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Brisbane Housing Market Insights: August 2021

BrisbaneBrisbane Housing Market Insights

The Urban Developer’s latest Brisbane housing market insights, looking at the month for July, reveals that it’s been a stellar year for the city’s residential market despite on-going snap lockdowns.

This resource, to be updated monthly, will collate and examine the economic levers pushing and pulling Brisbane’s housing market.

Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.

Brisbane median house and unit price values

Type Month Quarter Annual Median
All 2.0%▲ 6.0%▲ 15.9%▲ $598,615▲
Houses 2.2%▶ 6.7%▲ 17.7%▲ $674,738▲
Units 0.8%▲ 2.7%▲ 7.0%▲ $419,143▲

^Source: Corelogic Hedonic Home Value Index – July

Brisbane’s typically slow-moving property market has continued to rise as part of a post-pandemic boom that experts say could fuel a further 15 per cent rise in house prices in the coming year and more than double by the time the 2032 Olympic Games commence.

The latest Corelogic home value index shows Brisbane dwelling prices have risen by 2 per cent on a rolling four-week basis.

Brisbane house prices advanced a further 2.2 per cent during July, pushing it up 6 per cent for the recent quarter and 15.9 per cent for the year to date.

The current median value for dwellings is $589,000 which is $3000 higher than just a month ago.

The median house price of $675,000 continues to attract interstate migrants from the larger markets of Sydney, where the median is now $1.25 million, and Melbourne at $945,000.

The current median unit price in Brisbane is $419,000, which is $4000 more than one month ago.

With a population of roughly 3.7 million, Queensland’s southeast is Australia’s fastest-growing zone.

Forecasts suggest it will top five million by the middle of the next decade.

Corelogic research director Tim Lawless said if the Sydney 2000 Olympics were any indication, Brisbane could be tracking a similarly strong performance.

Between when the Olympics were announced in September 1993 and when they were held in September 2000, Sydney dwelling values jumped by 60 per cent, almost twice the growth recorded across the broader combined capital cities benchmark region.

Brisbane’s housing market: policy updates

Olympics to Push Brisbane Market’s Limits

Brisbane house prices will hit the $1-million median well before the 2032 Olympics with suburbs near venues tipped to move up to $3.9 million.

Property projections from PRD Research indicate the median price would reach $1.7 million by 2033 and would be “immensely” boosted on the Gold and Sunshine coasts.

PRD chief economist Diaswati Mardiasmo said it was clear that hosting major events had served the property market well.

Federal Budget 2021: Property Hits and Misses

The federal government has rolled out its latest budget in May, a single-year plan centring on aged care, childcare, infrastructure, investment tax breaks and more help for home buyers as it tapers off the record spending from last year’s budget.

The budget will use superannuation incentives to help younger Australians enter the property market and older Australians vacate the family home.

While there have been some significant aids to the property industry and construction sector, experts have also noted some missed opportunities.

Queensland Budget Announcement

Queensland faces a “hard road” during the next four years as the state recovers from the coronavirus pandemic, Treasurer Cameron Dick says.

Property tax concessions are notably absent from the Queensland budget as the state details its plans for the year to come.

Instead 86,000 interstate migrants, health and education investments as well as infrastructure spending are expected to boost the state economy.

What the experts are saying about Brisbane’s housing market

Louis Christopher

Louis Christopher
Managing Director
SQM Research

“Regardless of the Olympics, Brisbane is likely to outperform the market as it’s due for a surge after years of sluggish growth,” he said.

“So the probability is that outperformance could go on for longer than one or two years post-Games.

“Developers are likely to position themselves early, looking to secure development sites with the intention of capitalising on increased investor demand in key areas.

“I think developers will be aiming to position themselves in key precincts early.

“We are likely to see increased competition among developers for prime development sites, especially around the inner south where so much of the infrastructure activity is taking place.”

Dr Nicola Powell


Nicola Powell
Chief of Research
Domain

“What’s interesting around hosting the Olympics is that the impact on housing values isn’t going to be during the games; it’s going to be far more stretched than that because it’s such a significant event for Australia and Brisbane.

