Brisbane Property 2022 (updated for 2023)

The Brisbane Property Market Continues to Soar

In recent months, the Brisbane property market has been a hotbed of investment activity. Prices in certain suburbs have soared by up to 46 per cent, while median values have remained relatively flat. But record high median values weren’t enough to deter buyers on Saturday. In Norman Park, Raj and Reenu Bakshir won a three-bedroom pre-war home for $980,000, a price 41 per cent higher than its sale price in 2016.

Rents in the Brisbane property market have increased by 6.5 per cent

With interstate migration and COVID-19, Brisbane property prices continue to soar. Over the past three months, dwelling values in the city have risen by a remarkable 32 per cent. However, the gap between price growth and rents in Brisbane remains small. House prices are continuing to rise, while apartment prices are on a downward trend. Apartments have also become a more risky investment, with rents on the rise, but the price of a house is still significantly higher than those of an apartment.

This strong growth in the Brisbane property market is being driven by low supply and high demand. The recent flood event has stirred debate about the potential impact of the situation on the market. Until further notice, the current state of the Brisbane property market is still robust and should remain that way for some time. The city is open to international migration and has a comparatively low vacancy rate. However, the upcoming Olympic Games will add further stimulus to the property market, with rents expected to increase by a further 6.5 per cent in the coming year.

House values have increased by 9.6 per cent

Despite an ongoing interstate migration wave, house values in Brisbane have seen an increase of 9.6 percent in the past five years. While Queensland’s population has grown by almost 13,000 in that time, Brisbane was the strongest recipient of growth, with 13,779 new residents settling in the region during the 2020 financial year. Perth saw a decline of interstate migrants in that time, but a growing population is boosting Brisbane’s housing market.

The Brisbane property market is a tale of two cities, with western suburbs enjoying higher home values while south Brisbane is experiencing a buyer’s market. CoreLogic data showed that west Brisbane was the best performing capital city region during the past year, with some suburbs experiencing double-digit gains. Homes in Yeronga and Moggill increased in value by more than 10 per cent, while the value of houses in the city’s south decreased by nearly two per cent.

Rental incomes have increased by 6.5 per cent

The Brisbane property market has reached record levels, with rental incomes soaring by 6.5 per cent annually. Brisbane’s rental prices have outpaced every other capital in Australia and experts predict further increases. During the year to February, Brisbane housing rents increased by 11.3 per cent. The Queensland government predicts further increases of up to 11.8 per cent by December 2021. Rental incomes in Brisbane’s unit market are up by 6.5 per cent year-on-year.

The strong growth in the Brisbane property market is attributed to the fact that the supply of properties is low. Due to this, prices have risen despite a weaker dollar. The recent flood event has also resulted in a decline in investor activity. However, the broader property market remains stable and Brisbane’s rental incomes have increased by 6.5 per cent. Despite the recent market downturn, property investors should not lose heart. The long-term prospects are looking bright for investors.

Rental prices have increased by 3.3 per cent

While the recent increase in the number of properties available for rent is a sign of a recovery in the Brisbane property market, it may not be a good sign for buyers who are on a tight budget. The current favourable economic conditions and low unemployment levels are helping to drive demand for housing. Meanwhile, recent budget announcements have created further incentives for first home buyers. In addition, interstate migration has remained strong, with Brisbane generally the first port of call for those moving to the state.

The housing sector continues to outperform the unit sector in Brisbane. Growth was easing until this month, but has accelerated since then. Brisbane’s unit market has seen three consecutive price increases and a rising trend in prices. This increase is due in part to increasing investor interest in the city. Furthermore, the property market is showing an increased level of flexibility. These factors are encouraging for buyers and investors.

Update for 2023

As of 2023, the Brisbane property market is showing promising signs for investors. Rental vacancies are at record lows, and asking rents are continuing to increase at a steady pace, with house rents having risen by 11.2% over the 12 months to March 2023. Additionally, further demand is expected as immigration returns and the city gears up for the 2032 Olympics

Although Brisbane’s housing market experienced a boom in 2021, it has been experiencing a slowdown in recent months, with dwelling values having fallen by -10.9% from their peak in June 2022 [2]. Nonetheless, demand for detached houses in Brisbane, particularly in the inner and middle ring suburbs, and outstanding demand for lifestyle areas, is likely to lead to these locations outperforming cheaper properties in outer suburbs. Meanwhile, demand for apartments is likely to remain softer, but more and more Queenslanders are turning to apartments as a housing option

Despite the market slowdown, Brisbane’s rental market remains a landlord’s one in 2023, with asking rents at historical highs. Traditionally in Brisbane, vacancy rates have been tight, hovering well below the level of 2.5% vacancies, which traditionally represents a balanced rental market. In terms of Brisbane’s infrastructure, the news that the city will host the 2032 Olympics has put pressure on the need for upgraded infrastructure, particularly in the areas of transport and housing

Overall, while the Brisbane property market has experienced a slowdown, it remains a promising area for investors, particularly in the areas of detached housing and lifestyle areas. Meanwhile, the demand for apartments is likely to remain soft, but landlords can expect rental returns to remain at historical highs.

Provided by VSMA – strategic finance by Dragan Keresevic.