BRISBANE PROPERTY MARKET SHOWS SIGNS OF RECOVERY: A WINDOW OF OPPORTUNITY FOR BUYERS
Brisbane's property market has experienced a recent turnaround, signaling the end of a downward trend that started earlier this year. With several consecutive months of increases in median property prices, experts predict that the market has passed its bottom and is on the path to recovery. This blog post explores the factors contributing to Brisbane's property market upswing, the potential impact of hosting the 2032 Olympics, population growth forecasts, and why now might be an ideal time for buyers to enter the market.
Brisbane's Property Market Journey:
The Brisbane property market experienced substantial growth during the 2020-2021 boom, with house prices increasing by 42.7% from the Covid trough to its peak in June 2022. While the market went through an adjustment phase afterward, it fared better than many other locations, with overall dwelling values decreasing by only -8.6% over the last 12 months. Recent data shows that Brisbane's property prices have started to recover, with a 0.8% increase in June, totaling a 1.4% increase so far this year.
Factors Driving the Recovery:
Factors contributing to Brisbane's property market resilience include significant internal migration, particularly from Victoria and New South Wales, as people seek more affordable properties in lifestyle suburbs. Additionally, Brisbane offers comparatively lower property values than Sydney and Melbourne, attracting buyers looking for better affordability. The upcoming 2032 Olympics in Brisbane is expected to put the city on the global map, attracting overseas migrants and creating job opportunities for highly paid knowledge workers. Federal government forecasts predict a population growth of more than 16% in Queensland by 2032, further driving demand for housing.
Submarkets and Recovery Opportunities:
While the market bottom is a process that varies across submarkets, experts anticipate that Brisbane's property prices will continue to recover despite potential headwinds. Rather than attempting to time the market cycle, taking a long-term perspective may provide an ideal opportunity for buyers to enter the market while others remain on the sidelines. Certain segments, such as freestanding houses near the CBD or in desirable school catchment zones, have shown strong value growth, while properties in high-rise apartment towers and blue-collar areas may underperform.
Rental Market Dynamics:
Brisbane's rental market remains highly favorable for landlords, with historically low vacancy rates and increasing rental prices. The demand for rental properties has surged due to significant internal migration and job opportunities, keeping vacancy rates low. However, this tight rental market presents challenges for renters seeking affordable housing options.
School Zones and House Price Growth:
The location of properties within preferred school catchment zones has become a driving factor in Brisbane's property market. Demand for homes in these zones has pushed prices higher, with secondary school catchments showing more significant impact on house price growth compared to primary school catchments. Families and investors often consider the geographical proximity to reputable schools when making property decisions, which has contributed to the rising demand and price growth in these areas.
Brisbane's property market has displayed signs of recovery, with month-on-month increases in median property prices and a positive outlook from experts. The city's unique lifestyle, economic opportunities, and the upcoming 2032 Olympics have attracted buyers and migrants, fueling demand for housing. While the market bottom is a process that varies across submarkets, now may be an opportune time for buyers to enter the market and secure properties before prices rise further. With population growth forecasts and favorable rental market conditions, Brisbane presents a promising real estate landscape for both homebuyers and investors.
Adele Oliver # 0439 005 705
