The upward property price trajectory has continued according to data in the PropTrack Home Price Index just released for July. Capital cities in particular are performing well, except for Melbourne, which I want to talk about in a moment and discuss the effect this is having on Brisbane prices. Brisbane is sitting in silver medal position in the country, behind Sydney who come in with the highest mean property prices in Australia.
First, let’s take a quick look at some of the key highlights from the July report.
Key PropTrack Takeaways for July
It’s safe to point out that traditionally in winter there’s a bit of a slowdown in real estate, and although prices have pushed to a record new price peak, the pace of growth is a bit slower. This is normal for July, and it makes us excited for what the summer months will bring!
Let’s look at the stats. The national price average rose by another 0.08% in July, pushing the annual rise to 6.3% when compared to this time last year. If we look at capital cities alone, they have increased by 6.6% in the last year, continuing to outperform regional markets.
Lasering in on the Brisbane market, we saw a combined 0.34% increase in the price average in July. This places us just behind Perth and Adelaide for the month, and it takes our annual growth up to an impressive 13.93%. The median price of a property here is now $853,000. That means we’re the second strongest capital city, sitting only behind Sydney whose dwelling price is $1,118,000.
What’s Going on in Melbourne?
Interesting to note is that Melbourne has recorded a fourth consecutive month of price falls. There was also a four year spike in auction numbers in Victoria during July. Whichever way you look at it, property investors are leaving the Melbourne market, and there are a couple of reasons for this.
For a start, the state government introduced a raft of changes around land tax. The tax-free threshold dropped from $300,000 to $50,000 and the general tax rate for all property values increased too.
This, combined with increases in interest rates and insurance premiums, has made it more expensive to own an investment property in Victoria.
The good news for the Brisbane market is that many of the investors exiting the Melbourne market are looking to the Sunshine State to spend their investment dollars, helping keep our market here strong.
According to Proptrack Head of Economic Research, Cameron Kusher, “Over the past year the value of lending to investors in Victoria was up 6.3% while in Queensland it was 45.3%.” Properties in Queensland are attractive because of their higher rental returns when compared to Victoria, especially given the recent increase in taxes there.
I’ll keep you posted on the Melbourne market and how this continues to affect Brisbane, just stay tuned to my blog!
When is the Best Time to Sell?
For me and The Henry Wong Team®, the best time to sell is the time that suits you and your family best. Your real estate decisions need to align with your other life decisions – they shouldn’t all hinge on property alone.
Research does show that November is statistically the month when you should get the highest price for your home. Prices generally come in at 0.8% higher than prices for the rest of the year, at a national level. The ‘Spring Selling Season’ is October and November, and this generally sees a flurry of activity as the real estate market shakes off the winter chills.
In Brisbane statistically October is the best month, and you can expect to get 0.52% more than at any time of the year. This is of course depend on many other factors, including how effective your agent is at marketing your home and drumming up interest both nationally and overseas.
It’s important to note though that at the moment, the buyers are definitely out there all year round. There is no shortage of interest in property.
Get in Touch With The Henry Wong Team®
Maybe now is the right time to sell your home and move onto the next stage in your life. Or perhaps you want to put your feelers out about getting ready for the Spring selling season. Whatever your thoughts, me and my team are here to answer all your questions about real estate.
We’re based on the south side of Brisbane but sell property across the city and South East Queensland. We’d love to help out in any way we can, and help you achieve record-breaking results such as this recent auction in Wishart. Get in touch today.
