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  • Writer's pictureGM Homes

It is likely that Brisbane’s property price boom will extend into 2024

Despite high inflation and interest rates, Brisbane property prices have risen by 9.1 percent since January, and the capital growth is expected to continue.

A new record high for dwelling values is on the horizon for Brisbane’s property market. In Greater Brisbane, property prices continued to grow in the third quarter of 2023.

According to CoreLogic data, property values in Brisbane appear to be just 0.6% below their previous peak in October.

In spite of higher inflation and interest rates, prices have risen by an impressive 9.1 percent since January.

A pause in the interest rate cycle may have boosted buyer confidence, as nearly half of this year’s growth occurred in the last three months.

In October, the Reserve Bank of Australia (RBA) kept the cash rate at 4.1% for the fourth consecutive month, causing buyers to factor in borrowing costs.

Property options in Brisbane remain limited, despite growing buyer confidence.

Throughout 2023, despite significant median price drops in the latter months of 2022, Brisbane has recovered these price adjustments, driven by migration, tight rental markets, and a shortage of housing.

Despite fierce competition in 2024, buyers should be prepared to act quickly, since desirable properties are once again selling quickly.

It may be an opportune time to list your property, since a multitude of eager buyers and intense competition are driving prices upward.

In the medium term, these conditions are likely to sustain price growth.

Currently, Brisbane is the second most affordable capital city market in Australia behind Perth.

Affordability in Queensland is better today than it was during the 2007-08 mining boom, according to the PropTrack Housing Affordability Index.

While affordability has become more challenging in Queensland over the last two years, Brisbane’s relative affordability compared to other east coast capital cities continues to drive demand for housing.

Queensland makes mortgage servicing easier.

According to PropTrack data, Queensland requires 31 percent of income to service a mortgage, compared to 39 percent in NSW and 35 percent in Victoria, South Australia, and Tasmania.

As a result, Brisbane is an attractive destination, particularly for cross-border investors seeking a low-risk investment.

According to ABS data, 37.8% of all housing finance commitments in Queensland were held by investors in August, up from 34.7 percent in July.

In many Brisbane suburbs, buyer demand continues to outpace supply, with new listings remaining frustratingly low.

CoreLogic data shows that new listings in Brisbane are 13.3% lower than this time last year, while total listings are 22.8 per cent lower than this time last year, according to SQM Research.

Listings in Brisbane remain 40 percent lower than the long-term average, according to CoreLogic.

According to the PropTrack Listings Report, suburb-level trends may differ from city-wide trends.

The suburbs with the greatest increases include Park Ridge (+142%), Ripley (+140%), and Ormiston (+79%); while the suburbs with the greatest decreases include Cornubia (-58%), Warner (-57%), and Woolloongabba (-52%).

Adapted from CoreLogic

According to CoreLogic, dwelling values in Brisbane rose 1.3% in September, pushing the median value to $761,739.

In Brisbane, dwelling values have risen by 3.9% over the past quarter. However, it’s worth noting that the previous month’s quarterly growth rate was at 4.2 percent, indicating we may have reached Brisbane’s peak growth rate.

A Brisbane house outperforms an apartment.

Over the past month, Brisbane’s median house prices increased by 1.4%, according to CoreLogic’s latest data.

A median house value of $848,680 represents an increase of $16,433 over the previous month, which translates to an increase of $4,108 per week.

Brisbane’s housing market saw a respectable 4 percent growth rate over the quarter, but it’s worth noting that the growth rate for houses decreased a bit from the previous month when the rate was 4.3%. This suggests that we may be witnessing a leveling off in the peak growth rate of houses in Brisbane.

Source: CoreLogic

In September, Brisbane’s unit market continued its steady growth, mirroring the 1.1% increase seen in August.

As of now, units have grown by 3.7 percent, down from last month’s rate of 3.8 percent. A monthly price appreciation of $13,010, or $3,252 in weekly price appreciation, has resulted in a median unit value of $539,169 in Greater Brisbane.

It is a market dominated by low vacancy rates in terms of rentals

The rental market in virtually all areas of the city is tight at the moment.

SQM Research indicates a drop from 1.0% in July to 0.9% in August, indicating a continued low vacancy rate in the rental market.

In the Queensland capital, rents continue to rise, but rental price growth has slowed significantly over the past six months.

In the past 12 months, house rents have increased by 6.4%, which is less than the 11.2% annual growth observed six months ago. The price of real estate continues to rise.

The recovery trend continued in September with a 0.8% increase in national property prices.

Despite reduced vacancy rates, rent price growth has decelerated due to affordability constraints. Additionally, a shift in household formation may be underway, as group rentals resurface as a strategy to distribute rental costs among larger households.

In Brisbane, unit rents have grown by 14 percent over the past year, according to CoreLogic. In terms of rental price growth, units have outperformed houses, as they are more budget-friendly. This is a slight slowdown from the 16.1% rate recorded six months ago.

Rent Law Reforms in Queensland have introduced minimum housing standards for all new tenancies, which require landlords to ensure their rental properties comply.

23 percent of investors who sold a property in the past 12 months did so in Brisbane, according to the PIPA Annual Investor Sentiment Survey.

Changing tenancy legislation and increasing government regulations were cited by a greater majority as factors that made property investment less appealing.

A decrease in investment properties has resulted in increased competition among tenants for the dwindling number of rental properties in Brisbane.


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