The Urban Developer’s latest Brisbane housing market insights, looking at the month for August, reveals the city was the third-fastest nationally for price growth during the month.
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.
^Source: Corelogic – August 2021
The rate of price growth has remained stable in Brisbane after reaching a peak in March this year after values rose 2.4 per cent across the month.
The city ranked third-fastest city nationally for August behind the much smaller markets of Canberra, up 2.2 per cent, and Hobart up 2.3 per cent.
August’s dwelling prices growth was unchanged from July, while house prices moderated over the month losing a bit of steam as the apartment market surged.
The latest Corelogic figures, for August, reveal property values rose 2 per cent, and are now up 18.3 per cent over the year.
The current median value for a dwelling is $612,000 after further advancing an additional $14,000 during August.
Brisbane house prices grew by 2.1 per cent, a slight dip from the 2.2 per cent increase in July, to be up 6.7 per cent for the quarter and 20.2 per cent for the year.
Brisbane’s median house price of $691,000, which rose by $13,000 in August, is still less than half of Sydney’s but is now on par with that for Adelaide and Hobart.
The average unit in Brisbane is now selling for $425,000, a gain of $6000 over the month, however, the growth gap between houses and units continues to widen.
Experts now say this post-pandemic boom could fuel a further 15 per cent rise in house prices in the coming year and more than double, with a likely median of $1.5 million, by the time the 2032 Olympic Games begin.
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.
Queensland border to remain closed until 90pc vaccination rate
Queensland may not reopen to the rest of Australia until it gets to a 90 per cent vaccination rate.
Despite New South Wales and Victoria outlining a roadmap to opening up, based on an 80 per cent double vaccination rate, Queensland is yet to commit to any blueprint for going forward, even with the population likely to hit 80 per cent double jabs by December 5.
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
“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.”
Head of Residential Research
“Migration figures over the past year show there has been an uplift in movement from Melbourne to Queensland.
“So that may have helped ease rental pressures across Melbourne and put upward pressure on Brisbane rents.
“The other factors come back to income. So where you’ve had less lockdowns across Brisbane, Adelaide and smaller capital cities, that means that incomes have been less disrupted, which has supported rental growth.”
Home Loans Expert
“The runaway property prices seen since the end of the first Covid lockdown have blown the deposit-saving timeline further out, making the task all the more challenging.
“Many commentators have speculated that reduced numbers around migration, overseas student intakes and tourism have created an unsustainable property price bubble that will inevitably correct.
“However, prices have risen so far that any correction is now going to be from a very high base.
“First-home buyers will be hoping for a price correction, but the easing of the release valve in a post-vaccination Australia could mean another price eruption before we see correction.”
Place Estate Agents
“Everything about August was unprecedented. In terms of volume, it was unprecedented; the number of buyers was unprecedented.
“We’re now averaging eight people for every auction. That number last year would have been three, possibly four.
“There are so many powerful forces working in the Brisbane market.
“Brisbane as a city is a very desirable place to live. The locals are getting that—there’s more and more interest in our market. I think we’ve got every right to see that Brisbane’s future is bright.”
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 has tipped house prices to jump by more than 21 per cent this year in Brisbane, lifting its forecasts despite the lockdowns, off the back of the stronger than expected property market.
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.
|Week||Clearance rate||Total Auctions|
|Week ending 9 August 2021||67.4%||164|
|Week ending 16 August 2021||74.6%||163|
|Week ending 23 August 2021||71.9%||130|
|Week ending 30 August 2021||81.3%||161|
^Source: Corelogic – August
Auction clearance rates across the country’s capital cities dropped to their lowest levels since April last year in the final week of August.
Most housing withdrawals occurred in Melbourne, which saw 867 homes taken to auction, and 64.3 per cent withdrawn.
Property inspections are banned under public health orders in Victoria, weighing heavily on the preliminary clearance rate, which was 34.7 per cent.
In comparison, 48 per cent of auctions were withdrawn over the previous week and a final auction clearance rate of 49.1 per cent was recorded.
Sydney recorded a preliminary auction clearance rate of 82.7 per cent, with 421 properties sold. Under the public health orders, one-on-one private home inspections are permitted, which has been helping to prop up the market.
Canberra’s primary clearance rate fell sharply to 63 per cent, its lowest level since April last year.
Markets not under lockdown are outperforming Sydney, Melbourne and Canberra. Adelaide was the best performer, boasting a preliminary auction clearance rate of 81.3 per cent.
