By Andrew Mackintosh, Property Inspector Expert
In the face of economic uncertainty and despite challenges that have presented themselves since the COVID-19 pandemic, Brisbane’s property market stands as a beacon of strength, experiencing an unprecedented surge, defying odds, and surpassing expectations. A 53.5% increase in housing prices alone is a remarkable growth that not only reflects the city’s resilience but also positions it as a frontrunner among Australia’s capital cities.
Regional dynamics – How they compare
Interestingly enough, the strength of Brisbane’s property market is not uniform across all regions. Certain areas are showing signs of notable resilience, outperforming others.
Inner and middle ring suburbs: Demand for detached houses is exceptionally strong and is being noted as one of the key drivers of growth. In particular, an increased preference for townhouses over traditional dwellings has surprised the industry.
Inner city apartments and housing estates: In contrast, what were once sought-after lifestyle choices, high-rise apartment living and newly built homes in housing estates are suffering the most as the market feels the brunt of those who have overextended themselves or now find themselves owners of a lower quality property.
Regional Queensland: Let’s not forget Brisbane’s sister cities, the Gold Coast and Sunshine Coast have also witnessed a larger-than-expected volume of sales over the past year.
Investment opportunities and properties that offer quality alongside liveability options are certainly the draw card and enhanced demand is propelling property prices upwards. Freestanding or detached Brisbane houses close to the CBD or in good school catchment zones have grown in value. The typical drawcards of proximity to amenities, school zones, and access to employment continue to play a big part in where people decide to buy.
Rental market challenges and housing supply
As with many major cities across the country, Brisbane’s rental market presents its own set of challenges. Low vacancy rates and rising rents have created a crisis for tenants and the conditions are expected to continue late into 2024. Cashed-up investors and homebuyers are actively seeking opportunities to upgrade, coupled with the slowdown in construction, indicating a renewed confidence in the market.
All in all, these conditions are further strengthening Brisbane’s property market. It stands as a testament to resilience, offering opportunities for growth and prosperity in what might otherwise be rather uncertain times. Armed with the right information and a level head, there are opportunities to harness the market’s strength and achieve your goals, even in a strong market.
