Brisbane has emerged as one of Australia’s best spots for investors after two major studies put it close to the top of their lists, even before the announcement that it’s the preferred candidate for hosting the the 2032 Summer Olympics.
Westpac’s Housing Pulse report for February 2021 reported that Brisbane dwelling prices are veering into “boom market” territory, predicting over 10 per cent growth this year.
“Queensland’s upswing has accelerated over the last three moths and is starting to tip into boom territory,” says the Westpac report author, senior economist Matthew Hassan.
“Sales are running well ahead of listings, especially for houses, with stock on market down to just 3.4 months of sales in Brisbane – the long run average is five months.”
The only softer markets in the city are top- and middle-tier Brisbane units and the inner CBD.
With an estimated 10% growth and low interest rates, now is the perfect opportunity to invest in the Brisbane prestige market Photo: georgeclerk
“Other segments are showing robust gains,” he says.
In addition, Knight Frank’s Wealth Report 2021 found Brisbane was one of the highest-performing Australian cities of the last year, behind only Perth and neighbouring Gold Coast.
It recorded growth of 2.5 per cent in its prime residential market – well above the global average of 1.9 per cent.
That dwarfed both Sydney’s year average of 1.1 per cent and Melbourne’s of 0.9 per cent.
“Queensland has fared very well throughout the whole COVID-19 situation,” says Michael Vettoretto of Queensland Sotheby’s International Realty.
“There’s higher demand for property in Brisbane and we’re seeing our inquiry level increasing by 42 per cent.
“There’s so much demand from Sydney and it seems almost as though the whole of Victoria is trying to evacuate up here, looking for lifestyle. With interest rates at an all-time low, it’s absolutely a great place to invest in now.”
For the prestige market, it offers great value for money.
The Knight Frank report shows how US$1 million could buy 45 square metres of luxury property in Sydney in 2020, 87 square metres in Melbourne, 102 square metres in Perth and 109 square metres in Brisbane.
A large portion of new demand in Brisbane is coming from former Sydney and Victoria residents wanting a lifestyle change Photo: Tammy Law
Shayne Harris, Knight Frank’s national head of residential, says “the pandemic forced many to retreat in the comfort of their homes for the best part of 2020, so it’s not surprising prime property is becoming increasingly more attractive in destinations known for their lifestyles”.
Already, first-home buyers are out in force in Brisbane, but the next stage is seeing investors rush in, believes David Notley, the Brisbane director of valuers Herron Todd White.
“A lot of house-and-land packages are being constructed to stimulate the first-home-buyer market,” he says.
“Once that’s finished, we’ll start to see the investors come back in. That’ll be the next wave.”
As more people learn about the big upswings in capital growth forecast for 2021 and 2022 in Brisbane, that will encourage the investors even more, predicts Jason Adcock of Adcock Prestige.
“While they’re looking at 10 per cent growth this year, they’re saying there could be an additional 10 per cent in 2022 – as against 7-8 per cent for Sydney and Melbourne,” he says.
“And Brisbane is a real value equation. We have people from Sydney and Melbourne coming up here in droves, in search of affordability and lifestyle, so Brisbane will be the go-to city for capital growth over the next two or three years.”
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