Brisbane property values are increasing at nearly the fastest pace in the country, with many of the significant gains coming from the lower end of the market.
In April, Brisbane saw property prices increase by 0.9 per cent, according to CoreLogic, slightly down from the 1.1 per cent rise in March.
This has taken the median dwelling prices up to $827,822, an increase of over $30,000 in just three months.
However, when we break down where the bulk of the gains have been coming from, we can see that it’s the cheaper end that is doing a lot of the heavy lifting at the moment.
In the March quarter, the bottom 25 per cent of property values saw a 4.6 per cent increase, while the middle 50 per cent increased by 3.4 per cent, and the top 75 per cent saw a 2 per cent rise.
In contrast, the top end of the market grew by 2.3 per cent in the first two months of the year, the middle segment by 3.2 per cent, and the bottom segment by 3.8 per cent.
Clearly, it’s that lower end that is rising the fastest, coming from the likes of units, cheaper homes, and townhouses, whereas the higher end of the market is slightly lagging.
Notably, throughout April, the unit market in Brisbane saw values rise by 1.6 per cent, bringing the current median value to $600,215.
According to CoreLogic, the median value for a unit in Greater Brisbane has moved above the $600,000 level for the first time ever.
Quarterly growth in this segment now stands at 5 per cent for Greater Brisbane, with annual growth currently at 17.4 per cent.
This data shows that the unit market in Brisbane is outperforming the housing market in terms of capital growth performance on a monthly, quarterly, and annual basis.
The key reasons behind the current trend are some of the same factors that have been playing out for a while now, but it’s basically just supply and demand.
Brisbane has experienced some of the highest population growth of any city over the past three years. It all began during the lockdown era and it hasn’t slowed down. When the borders reopened, Australia was flooded with people coming into the country, and Brisbane has coped with more than its fair share.
That combined with the huge number of people leaving the more unaffordable cities of Melbourne and Sydney.
At the same time, rents have been rising dramatically. With a crisis level of vacant rentals, many people have been forced to buy and they are naturally targeting the lower-priced homes and units that are more affordable.
Simultaneously, listings for sale have also remained incredibly tight. Even when interest rates started rising, the level of listings didn’t rebound, and that has kept pressure on prices.
Looking forward, it appears that we are a long way off from anything changing. While the rate of growth at the lower end will likely slow down, supply is still very low.
While the government has announced that it will be trying to reduce immigration levels, so far there has been no evidence that it has been working. So people continue to arrive en masse, putting more pressure on prices and rentals for the foreseeable future.
A professional Brisbane buyers agency or a Brisbane buyers agent can provide tailored advice and assistance, making the process less daunting.
