Are you wondering what will happen to the Brisbane property market in 2022??
Well… Brisbane was the strongest property market in 2021 exhibiting astonishing growth, with many locations experiencing 30+% house price growth.
And even though growth is slowing in other parts of Australia, Brisbane’s housing markets are likely to continue to perform strongly in 2022.
Sure it recently suffered from devastating floods, but history shows the resilience of the Brisbane property market which bounces back quickly.
Last year property values increased in almost every part of Brisbane – and that’s very unusual.
Moving forward, the various sectors of the Brisbane housing market will be segmented, which is a more “normal” property market.
Some locations will rise strongly, some will increase in value moderately, some locations will languish, and a few areas will experience falling property values, based on local supply and demand.
But Brisbane remains one of the nation’s hottest housing markets, with housing values rising a further 1.7% in April, taking the three-month growth rate to 5.7% which is the fastest quarterly growth rate in housing values amongst the capital cities.
The ongoing imbalance between low supply and strong demand is likely to keep upward pressure on housing prices and by the end of the year it’s likely “overall” home values will be 10+% higher than at the beginning of the year and unit values will be 7% higher.
Brisbane property values increased 24.7% over the last year.
Currently, the Sunshine State capital is shining but it’s not too late to be early in this cycle – there is plenty of growth ahead – for the right properties as overall Brisbane is still very affordable compared to the other east coast capital cities.
What a turnaround from all the pessimistic forecasts all the banks made in the middle of 2020.
While there has been a shortage of good properties for sale, Brisbane showed positive signs for buyers in Queensland, with new listings increasing by 8.4% month on month in Brisbane and 4.6% MoM in regional Queensland.
Will the Brisbane property market crash in 2022?
Now I know some potential buyers are asking “How long can this last? Will the Brisbane property market crash in 2022?”
They must be listening to those perma bears who have been telling anyone who is prepared to listen that the property markets are going to crash, but they have said the same year after year and have been wrong in the past and I will be wrong again this time.
But now with rising inflation rising and interest rates rising ahead, many are concerned the current strong property cycle will end.
However strong buyer demand will put a floor under any house price fall.
At the same time, Queensland is currently the fastest-growing state in Australia driven by interstate migration.
In 2020-21, the population increased by 0.9%, well above the national average of 0.2%.
The volume of growth was just shy of 46,000 people.
Outstanding demand for lifestyle areas as well as extremely strong demand for detached houses in Brisbane, particularly in the inner and middle-ring suburbs has delivered strong price growth with Brisbane’s more expensive properties outperforming.
The resurgence of buyer interest in the Brisbane property market has meant that auction clearance rates have consistently been in the 70% range, which is unusual for Brisbane considering this city is not known for its auction culture like its southern cousins, but this is just another suggestion that there are more buyers than there are sellers and this always leads to higher property prices.
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