There is no one better than Suzana Wade, principal of Locate Property, to talk about what the future holds for the Brisbane property market in 2024.
It has been a dramatic rollercoaster ride for all property markets around Australia but in particular the Brisbane property market, with recent growth of over 45% through 2020–2021.
A small retraction was experienced since its peak in the earlier 2022 year but the buying pressure remained and due to a significant lack of stock, prices once again rebounded over 11% through February this year.
Investors and home owners are still looking for the locations that provide the best bang for the buck, such as the Brisbane Olmypics and recent large-scale infrastructure projects such as Queens Wharf Casino. Is it any wonder that Brisbane is still at the top of the list for anyone still shopping for property hot spots? Remember, Brisbane still has a median price point of just over 60% that of Sydney
This shows that the city is growing while still being affordable. This mix makes the city a better place for buyers and investors to live. As the need for A-grade homes and investment-grade properties grows, Suzana Wade’s experience in the property management Brisbane market backs this up.
At the moment, these are Brisbane’s median home prices:
- All homes in the capital city: $779,270 (Change every month: 1.3%; change every three months: 3.9%; change every year: 10.7%)
- Houses in the capital city are now worth $870,526 (up 1.4% month-to-month, 4.1% quarterly, and 10.6% yearly).
- $552,332 for capital city units (1.0% change every month, 3.1% change every three months, and 11.3% change every year)
- Regional dwellings: $605,256 (Monthly change: 0.8%, Quarterly change: 2.5%, Annual change: 7.2%)
The resilience of the market prompts the question: What attributes contribute to such robustness?
Internal migration, particularly the influx from Victoria and NSW into Queensland, drives the demand for more affordable properties in lifestyle-centric suburbs.
Despite being one of the nation’s strongest states, Brisbane offers greater value for money compared to Sydney and Melbourne. Significant interstate migration continues to benefit Brisbane. Federal government forecasts indicate Queensland’s population is expected to grow by over 16% by the time Brisbane hosts the Olympic Games in 2032.
The projections foresee a population shift towards Greater Brisbane, with most Queenslanders likely to reside in this region during the significant Brisbane Olympic Games. The growth disparity between Greater Brisbane and the rest of Queensland is apparent, with faster projected growth rates for the capital.
As of 2021–22, over half of Queenslanders lived outside Brisbane. However, the forecasted growth rates hint at a reversal, with an anticipated majority residing in the capital by 2032–33.
Forecasts for Brisbane’s housing market paint a diverse picture, akin to having one hand in hot water and the other in cold water. Some properties have remarkably outperformed others, notably freestanding houses within 5-7 km of the CBD or within esteemed school catchment zones, witnessing substantial value appreciation.
Notably, Westpac’s projections for Brisbane foresee five years of remarkable real estate growth, estimating around 43% growth by 2025. In comparison, Sydney and Melbourne are expected to experience 36% and 33% growth, respectively.
The demand for detached houses in Brisbane’s inner and middle-ring suburbs, coupled with a burgeoning interest in lifestyle areas, positions these locales to outshine cheaper properties in the outer suburbs. Meanwhile, the demand for apartments might remain subdued, while townhouses in Brisbane’s inner suburbs gain favour among more Queenslanders.
However, it’s crucial to acknowledge the divergence in growth potential across Brisbane’s various locations. While some exhibit strong growth prospects, certain submarkets might not be conducive to investment.
The evolving trends suggest a shift towards properties offering “pandemic appeal,” emphasising attributes like space, security, and a liveable environment. Factors such as proximity to amenities, good schools, mobility, and job accessibility are increasingly becoming priorities for buyers.
For those in stable financial positions, the current climate presents a favourable window to invest in Brisbane’s housing market. The shortage of A-grade homes and investment-grade properties, coupled with a surplus of buyers, tilts the market in favour of sellers, potentially leading to further asking price hikes that translate to future sale price increases.
All in all, it is still a seller and landlord market, and Brisbane property market 2024 shows no immediate signs of slowing, says Suzana.