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Property researchers have aided buyers and sellers over many years in the timing of their decisions based on the positioning of a market in the property cycle.

Hicks Real Estate Principal, Justin Hicks agrees that knowing information about the stages of the property cycle can be useful.

“The first element to recognize is that a market cycle can be spoken and written about in terms of a national perspective, also a city perspective and right down to a single suburb’s performance.

‘The second consideration is that it is indeed a cycle and forever moving.”

Property Clock Brisbane 2023

Source: Herron Todd White

The Brisbane market can best be described as declining and approaching the bottom.

The peak occurs when demand exceeds total supply, and both prices and rents can be expected to rise.  Which we saw during 2021 and 2022.

The opposite is when there is an oversupply of properties for sale, or there is lower levels of demand (possible caused by increasing interest rates).

At the midpoint through a downswing, there is generally a supply-demand match but it is a cautious buyer’s market; while at the midpoint of an upswing, supply has tended to tighten but buyers have a more optimistic outlook.”

Justin Hicks says buyers hold off too long in an upswing and the cycle again peaks all too often.

“Our recommendation for a buyer, is to be acting in what could best be determined to be the latter half of the downswing, and certainly before we’d passed the mid upswing point.  That means that you will be buying at the lowest point in the cycle, which should enhance your chances of making strong capital gains.”

“I believe position or location is still the number one priority, but price and pace could be considered the other important Ps. Pacing the market is a good plan for buyers and sellers who can take in all the market information available to them.

“Astute property investors know that wealth is created in the property at the time of purchasing. Buying at the right time in the cycle, such as now, will mean you will always do well in property over a period of time.”

Contact Justin Hicks at Hicks Real Estate Everton Park and add sales, investment and finance expertise to your moves.

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Hicks Real Estate is a Brisbane based, full-service real estate agency supporting buyers and sell as well as renters and property investors. With almost 20 years experience in the local market, we are the real estate experts you can rely upon.