Brisbane Property Market Buzzing with the Largest Price Falls Since 2011. Huh?
By Keith Windle
Is it any wonder that nobody can get an accurate view on the Brisbane Property Market?
Earlier this month, the media wrote 2 confusing articles just 9 days apart.
On the 11th April, an article was published titled “Brisbane property market buzzing as $29m in houses trades hands”. The article went on to say “It’s been another big week for the Brisbane housing market”. But then just nine days later, another article was published titled “Brisbane house prices fall: Largest quarterly drop since 2011”.
Even though the latest article talks about prices falling in the heading, the article also says “Annual growth is still positive”. The trouble with these type of article is that they only use the data for a specific period. And it is the interpretation of this data that can cause significant confusion.
Let’s use one of our local suburbs like Hawthorne to illustrate how this data can be misinterpreted. Hawthorne is an area that contains a massive variety of properties from the older 1970’s style 2 bedroom units, right through to multi-million-dollar riverfront homes. Even just the street location can have a huge impact (some streets in Hawthorne get amazing City Views and some don’t). If you get a quarter where a larger amount of the Riverfront Homes are sold and the next quarter more of the 2 bedroom units are sold, this will show a significant drop in average prices.
The opposite to this, and the next variable that comes in to play, is a very valid point brought up previously by other Real Estate Commentators. Renovations and even “Flippers”. If a property is sold, renovated and then immediately re-sold, it will show a significant jump in value when you look at the raw data. To get a more accurate benchmark, what you need to find is a property that has been sold twice within a short period, that has had no modifications.
A good local agent is going to give you a much better indication on the Brisbane Property Market because they are dealing with comparable properties on a daily basis.