Post a Comment On: Brisbane Apartment

I do not know! The messages are mixed at present. My predication is that some buildings will have average price growth, while other buildings (e.g., those with a large number and % of investor apartments -- e.g. Aurora and Charlotte Towers -- or those that were aggressively sold off the plan during the boom -- e.g. Evolution) will have no price growth or price decreases.
Factors suggesting price increases for Brisbane apartments include:increased migration to Brisbanemining sector likely to remain strongfew large new apartment buildings being completed in the next 18 monthsnet returns of 5% or better for some apartmentsFactors suggesting no price increases (or possible price decreases) for Brisbane apartments include:likely interest rate increases in 2010rents unlikely to increase significantly in 2010, and may even decrease for some buildings/areaslack of first home buyers, many of whom purchase apartmentsinvestors only purchasing when the price is right or the seller is desperatedifficulties for investors getting loansbanks are requiring a higher % of down payment, so investors have less to spendvaluations are more conservative, making it harder for investors to obtain highly geared loansdifficulties redrawing against existing loans to invest, because property prices have not increased significantly in recent timesRisks for the investor in Brisbane include:foreign students loosing interest in Brisbane or Australia -- as they make up a significant percentage of renterswages stagnate -- affordability (% of wages spent on property) already stretched, so unless wages increase, it is unlikely that property prices will increase significantlycouncil rates increasingbody corporate levies are already high (over $6,000 a year in some buildings), and may increase more this yearfederal government limiting or removing ability to negatively gear or claim depreciationunemployment increases