Brisbane recorded a preliminary auction rate of 81.3 per cent. In Perth, 72.7 per cent of auctions were successful, across 11 results.
|City||Vacancy rate||Monthly change||Vacacies||Net|
^Source: SQM Research – August
Brisbane’s rental markets, unlike Sydney and Melbourne, remain strong with lower vacancy rates, house rentals rising strongly and apartment rentals rising for the first time in five years.
Corelogic’s head of residential research Eliza Owen said stock numbers for houses and units available for rent in Brisbane remains tight, and would now be placing upward pressure on prices.
With national housing values rising by 18.4 per cent and rents rising by a lower 8.2 per cent, ongoing yield compression is likely.
Nationally, gross rental yields have now fallen to an all-time low of 3.32 per cent.
It is no longer just Sydney and Melbourne where rental yields are plumbing historic lows. Brisbane has also seen gross rental yields fall to new record lows in August, now 3.9 per cent.
According to REA Group, renter activity is also on the rise with rental inquiries for greater Brisbane properties up almost 30 per cent year-on-year.
|Type||Rent||Monthly % change||Annual % change|
^Source: SQM Research – August
Rocklea, where a typical house will set a renter back $427 a week, was found to be the most affordable, while Kalinga was the cheapest for smaller homes with a median unit price of $303 a week.
At the other end of the spectrum, Teneriffe had the highest median price for both houses and units at $920 and $560 a week respectively.
There are high vacancy rates in the inner city suburbs of Auchenflower, Dutton Park, Herston, West End and Brisbane.
Brisbane CBD has the highest vacancy rate at 6.6 per cent followed by St Lucia at 4.9 per cent.
|Dwelling||Approved||Monthly % change|
^Source: Australian Bureau of Statistics – July
A significant dip in housing approvals has added fuel to the already hot property market, despite a lockdown softening.
Australian Bureau of Statistics data shows the number of private-sector houses approved dropped 11.8 per cent in June, following the downward trajectory since the end of the Federal government’s HomeBuilder stimulus package.
Across both houses and units the number of dwellings approved fell 6.7 per cent, compared to a 7.6 per cent decrease in May.
Queensland and Western Australia experienced the biggest decline in both house and unit approvals.
In Western Australia overall dwellings approvals dropped by 30.5 per cent, followed by Queensland at 18.4 per cent and Tasmania at 14.9 per cent.
In the 2020-21 financial year total dwelling approvals nationally were 27.3 per cent higher than in 2019-20 financial year, driven by a 42.8 per cent surge in private sector house approvals.
Dwelling approvals increased more than 88 per cent in Western Australia over the financial year, while in Queensland it was up 36.7 per cent and Tasmania experienced a 33.9 per cent increase.
|Type||Jul 2021 ($bn)||Monthly % change|
|New loan commitments for owner occupier housing||3.87||-6.2%▼|
|New loan commitments for investor housing||1.63||9.3%▲|
|New loan commitments to first home buyers||2.49||-8.7%▼|
^Source: Australian Bureau of Statistics – July
Investment mortgage loan growth outpaced lending to owner occupiers and first home buyers for a third month in July.
Investors are continuing to take advantage of record low interest rates and their extra wealth as rising prices put housing out of the reach of younger buyers.
The value of new loan commitments for owner-occupier housing decline -6.3 per cent, while property investor loans increased 9.3 per cent.
The value of loans to first home buyers declined by 8.8 per cent per cent in July, as the federal government’s HomeBuilder stimulus, continues to drop out of the system.
The latest Housing Industry Association measure of housing affordability also shows a sharp deterioration across the country over the past year.
Housing prices have risen almost 11 times faster than wages growth over the past year, creating a more significant barrier to entry for those who don’t yet own a home.
In dollar terms, Australia’s median property price has risen by around $103,400 in the past year (which equates to about $1,990 per week).
In comparison, Australian wages are growing at a much slower pace (about 1.7 per cent annually), underscoring the worsening affordability issues.
|Region||March (quarter) 2021 arrivals||March (quarter) 2021 departures||December (quarter) 2020 net|
^Source: Australian Bureau of Statistics – March
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.
With a population of roughly 3.7 million, Queensland’s southeast is Australia’s fastest-growing zone.
Queensland’s population is predicted to hit 5.44 million by mid-2025, up from 5.17 million as of June 2020.
Article Source: www.theurbandeveloper.com
Brisbane apartment insights: What happened to Brisbane apartment values in September?
Brisbane apartment values continued to grow over September, figures from the property data firm CoreLogic found.
