QLD PROPERTIES
PROPERTY investors appear to be taking a step back from the Ipswich housing market, with a local real estate agency reporting a drop in inspections and enquiries amid changes to investment settings, higher interest rates and tighter borrowing conditions.
QLD Properties, which specialises in Ipswich residential real estate, says investor activity has slowed as buyers reassess their strategies following changes to negative gearing, three interest rate rises this year and restrictions affecting borrowing through self-managed super funds.
QLD Properties Selling Principal Jamie Martin said the shift had been noticeable, with investors who had previously been active in Ipswich becoming more cautious.
“Property investors have taken a major step back from the Ipswich market and continue to reevaluate their investment strategies due to the Federal Government changes,” Mr Martin said.
He said it remained too early to determine whether the reduction in investor activity would translate into broader price falls across Ipswich.
However, signs of adjustment were already emerging at the premium end of the market.
“It’s still too early to call on whether any further price shifts in Ipswich are likely,” Mr Martin said.
“Ipswich’s premium homes are experiencing a price adjustment and longer time periods to sell, especially properties priced above the $1.2 million price bracket.”
Despite the slowdown, Ipswich continues to offer comparatively greater choice below the $1 million mark than Brisbane and many other parts of South East Queensland.
The reduction in investor competition could also create an opening for owneroccupiers who have struggled to secure a property during stronger market conditions.
Mr Martin said first-home buyers appeared divided between those waiting to see how the market develops and those viewing the current conditions as an opportunity.
“Some Ipswich first-home buyers continue the ‘watch and wait approach’, while other buyers are taking this opportunity to get into the market while they have less competition to compete with,” he said. “As far as market timing goes, this could be the right time for young families who have been struggling to get into home ownership.”
The coming months will provide a clearer indication of whether reduced investor demand represents a short-term reaction to the changing financial environment or the beginning of a more sustained shift in Ipswich’s residential property market.
