The year 2020 has been recognized as eventful and unpredictable, this is due to the unforeseeable events that took place, like the bushfires, floods and then a worldwide pandemic. It has been a difficult year for many as everyone’s experienced it differently.
The good news is, we have seen some positive aspects in the property market, due to Government incentives and record low interest rates, those with stable incomes are now looking to get into the housing market meaning houses are selling faster than first expected.
Property expert, Michael Yardney said that “based on the predicted pace of the post-recession recovery, I would expect the pandemic to have a more limited and shorter-lived impact on housing prices then either the early 1990’s recession or the Global Financial Crisis. Looking back in history, residential property has performed relatively well at times of negative economic shocks.
While it’s true that once we come through the Coronavirus pandemic Brisbane is likely to be the one of the best performing property markets over the next few years. They are saying Brisbane property prices could surge as much as 20% over the next 3 years as economic growth and affordability become factors that slow down Sydney and Melbourne.”
So what has been predicted and seems to be on track for is the property market in Brisbane and the greater south east is set for a strong start in 2021 thanks to a few major projects like Queens Wharf (aka the new casino), Howard Smith Wharves and very strong housing affordability compared to Sydney and Melbourne, the South East price points are most attractive.
The current market pace ensures that there is confidence in the long-term future for the Sunshine State Capital.
However, with more than 350 000 southerners are predicted to enter our state, the forecast on a housing shortage is also a real concern. Whilst a shortage of housing for those currently owning investment properties means an surge in rental prices, the outcome with be extreme pressure on families in terms of affordability levels.
Antonia Mercorella CEO of the REIQ (Real estate Institute of Queensland) is calling on the state government to do more to support investor activity in our state.
At Macwell Property we identify that there are some excellent cash flow positive opportunities to be had and now is a fabulous time to invest in our sunshine state.
Article written by Samara Bedwell Managing Director Macwell Property 27-11-2020
