In this issue, we’re delighted to feature insights from Jake Dwyer and Clare Hitchins of People Estate Agents, who bring a wealth of experience from the forefront of Queensland’s property market. They delve into the current challenges and opportunities within the market as we transition into 2024, offering a blend of predictions, expert advice and practical tips.

Jake brings a solid two decades of expertise in the property market, while Clare, although a recent addition to the People Estate team, comes with a robust 15-year foundation in construction and development. Initially founded as a traditional real estate agency, People Estate Agents evolved to include buyer’s agent services, recognising it as essential to providing clients with a comprehensive and seamless experience.

What are the biggest challenges facing buyers and sellers in Queensland today?

“The primary challenges facing buyers and sellers in Queensland currently include a low supply of available properties and an unprecedented level of interstate relocations. Additionally, building costs have reached an all-time high over the last few years, and securing builders is more difficult than ever. These factors collectively contribute to a market that is highly favourable for sellers.”

How does February compare to other months of the year in terms of the property market?

“February in the real estate market is characterised by a shift from the last quarter (in the previous year) where there is a rush, where buyers are eager to start a new life and may pay a premium. As the new year begins, there is an influx of new buyers in the early stages of their search, who are more cautious with their spending and take their time to understand what they want, uncertain if the market will improve from the previous year. Sellers typically wait a few months into the year to gauge market conditions before listing their properties. While there’s an interest in capitalising on market peaks, decisions often come down to individual needs rather than timing. Prices have not decreased, but there has been an increase in the time properties spend on the market, especially noted from December-February.”

How are current interest rates affecting the property market in Queensland?

“The impact of current interest rates on the Queensland property market has diminished after the initial shock, as people continue to prioritise owning a home over renting, especially given the higher increase in rental prices.”

What areas do you do most of your sales?

“We specialise in selling properties primarily in inner city areas and eastern suburbs such as Toombul, Stones Corner, Tarragindi, but also right out to Manly, Chermside West, Morayfield and Maroochydore, having covered 200 streets in Coorparoo and expanding to 205 suburbs in the Greater Brisbane region. As a buyer’s agent, our service area spans from the Gold Coast to Brisbane and the Sunshine Coast, catering to clients seeking both purchase and sale services due to past experiences of suboptimal outcomes or difficulties in the property purchasing process. This expansion into a full-service offering was driven by client demand and the desire to save clients time in their property search, allowing them more time for family or income generation. Additionally, we provide strategic advice, including recommending against buying specific properties to ensure the best outcomes for our clients.”

Is there a specific area you’d tell a client to avoid?

“The advice given is not to avoid a specific geographic area but to conduct thorough diligence before purchasing a property. This includes checking flood maps, investigating the neighbourhood, assessing the presence of housing commission properties in the area, and for units, carefully reading through the minutes of the body corporate meetings and reports.The emphasis is on examining the development, demographics, and infrastructure of the area rather than its geographic location. The key strategy is summarised by the acronym “PIE,” which stands for People, Infrastructure, and Education, suggesting that these factors should guide purchasing decisions. It’s important to note, sometimes you may see the P & the E (People and Education) is there in the area, but the infrastructure is not yet established, as long as there are plans for it in the future there is always potential.”

Have the buyers changed in recent years?

“The buyer demographic in Brisbane and Queensland has notably shifted since the onset of COVID-19, primarily due to a significant influx of people relocating from other states, particularly from southern areas like Melbourne and Sydney. This migration has substantially boosted property values in the region, as newcomers, especially those from Victoria and New South Wales, are often willing to pay more than the typical Queensland buyer. A remarkable statistic highlights that 54,000 people moved from Victoria to Queensland in a single year, marking the first time Victoria experienced a population decrease, not to mention the recent report which showed QLD outpriced the median property price over VIC for the first time in 15 years.”

Can you share insights on the rental market in QLD?

“The rental market in Queensland has seen significant changes in the last 12-18 months, with application numbers tripling and views or enquiries increasing fivefold, indicating a continued high demand for rentals. Relocations to the area haven’t slowed, contributing to a competitive rental market that shows no signs of regressing, and in fact, available rentals are becoming increasingly scarce.This situation is prompting more people to consider buying instead of renting due to the high cost of renting. To assist, we often encourage tenants to consult with Madd mortgage brokers to explore how they could redirect their rental payments towards owning a home and starting conversations about using their money more effectively towards purchasing property”

How have the upcoming Olympic games affected the QLD market?

“The anticipation of the Olympic Games has boosted confidence within Brisbane, specifically the 25km surrounding Brisbane city, especially for homes with development potential. Government restrictions on developments have relaxed, allowing for higher construction approvals. This optimism has attracted investors from other states.”

How is technology changing the way properties are bought and sold in Queensland?

“Since COVID-19, technology has largely replaced face-to-face interactions, particularly in signing documents and conducting meetings. The shift towards online systems and expressions of interest, along with a move away from auctions, emphasises the growing importance of transparency in transactions.”

What is your outlook for the Queensland property market in the next 5-10 years?

“The Queensland property market is expected to continue transforming from a “big country town” to a major global city over the next 5-10 years, with property values predicted to rise steadily.”

What advice would you give to someone looking to buy or sell property in Queensland right now?

“The key advice is to start by consulting with a professional who understands the market. If you are looking to sell or buy, we of course can help you with this. We strongly encourage you to do your research. And ensure you are working with someone you trust, and someone who is transparent. Another tip we have is to avoid trying to ‘time the market for buying at the lowest point or selling at the peak, sometimes these strategies cause us to lose in one way or another. ”

Jake and Clare’s expertise offers invaluable insights into the Queensland Real Estate Market, making their advice crucial for anyone looking to navigate the complexities of buying or selling property. With their deep understanding of market trends and developments, they are well-equipped to guide clients through the real estate landscape. If you’re in search of professionals who are in tune with the latest in real estate, consider reaching out to Jake and Clare at People Estate Agents. Keep an eye on our future newsletters for more expert interviews and insider knowledge!