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Navigating the Brisbane Property Market: A Comprehensive Guide for Buyers

 

Welcome to our comprehensive guide for buyers navigating the Brisbane property market. Whether you’re a first-time homebuyer, an investor, or a seasoned property enthusiast, this guide will equip you with the knowledge and insights you need to make informed decisions within the Brisbane real estate landscape.

Brisbane, the capital of Queensland, offers an array of opportunities for property buyers. From trendy inner-city apartments to spacious suburban homes, there’s something for everyone. But with a market that’s constantly changing, it can be overwhelming to stay on top of the latest trends, price movements, regulations, and investment strategies.

Brisbane property is unique as it has been designed to incorporate our outdoor lifestyle. There are a lot of Character Queenslander homes throughout the city. This type of home won’t be found in other capital city markets around Australia. You can find out more about What makes Brisbane Property Unique in our in-depth article.

In this guide, we’ll cover the nuances of the Brisbane property market, providing you with crucial information on local market conditions, areas earmarked for future development, and tips for successful property hunting. We’ll also explore the legal and financial considerations involved in buying or selling a property in Brisbane.

Our team of expert Brisbane buyers agents have prepared this guide to ensure you have all the tools you need to navigate the Brisbane property market with confidence. We hope you find this guide useful and discover more about Brisbane and unlock the potential of the thriving Brisbane real estate scene.

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Understanding the current state of the Brisbane property market

 

The first step in navigating the Brisbane property market is to understand its current state. The market conditions can greatly influence your buying or selling strategy, so it’s crucial to stay up-to-date.

One important factor to consider is the supply and demand dynamics. Currently, Brisbane is experiencing a strong increase in population, led primarily by interstate migration off the back of the Covid-19 pandemic. With more people relocating to Brisbane, this has led to a growing demand for housing. We have seen strong growth in recent years in both property prices and rents.

Typically, when people relocate to a new location, this puts immediate pressure on the rental market. Since peaking in December 2016, when vacancy rates hit 4.1% across the city, Brisbane’s rental vacancy rates have been declining. Throughout 2022 and 2023 Brisbane experienced record low vacancy rates where the majority of month-on-month data showed vacancy rates remained less than 1%.

image from sqm research to demonstrate residential vacancy rates in brisban for brisbane Property market
Source: SQM Research: Residential Vacancy Rates in Brisbane

Brisbane has a strong rental market, with a growing demand for rental properties. This can make it an attractive option for investors looking to generate rental income and also position themselves for long term capital growth. Compared to other East Coast capital city markets, Brisbane’s rental yields are more attractive, thus attracting a lot of inter-state investment.

However, it’s essential to research rental yields and vacancy rates in different suburbs to ensure you’re making a sound investment decision. Regional variations do exist across the city, as in all places. The Brisbane property market is not a single property market, but instead, it is made of several micro markets which can all perform slightly differently over time.

Another trend that has emerged in recent years across Brisbane has been a tightening of the market, with fewer properties available for sale. The number of properties listed for sale can be measured in terms of Listing volumes. Total listing volumes in Brisbane have typically been in a range of around 30,000 every month, however through 2020 and in the years that followed, the number of properties listed for sale started to shrink and now the average number of properties listed for sale is between 18,000 and 20,000. This is approximately 30% BELOW the long-term trend.

image from sqm research for total property listings in brisbane for brisbane Property market
Source: SQM Research – Total Property Listings in Brisbane

As a buyer, this means you may face more competition and potentially higher prices as there is a larger volume of buyers competing for a smaller amount of stock. It is always a good indication of real-time buyer demand when you turn up to an open home and monitor the number of buyers who attend. This tells you just how popular a property actually is and can be an indication of how many people might be competing with you if this is a property of interest.

For regular monthly updates, including the most recent data for the Brisbane Property Market you might be interested to read our Brisbane monthly market updates which provide a comprehensive summary of what’s happening on the ground in Brisbane, as well as what the data shows. Of course, there are many people who are happy to follow data trends, but we like to ensure that the data is matched with what we are actually seeing on the ground. You can find out more about the risk of relying solely on data in our article: Be cautious when relying solely on property data.

