A 5000 milestone for Brisbane building
You can't buy new properties if none are coming to market. The issue of supply and demand has been the cause of a lot of affordability pain for property investors down in Sydney and Melbourne in recent times, but it looks like we have no such problems.
The Australian Bureau of Statistics' building approvals figures came out at the start of the month, and industry commentators have praised a 20-year high for the number of homes approved in a single month for Queensland. So how well did we actually do, and what does it mean for wealth creators?
Taking it back to the 90s
According to Queensland Executive Director for the Housing Industry Association (HIA) Warwick Temby, we recorded over 5,000 home approvals in September. This is the first time such a large number has been noted since 1994.
The south east areas of the state and Brisbane were the main drivers of growth
Mr Temby notes that the south east areas of the state and Brisbane were the main drivers of growth. Brisbane alone saw 3,200 approvals in the first month of spring. More than two-thirds of the capital's approvals were for units or apartments, which suggests some high-rise developments are well underway.
What's more, the HIA thinks this strength is going to continue – it's hardly an anomaly. But how do you turn these numbers into a property investment strategy.
Turn supply to your advantage
While oversupply over real estate doesn't necessarily lend itself to capital gains, it looks like Brisbane's market is fairly well balanced. A recent QBE report highlighted this when it identified Brisbane as one of the strongest performers for value growth over the next three years.
So essentially, you are spoilt for choice when it comes to property investment. Those on smaller budgets might want to look at the burgeoning apartment market, as CoreLogic noted the median price for this type of property is below $400,000.
On the other hand, houses are more expensive, but have been generating capital gains at a faster rate. How you invest you money to create wealth and where you do it is your decision, but you've got to make sure you weigh up all of your options. That's where the advice of a wealth coach can be extremely useful – at Think Money, we've got years of experience helping people realise their investment goals.
The bottom line is, there's plenty of new real estate on the way for the taking. With both affordability and growth on your side, you might want to take a look!