“It will grow the infrastructure and the associated job creation, and with that, it will bring economic prosperity and what we could see is a bit of a turnaround in unit growth as well.

“I think this is something that sets Brisbane apart from our other capital cities because, until 2032, there’s a long period of time, which means there’s lots of time for purchases on big-ticket items in terms of infrastructure.”

matthew hassan


Matthew Hassan
Senior Economist
Westpac

“Coronavirus disruptions are likely to take some heat out of markets in coming months.

“Price growth may stall altogether, however, any slowing is very likely to be transitory, with easing restrictions and a national economic rebound driving a subsequent re-acceleration.”

Gareth Aird

Gareth Aird
Head of Economics
CBA

“Momentum remains buoyant as evidenced by elevated auction clearance rates.

“And there appears to be a clear sense amongst households that whilst the economic shock will be severe, it will be short lived and activity and employment will bounce once the lockdown is over.

“As such, there is unlikely to be any material shift in the household perception of the property market over coming months.”

Brisbane housing market forecasts

NAB is forecasting Brisbane house prices to rise by 19.5 per cent over the next 18 months with a 4.4 per cent rise across 2022.

ANZ economists predict Brisbane house prices will rise by 9.5 per cent next year, as low interest rates and government stimulus flow through the economy.

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 tipped to surge 20 per cent between 2022 and 2023.

Brisbane auction clearance rates 

Week Clearance rate Total Auctions
Week ending 4 July 2021 64.4% 133
Week ending 11 July 2021 75.8% 162
Week ending 18 July 2021 66.7% 169
Week ending 25 July 2021 75.2% 169

^Source: Corelogic Auction Clearance Rates – July

According to CoreLogic, more than 30 suburbs across the state hit double digit increases in the past quarter.

The median house price in New Farm gained 7.6 per cent during the June quarter and has grown nearly 17 per cent in the past 12 months to $2.1 million.

According to REA, Fortitude Valley is the hottest sales market in the city and recorded the third most sales in Queensland so far this year, as well as the most units.

Nundah is the sixth most popular suburb in the state and number two for units at 259 sales, followed by Bracken Ridge with 252 house sales.

Virginia, on the city’s northside, is currently the most popular suburb for rental investment properties with rental yields now at 4 per cent.

Northgate, at 3.9 per cent, was close behind, followed by Hawthorne, 3.7 per cent and Grange at 3.6 per cent.

Brisbane residential rental vacancy rate

City July 2021 vacancy rate Monthly % change
Brisbane 1.3%▶ 0.0%▶

Rental stock on market 

City July 2021 vacancies Vacancy net loss
Brisbane 4780▼ 627▼

Brisbane rent prices 

Type Rent Monthly % change Annual % change
Houses $515.00▲ 3.2%▲ 10.4%▲
Units $393.00▲ 0.8%▲ 2.4%▲

^Source: SQM Research – July

Rent in south-east Queensland rose 15.4 per cent over the 2020-21 financial year, placing the region in the top dozen Australian markets for rent increases.

Corelogic’s quarterly rental review for June showed an increase in rent of 6.6 per cent across the country.

The growth ranged from 0.2 per cent in the North East and North West Melbourne markets to 23.7 per cent across the South East of Tasmania.

Corelogic head of research Australia Eliza Owen said annual rent increases were observed across 79 of the 88 markets analysed.

“This follows a decade of relatively subdued annual rent growth, averaging 1.8 per cent since June 2011,” Owen said.

“The annual growth rate of 6.6 per cent marked the strongest annual uplift in over a decade.”

All cities have climbed more than 7 per cent apart from Sydney, up 3.2 per cent, and Melbourne, where rents have dropped 1.4 per cent because of last year’s long lockdown.

“As with house prices, rent prices are seeing a deceleration in growth at the national level and across each of the capital cities, which may reflect affordability constraints, but there could also be higher levels of rental supply as investor activity in the market increases,” Owen said.

“Very high rental growth is unsustainable while income growth remains subdued.

“The result will likely be more subdued growth rates in the coming quarters, especially as investor participation trends higher, delivering more rental supply.”

