Brisbane property market 2024.  What does it look like ?

Brisbane property market 2024. What does it look like ?

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.  

Brisbane rental properties shows no signs of slowing

Brisbane rental properties shows no signs of slowing

Suzana Wade, Principal of Locate Property, presents the latest insights into Brisbane rental properties located within the greater Queensland market amid the ongoing housing crisis.

Recent data from property research group Proptrack has unveiled a staggering trend: rental properties in Queensland are capturing an overwhelming interest, with more than 120 inquiries per property on average. Notably, the top 10 properties attracting the highest number of inquiries, as reported on realestate.com, are all nestled within Brisbane.

Of these Brisbane rental properties, a residence situated in Bowen Hills, an inner-city suburb with a median rent of $520, garnered a notable 127 inquiries, showcasing the high demand in prime locations.

Interestingly, the fervor for properties extends beyond the city center, with suburbs like Loganlea, Richlands, Berrinba, and Doolandella each receiving over 100 inquiries for individual properties. Notably, both West Ipswich and Ellen Grove saw a considerable influx of around 120 inquiries per property.

The classification of inquiries encompassed engagements with real estate agents or interactions with the property advertisements, according to the data.

This surge in demand doesn’t come as a surprise to locals like Clayfield resident Shoshana Huppert, who faced numerous rejections for rental applications in the previous year. Huppert shared her experience of settling for a townhouse with friends due to prior rejections, highlighting issues with its maintenance and cleanliness.

Huppert discussed her ordeal and the difficulties she had finding suitable housing, stating that she had initially wanted to live independently but had to compromise because of cost. Eventually, she found a rental in Clayfield, opting to live with multiple roommates to navigate the competitive rental landscape.

Proptrack’s figures reinforce the tight vacancy rate in Brisbane, standing at a mere 0.86 percent. Senior economist Eleanor Creagh from Proptrack emphasized the persistence of these conditions, indicating an unlikelihood of immediate relief for renters in the foreseeable future. Creagh stressed the pressing need for an increase in rental property supply as a sustainable solution to the crisis.

Expanding the scope, CoreLogic’s data shed light on more affordable rental options within a 20-kilometer radius of Brisbane’s city center, showcasing areas like Ipswich, Logan, and Beaudesert with comparatively lower median rents for both houses and units.

Capitalizing on this trend, Eliza Owen, Head of Research at CoreLogic, highlighted the overall spike in capital city rents across Australia, attributing it to factors like limited stock availability and shifts in population movements between urban and regional areas. Owen pointed out the increasing attractiveness of previously overlooked suburbs, now experiencing heightened rental demand from professionals working or studying in city centers.

These statistics for Brisbane rental properties paint a vivid picture of the intensifying rental landscape, urging stakeholders to consider sustainable solutions to address the pressing housing challenges faced by renters across Queensland.

Brisbane Properties :- Rents are soaring, where are the investors ?

Brisbane Properties :- Rents are soaring, where are the investors ?

Brisbane Properties
Brisbane Properties

Suzana Wade of Locate Property is a local Brisbane property management expert who is on the ground in Brisbane, speaking to tenants every day. Her insight is invaluable when actually trying to ascertain investor sentiment and tenant feedback for Brisbane Properties, and right now is a bad time to be a tenant.  

Property rents are increasing, and vacancy rates are at an all-time low. However, this should be an excellent time to be a property investor. However, why hasn’t this translated to more investors buying right now?  

Tenant demand is robust, rental prices are rising, properties are in little danger of sitting empty, rental returns are strong, and it’s starting to shift to be a buyer’s market in many locations thanks to recent declines in purchasing prices.

However, investors have been noticeably absent from the festivities. According to Australian Bureau of Statistics data, the value of investor lending for homes in February was down 32.6% year over year. Overall, house lending was down 30.9%.

It’s crucial to emphasise that a lack of investors isn’t the only reason for our housing crisis; governments and a lack of development are also to blame (the number of dwelling approvals in February 2023 was down 31.1% from the previous year). 

However, investor participation helps to alleviate the crisis.

The main obstacle, according to PropTrack economist Angus Moore, has been interest rates, which have crushed investors due to limited borrowing capacity and higher mortgage rates. 

repayments just like everyone else. The Palaszczuk government’s new tenant legislation is a close second in terms of the reasons keeping investors out of the Brisbane property market.

Although prices have retracted by on average 5–10% over the last 18 or so months, investing in Brisbane Properties is unquestionably more expensive thanks to interest rates and hidden investment costs. “During the pandemic, we actually noticed more investors selling than buying,” Suzana said. 

“Many people saw their overall wealth decline as a result of falling home prices.” “Also, given the low number of property listings and limited new homes to buy, there hasn’t been a large selection of investment property options for investors to purchase with an attractive price discount incentive.”

Investors for Brisbane properties have the opportunity to profit.

Experts believe the moment is now, with capital city vacancy rates still falling and rental prices rising as housing supply is limited and population growth is high.

According to PropTrack statistics, a vacancy rate of 3% is considered desirable as a market equilibrium between tenants and owners; however, capital cities recorded a rate of only 1.43% in March 2023, down 55% from March 2020 and 0.66% from March 2022.

