Over the past few months, issues regarding the real estate industry have been frequently in the media. This is because the current condition of the real estate industry is most unusual with interest rates held artificially high due to the Federal Government policies to reduce the current account deficit. This has caused the often debated 'home affordability problem.
This research report provides an overview of the real estate industry with particular emphasis on the residential and commercial markets in Brisbane. The report concludes that the residential sector has just gone past the boom and is now in the downturn phase of a 20 year cycle. However, this downturn is not expected to last for too long. Once the interest rates start to decline , an upturn can be expected due to the strong pent-up demand. Hence, the long term outlook seems bright. On the other hand, the short term and long term prospects for the commercial market (office and hotel) in Brisbane are bleaker than anything experienced over the post-war period. High vacancy rates can be expected to continue due to the oversupply of stock and the recent pilots dispute.
The material presented in this report is based on existing literature, interviews with the participants, my own experience in the industry and data collected from journals, newspapers, the Valuer-General's office, Land Register Office, Real Estate Institute of Australia I Real Estate Institute of Queensland, the University IS Library and various real estate agents.