Brisbane's Market Insights 2022
- Posted By David Brown
Brisbane with its more than 2.4 million people is the third-largest city by population and the fastest growing city in Australia.
Over the last quarter, Brisbane’s house prices increased 5.9% and 19.9% in comparison to 2020.
Brisbane is looking positive due to the strong interstate migration, a large infrastructure budget, and the excitement of Brisbane hosting the 2032 Olympic games.
Brisbane will probably be one of the best performing property markets over the next few years, but while some locations in Brisbane have strong growth potential, the right properties in these locations will make a great long-term investment.
The current median value for a dwelling is $612,000 after further advancing an additional $14,000 during August.
Experts now predicted the post-pandemic boom could fuel a further 15 per cent rise in house prices in the coming year 2022 and more than double, with a likely median of $1.5 million, by the time the 2032 Olympic Games begin.
Eliza Owen, Head of Residential Research of Corelogic said “Migration figures over the past year show there has been an uplift in movement from Melbourne to Queensland.
“So that may have helped ease rental pressures across Melbourne and put upward pressure on Brisbane rents”.
The 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 tipping to a surge of 20 per cent between 2022 and 2023.
The Interstate Migration
Interstate migration into Queensland is growing at its fastest rate since late 2003 and has increased the demand for houses.
Brisbane’s population grew by 1.9 per cent during 2019-20, recording the highest growth rate of all capital cities, according to Australian Bureau of Statistics data.
Queensland experienced a net gain of 28,500 people from interstate in the March quarter and 21,465 departures.
Queensland’s population is expected to surge by more than a quarter of a million people in the next four years according to forecasts in the federal budget.
Is it now a good time to buy a property in Brisbane?
Anyone who buys a premium home or investment property in Brisbane now will probably look back in a couple of years and recognise they did a good deal.
There is a perfect storm of positive growth drivers that will have Brisbane house prices performing strongly in 2022 and the recent announcement of Brisbane winning the 2032 Olympic games will underpin a strong infrastructure, economic, and population growth over the next decade.
This suggests that Southeast Queensland will continue to be a preferred destination for many Aussies from interstate due to the lifestyle, health, and affordability the region offers.
What factors make a property attractive?
Due to the current event that has impacted the world, the priority of the people is changing, , some buyers will be willing to pay a little more for properties with “pandemic appeal” and a little more space and security, but it won’t be just the property itself that will need to meet these newly evolved needs – a “liveable” location will play a big part too.
Liveability will mean a combination of:
- Proximity – to things like parks, shops, amenities, and good schools.
- Mobility – access to good public transport (even though this may be less important moving forward) or a good road system.
- Access to jobs.
What Locations in Brisbane are tipped for growth?
- Kenmore - 10 km to Brisbane
Median price $826,250
Quarterly growth $3.28%
12-month growth 14.44%
Average annual growth 4.31%
Weekly median rent advertised $560
Gross Rental Yield 3.52%
- Rochedale - 17 km to Brisbane
Median price $1.13m
Quarterly growth $0.81%
12-month growth 7.2%
Average Annual Growth 8.6%
Weekly median rent advertised $680
Gross Rental Yield 3.4%
- MC Dowall - 9 km to Brisbane
Median price $731,000
Quarterly growth $0.81%
12-month growth 7.50%
Average Annual Growth 2.47%
Weekly median rent advertised $553
Gross Rental Yield 3.93%
- Bracken Ridge - 17 km to Brisbane
Median price $596,000
Quarterly growth $5.55%
12-month growth 13.73%
Weekly median rent advertised $470
Gross Rental Yield 4.21%
Source: Monthly data update for Sep 2021 as supplied by CoreLogic
Disclaimer: The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