Queensland building approvals 

^Australian Bureau of Statistics, (Suspension of trend series between May 2020 and Jul 2020 due to Covid-19)

Dwelling Approved Monthly % change
Houses 2015▼ -25.2▼
Units 2996▼ -18.4▼

^Source: Australian Bureau of Statistics; Reference period June

A significant dip in housing approvals has added fuel to the already hot property market, despite a lockdown softening.

Australian Bureau of Statistics data shows the number of private-sector houses approved dropped 11.8 per cent in June, following the downward trajectory since the end of the Federal government’s HomeBuilder stimulus package.

Across both houses and units the number of dwellings approved fell 6.7 per cent, compared to a 7.6 per cent decrease in May.

Queensland and Western Australia experienced the biggest decline in both house and unit approvals.

In Western Australia overall dwellings approvals dropped by 30.5 per cent, followed by Queensland at 18.4 per cent and Tasmania at 14.9 per cent.

In the 2020-21 financial year total dwelling approvals nationally were 27.3 per cent higher than in 2019-20 financial year, driven by a 42.8 per cent surge in private sector house approvals.

Dwelling approvals increased more than 88 per cent in Western Australia over the financial year, while in Queensland it was up 36.7 per cent and Tasmania experienced a 33.9 per cent increase.

Queensland home loan lending indicators

First home buyer loan commitments First home buyer ratio – dwellings First home buyer ratio – housing
Queensland 2835▼ 35.8%▼ 31.4%▼

^Source: Australian Bureau of Statistics – June

Owner-occupier home buyers propelled a surge in housing credit in June.

Housing credit lifted 0.7 per cent—the most in 11 years—to be up 5.3 per cent when compared to a year ago—the strongest annual pace in two years.

Owner-occupier housing credit jumped 0.9 per cent—the biggest gain in five years – to be up 7.2 per cent on a year ago—the strongest annual growth rate in two years.

Investor housing credit rose by 0.3 per cent to be 2.0 per cent higher on a year ago—the strongest annual rate in three years.

“Deteriorating affordability is likely to weigh on owner-occupier demand, and a tightening in macro–prudential policy settings will restrain the supply of credit,” Westpac chief economist Bill Evans said.

“We expect housing credit growth to exceed 7 per cent by the first half of 2022, triggering a likely policy intervention. The precise response will depend on the composition of lending over the next year.”

Most economists now expect the RBA to begin raising rates over 2023 and 2024 to a natural rate of about 1.25 per cent.

Queensland interstate migration 

March (quarter) 2021 arrivals March (quarter) 2021 departures December (quarter) 2020 net
Queensland 28,500▼ 21,465▲ 7035▼

^Source: Australian Bureau of Statistics – March quarter 2021

Interstate migration into Queensland, growing at its fastest rate since late 2003, has remained a tailwind for housing demand.

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, as people flood in from other states.

Treasury boffins have predicted Queensland is set to gain around 20,000 people from interstate each year for the next four years—amounting to almost 85,000 new residents by mid-2025.

Next year alone, federal treasury estimates see Queensland gaining 23,800 new interstate residents, while Victoria is set to lose 1200 and New South Wales is tipped to shed as many as 15,500.

Queensland’s population is predicted to hit 5.44 million by mid-2025, up from 5.17 million in June 2020

 

Article Source: www.theurbandeveloper.com

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Brisbane

What’s within walking distance from Bide apartments

Nestled in the heart of Newstead, the 89 residence apartment tower has been designed as an urban getaway just 3 kilometres north-east of the Brisbane CBD

The latest inner-Brisbane apartment project by the local developer Dibcorp Properties is Bide, which is located in the heart of the upmarket riverfront suburb of Newstead.

The location of the 89-apartment development Bide, at 21 Longland Street, puts it just a stone’s throw from the Brisbane River, and the convenience of the Teneriffe Ferry Wharf which connects the suburb to the CBD.

Residents will have immediate access to Gasworks Plaza on the adjoining Skyring Terrace riverfront street, which is home to a Woolworths and a numb er of other stores, as well as restaurants, cafes and coffee shops like Ping Pong, Yolk and Campos Coffee.

