While most homebuyers breathed a sigh of relief from a sooner-than-expected market downturn, experts claim that a persisting housing supply shortage and potential policy interventions may prevent the market from further retreating.
Pete Wargent, co-founder of BuyersBuyers Australia acknowledged that the Reserve Bank s move to tighten monetary policy in May and June has already caused property prices to retreat.
“There’s no doubt that a few interest rate hikes have put the previously positive property market sentiment into reverse gear. And we’ve already seen prices come off, especially in the upper quartile of the housing market," he stated.
But despite the easing in property values, the expert says the end of the housing supply shortage - which has been the main driver of the property pandemic boom- is not yet in sight.
“The supply shortage even extends to stock listings, which are still at exceptionally low levels in most of the eight capital cities, as wel
Property market update: Brisbane, February 2022
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Two property professionals have offered reassurance to investors that the flooding currently impacting south-east Queensland is not expected to impact the long-term Brisbane housing market.
In spite of a downturn in prices seen following the 2011 floods, Peter Wargent, co-founder of BuyersBuyers Australia stated that detached houses in the Brisbane region experienced a 25 per cent price increase in the subsequent five years. He predicts that this cycle will be repeated again after this year’s flooding event.
“Over the medium and longer-term, history shows that there will be a relatively insignificant impact on the housing market”, he said.
Similar to the period after 2011, BuyersBuyers CEO Doron Peleg believes the current flood crisis will eventually become a distant memory for the Brisbane housing market.
“There was a perception after the [2011] floods that flood-prone areas might be perceived negatively or experience poor capital growth, but that did not prove to be the c