Lastly, it’s important to keep an eye on broader economic conditions, interest rates, and government policies that may impact the property market. Changes in interest rates can affect borrowing costs and affordability, which in turn can affect consumer confidence. Government policy changes can also influence demand and supply. You will find out more about these impacts in our regular Brisbane Market Update market commentary. If you are considering an investment property purchase in Brisbane, you might like to read Is Brisbane a Good Place to Invest.?

Staying up-to-date with current trends in the Brisbane Property Market will help you navigate a purchasing or selling decision more effectively.

 

Factors to consider when buying property in Brisbane

 

When buying property in Brisbane, there are several factors you should consider to ensure you make a wise decision, whether the purchase is for your next home or a high-performing investment. For a more comprehensive guide on these steps you can visit 7 Steps to the Buying Process – The Basics, or you can read on below.

Firstly, it’s essential to determine your budget and financial capacity. This will help you narrow down your options and focus on properties that are within your means. Consider factors such as your income, savings, and borrowing capacity when determining your budget. It is advisable to partner with a Mortgage Broker who will be able to determine your maximum borrowing capacity. Once you understand your affordability level, you can then set a plan in place for your purchase that is not only within your means but also within your comfort zone. Find out more in our article: The importance of finance pre approval when buying property.

Next, think about the type of property that suits your needs and preferences. Are you looking for a family home, an investment property, or a smaller apartment? Each type of property has its pros and cons, so it’s important to align your choice with your long-term goals.

Location is another critical factor to consider. There is a wide range of Brisbane suburbs, each with its own unique characteristics. Research different neighbourhoods to find the one that aligns with your lifestyle preferences and offers good potential for capital growth or rental yield.

We have provided a number of suburb profiles for Brisbane suburbs that will be a good place to start.

Additionally, consider the property’s proximity to amenities such as schools, parks, public transportation, and shopping centers. These factors can greatly impact the property’s value and appeal to potential tenants or future buyers. A lot of families are interested in understanding which schools offer the right type of education for their children. If this is you, our article on How to find the best Brisbane School Catchment might pique your interest.

Understanding how to put a price on a property is critical when buying in Brisbane. This requires an understanding of the most recent comparable sales as well as an understanding of market conditions. Many buyers rely on automatic valuation reports that are available online, however, in our article Automatic Valuation Reports for Property, we highlight the limitations of relying on these reports.

image of change in brisbane house and unit prices 2020-2023 for brisbane Property market

In Brisbane properties mostly sell either by private treaty sale or by auction. When market conditions are competitive, quality properties usually attract multiple offers. If this happens, there is a set process that usually follows which you can read more about in our article The multiple offer process in Brisbane. This process is quite different to other states so it is important that you are aware of your rights as a buyer if you find yourself in this position.

If the property that you find is being sold by auction, we have put together a guide: How to Bid at auction in Brisbane – 7 mistakes to Avoid. Remember legislation for real estate professionals is state-based, so the process is different in Brisbane compared to other locations around Australia. If that all seems too hard, you can always engage a professional buyers agent for an auction bidding service in Brisbane.

Lastly, engage a team of professionals to help. A Brisbane Buyers Agent might be a good option for buyers who need expert guidance on price, or who simply don’t have the time to conduct a property search themselves. You can find out more about this type of service offering by reading What is a buyers agent? A Comprehensive Guide or you can understand more about searching for the best buyers agent to help you by visiting Why choose a REBAA Accredited Buyers Agent: Everything you need to know. Of course, you are also welcome to get in touch with our Award winning Buyers Agent team, who can assist.

Additionally, you will need the services of a building and pest inspector before finalising any purchase. A thorough property inspection will help identify any potential structural or maintenance issues that may impact the property’s value or require costly repairs.

Finally, partnering with a conveyancer or solicitor early in the search process will enable you to have the contract reviewed and ensure you are protecting your rights as a buyer. We never recommend signing a contract unless you understand the terms and conditions of the sale.

