Experts take the long view on the market

BETWEEN them they have more than 500 years experience in real estate, and have survived the rollercoaster ride that is Queensland’s property market – from the “recession we had to have” and the GFC to the mining downturn, pandemic and unexpected price boom.

Sixteen real estate veterans from across Queensland have shared their predictions for the next stage of the property cycle, and their advice to buyers, sellers and renters navigating a new wave of interest rate hikes, soaring inflation and looming economic headwinds.

And it won’t be for the faint hearted, according to Area Realty FNQ principal Karen Ranie, who has 42 years in the industry.

“The biggest challenge is the cost of property today,” she said. “Thirty years ago, a small annual increase in value was the accepted norm but over the years of boom and bust markets it has been difficult to establish value.”

In Ingham, Felix Reitano is a third generation real estate agent, and continues the family business started by “Felix the First” back in 1923.

And with 40 years’ experience of his own, he remembers when home loan rates soared to 17 per cent, just before then treasurer Paul Keating declared the “recession that Australia had to have”. But he added the latest rate hikes would likely hit newer borrowers harder. Professionals Edge Hill/cairns principal Billy Gartner, who has 35 years in the game, said the biggest challenge was affordability.

“Thirty years ago, it was possible to buy a property for $50,000 to $75,000, renovate it and resell it and make a $30,000 to $50,000 profit,” he said. “Today, you need to spend $400,000-plus to hopefully get the same result.”

Janice Gallagher of Janice Gallagher Real Estate, who has 40 years’ experience, said the Townsville region still had some way to go to claw back to the prices achieved in its last boom in 2007-08. Colliers Cairns director Stacey Quaid holds a similar view in his patch.