Brisbane’s unit market has been a hot topic for the last five years or so.
It’s been oversupplied, unit values have dropped, demand has fallen as supply has increased dramatically. The market has under-performed and disappointed many unit owners and investors.
It’s important to note that we’re only talking about units here. The housing market, on the whole, has been performing well and houses have returned strong capital gains over the past decade.
The oversupply of units has been confirmed by leading property researchers, CoreLogic, “2016 was a time when units were being built across Brisbane at an unprecedented level. ABS completion data suggests 21,342 units were completed, against a historic average of 11,585 per year.”
That’s a huge amount of construction to complete at the same time, and there’s no wonder that it had a massive impact on price.
In 2016, housing demand in inner-city Brisbane also slumped.
The oversupply and the decrease in demand caused values to plummet and “time on market” to skyrocket.
Now, four years on, supply is back to normal levels, with a prediction of 4000 units due for completion each quarter during 2020, and demand is creeping back up.
What happened to the Brisbane property market is a perfect example of why property investing is best as a long term investing strategy. Property cycles go through peaks and troughs all the time. Unless you’re an active investor, continuously studying each market and making decisions based on the trends you’re seeing, then it’s really hard to manage short term investing.
The plan is usually to buy and hold. And for those investors who were able to hold through the trough experienced in Brisbane, predictions are that the market will recover and you will benefit from capital growth.
If you’re interested in investing and want some expert advice, please get in touch and I’ll pass your details onto our friends at Blue Wealth Property. If you need an investment loan, I’d love to help.
