The most affordable end of the Brisbane property market is shrinking rapidly – with house sales under $300,000 dropping 95 per cent in five years.
According to PRDnationwide’s Brisbane’s Affordable Market Overview report, sales below $300,000 have fallen from 2,307 transactions over the six months to December 2005, to 125 sales in December 2010.
“The Brisbane market has definitely seen a shift in what is considered affordable,” research analyst Josh Brown said.
Forest Lake was identified as being the state’s most affordable suburb.
“A total of 117 house sales in Forest lake transacted in the affordable price bracket of $300,000-$399,000,” said Mr Brown.
“This accounted 55 per cent of all house sales in the suburb between July and December 2010.”
Mr Brown said what was considered ‘affordable’ had jumped by about $100,000 in only five years.
“The prospect of buying a house within the $200,000 to $299,999 range within a practical distance of the CBD is no longer a viable option,” he said.
Mr Brown said this had prompted Generation Y buyers to look at purchasing units and townhouses within more attractive areas, which had a lesser impact on their lifestyle.
“People are becoming less inclined to make purchases which adversely affect their lifestyle and therefore units, representing an affordable compromise, are becoming more popular,” he said.