Sydney and Melbourne experienced the most significant quarterly declines, while Brisbane, Perth, Adelaide, Hobart, the ACT, and the regions experienced modest rises. 

According to the ABS, 303,700 people are predicted to move to our shores in the year ending June 30, 2022; a larger proportion of them than the average population is likely to seek rental accommodation.

Meanwhile, advertised rental prices on realestate.com.au rose 2% nationally in the first quarter of 2023 to a median of $500 per week, representing an 11.1% increase over the previous year and the fastest rate of rent growth since well before the pandemic. 

“Given how tight rental markets are and how competitive they are, we’re seeing rents grow extremely quickly across the country.”

“The only long-term solution is more housing.” “And more investors are purchasing such homes.”

 Investor demand is expected to rise.

According to Warren Hogan, an economic advisor with Judo Bank, the present rental problem would certainly encourage additional investors to enter the market.

“We know there will be a supply squeeze and that the population numbers are there.” Rents will continue to climb, as will rental yields; prices will not fall much further and will most likely begin to rise. 

“This is an excellent time to enter the market for a long-term investment.”

Some investors appear to be in agreement.

Despite borrowing less, their share of all borrower-accepted loans is increasing. 

According to the ABS, investors accounted for 33.7% of all transactions in February 2023, up from 24.2% in February 2021 and 27.3% in February 2020.

Property Managers in Brisbane. Rent Crisis, leaders to step up

Property Managers in Brisbane. Rent Crisis, leaders to step up

Property Manager Brisbane
Property Manager Brisbane

Many Brisbane tenants are having trouble making ends meet due to the city’s housing affordability crisis. Property managers in Brisbane have a critical role to play in tackling these issues, even as governments and industry bodies attempt to develop solutions. 

A property manager in Brisbane, like Suzana Wade of Locate Property, points out that people in the property management industry should stop waiting to be told what to do, start to implement changes, and take the initiative to put down solutions that have a lasting impact on the coal face.  

Too many property managers are claiming expert status and offering nothing to the solution..  Leadership in this crisis means doing what needs to be done and doing it in a way that has an impact that counts for both tenants and landlords.  This involves providing renters with flexible rent payment options, integrating necessary services, and making every effort to ensure their safety and property security. 

Property managers in Brisbane that show real concern for their tenants’ welfare typically attract and retain renters who are more loyal, trustworthy, and proud of their rental homes. This has a knock-on effect for those owners lucky enough to have a property manager who sees the value in providing these solutions for the current crop of tenants.  

High property prices, increasing credit scores and finance requirements, and inflation that diminishes purchasing power are all obstacles for many Brisbane tenants hoping to one day own their own home. That’s why it’s more important than ever to have access to rental housing, especially affordable rental housing. Working with tenants, governments, and industry groups, property managers can take the lead in finding solutions to the housing affordability challenge.

Individuals and families, the housing market, and policymakers all need to work together to solve the housing affordability challenge. Property managers in Brisbane have a responsibility to meet the needs of their tenants, who should continue to put their necessities ahead of their wishes. Property managers in Brisbane may lead the way towards a more just and sustainable housing market by seizing the reins and making the necessary adjustments now.

While the REIQ is fighting the good fight against these crazy new rent reform laws that will only worsen the housing supply and therefore place more pressure on rental prices, property managers in Brisbane need to be next in line to effect change. For more Articles on trending real estate topics like this, follow me HERE

Property Management Brisbane- Current Rental Reform laws.

Property Management Brisbane- Current Rental Reform laws.

property management Brisbane
property management Brisbane

A property management Brisbane firm, Locate Property, founded by Suzana Wade, who is now speaking out against the state government’s new rental reform regulations. Beginning on July 1, 2023, rent hikes are only allowed to occur once per year as a result of new laws established by the government. However, as a result of the transition arrangements, any rent increases that were previously agreed upon in the lease will also be null and void as of this date.

Ms. Wade and Antonia Mercorella, chief executive officer of the Real Estate Institute of Queensland (REIQ), have both expressed displeasure with the retroactive nature of the new legislation. Ms. Mercorella has cast doubt on the legitimacy of the government’s choice to disregard previously negotiated contracts. Ms. Wade counters by saying the government’s action is unwise and may have lasting effects on Queensland’s real estate market.

Property Management Brisbane companies like Ms. Wade’s are worried that the State Government of Queensland’s ongoing stream of legislative changes may discourage property investors from putting money into the state. She warns that watering down property investor rights might have dire ramifications for Queensland’s rental market, as private investors are the primary source of housing for the state’s 1.5 million renters.

Ms. Mercorella has warned the government against being overly prescriptive when revising rental laws. She thinks the measures need to strike a good balance between protecting tenants and enticing investors to remain in Queensland. Ms. Mercorella warns that ignoring the importance of property investors could have disastrous effects on the rental sector in the state.

As a result, it’s safe to say that neither Ms. Wade nor Ms. Mercorella approve of the state government’s new rental reform regulations. They contend that these regulations could have a significant negative impact on the state’s rental market and all property management firms in Brisbane, as they will undermine property investors’ confidence in Queensland. They advocate for reforming the state’s rental laws in a way that is both thoughtful and balanced, protecting renters’ rights while also acknowledging the role of property investors.

To access Stage 2 of the proposed Rental Reform laws, Click HERE