Brisbane’s property market has been one of the top performers over the past four years, leading to median prices now topping the $800,000 mark.
The recent surge, helped by a sharp increase in unit prices, has seen growth over the past 12 months only trail behind Perth, which is currently the hottest market in the country.
While Brisbane’s property market remains strong, the pace of price increase is gradually slowing down compared to other Australian cities, according to the CoreLogic National Home Value Index (HVI).
A key factor fuelling Brisbane’s upward trajectory is the limited availability of listings, which remain significantly below the long-term average. This has been a feature of Brisbane’s market since the onset of COVID, and with huge levels of immigration helping fuel the boom in prices, it’s unlikely to change anytime soon.
However, new listings have seen a recent uptick as sellers have started looking to capitalise on the strong capital growth of the past 12 months.
Last month, dwelling values in Brisbane surpassed $800,000 for the first time, after a consistent upward trend. This growth is primarily driven by a rapidly increasing population and sustained demand.
While overall growth remains positive, there’s a noticeable slowdown in the higher end of the market, with the lower end experiencing faster growth rates. Units, in particular, have played a pivotal role in driving growth among more affordable properties in Brisbane.
Despite a slight deceleration, house prices in Brisbane continue to rise, albeit at a slower pace compared to previous months. The median house price now stands at $899,474, making Brisbane the fourth most expensive capital city market for houses.
Meanwhile, median unit values in Brisbane have seen accelerated growth, outpacing house prices. The median unit price has reached $576,359, seeing Brisbane reach the fourth most expensive capital city market for units.
At the same time, rental market conditions in Brisbane have tightened considerably, with tight vacancy rates and increased rents for both houses and units over the past year. However, gross yields have seen a marginal decrease for houses while remaining stable for units.
Despite the strong demand driving price growth, buyers are approaching the market cautiously, with affordability still a major concern, according to CoreLogic. The rapid increase in prices over the past year has led to a lot of frustration and uncertainty among buyers, although any potential reduction in interest rates could reignite buyer interest.
Looking ahead, while the pace of price growth is expected to slow, Brisbane’s property prices are likely to continue to experience upward pressure as population numbers keep on growing.
The surge of people leaving both Sydney and Melbourne has been an ongoing trend since 2020, and with the two largest capital cities squeezing people out through high living costs, Brisbane is likely to continue to benefit from the mass exodus of young families.
On top of that, overseas immigration levels are at the highest level in 70 years, with Queensland being the third most popular location after Sydney and Melbourne for new arrivals.
For the time being, property prices across Brisbane and QLD are affordable by Sydney and Melbourne standards, even as the median price tips over $800,000.
