The property market both in Brisbane and in Queensland as a whole has been performing well despite the cooldown in most parts of Australia.
4,156 Australian vendors were surveyed last quarter with a larger majority of home sellers in Brisbane and Queensland having an optimistic view of the market.
These results are based on the OpenAgent Consumer Sentiment Index, a proprietary index system that measures vendor expectations for home price movement.
Vendors are asked whether they believe prices will be Strongly Up, Slightly Up, About The Same, Slightly Down or Strongly Down in their area within the next six months.
Results are then placed on a scale of -10 to +10, with 0 being a neutral view of the market.
For the past few quarters, Brisbane and Adelaide have gone back and forth in terms of being in the lead for the most optimistic capital city.
This last quarter, Brisbane overtook Adelaide with a 2.4 index, highlighting that a larger majority of home sellers believe prices will continue to rise within the next six months.
Around this time two years ago, Sydney, Melbourne and Brisbane were known as the leaders in the Australian market.
However, market expectations in Brisbane are now way ahead of the increasingly pessimistic market expectations in Sydney and Melbourne.
Despite this, it’s still important to note that the index has still been decreasing with each quarter.
This means there is now a smaller majority of people with optimistic market expectations in Brisbane compared to last year.
Similar patterns can be seen when comparing the states overall.
Though the index in Brisbane has been on a relatively stable decline, Queensland’s indexes have shown some fluctuations over the last few months.
However, Queensland’s 2.6 index is still well ahead of Victoria’s 0.8 index and even more ahead of New South Wales’ negative index of -0.9.
This time 2 years ago, the market expectations in New South Wales and Victoria were almost twice as strong in comparison to Queensland.
Hence, if you’ve been waiting for prices in Brisbane or other areas of Queensland to drop, it’s unlikely that they’ll be doing so within the next six months according to home sellers.
However, if you’re hoping to invest in a strong market in the near future, you might want to consider Brisbane and Queensland over other areas of Australia.
Of course, it’s important to do research into specific areas you’re interested in since Queensland and the separate areas of Brisbane are incredibly diverse.
Guest author: James Pointon is a Commercial Manager at OpenAgent.com.au, an online agent comparison website helping Australians to sell, buy and own property.