What are the Fundamentals of Property?
We’re now well and truly into the second half of 2019 and many believe things are starting to settle down in property markets since the election, particularly with some strengthening in the metrics around our capital-city markets. It’ll be interesting times as the remainder of 2019 plays out. When it comes to quality residential property in Australia, we often hear that smart buyers look for ‘the fundamentals’ when selecting real estate. But what actually are those fundamentals and do they apply across all locations in this nation? For the August edition of Month In Review, Herron Todd White have asked their valuers to define the fundamentals of great real estate that are specific to their service areas. And while some of the themes are universal, the report highlights how property markets in specific locations are effected by various forces.
Brisbane is the capital city poster child of how property fundamentals drive values. We have a central, riverfront CBD that’s been the bulls eye for concentric circles of growth throughout the city’s history. And so, the adage about location rings true. Traditionally, the old rule of property economics has broadly applied – if all else is equal, then the closer a suburb is to the CBD, the more valuable its land per square metre. Moving beyond this measure and there are other fundamental factors to consider. Proximity to the river works as well – especially if you have a frontage or a view. That said, school zones have certainly become a key draw card too. Ask anyone who’s tried to buy in the catchment for Brisbane State High School in the past few years. While excellent public schools help drive price growth, private schools play their part as well. School-centric communities can become, in some instances, a family lifestyle choice where the parents and friends you come to know from the drop-off zone are the neighbours you might invite to a barbecue after Saturday’s rugby match. Speaking of lifestyle, café hubs are excellent indicators of desirable suburbs. The key metric is often within five minute’s walk of a decent cuppa. It can be very satisfying for residents to stroll down to their favourite barista while watching those who are living further away hunt for one of the hotly contested car spaces in these magnetic clusters of urban retail and restaurants. With these fundamentals ringing in our ears, let’s see what the various local buyer types might rate as essential in Brisbane... Head to page 45 to read more. [if !supportLineBreakNewLine] [endif]