7 Factors Affecting Brisbane’s Property Market Right Now
A guide to understanding the lay of the land in Brisbane’s red hot property market.
As Australians continue to prioritise lifestyle above other factors, many are choosing to make the move north to the Sunshine State. Whether you’re looking to buy or invest, here are seven key trends impacting Brisbane’s property market right now.
Prices Continue to Rise
Historically low interest rates coupled with domestic migration and relative affordability – especially when compared to Sydney or Melbourne – have contributed to Brisbane’s surge in house prices. The market has posted the biggest jump in house prices since 1989, with CoreLogic data revealing a rise of more than 20% over the past year. Prices in Brisbane are tipped to increase a further 10% in 2022, according to economists at Westpac, making it one of Australia’s best performing capitals.
A Sellers’ Market
The September quarter revealed that active listings have dropped 33% below the five-year average , meaning demand continues to surpass supply. Lower sales coupled with rapid price growth has created a strong sellers’ market, with house values rising twice as fast as units. Investor activity has also increased, both from Brisbane locals and interstate, thanks to the capital’s strong rental returns. Generally, the top end of the market is seeing the largest gains, with spacious family homes proving the most popular.
A Rise in Interstate Migration
Queensland has had the highest interstate migration in Australia since the onset of Covid-19, largely contributing to rising property values and low vacancy rates. ABS data revealed more than 7,000 people headed north in the first quarter of 2021, with Brisbane gaining the most people through domestic migration. This influx in migration to Queensland comes as homebuyers expect the remote working trend to stay and fewer people need to travel to Sydney or Melbourne for business. As reported by Domain, working Australians aged 25-44 years are the biggest interstate group moving to Brisbane.
The Lifestyle Factor
Queensland’s southeast is one of the country’s fastest-growing regions. With the continued flexibility to work from home, lifestyle areas such as the Gold Coast and Sunshine Coast are experiencing a surge in buyer interest. On the Gold Coast and Sunshine Coast house prices increased over 18% and 23% respectively (during the June quarter) and are forecast to overtake Brisbane prices by 2024. Coastal suburbs such as Robina and Carrara are up-and-coming hotspots, considering Burleigh Heads, Mermaid Waters and Miami have all seen eye-watering annual growth of up to 44%. There’s been an obvious shift across Australia toward sea-change and tree-change locations, as city dwellers are opting for lifestyle, environment and more space.
The Rental Squeeze
With low vacancy rates, rising interstate migration and record-high prices, Brisbane is one of the country’s most in-demand rental markets. September was the fifth consecutive quarter where rent prices rose, according to Domain’s Rent Report. This has led to a shift toward suburbs further afield, as families look for greater affordability with good access to schools, parks and nature. Middle and outer ring suburbs such as Mount Ommaney, Cornubia and Fig Tree Pocket all saw significant rent rises up to 20%.
What About First Home Buyers?
Relative affordability compared with Sydney and Melbourne makes Brisbane a popular pick among first home buyers. With the median house price sitting at $731,000 for houses and $437,000 for units (CoreLogic, October 2021), Brisbane’s unit market in particular, is still within reach of first home buyers. Those hoping to get their foot on the ladder can apply for the Queensland First Home Owners’ Grant, a state government initiative. If you are purchasing a property or land valued at less than $750,000, you may be entitled to claim $15,000 towards buying or building your new home.
The Olympic Effect
Brisbane’s property market is expected to soar in the decade lead-up to the 2032 Olympics. With large-scale infrastructure projects such as road upgrades and the construction of an Olympic Village, homes near planned venues – which include major hubs on the Gold Coast and Sunshine Coast – are likely to see the biggest boom. As reported by the ABC, economists have tipped the median house price in Brisbane to skyrocket well above $1 million by the time the Olympics roll around.
