Brisbane property market taut but optimistic: Herron Todd White

The Brisbane property market has a strange feel about it at the moment, says Herron Todd White.

‘’It’s been sitting at the ready, almost taut, waiting for something to happen.’’

But the valuer says the reality is that a general sense of optimism - and a steady-as-she-goes time in the market - will generate modest gains for those willing to buy and wait.

Property in the Brisbane market has had a tough time of late. ‘’After a string of bad luck stories in the domestic and overseas economy - plus political turmoil at a federal level - Brisbane had the compounded hammering of the 2011 flood to help things limp along over the past five years, the valuer says.

‘’What we are now seeing is a growing sense of optimism around the nation in 2013. Numbers just released by Australian Property Monitors show a rise in property values across all capital cities with the majors – Sydney and Melbourne – among the strongest.

‘’The thing is, Brisbane has always traditionally lagged behind the likes of Sydney. ‘’

Herron Todd White says the APM June Quarter results show the median price gain for Brisbane houses as positive but tiny – certainly at a substantially slower rate than Sydney.

‘’The optimists among us might say we are due to start seeing better gains as the year progresses. Smart money might continue watching the NSW capital and to see if a trend is emerging.’’

Herron Todd White says while there is some confidence in property markets, buyers are often uncertain where fair market value lies.

‘’There has been an increase in the number of pre-purchase valuations being requested by buyers. This is a sign to some degree that buyers want to buy rather than just tire kick or hope to jag an absolute steal.

‘’So, our call is that sectors where fundamentals are good are the ones that will perform the best in the foreseeable future.  It’s no longer fair to say every sector is a buyers’ market.

‘’Our expectation for the rest of this year is one of quiet confidence - assuming there are no unforeseen shocks, with everything is pointing to a steady period with modest gains to be made for those willing to buy and wait.

‘’The hope is that we might see a return to normality, where capital gains are solid but not out of control. Boom time markets tend to have painful endings. Even agents would be keen to see a steady turnover, steady gains and some solid real estate fundamentals.’’