 

Tips for navigating the Brisbane property market as a buyer

 

Navigating the Brisbane property market as a buyer can be challenging, but with the right strategies, you can increase your chances of securing the property you desire. Here are some tips to help you along the way:

 

Do your research: Prioritise research to gain a deep understanding of the market. Stay up-to-date with property listings, auction results, and market trends. This will give you a competitive edge and help you make informed decisions. You can read our regular Brisbane Monthly Market Updates which will provide all of the information you need to stay informed as a buyer.

Get pre-approved: Before starting your property search, get pre-approved for a home loan. This will provide you with a clear budget and demonstrate to sellers that you’re a serious buyer. Our article The importance of finance pre approval when buying property will provide a more detailed analysis of the advantages of being finance ready.

Work with a reputable Brisbane buyers agent: A knowledgeable and experienced buyers agent can be a valuable asset in navigating the market. They have access to off-market properties, can provide expert advice, and negotiate on your behalf.

Attend inspections and auctions: Attend property inspections and auctions to get a feel for the market and competition. This will help you understand property values and allow you to act quickly when you find a property you’re interested in. If you are interviewing a few buyers agents to see who might be the best fit, our guide on What questions should I ask a buyers agent? will provide a good starting point to direct the conversation.

Be prepared to negotiate: The Brisbane property market can be competitive, so be prepared to negotiate. Set your limits and be willing to walk away if the price exceeds your budget.

Consider off-market opportunities: Keep an eye out for off-market properties in Brisbane, which are not publicly listed. These opportunities can sometimes offer better value and less competition. You will need to establish strong relationships with local sales agents to get access to these, or alternatively, you could consider working with a buyers agent in Brisbane who will already have these relationships in place.

 

By following these tips, you’ll be better equipped to navigate the Brisbane property market and increase your chances of finding your dream property.

 

Working with a buyers agents in Brisbane

 

When navigating the Brisbane property market, working with a reputable buyer’s agent can make a significant difference in your buying experience. Here are some tips for finding and working with the right buyers agent in Brisbane:

 

Research and interview multiple agents: Take the time to research different agents in your desired area. Look for agents with a strong track record, local market knowledge, and positive reviews. Interview multiple agents to gauge their expertise and communication style. Here’s some Questions to ask a Buyers Agent when you arrange the first call.

Check their credentials: Ensure the agent you choose is licensed and a member of both REBAA and the Real Estate Institute of Queensland (REIQ). These credentials indicate their commitment to ethical practices and ongoing professional development. You will find more information about why partnering with accredited agencies is important in our guide: Why choose a REBAA accredited buyers agent: Everything you should know.

Communication and transparency: Choose an agent who communicates effectively and keeps you informed throughout the buying process. They should be transparent about Brisbane property market conditions, property values, and any offers or negotiations.

Negotiation skills: Look for an agent who has strong negotiation skills and a track record of achieving favorable outcomes for their clients. This will help ensure you get the best possible price when buying a property. Partnering with an award winning buyers agent often assures you of a commitment to exceptional client outcomes, as these agencies have been independently evaluated amongst their peers in the industry.

Trust your instincts: Ultimately, trust your instincts when choosing a buyers agent. Select someone you feel comfortable working with and who demonstrates integrity, professionalism, and a genuine interest in helping you achieve your property goals.

Don’t compare buyers agent services on price alone: there is a very big difference in the value that you might receive between one agent and the next. To find out more about the investment you will need to partner with a reputable buyers agent you can read: What does a Buyers Agent cost?

 

By choosing the right buyers agent, you’ll have a knowledgeable and skilled professional by your side who will guide you through the complexities of the Brisbane property market and help you achieve your desired outcome.

 

Legal considerations when buying or selling property in Brisbane

 

When buying or selling property in Brisbane, it’s essential to understand and comply with the legal considerations involved. Here are some key legal aspects to consider:

 

Contract of Sale: The contract of sale is a legally binding agreement between the buyer and seller. It outlines the terms and conditions of the sale, including the purchase price, settlement date, and any special conditions. It’s crucial to review the contract carefully and seek legal advice if needed. We have provided a comprehensive guide to help property buyers in Brisbane navigate the contract process. You can access this here: What is the contract process in Queensland?

