increased 0.5%, with sales at $490,000.
Sources collected from the August Hedonic Home Value Index reported by the RP Data-Rismark