Sam Saggers Brisbane 10% pa growth.

[free_dom]

Hello,

Reading the latest money magazine yesterday and saw an article by Sam Saggers. Seems he is forcasting/expecting Brisbane suburbs to grow at 10% pa over the next 3 years. Doesn't explain how/why.

Anyone else predicting this to occur? I don't see Brisbane moving 30% in 3 years. Thoughts?

 

[Ace in the Hole]

What's his record like?
10% compounding for 3 sounds very nice.

 

[free_dom]

I know from his interviews that he has been flogging units in New Farm for the last few years. I don't think they have done anything spectacular yet.

 

[RPI]

I would believe half of that or maybe even 1 bumper year of 10%, but 3 years at 10% seems high.

 

[wealth]

I remember also reading an article recently by Mark Bouris, where he mentioned that due the recent rises Sydney and Melbourne now has low yields and investors will now look at Brisbane instead for better returns.

 

[Angel]

sceptic here

Check all the advertisements around the article in the Money magazine. Claims like that can accompany a few full page adverts for new developments being promoted by the same person.




On the other hand, Bring It On!

 

[knightm]

Check all the advertisements around the article in the Money magazine. Claims like that can accompany a few full page adverts for new developments being promoted by the same person.




On the other hand, Bring It On!

Sam was never backward in being forward (at selling)

I personally things its a tad aggressive but agree that SEQ is at the right stage in the cycle for a close look.

 

[free_dom]

I was looking at ABS 2011 data and observed that the median weekly income for marrickville is $1400 and Toowong, an inner suburb of Brisbane is $1600. Yet the cost of similar units is about $200000 apart with marrickville being the higher. With a higher income than one of the booming Sydney suburbs and and a lot lower entry point, I don't understand why some of these suburbs innner Brisbane suburbs have not taken off yet?

Are we ever going to see Brisbane take off like every one is expecting?

 

[ok180]

I would have a hard time trusting anyone who's surname is the colloquial term for drooping boobs.

 

[Ed Barton]

I would have a hard time trusting anyone who's surname is the colloquial term for drooping boobs.

Maybe a cosmetic reno is required?

 

[TMNT]

I would have a hard time trusting anyone who's surname is the colloquial term for drooping boobs.

Nuts sag too

 

[knightm]

Maybe a cosmetic reno is required?

Implant a new kitchen, nip and tuck in the bathroom and a quick lift out front (just no plastic please)

 

[Rixter]

I concur with Sam due to the underlying fundamentals.

 

[WASP]

I recall BIS predicting around 17% over 3 years

I like SAMs prediction better

 

[strongy1986]

I was looking at ABS 2011 data and observed that the median weekly income for marrickville is $1400 and Toowong, an inner suburb of Brisbane is $1600. Yet the cost of similar units is about $200000 apart with marrickville being the higher. With a higher income than one of the booming Sydney suburbs and and a lot lower entry point, I don't understand why some of these suburbs innner Brisbane suburbs have not taken off yet?

Are we ever going to see Brisbane take off like every one is expecting?

It's because Brisbane doesn't have the population density. Over the long term it will become denser pushing up prices. It's also a mentality thing, up there not that many people care about house prices (obviously there are exceptions), I'm Sydney and melbourne every man and his dog is an expert

There are heaps of suburbs in Brisbane with people on good to high incomes and low entry points

 

[strongy1986]

Also their CBD was pretty much evacuated a few years back

That would hurt prices anywhere

 

[free_dom]

I guess it guess comes down to the old supply v demand formula. Might have to sit on the fence a little longer with Brisbane.

 

[free_dom]

I have been looking at two bedroom units around inner Brisbane over the weekend on realestate.com.au and have noticed quite a few OTP unit blocks going up. Could this lead to an oversupply in the short term?

Second to that has anyone purchased an OTP unit in Brisbane lately? Seems they would be pretty close to neutral with depreciation.

 

[RPI]

I have been looking at two bedroom units around inner Brisbane over the weekend on realestate.com.au and have noticed quite a few OTP unit blocks going up. Could this lead to an oversupply in the short term?

Second to that has anyone purchased an OTP unit in Brisbane lately? Seems they would be pretty close to neutral with depreciation.

Some of the developments are selling really well. The newstead, west end and Milton ones I have been involved with are moving very fast. Lots of supply there though.

 

[Investor78]

Sydney has gone up around 20% in it's current upswing (will probably keep going for a little while) and Brisbane prices have been flat to negative for 5 years. I don't think 10% pa for 3 years is such a bold prediction. Looking over an 8 year period Brisbane would only have increased ~30% total which is not great.