Do Not Sell If You Do Not Need To
House prices in Brisbane are predicted to go down by as much as 10 percent in the following years if the nationwide price change remains flat therefore advice is do not sell if you don’t have to. The recent flooding in Queensland may have an adverse effect on the price of Brisbane properties especially those in coastal communities.
It is predicted that there will be a price drop in Brisbane over the next 12 months with low-lying areas the most severely affected. However, these predictions are a drop of 35 percent over a 12-month period.
The flood which affected approximately 15,000 homes, caused property valuers to re-assess the property values in the flood-stricken areas, with a decline of about 10 percent now expected.
While the national median price went up by 0.4 percent during the last quarter of 2010 to bring the price to $475,000, the median price in Brisbane went down by 0.5 percent in the same month to $435,000. Experts predict that Australian property prices will go down in 2011. House prices of properties outside Queensland may also drop due to fears of flooding but these would be isolated cases.
House prices in the major Australian cities are expected to be relatively flat. Meanwhile, the Australian Bureau of Statistics reports that national home prices went up by 5.8 percent in 2010.
There are also risks involved in vacant properties or properties where the lease is terminated. Also, property owners in the flood-stricken areas might find it hard to apply for property insurance. In the near future, the real estate market of Queensland will have its ups and downs with house prices going down but rental demand going up.