In their monthly index, CoreLogic found that Brisbane values rose 0.6 per cent over September, taking their te
It was a return to a normal growth pattern for Brisbane, following a 1.4 per cent growth spike over August. Prior to the spike, there were 0.8 per cent gains in July and 0.7 per cent gains in June.
The 2.8 per cent rolling quarterly gains, more than double the gains seen in Melbourne, see values 8.3 per cent higher than at the start of 2021.
Back then the median value was $390,000. Now it’s $430,000.
The price gap between houses and units in Brisbane however has widened, with Brisbane’s median house price standing at $709,000, around $280,000 higher than the median apartment price.
New listings in Brisbane are slowly on the up ahead of the traditional listing increase in spring. The same can be said for Adelaide, Perth and Hobart, however the trend remains weak in the locked-down Sydney, Melbourne and Canberra.
Queensland has benefitted from record low vacancy rates, with southern state dwellers heading north during the pandemic over 12 months ago.
The June 2021 quarter data from the Real Estate Institute of Queensland showed that nearly two thirds of local government areas in Queensland recorded their lowest or equal lowest residential vacancy rates since 2010.
Of the 35 local government areas, 20 saw their vacancy rates tighten, 10 remained static and five saw them slightly rise in the June quarter.
Brisbane’s vacancy rate dropped from 2.1 per cent to 1.7 per cent from the previous quarter. The Gold Coast’s remained static at a tight 0.6 per cent and the Sunshine Coast’s was slightly higher, from 0.5 per cent to 0.6 per cent.
Urban’s top Brisbane projects
1. Trellis, South Brisbane
Aria Property Group are a decorated Queensland developer who have continued to improve sustainability across their South East Queensland residential apartment developments with their newest tower, Trellis.
Described as both the most sustainable and livable to date, all 110 of the two and three bedroom apartments in the 12 story building have been designed by Rothelowman.
Reminiscent of an urban retreat, Trellis reflects a new style of resort living with 1,119 sqm of recreational amenity across the Temple of Wellness on the ground floor and the Residents’ Rooftop Club on level 13.
Apartments in Trellis start from $739,000 for a two-bedroom, two-bathroom apartment. Three-bedroom apartments are priced from $1,084,000 to $1,224,000.
2. Bide, Newstead
Bide is the latest Newstead residential offering by Dibcorp Properties. It has been designed in collaboration with architects from Twohill & James, Lat27 and Wiltshire Stevens Architecture.
It presents a new way of inner-city-living, with a range of special inclusions and an urban green space exclusively for residents to relax, unwind and even work from home.
Bide comprises 89 spacious one, two and three-bedroom apartments just three kilometres from the CBD.
Two-bedroom apartments start from $635,000.
3. Silk Lane, Woolloongabba
Silk Lane will give residents the best seats in the house when the sporting arena is back in a post-lockdown world.
The building’s architectural façade, designed by Nettleton Tribe Architects, draws inspiration from the angular shapes of metal structure incorporated in the neighbouring Brisbane cricket ground, The Gabba. The appropriately named Skystand will look over the wicket for The Ashes, and the main hub of the 2032 Brisbane Olympic track and field events.
Developed by Sarazin, Silk Lane will home 306 one, two and three-bedroom apartments.
Prices start from $449,000.
4. Rivello, Hamilton
here’s only a handful of apartments left at Rivello, the luxury apartment development by Brookfield Properties in Hamilton.
The 21-level building designed by Cottee Parker Architects has netted over 80 per cent of sales of the block of 150 apartments.
Brookfield Residential Properties’ Managing Director, Lee Butterworth, said buyers had responded well to Rivello.
“There is certainly significant demand for Brisbane property in the current market and buyers recognise Rivello represents a rare opportunity to purchase a new apartment in a building on the Brisbane River,” he said.
Article Source: www.urban.com.au
Brisbane’s best property buys: Six must-see homes starting from $259,000
Despite the rising market, it is still possible to buy a property within a few kilometres of the CBD for less than $300,000.
14/75 Thorn Street, Kangaroo Point
Demand in Brisbane’s inner circle has been hot in 2021, so buyers with small budgets are working hard to find grubstakes. Here is one, a river turn from the city. Yes, it is a small grub – only 37 square metres of floor plan – but it comes with a big location. The designer studio apartment has an L-shaped, 16-square-metre balcony, a car space, lofty level-three balcony views and access to a shared pool.
Ray White, Benjamin Williams 0412 067 016
4/2 Prospect Terrace, Red Hill
Three kilometres northwest of the CBD, a one-bedroom pad has reached the market with a price tag under $300,000. One of eight in its brick block, it has an open-plan design with big windows to flood it with sunlight. It could be a base for a city professional, investor or student. It is about 500 metres from Kelvin Grove State College campus and was last sold in 2013.
