2024 Mid Year Real Estate Market Property Update | Strong Homebuying Demand Drives Continued Price Growth in Brisbane

The national housing market remains vigorous, with home prices rising for the 18th consecutive month, increasing by 0.18% in June. Although the growth rate has moderated since the peak of the summer selling season, the upward trend persists. This resilience is also evident in Brisbane, where the property market continues to demonstrate robust performance.

Brisbane Market Highlights

Over the last six months, Brisbane's property market has seen notable price growth, with house prices rising by 3.75% and unit prices by 5.9% through August 2023. Over the past 12 months, Brisbane's house prices have increased by 4.0%, reflecting a strong recovery from earlier slowdowns.

Three-bedroom apartments and prestige properties are particularly strong in Brisbane’s market. The demand for three-bedroom apartments is driven by a combination of downsizing retirees, growing families, and professionals seeking more space within inner-city areas. These apartments offer a balance of affordability and practicality, catering to a broad demographic. Prestige properties, including luxury homes and high-end apartments, are also seeing increased demand due to Brisbane’s relatively lower price points compared to Sydney and Melbourne. The city’s lifestyle appeal, coupled with its economic growth and infrastructure development, is attracting high-net-worth individuals and investors looking for premium real estate opportunities.

Drivers of Demand and Price Growth

1. Population Growth: Brisbane's population is forecasted to grow significantly, especially with the upcoming 2032 Olympics, which will spur infrastructure development and economic activity. This population boom, driven by internal migration and international immigration, is a key driver of housing demand]

2. Supply Constraints: Despite an increase in new listings, the supply of new housing has not kept pace with demand. This imbalance continues to push prices upward as more buyers compete for available properties. In Brisbane, new listings have increased by 20.2% in the past three months.

3. Economic Stability: Brisbane's economy is buoyed by strong job growth and major infrastructure projects, which enhance the city's attractiveness to new residents and investors alike. 

4. Affordability Relative to Other Capitals: Compared to Sydney and Melbourne, Brisbane remains more affordable, attracting buyers looking for value in a strong market. Brisbane's median dwelling price is $787,217, significantly lower than Sydney's $1.12 million. 

Seller’s front: 

For those considering selling their homes, current market conditions present a favorable environment. The combination of high demand, low days on market (currently averaging 19 days), and increasing prices makes it an opportune time to list properties Sellers can capitalize on the strong buyer interest and potentially achieve premium prices for their homes.

Buyer’s front: 

Buyers should act strategically in the current market. With prices continuing to rise and strong competition for properties, it is crucial to secure financing and be prepared to act quickly when a desirable property becomes available. Buyers might consider looking at units, which have seen substantial growth but remain more affordable compared to houses. Additionally, staying informed about new listings and being ready to move swiftly can provide a competitive edge. 

Given the expected population growth and infrastructure developments leading up to the 2032 Olympics, purchasing property in Brisbane now could offer significant long-term value.

Investor’s front: 

For investors, Brisbane offers compelling opportunities. The city’s steady price growth, supported by significant infrastructure investments and strong demand, suggests a positive outlook for property values. Moreover, the anticipated tax cuts in 2024 will likely boost disposable incomes and borrowing capacities, further stimulating the market.  * Source: PropTrack