On Longland Street there’s the popular eateries include Smoky Moo, The Defiant Duck, Drum Dining and the Milky Lane Newstead.

Cutting across Longland are a number of side streets like Stratton and Wyandra, which have a number of retailers and boutiques for residents to explore like a Think 24hr fitness, Smile Studio, and Brisbane Skin.

Bide

Bide 21 Longland Street, Newstead QLD 4006

Designed in collaboration with architects from Twohill & James, Lat27 and Wiltshire Stevens Architecture.

Nestled in the heart of Newstead, the 89 residence apartment tower has been designed as an urban getaway just 3 kilometres north-east of the Brisbane CBD.

It is the latest part of the suburb’s transformation to an up-market residential suburb belying its industrial past. Timber yards, asbestos works, wharves and woolstores once dominated much of the predominantly commercial suburb, now one of the most sought-after apartment spots in Brisbane.

Bide is just a short distance away from Route 25 as well as the Teneriffe Ferry wharf and bus stations for those who choose public transit. As such it is right by the Brisbane river.

The proximity to schooling, as well the large three-bedroom apartments on offer, make Bide attractive for families. The nearby educational institutions include:

  • Torrens University Australia – Satellite campus – 1.4km away
  • University of Queensland – Satellite campus – 1.9km away
  • Queensland University of Technology – Main campus – 3.3km away
  • New Farm State School – Public School – 1 km away
  • Music Industry College – Private School – 1.1km away
  • Angelorum College – Private School – 1.1km away

Dibcorp has offered residents the opportunity to work hand in hand to tailor the layout, configuration and finishes of their apartment.

Apartments inside feature open-plan living and dining, a balcony space and a study nook in some apartments for working from home.

Inside, residents can enjoy 600 sqm of amenity across two levels, including barbeque facilities, private cabanas, landscaped areas and seated space throughout.

 

Article Source: www.urban.com.au

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Brisbane

Brisbane’s best property buys: Six must-see homes under $700,000

Here’s our pick of some of the best property buys in Brisbane right now.

3/888 Wynnum Road, Cannon Hill 

Brisbane’s best property buys

3/888 Wynnum Rd Cannon Hill QLD 4170 

Eight is one of the luckiest numbers in many cultures, promising owners of this inner east home fortuitous times ahead. The two-bedroom, two-bathroom, 147-square-metre apartment certainly has a well-positioned tiled ground-level courtyard, ready to host soirees under the Brisbane sun or starlight. It is a massive 7.8 metres by 6.9 metres and faces the lush green ovals of Bill Cash Memorial Park.

$470,000-plus

Private sale

LJ Hooker, Ashleigh Hansom 0448 742 538

2404/179 Alfred Street, Fortitude Valley 

Brisbane’s best property buys

2404/179 Alfred Street, Fortitude Valley QLD 4006 

Bridge-spotters get an eagle’s nest view of one of Queensland’s most iconic at this sky home. The two-bedroom, two-bathroom apartment comes with 78 square metres of title and uninterrupted views of the Story Bridge and inner-cityscape. It claims a lofty level 24 vantage point and its edgy designer tower has a suite of you-beaut perks for residents, including a pool, timber sun platforms, a state-of-the-art gym, cinema room and lounge area.

$475,000-plus

Private sale

Ray White, Kai Liu 0430 568 851

42 Bulgin Avenue, Wynnum West 

Brisbane’s best property buys

42 Bulgin Avenue, Wynnum West QLD 4178 

Multigenerational living is catered for at this three-bedroom high-set house, on the market for the first time since the mid-1970s. Upstairs the floor plan maps out three bedrooms, a living, dining, a sunny front porch, and a shady rear terrace to take in the green landscape of the back yard. Downstairs, buyers get a second kitchen, another toilet and a miscellaneous room that could function as a study, another bedroom or studio.

