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)
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.
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.
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
Locate Property’s Suzana Wade predicts that renting in Brisbane is about to get even harder with record rent increases over the next 12 months. According to recent PropTrack statistics, tenants across the nation have another challenging year ahead of them as rental costs rise. According to the data, rentals across the country have increased by 2 percent in the first quarter, to a median of $500 per week.
In the past year alone, rents have increased by 11%, which is the biggest annual increase seen since before the epidemic. Rents in the nation’s capital increased by 4% from the last quarter of 2022 to the March quarter, bringing the yearly increase to an astounding 13%. Meanwhile, rents in the region have climbed by 2.2% from the fourth quarter of 2017 to the first quarter of 2018 (an annual increase of 4.5%).
Particularly in Brisbane but also in Sydney, Adelaide, and Perth, rents are rising “at an extremely rapid pace,” as the paper emphasises. In fact, Perth rents increased by 9 percent in the most recent quarter. PropTrack’s analysts are sounding the alarm that rent increases are likely to persist due to the current tight rental market. Particularly true in nation’s capital, where rent hikes have remained steady since they first began to accelerate in early 2022. As the pandemic has progressed, rent rises have slowed in the regions.
Except for the Australian Capital Territory and remote South Australia, rental prices rose across the country in the March quarter. The Reserve Bank of Australia (RBA) has lately paused its long-running cycle of interest rate hikes, opting to maintain a cash rate of 3.6 percent instead of raising it. However, rising rental costs show little signs of slowing down. Therefore, renters everywhere will be hit even harder than usual this year.
For more articles on trending real estate, click HERE.
Locate Property’s principal and licensee, Suzana Wade, explains the property management fees in Queensland and how they tend to operate, particularly in Brisbane.
As a landlord in Brisbane, you should know that the cheapest option is not always the best when it comes to hiring a professional management company.
The company offering the lowest prices may appear to be the best choice, but you shouldn’t automatically assume that this is the case.
We’ll explain the various components of property management fees in Queensland and why you shouldn’t base your decision solely on the bottom line.
The first order of business is to figure out what kinds of services the property management company offers. A property management company will charge you a management fee for their services. These costs may vary widely depending on factors like the company, the location, and the nature of the services rendered.
The monthly management fee for a rental property in Queensland is typically a combination of a flat rate and a percentage of the rental income collected by the owner. This figure typically falls between 6 and 12 percent, though it can be higher or lower depending on the nature of the business and the services it offers. Some companies, especially those that advertise themselves as “full service” property management firms, may charge extra for services like inspections, reports, maintenance, and access to technology.
Other property management fees in Qld may include but not be limited to, the following:
Rent Collection Fee
Court Appearance or QCAT fees
File Closure Fees
Technology fee (depending on the additional services that may be on offer )
Renovation/Maintenance% over a certain dollar value.
A successful property management firm will reinvest its earnings to attract and retain a more talented workforce and to expand the range of services it offers to its clients (the building’s owners and tenants). The success of any modern business depends on its ability to attract and retain highly skilled employees.
What you, as the owner, want to do is find a happy medium between service costs and service offerings. The key, according to Suzana Wade, when entrusting someone with a valuable asset like an investment property is to find a middle ground where you can get great value and a comprehensive set of services at a fair and realistic price.
If you can’t decide between two or more agencies, Suzana advises you to trust your instincts and work with the one that feels right, regardless of how much it costs.
The following list will offer you some additional points to look into.
Do they view property management as their main line of business or more as an add-on to their sales department?
Does the principal have a background and work history in property management or sales?
Have you had the opportunity to speak with and meet the person who will be in charge of looking after your property?
Are their reviews accurate and do they mention the names of the people you’ve met and you will be working with.
Maintaining excellent lines of communication between all members of the team and the owners and tenants is essential to the success of any business.
Choosing a property management company is a very individual process, your interaction with the company’s day-to-day operations and how you are treated by its employees will determine how satisfied you are with the service you receive.
Just remember that a few dollars saved now may amount to thousands that a poor appointment will cause over the longer term. Loss of rent, unattended maintenance , poor tenant selection one that here at Locate see all the time, little or no rent reviews, leaving thousands of dollars on the table.
Just remember a sign of a good property management firm is that when it is running well, everything works as it should, updates come through, reports are on time and accurate and you will hear less and less from your property management firm. Just ensure that your checks and balances are in place to ensure they are doing the job that you are paying them to do and once you have built up this trust, this is how it should be.
In conclusion, it is essential to weigh the quality of services against the cost when evaluating property management fees in Qld. Choosing the right agency based on the property management fees Qld alone might result in subpar service and damage to your bottom line. If you want your investment property to succeed over the long run, you need hire a management firm with a solid reputation, knowledgeable employees, and extensive offerings where you are getting VALUE which will never be the cheapest.
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