Is this what is happening for Brisbane and South East QLD house prices?
This is what the ‘Property Clock’ above produced by a major national property research company is indicating.
If you haven’t seen these before, property clocks are designed to indicate where each of the major cities and towns are in their property cycle, with:
- 6 to 9 o’clock being the ‘recovery’ phase of the market
- 9 to 12 o’clock being the ‘rising/upturn’ phase in the market
- 12 to 3 o’clock being the ‘start of the decline’ from the peak of the market
- 3 to 6 o’clock being the ‘declining’ phase of the market
These and other property market news can be very interesting, but its important to note there is not a single property market in each city or town, but countless different ‘sub-markets’ and that, at any given point in time, are not all moving in the same direction or at the same speed.
Similarly, much of what you see, hear, watch or read regarding what property prices are doing is an opinion on what the overall general market is doing in that city or town – often without much context.
What is actually happening within the general property market in an area can differ massively in the underlying ‘sub-markets’, such as:
- The inner city suburbs versus the outer suburbs,
- A suburb in a hotly contested school catchment versus a suburb just outside the catchment,
- Specific streets in high demand that are outperforming other streets in the same suburb, sometimes referred to as being in ‘a good pocket’.
- Specific properties with unique features, such as city views or being absolute waterfront, may also outperform properties on the very same street.
At the end of the day though, you are not buying or selling the general property market in a city or town – you are usually only buying or selling a single specific property. As such, what the general market is not nearly as relevant as what is happening locally around your property.
Regardless of whether you are purchasing a home or an investment property, we generally recommend purchasing a property that is a good long term investment at a reasonable price, as the costs of making a bad decision with property can be in the $10,000’s-$100,000’s.
As such, when you are considering buying a property, you need to spend the time to do your homework – or outsource your homework to professionals – regarding many things, including analysing the specific properties you are considering, as well as researching the local market for that particular property.