Darwon's Theory | The Pain and Gain of Property

I have some pretty incredible news to share this week. Our city has cemented its position as Australia’s most profitable property market, according to CoreLogic’s latest Pain and Gain Report. It’s the first time since 2009 that Brisbane has come out on top. So what’s driving this success, and what does it mean for those in the market?

The recent report shows a massive 99.1 per cent of property sales turned a profit in the June quarter, and the median profit was $345,000. These data points reflect the sustained demand and resilience of Brisbane’s property market - even in the face of broader economic challenges.

One of the key shifts we’ve seen in the Brisbane property market is a move towards more strategic, long-term purchases. Brisbane property owners are holding onto their assets for about 9 years - a year longer than the traditional Aussie owner. This shift is also reflected in the drop in short-term resales, as that same report shows fewer homeowners are selling properties within two years of purchase than the same time last year. It seems many recent buyers are choosing to ride out the current cycle, anticipating future gains as rates ease.

I’d wager a guess that this trend in longer-term property ownership will continue, largely due to rising property prices and higher borrowing costs. Buyers are aiming to lock in properties that will serve them well over the years to come, offering stability, future growth and a chance to build wealth over time - appreciating that the first few years will be spent working hard to hammer down the mortgage.

For buyers, this means that waiting for a surge of distressed properties may not be the best strategy. With interest rates projected to decrease, competition in the market is expected to rise. Acting now, while prices remain relatively stable, could provide buyers with a competitive advantage before the anticipated increase in market activity.

Brisbane’s strong fundamentals - affordability, lifestyle appeal and continued demand - make it a solid choice for buyers looking for long-term capital gains. With both house and unit prices climbing, the potential for future growth remains high. In the June quarter alone, unit values climbed 5.4 per cent while house price rose by 3.5 per cent.

The bottom line is that Brisbane’s property market remains a standout performer in Australia. For those looking to buy, the current climate offers an opportunity to get ahead before competition gets even hotter. Whether you’re a first-time buyer or an investor, the potential for capital gains in Brisbane is stronger than ever.

Cheers,

S.D.