The Urban Developer’s Brisbane housing market insights for March reveals increased demand for houses has been underpinned by increasing consumer sentiment and a surge in interstate migration.
This resource, to be updated monthly, will collate and examine the economic levers pushing and pulling Brisbane’s housing market.
Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.
Brisbane house prices have soared to record heights after a steady 12 months of growth and a rebound in listings and sales during recent months.
Brisbane’s housing market has remained particularly unaltered by the closure of international borders, where historically high demand from overseas migrants has been disrupted.
Brisbane advanced a further 2.4 per cent during March, pushing it up 4.8 per cent for the recent quarter and 6.8 per cent for the year to date.
The current median value for dwellings is $548,260, which is $12,642 higher than just a month ago.
The median house price of $607,969 continues to attract interstate migrants from the larger markets of Sydney, where the median is now $1.1m, and Melbourne at $859,097.
The premium end of the Brisbane’s housing market is still leading the acceleration in capital gains with upper-quartile property values rising by 3.1 per cent. Lower quartile property values were up 1.1 per cent throughout March.
Brisbane median house and unit price values
| Type | Month | Quarter | Annual | Median |
|---|---|---|---|---|
| All | 2.4%▲ | 4.8%▲ | 6.8%▲ | $548,260▲ |
| Houses | 2.6%▲ | 5.3%▲ | 7.9%▲ | $607,969▲ |
| Units | 1.0%▶ | 2.4%▲ | 1.9%▲ | $400,866▲ |
^Source: Corelogic Hedonic Home Value Index – March
CoreLogic’s weekly auction clearance rate across the combined capitals has been at or above 80 per cent just five times since 2008, and four of those were in March, 2021.
The week ending March 7, recorded Brisbane’s highest auction clearance rate on record—82.3 per cent—while also being the busiest week for auctions since late March, 2018.
Total listings across the country remain 26 per cent below the five-year average.
Brisbane auction clearance rates
| Week | Clearance rate | Total Auctions |
|---|---|---|
| Week ending 7 March 2021 | 82.3% | 107 |
| Week ending 14 March 2021 | 65.2% | 110 |
| Week ending 21 March 2021 | 73.0% | 151 |
| Week ending 28 March 2021 | 68.8% | 191 |
^Source: Corelogic Auction Clearance Rates – March
Gross rental yields in Brisbane remains favourable compared to Sydney and Melbourne at 4.3 per cent.
According to the SQM, Brisbane’s gross rental yield for houses is currently 4 per cent and 5.2 per cent for units.
Vacancy rates are where your jaw may drop, with Brisbane at just 1.5 per cent, and other locations below 1 per cent.
Traditionally Brisbane’s vacancy rates have been tight, hovering well below the level of 2.5 per cent, which represents a balanced rental market.
Brisbane residential rental vacancy rate
| City | March 2021 vacancy rate | Monthly % change |
|---|---|---|
| Brisbane | 1.5%► | 0.0%► |
Rental stock on market
| City | March 2021 vacancies | Vacancy net loss |
|---|---|---|
| Brisbane | 5407▲ | 97▲ |
^Source: SQM Research – March
Brisbane rent prices
| Type | Rent | Monthly % change | Annual % change |
|---|---|---|---|
| Houses | $483.70▲ | 1.1%▲ | 3.2%▲ |
| Units | $383.60▲ | 0.2%▼ | 1.4%▲ |
^Source: SQM Research – March
The seasonally adjusted estimate for total dwelling units approved in Queensland in February was 3,930, 40.5 per cent higher than recorded in January.
Loan data shows investors have started coming back into a housing market they had largely vacated and the boom is being driven overwhelmingly by established owner occupiers and first home buyers.
Queensland building approvals
^Australian Bureau of Statistics, (Suspension of trend series between May 2020 and Jul 2020 due to Covid-19)
| Dwelling | Approved | Monthly % change |
|---|---|---|
| Houses | 2792▲ | 25.4%▲ |
| Units | 3930▲ | 40.5%▲ |
^Source: Australian Bureau of Statistics; Reference period February
Queensland home loan lending indicators
| Region | First home buyer loan commitments | First home buyer ratio – dwellings | First home buyer ratio – housing |
|---|---|---|---|
| Queensland | 3078▲ ▼ | 39.6%▼ | 34.7% ▼ |
^Source: Australian Bureau of Statistics – February
Queensland interstate migration
| Region | September (quarter) 2020 arrivals | September (quarter) 2020 departures | September 2020 quarter net |
|---|---|---|---|
| Queensland | 22,317▼ | 15,080▼ | 7,237▲ |
^Source: Australian Bureau of Statistics – September quarter 2020
Brisbane’s housing market: policy updates
Australia’s central bank will maintain low interest rates to support the country’s ongoing economic recovery and surging housing market, buoyed by its busiest Easter auction market on record.
Strong tailwinds will bolster the Australian economy through the second half of the year, but macro-prudential measures are likely to be introduced to ease house price pressures in 2022.
Queensland faces a “hard road” during the next four years as the state recovers from the coronavirus pandemic, Treasurer Cameron Dick says.
Brisbane housing market forecasts
ANZ economists forecast Brisbane house prices will rise by 9.5 per cent next year, as low interest rates and government stimulus flow through the economy while Commonwealth Bank updated its forecasts, projecting a strong rebound in prices across the second half of 2021.
CBA now expects Brisbane house prices to increase by 16.6 per cent to December 2022 compared to 13.7 per cent in Sydney and 12.4 per cent in Melbourne.
Westpac has also updated its property forecasts, with Brisbane real estate prices tipped to surge 20 per cent between 2022 and 2023.
Article Source: theurbandeveloper.com
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