Currently the property market is made up of several sub markets which are reacting to the economic conditions, government stimulus and also the forces of supply and demand. Between the buoyant lower end of the property market which is being driven by the First Home Buyers Scheme and the subdued upper end or prestige sector lays the “middle market”.
Over recent years the middle market buyers and sellers have become more and more experienced in their dealings. They tend to be adjusted to the economy and make decisions that are as much about lifestyle as they are about investment.
Sydney Property Market
The middle market is defined as the $600,000 to $900,000 band in the majority of Sydney suburbs however, the closer to the CBD, with location, transport corridors, lifestyle and character features being prominent, the mid range increases to $1,200,000.
The middle market property buyer usually stays within their locality, with closeness to schools, transport corridors and other services being important to their considerations.
In the middle category, the buyer demand is not as urgent and in most cases the potential purchaser has a larger selection of properties to choose from and will take the time to make an educated choice, confident that the right property will be available when they are ready. This is a completely different scenario from the 2003 boom period when all purchasers were rushing in to secure a property at whatever the cost, worried that next week the property price would be higher.
With money available at record low prices along with sellers from the lower end of the market looking to upgrade it is considered that prices will steadily rise over the short-term to medium term and really strengthen over the long term as consumer confidence is returned and demand increases.
Brisbane Property Market
A first home buyer in an inner area may have been lucky enough to buy a renovators dream for somewhere below $400,000 way back in 1995 but is now looking at some serious equity and considering a second home closer to the $1M mark.
Some home buyers in the south east of Brisbane are most likely parting with somewhere between $600,000 and $1M dollars to secure a nice tidy site property with a home.
The benchmarks of second home buyer localities are probably constant across the nation. Suburbs such as Ashgrove, Grange and Wooloowin on the north and Balmoral and Coorparoo on the south are typical examples of the trade up suburbs i.e. good schools, plenty of convenient amenities and reliable transport links together with reasonable sized suburban blocks which help stimulate appeal from those looking to take the next step.
For Brisbane, the upgrade market looks firm and presents good opportunity for buyers looking to capitalise on the upside over the next few years.
