Herron Todd White's July Month In Review Report includes the following about South East Queensland:Brisbane"Our sunny market outlook has greyed somewhat after recent rate rises. The mixed signal from commentators has put a large percentage of investors on the back foot. A portion of those in the know continue to sing the South-East QLD song of praise, hitching their star to our increasing population and seemingly boundless potential, but other equally wizened souls note we are getting a bit big for our boots. Buyers do not have bottomless pockets, they venture, and the market is due to check itself. The confusion has also been noted by agents who are seeing different sectors performing at different speeds with no clear cut idea of how it will all pan out. ...Historically, Brisbane has not been susceptible to dramatic market fluctuations, which means most punters are able to bear the brunt of change. This time may be different, however as the recent boom has been unprecedented for most and unless smart, developers may find the landing more bumpy than expected."Brisbane apartments:Rental Vacancy: severe shortage of available property relative to demand Rental Vacancy Trend: Tightening Demand for New Units: Fair Volume of New Unit Sales: Declining Stage of Cycle: Peak of Market Are New Properties Sold at Prices Exceeding Their Potential Resale Value: FrequentlyGold Coast"Market conditions have slowed on the Gold Coast in the past 3 to 4 months, with agents generally reporting subdued levels of enquiry. Some agents have proposed that there has been as much as an arbituary 10% drop in market values which would almost cancel out gains achieved during 2007. It is difficult to ascertain the extent of the slowdown in the second hand property market with the reduced turnover of sales. Some sectors still continue to perform or hold their ground in light of the underlying economic issues. A good indicator of the market slowdown is the performance of new unit complexes, townhouses, and house/land packages. Marketing agents have reported a significant drop in buyer enquiry. Subsequently rates of sale have fallen. Developers are now in a position where they are offering incentives to “prop up” the fall in rates of sale. ... Those that purchased off the plan in 2006/early 2007 to speculate on a new high-rise unit project, are now only realising that their purchase was in vain. Should they forego their deposit, the unit goes back into the sales pool further placing pressure on supply."Gold Coast apartments: Rental Vacancy: balanced market Rental Vacancy Trend: Steady Demand for New Units: Soft Volume of New Unit Sales: Declining Significantly Stage of Cycle: Declining Market Are New Properties Sold at Prices Exceeding Their Potential Resale Value: FrequentlySunshine Coast"We also are seeing incentives being offered and the return of ‘extraordinary marketing techniques’ to non-locals to help sell unit projects. Rentals for both houses and units remain strong and underpin demand with no suggestion that this is going to ease. Punters must also be concerned with the fluctuations in the stock market and some will transition back into property where there is strong rental support and long term potential for capital growth."Sunshine Coast apartments: Rental Vacancy: shortage of available property relative to demand Rental Vacancy Trend: Tightening Demand for New Units: Soft Volume of New Unit Sales: Declining Stage of Cycle: Bottom of Market Are New Properties Sold at Prices Exceeding Their Potential Resale Value: Occassionally
"Valuer's Report"
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