Long-term price rises are leading to a change in emphasis for Brisbane buyers, who are increasingly opting for units and townhouses in the CBD.
According to research conducted by PRDnationwide Research, there has been a dramatic shift in the median price of Brisbane’s property market over the last five years. During the 2005 half year to December, the sub $500,000 price point represented 77% of Brisbane’s total house market transactions, whereas during the December 2010 half year, this price point accounted for just 41% of total sales.
Analysis of the affordable market throughout the December 2010 half year has revealed the most active price range was within $300,000 to $499,999. The corresponding period in 2005 however, saw the bulk of sales in the $200,000 to $399,999 price range. The report highlights that the majority of buyers there are now spending an average of $100,000 more than they were five years ago. This is despite the fact that the Brisbane market is generally viewed to have been stagnant since 2008.
“The Brisbane market has definitely seen a shift in what is considered affordable,” said PRDnationwide research analyst Josh Brown. “The prospect of buying a house within the $200,000 to $299,999 range within a practical distance of the CBD is no longer a viable option.”
The upshot of this is that buying a house close to the CBD is no longer viable for many younger and more price-sensitive purchasers, who are turning to units and townhouses instead. Analysis of properties that sold for between $300,000 and $399,999 in Brisbane over the December 2010 half year indicates that while most houses sold within this affordable price range were located around 15km from the CBD, units in the same price bracket were located within five to ten kilometres of the CBD.
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