The BrickX Property Team is made up of professional property buyers, economists and industry experts who work together to provide guidance on our property strategy. Every quarter the team meets to discuss market trends and future opportunities.
When the team last met (September 2018) their key thoughts were:
Inner suburbs of Adelaide continue to perform well
Overall Adelaide prices are slightly up, with certain areas featuring better growth than others. Our team prefers Adelaide’s inner suburbs, particularly detached houses. This is consistent with the Adelaide properties on the BrickX Platform. See BrickX properties in Adelaide
Perth appears to be showing signs of recovery, with growth in some pockets
After several years of declining prices, Perth appears to be showing signs of growth. The median price may continue to slip, but blue-chip suburbs may have growth potential. This can be seen in both the higher rental and buyer demand figures.
First home buyers continue to drive growth in Ballarat
The team believes Ballarat presents a growth opportunity, with first home buyers playing a key role in the market.
Sydney and Melbourne continue to experience price compression
Price compression in Sydney and Melbourne has continued into the back half of 2018. This has been driven by both owner-occupiers and investors finding it harder to access credit. In turn, this has led to fewer buyers in the market, which has led to properties taken longer to sell and prices dropping. This then leads to less investor activity in the market. Not all suburbs and property types have performed equally – mid-priced properties (those between $1.2m – $1.7m) have been the hardest hit. The combination of low interest rates and lower prices has led to more first home buyers entering the market, which in turn has prevented the values of lower-priced properties falling as significantly.
The team believes South East Queensland looks strong, with a solid yield profile. Interstate migration into Queensland also remains strong.
Our team are always looking for the next areas to buy properties in. We’re looking to launch into a new cap city early next year (#watchthisspace). In the meantime, let us know the types of properties you’d like to see on the BrickX Platform in this short survey.
These are views expressed by our Property Team as at September 2018. It is general opinion only and may change without notice. Past performance is not an indicator of future performance and returns are not guaranteed.