$660,000-plus

Private sale

Raine & Horne, Chris Vote 0433 411 540

5/370 Zillmere Road, Zillmere 

Brisbane’s best property buys

5/370 Zillmere Road, Zillmere QLD 4034 

Sports nuts hunting a first home or rental asset will find good form at this two-bedroom pad in its neat three-storey brick walk-up. The apartment is a punt kick from O’Callaghan Park and the suburban police-citizens youth centre. It has a garage and has been freshened up with new carpets, lights and paint. The local primary school is about 600 metres away.

$250,000-plus

Private sale

Ray White, Tiffany Fraser 0451 348 787

5/48 Hood Street, Sherwood 

Brisbane’s best property buys

5/48 Hood Street, Sherwood QLD 4075 

This quirky one-bedroom rear apartment in the city’s leafy west riverside belt presents buyers with 71-square-metres including a covered timber deck with a private garden outlook. There is scope to modernise the interior, although the exposed brick walls and wood-grain kitchen cabinets are charming in their own retro-rustic way. The local primary school is diagonally a block away.

$290,000-plus

Private sale

Williams Real Estate, Nick Williams 0419 379 771

9/14 Military Close, Annerley 

Brisbane’s best property buys

9/14 Military Close, Annerley QLD 4103 

At face value, this is a screaming good deal for three levels of home less than six kilometres from the CBD. The suburb’s median sale price for a three-bedroom house is $783,000, based on 48 sales in the past 12 months. House-like in size, this 168-square-metre townhouse has access to the estate’s infinity pool and residents’ entertainment deck. Junction Park State School is about 200 metres away to the north-west.

$649,000

Private sale

Place, Nick Bekker 0421 461 520 

 

Article Source: www.domain.com.au

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Brisbane

The coastal towns where prices have changed little in five years

Coastal towns

Property prices have been soaring across Australia’s coastal towns and suburbs, but there are still some pockets where prices have not raced ahead.

House prices have grown rapidly in many sea-change destinations in recent years, skyrocketing even further in some areas amid the pandemic and rise of remote working.

In Byron Bay on the NSW’s north coast, Sunshine Beach in Noosa, and Somers on the Mornington Penisula, median house prices have more than doubled in the space of five years.

However, growth has been more subdued in other markets, Domain data shows, with prices in some suburbs and towns near the coast still back at, or close to, their 2016 levels.

Here’s our pick of some of the markets where house hunters can get into the market at a similar price to five years ago. But be warned, house prices in many of these locations are on the rise.

Cairns, QLD

While house prices in Cairns were up 16.3 per cent over the five years to June to a median of $465,000, there are suburbs a little inland with softer price growth.

Earlville, about four kilometres south-west of the city centre, recorded a median house price of $395,000 over the year to June, up about 4.1 per cent on 2016 prices.

While further south, median prices in the neighbouring suburbs of Edmonton and Bentley Park climbed 3.9 per cent and 1.7 per cent, respectively, over the five-year period.

Coastal towns

18 Goodsell Drive, Bentley Park QLD 4869 

Selling agent Therese Plath, principal of Ray White Cairns South, said there was strong demand for affordable homes in Bentley Park and Edmonton from locals looking to upsize, interstate tree-changers and investors.

At Bentley Park’s median house price of $371,250, buyers might get a four-bedroom house with one or two bathrooms, Ms Plath said but noted buyers on such a budget were increasingly having to look at three-bedroom homes due to rising prices over the past year. Edmonton’s median now sits at $366,000.

Though not directly on the coast, Bently Park and Edmonton are within a 40-minute drive of multiple beaches and 20 minutes from the Cairns Esplanade, while Earlville is about 10 minutes closer.

West End, Townsville, QLD

Further south, but still in north Queensland, prices in Townsville’s West End are now 1.8 per cent higher than 2016 prices, after the median fell 2.4 per cent over the year to June to $351,250.

Those looking to buy at the suburb’s median house price could expect to secure a three-bedroom, one-bathroom house within a 10-minute drive of Townsville’s foreshore.

Coastal towns

1 Harold Street, West End QLD 4810

Across Townsville, the median house price is up 4.4 per cent over the past five years to $340,000.

 

Article Source: www.domain.com.au

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