Finance and Due Diligence: If you’re purchasing a property, it’s important to arrange your finance and conduct due diligence before signing the contract. This may include obtaining pre-approval for a home loan and engaging professionals to conduct building and pest inspections. To help you understand some of the due diligence steps that are required, our article 9 Property due Diligence checks before you buy will help!

Title Search: Before purchasing a property, conduct a title search to ensure the property is free from any encumbrances, such as mortgages or caveats. A title search can be conducted through the Queensland Government’s online portal or by engaging a professional conveyancer. If you already have your professional team in place, this will form part of the contract review process.

Stamp Duty: Stamp duty is a tax payable on certain transactions, including property transfers. The amount of stamp duty varies depending on the purchase price and other factors. It’s essential to budget for stamp duty when calculating your property purchase costs.

Settlement Process: The settlement process is the final step in a property transaction. It involves the transfer of ownership from the seller to the buyer and the payment of the purchase price. Engage a solicitor or conveyancer to handle the settlement process and ensure all legal requirements are met.

Legal Advice: It’s highly recommended to seek legal advice from a qualified property lawyer or conveyancer when buying or selling property in Brisbane. They will ensure you comply with all legal obligations, protect your interests, and provide guidance throughout the process.

 

By understanding and adhering to these legal considerations, you’ll navigate the buying or selling process smoothly and minimise the risk of legal complications.

 

Resources for researching the Brisbane property market

 

To make informed decisions in the Brisbane property market, it’s crucial to have access to reliable and up-to-date information. Here are some resources that can help you research the market:

 

Real Estate Websites: Popular real estate websites such as realestate.com.au and domain.com.au provide listings, property prices, and market insights. You can search for properties, compare prices, and gain an understanding of market trends and suburb profiles.

Local Council Websites: Local council websites provide valuable information about specific suburbs, including zoning regulations, development plans, and infrastructure projects. This information can help you identify suburbs with potential for growth or areas of concern.

Property Reports: Property reports from companies like CoreLogic and Herron Todd White provide comprehensive data on property values, rental yields, and market trends. These reports can help you assess the market conditions and make informed decisions.

 

 

We have compiled a list of useful resources for property buyers to help navigate the complexities of buying in Brisbane.

 

You can start with the 9 property due diligence checks before you buy. This will provide a broad overview of the areas that need to be investigated before making a property purchase.

Part of your due diligence might include investigating if a property falls under a flight path. If you are wondering what impact Brisbane flight paths might have on property you can access further information on this here: Brisbane Flight Paths – the impact on property.

Of course, Brisbane is a city built on a flood plain, and therefore assessing flood risk is an essential part of the due diligence process. You can access more information on how to assess flood impacts in Brisbane through our resources.

With a lot of character Queenslander style homes in Brisbane, many of these have protections in place that prevent them from being demolished. This is to preserve the character of the city. If you’re wondering how to determine if a home is in a demolition control precinct, we hope our guide helps.

 

By utilising these resources, you’ll have access to valuable information that will empower you to make informed decisions in the Brisbane property market.

 

Conclusion: Making informed decisions in the Brisbane property market

 

Navigating the Brisbane property market can be a complex and ever-changing endeavor. However, armed with the knowledge and insights provided in this comprehensive guide, you’ll be well-equipped to make informed decisions and seize the opportunities presented by this thriving real estate landscape.

Remember to stay informed about market conditions, research different suburbs, and work with reputable professionals, such as our award winning team of Brisbane buyers agents, to ensure a smooth buying process. By doing so, you’ll maximise your chances of success and achieve your property goals in the vibrant city of Brisbane.

So, embark on this journey with confidence and unlock the potential of the Brisbane property market. Whether you’re looking for your dream home, an investment property, or simply want to stay informed about the market, this guide will be your trusted companion. Happy property hunting!

 

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