Brisbane’s property market value over the year

Brisbane’s property market values remained resilient over the year, especially given the economic impact of COVID-19.

Price growth of Brisbane residential real estate had been more subdued in the lead up to the COVID-19 outbreak compared to Sydney and Melbourne and, in turn, Brisbane only experienced a mild downturn and property values have now been rising again over the last few months.

With the success in containing COVID-19 and its associated restrictions and the RBA assuring us that the recession is over, property market confidence has lifted and Queensland has recorded an impressive recovery in house prices.

First-home buyers are taking advantage of incentives and established home buyers with secure incomes are being lured by historically low-interest rates

At the same time investors, not only from Queensland but from interstate, are finding the price points and rental returns of Brisbane property very favorable.

Domain’s Buyer Demand Indicator shows houses remain a firm favorite of prospective home hunters, with demand rising post-lockdown and at levels significantly higher than this time last year.

However, unit demand has been sliding since late May although remains slightly higher than last year, with investment stock (not investment grade stock but those poorly built and designed high-rise apartments) likely to be impacted most.

Westpac Bank recently updated its property forecasts, with Brisbane prices tipped to surge 20 percent between 2022 and 2023, meaning Brisbane is likely to be one of the best performing property markets over the next few years.

Of course, while some locations in Brisbane have strong growth potential, and the right properties in these locations will make great long term investments, certain submarkets should be avoided like the plague.

To help you make an informed decision, I’m going to examine what’s going on in the Sunshine State in detail in this article.

But be warned…it’s a little longer than normal, so if you’re looking for a particular element of the Brisbane property market, use these links to skip down the page.

Fast facts about the Brisbane property market

1. BRISBANE PROPERTY MARKET PRICES
2. BRISBANE’S PROPERTY MARKET TRENDS
3. BRISBANE’S AVERAGE RENTAL YIELD
4. BRISBANE’S AVERAGE CAPITAL GROWTH

What’s special about Brisbane?

1. BRISBANE’S DEMOGRAPHICS
2. BRISBANE’S LAYOUT
3. BRISBANE’S INFRASTRUCTURE
4. BRISBANE’S ECONOMY
5. BRISBANE’S GROWTH
6. BRISBANE’S CULTURE

What Brisbane areas are worth investing in?

1. LOOK FOR BRISBANE’S BEST PROPERTIES IN THE INNER- AND MIDDLE-RING SUBURBS
2. 4 Suburbs that MUST be on your radar
3. BE MINDFUL OF A BRISBANE PROPERTY OVERSUPPLY

How do I choose a strong investment property in Brisbane?

1. BUY A PROPERTY FOR BELOW ITS INTRINSIC VALUE
2. BUY A PROPERTY THAT OUTPERFORMS THE AVERAGES
3. BUY A PROPERTY WITH A TWIST
4. BUY A PROPERTY WHERE YOU CAN MANUFACTURE CAPITAL GROWTH

How can I stay on top of current information?

1. GET NEWS, UPDATES AND ADVICE BY EMAIL
2. TAKE ADVANTAGE OF INVESTMENT ADVICE

There are multiple markets in the diverse sprawling city of Brisbane; divided by geographic location, price point and property type.

And just to make things clear…I’m talking about the property market in Brisbane – not the Queensland property market. That’s a very different animal!

If you’ve been following my property investment strategy, you’ll know I only invest in capital cities and that’s why I avoid the Sunshine Coast, the Gold Coast, and Queensland’s regional markets which have very different (and fewer) growth drivers than Brisbane and are therefore more volatile.

So…is it the right time to get into the Brisbane property market?

 

While I was always positive that our property markets were going to pick up, recently three major factors have underpinned the property markets and will contribute to a perfect storm of positive growth drivers that will have property markets performing strongly in 2021 and 2022.

The first was the announcement of sweeping changes to remove overly restrictive lending rules.

This will give more people access to easier credit, enabling them to borrow more and get into the market.

The other big gamechanger was the budget. It’s been calibrated to create jobs and promote consumer confidence, which will encourage buying and investing.

Then more recently the RBA lowered interest rates and “promised” not to raise rates for at least 3 years, saying it will do everything it can to support jobs, businesses and boost our economic recovery.

Sure there are economic headwinds that will affect us and there will be a few challenges in the first quarter of 2021 as a number of small businesses close down.

But there will be a combination of factors leading to a period of strong property price growth in the second half of 2021 and into 2022 with a confluence of the following:-

• Federal Government spending, initiatives, and infrastructure projects
• State Government spending and infrastructure initiatives
• Historically low-interest rates making borrowing as cheap as it has ever been and therefore holding investments or taking out a home loan very affordable
• The security that interest rates will remain low for a number of years will encourage people to borrow
• Easing of credit approval criteria could allow many people to borrow considerably more than they could before.
• A return of international demand for Australian property
• A return of immigration and students to Australia is also possible

But, as I have explained, there are multiple housing markets within Brisbane, based on price point, geography and type of property, and as always, you can’t just buy any property and count on the general Brisbane property market to do the heavy lifting over the next few years, so careful property selection will be critical.

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