Liliana Mauri Properties, Liliana Mauri 0404 644 006
6/104 Richmond Road, Morningside
Savvy buyers know townhouses often grant access to inner suburbs’ amenities at significantly lower buy-in prices than standalone houses. This three-bedroom, double-storey home is a fine example with its modern open plan linking dining, lounge and kitchen to a private rear courtyard. The median sale price for three-bedroom houses in Morningside this year has been $765,000 based on 100 sales. Cannon Hill State School is about 900 metres away.
REMAX Results, Kylee Harnisch 0438 763 975
4/15 Alice Street, Kedron
Real estate people often proclaim properties are “edgy”, but it is an apt word to describe the asymmetrical facade of this contemporary block. One of its two-bedroom, two-bathroom apartments is for sale. It has an L-shaped floor plan and unorthodox 5.07-by-2.16-metre balcony, partially inset to its open living-dining and kitchen area. It has a single car park.
AUMR Property Group, Jay Wu 0402 686 929
11 College Way, Boondall
This suburban area formerly known as Cabbage Tree Creek has hit its stride this century. It’s home to just under 10,000 people, of which 48 per cent are long-termers – which speaks loudly to Boondall’s easygoing, well-connected lifestyle. This four-bedroom makes a strong case, with its two bathrooms and a double garage on a flat 516-square-metre block. The kitchen has stone benches and stainless steel appliances. College Way has 147 properties and 80 per cent are owner-occupied.
Ray White, Angela Duncan 0433 335 849
20 Saint Albans Street, Kenmore
Fans of 1960s residential housing design get an architectural showpiece at this understated three-bedroom brick house set on a manicured 549-square-metre block that was last sold in 1997. The interior is conservative and neat with the scope to swing into the 21st century with a cosmetic upgrade. All 13 properties in this settled establishment street are occupied by their owners. Kenmore South State School is about 400 metres from the driveway.
Leighton Jones Real Estate, Leighton Jones 0468 900 200
Article Source: www.domain.com.au
What you can buy around regional Australia for capital city property prices
Cashing in on city property prices for a larger home in the country or on the coast has long been a key drawcard for many a sea and tree-changer.
But against a backdrop of soaring property prices in many regional areas, capital city budgets may not stretch as far as they once did in some popular coastal and country locations.
Median house prices in dozens of regional council areas are up by more than 20 per cent in a year, Domain data shows, in some instances outstripping the prices seen in their respective capital cities.
“There have been a few [city buyers] ring up thinking they can buy a property for less than half of its worth, and I say I can’t help you,” said Matt Knight – a buyer’s agent and director of Precium – of the NSW south coast market.
Thankfully, most buyers are more clued in by now on the rapid price growth seen in the regions, particularly areas that have seen an influx of demand from tree and sea-changers amid the pandemic. However, many were frustrated by the high prices and low stock levels, with some clients spending a year searching before they engaged his services, Mr Knight said.
For those city slickers considering a sea or tree change, here’s what you can expect to get for capital city prices.
A Brisbane buyer looking to sell up at the city’s record median house price of about $678,000 and head for the coast is likely to have to downsize if looking to the Sunshine Coast or Gold Coast, where medians sit at $825,000 and $792,000. A two-bedroom Mermaid Beach unit recently sold for $670,000, as did a three-bedroom unit at Coolum Beach.
Further afield in the state’s north, a five-bedroom house with views and a pool in the Cairn’s suburbs of Mooroobool sold for $680,000, while a two-bedroom, two-bathroom townhouse on a 132-square-metre block in Port Douglas – where prices jumped about 29 per cent in the past year – sold for $660,000.
House prices in Perth are now at their highest level since 2015, after lifting about 12 per cent over the year to a little less than $596,000.
Taking that budget outside the capital, a house hunter could expect to pick up something similar to a four-bedroom house in West Busselton, which recently sold for $574,000, and a four-bedroom house on a bush block in outer Bunbury that sold for $595,000.
Further afield in Moresby, north-east of Geraldton and more than a four-and-a-half-hour drive north of Perth, a four-bedroom house on more than two hectares of land with ocean views recently sold for $600,000.
Meanwhile, up in Broome, where prices jumped more than 33 per cent over the year, a four-bedroom renovated 1960s bungalow on more than a 1200-square-metre block sold for more than $570,000.
Article Source: www.domain.com.au
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