Spring price rise pre­dicted

The Courier-Mail - Property - - REALESTATE - TEELA JUR­GENSEN

HOME­BUY­ERS are be­ing warned that property prices will in­crease as mar­ket con­di­tions con­tinue to im­prove across Queens­land.

Buyer’s agent, au­thor and CEO of Oa­sis Property, Gavin McPher­son, pre­dicted property prices in Bris­bane would take off in spring as emo­tion­al­ly­driven first-home buy­ers re-en­tered the mar­ket.

The lat­est RP Data sta­tis­tics show home val­ues for the Bris­bane and Gold Coast re­gions de­creased by 1.5 per cent over the past month, but there was an an­nual in­crease of 5.4 per cent.

“Prices will go up over the next 12 months,” Mr McPher­son said. “Bris­bane is so ob­vi­ous for value for money that there is no other choice but for prices to go up.”

He said the first wave of buy­ers – in­vestors who were smart with their money – had al­ready hit Bris­bane, and the re­gion was now ex­pe­ri­enc­ing a sec­ond wave, which was pre­dom­i­nantly sec­ond or third-time in­vestors who bought wisely.

He pre­dicted that first-home buy­ers and in­ex­pe­ri­enced in­vestors would ap­pear in spring and put a push on prices.

“If ev­ery­thing oc­curs in Bris­bane the same as it did in Syd­ney last year, it should be a very busy spring,” Mr McPher­son said.

He said that prices would in­crease grad­u­ally into 2015.

Century 21 Aus­trala­sia owner and man­ag­ing di­rec­tor Charles Tar­bey said the south­east Queens­land mar­ket was “go­ing to start to move”.

He pre­dicted a boom for the Sun­shine Coast and said that Bris­bane was en­joy­ing a steady growth mar­ket that should con­tinue for the next few years.

“Some ar­eas are hot now be­cause of (a lack of) sup­ply,” Mr Tar­bey said.

“From all in­di­ca­tions, there are plenty of buy­ers out there”.

He said more homes had been listed for sale at higher prices in Bris­bane over the past 12 weeks. “Clear­ance rates are now sit­ting in their 40s and 50s. We’re al­ready see­ing move­ment in the mar­ket – it started in early-Novem­ber (last year),” Mr Tar­bey said.

How­ever, the mar­ket was be­ing held back by con­ser­va­tive buy­ers tak­ing their time to con­sider prop­er­ties be­fore pay­ing higher prices, wary valuers who were stung in the GFC fall­out and banks start­ing to look more closely at re­spon­si­ble lend­ing.

Mr Tar­bey said the mar­ket would sta­bilise this year on the Gold Coast, with a take-up of old stock over the next 12 months to two years.

“I don’t see the Gold Coast go­ing crazy, but I do see in­vestors com­ing back be­cause of the op­por­tu­ni­ties there,” he said.

Mr McPher­son said he was “very bullish” about the Gold Coast mar­ket.

“The Gold Coast is now in­dica­tive of Bris­bane six to nine months ago,” he said.

“People who get in now will be good for the long term.”

Mr Tar­bey said that in the cur­rent mar­ket, it was im­por­tant to buy and sell at the same time.

“If you’re sell­ing to cash up, it’s not the right time,” he said. “If you’re sell­ing to buy again, it’s a good time.” Buy­ers should fac­tor in a pos­si­ble rate rise in the two years – and his No.1 tip was “don’t hes­i­tate to ne­go­ti­ate”.

Charles Tar­bey pre­dicts a boom.

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