Up­swing flags more re­al­is­tic ex­pec­ta­tions

The Courier-Mail - Property - - WHO’SHOME - Michelle Hele

NEW re­search from real es­tate gi­ant CBRE in­di­cates the south­east res­i­den­tial mar­ket is edg­ing to­wards re­cov­ery.

The find­ings sug­gest buy­ers have been in­flu­enced by drops in in­ter­est rates at the end of last year and that many reckon the bot­tom of the mar­ket is well and truly here.

Ap­par­ently the Bris­bane and Gold Coast mar­kets in par­tic­u­lar have seen an up­swing in sales be­low $500,000.

It’s not sur­pris­ing re­ally, con­sid­er­ing the back­log of prop­er­ties on the mar­ket in Bris­bane and the num­ber of dis­tressed sales tak­ing place on the Gold Coast.

The fact that sales are get­ting over the line is an in­di­ca­tion that sellers (even if they are re­ceivers) are be­ing re­al­is­tic with their ex­pec­ta­tions.

The re­search also ex­presses con­cerns about the pres­tige mar­ket, not just in Bris­bane but all cap­i­tal cities.

It finds there are few deals tak­ing place and, with price lev­els of­ten show­ing sub­stan­tial dis­count­ing, sales are dry­ing up.

Pre­dic­tions are that this side of the mar­ket won’t see con­sid­er­able bounce-back un­til the global fi­nan­cial mar­kets show some sus­tained re­cov­ery.

Con­fi­dence, as is al­ways the case, will be the sig­nif­i­cant fac­tor in terms of how the mar­ket con­tin­ues to per­form this year.

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