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- April 16, 2015 /
- by Josh Atherton /
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Evidence of the rising property market in Brisbane has been seen with residential real estate sales have hitting a five year high in 2014 according to the latest media release by REIQ. According to the latest data, residential real estate sales has been valued at $51 billion of transactions during 2014. The sales volumes throughout 2014 have broken the 5 year low which has triggered Brisbane property price growth to fall below the other capitals, with 114,000 properties being exchanged over the year throughout the state. Although this is great news for investors it has not topped the previous record set in 2007 during the property boom in which $73 billion of residential property changed hands and the record of sales volumes set in 2003, which may be an indication that there are greater sales volumes to come as capital growth follows the results of 2014 and more investors see opportunities in Brisbane and the rest of Queensland.
PPI Director Josh Atherton commented “There is still a lot of room for the market to move with the sales volumes picking up and surpassing 2010 levels although we are still yet to see the previous records being broken as was the case for the early 2000s. However with the speed the market is picking up and the factors which are playing a part in the recovery we may very well see similar levels of growth as is the case in the major capitals of Melbourne and Sydney.”
An even more positive sign for investors is the number of suburbs in which vendors made a profit upon sale. To put this in perspective and gain insight into the steadily increase market, the number of suburbs which recorded profits when sold jumped from 22 in 2013 to a solid 49 suburbs throughout Queensland. A majority of 100 percent profit making suburbs were located in Brisbane with Albion, Seventeen Mile Rocks, Ferny Grove and Upper Mount Gravatt being honourable mentions. Josh remarked “The rising sales volumes is a good indication that the market is well underway in recovery mode and investors should start seeing impressive capital growth over the next few years as prices catch up with the surging demand and more suburbs join the list of 100% profit making sales.”
Gold Coast was also a strong performer with 100 per cent of vendors in Mermaid Beach making a profit in 2014 as prestige real estate becomes hotter in the Gold Coast and the rest of the state as 2,600 million dollar plus properties across 320 suburbs changed hands and the price point being the strongest performer in Queensland in the December 2014 quarter boasting sales volumes up 17 per cent across the state.
While Brisbane was often stated to not live up to investor expectation towards the end of 2014, the sales volumes tell a different story with the market bouncing back hard, it is predicted that over the next 12 months capital growth will surge as sales volumes to continue to increase and opportunities are created as more investors jump into the market once results are seen.
Results are already be seen evidence by a separate media release by REIQ which stated that the Brisbane median housing price for the first time broke $600,000 with prestige property leading the market and driving the median higher. Unit and townhouse sales were also increasing in volume with volumes up 16 per cent in 2014 and a median increase of 3.6 per cent. This all plays a part in the rising market of Brisbane and Queensland as with rising sales comes soaring demand followed by an increase in capital growth driving the cycle even further with great returns to be made in the coming years.