Brisbane’s Property Market More Profitable Than Ever

Brisbane continues to be one of the standout property markets in the country, with new data
showing that the level of homeowners cashing in and making a profit has jumped
significantly.


According to CoreLogic, Brisbane, alongside Adelaide, has achieved the highest rate of
profit-making resales among the capital cities through the March quarter at 98.4%.
This represents a 50-basis point increase from the December quarter of 2023 and a sharp
rise from the decade average of 90.9%.


A closer look at the data reveals that the house market is particularly strong, showing a
profitability rate of over 99%. In comparison, the unit resale market, while slightly lower, has
still seen 96.8% of properties being resold at a profit.


Beyond the increasing levels of profitability, the gains from property resales in Brisbane have
also seen a notable rise. In the March quarter, the nominal gain increased by 1.7%, reaching
$300,000 across both houses and units, suggesting broad-based price increases are
underway.


The unit market, in particular, has shown a dramatic improvement. The median gain for unit
resales in the March quarter was $171,000, a significant increase from the $58,000 recorded
in the same quarter of 2020.


This turnaround, four years after the start of COVID, shows a big resurgence in the unit
market across Brisbane.


The rate of profitability in the unit market has surged by 37.3 percentage points since March
2020, following a period where values lagged.


Up until the end of May, the overall market has seen a further acceleration in the growth of
property prices.


Brisbane’s dwelling values rose by 3.9% during this period, an increase from the 3.4% in the
March quarter.


The unit market continues to be a standout performer, with values rising by 5.3% in the
same period.


Several factors are driving the Brisbane market, however, the main factor continues to be
overseas and interstate migration.

People have been flocking to the Sunshine State in record numbers in recent years,
attracted by affordable property prices and the great lifestyle that’s on offer.


Prices have been substantially cheaper than Sydney and Melbourne, and that is leading to
increasing numbers heading north.


For the time being, Brisbane is likely to remain one of the strongest property markets for
investors with supply remaining tight.

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