Market uncertainty is deterring prospective buyers from entering the property market in Brisbane, and many people are willing to put off purchasing a property for at least another two years, according to Place Advisory’s latest Investor Sentiment Survey.
The 2017 survey found that more than half (51%) of respondents believe that the Brisbane property market has suffered over the past 12 months compared to only 42% in the year before.
Lachlan Walker, director of Place Advisory, said there has been a significant change in sentiment, considering 71% of people believed the market was improving four years ago.
“The biggest hurdle to buying property at the moment is market uncertainty,” Walker said. “If we had some jobs growth and positivity in the economic market, we’d see the property market performing better. That’s what’s holding people back.”
Cameron Kusher, head of research at CoreLogic, agreed that jobs growth is holding Brisbane’s property market back.
“I think that’s still the big drag on Brisbane,” he said. “We’ve been thinking for a number of years that Brisbane is the next market to take off, and certainly others have as well, but I think the big missing ingredient ultimately has been that strength in the jobs market.”
Twenty-seven percent of respondents would put off buying a home for two years, while 17% were willing to wait five years.
The survey of 500 potential property buyers found that the majority of people considering buying property in Brisbane wanted a three-bedroom home in the city’s middle ring, in close proximity to public transport and amenities. People also wanted to live near school zones, parks, walkways, and great employment opportunities.
In addition, Place Advisory’s survey found that nearly one-third of investors expected to achieve unrealistic capital growth. While the majority of investors expect to achieve between 4% and 6% capital growth, 28% expect to achieve above 8% growth.
Walker was keen to point out that there are still active buyers in the Brisbane housing market. “There’s definitely money in the market,” he said. “People have got the ability to buy, but they’re looking for value, which is a good thing.”
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