What’s the property clock?
The Herron Todd White (HTW) Property Clock, published in its August residential market update, shows if property markets are rising or falling according to their position on a clock face: 12 o’clock is the top of the market, 3 o’clock is a falling market, and 6 o’clock means prices are stable. And that’s where Brisbane sits for houses and units, eyeing off a move to a rising 9 o’clock.
Other capital cities waiting out the market bottom include Melbourne, Perth and Darwin. Sydney is still falling but approaching the bottom. Hobart and Adelaide are rising and Canberra is as good as it will get this cycle, sitting at the top, or 12 o’clock.
While beautifully simple, the Property Clock can also be deceptive as it doesn’t show what’s happening within the many local markets that operate within Brisbane.
“Brisbane is the capital city poster child of how property fundamentals drive values,” the HTW report says.
“We have a central, riverfront CBD that’s been the bulls eye for concentric circles of growth throughout the city’s history…if all else is equal, then the closer a suburb is to the CBD, the more valuable its land per square metre.”
But even so, some property attributes can break the mould. Views of the CBD, river or bay will boost your property value, as can location in a sought-after school catchment.
So while property clocks and rules of thumb might be appealing in their simplicity, it’s always best to talk to local agents if you want to know what’s really going on in a local market.
Contact us for a chat.