Five Updates for Queensland Buyers & Sellers of House and Land
1. Queensland Population Growth & Housing Supply
A marked imbalance between housing supply and demand in the sunshine state has been observed due to various factors throughout 2023 and into 2024. According to the Australian Bureau of Statistics, Queensland has seen the highest level of interstate migration in the country from the start of 2023 to September. ‘Queensland welcomed about 110,000 interstate movers, and data shows Australians are moving to Queensland and WA given the chance’. Source
Strong overseas migration has further contributed to the increase in demand due in part to the relative affordability of Brisbane and future infrastructure projects due to the Brisbane Olympics according to Domain’s chief of research and economics Dr Nicola Powell. Source
In addition to population growth, housing demand in Queensland has been pushed higher due to a highly competitive rental market alongside rising construction and labour costs amidst shortages in materials. PropTrack senior economist Eleanor Creagh said "housing demand was buoyed by population growth, tight rental markets, resilient labour market conditions and home equity gains", with "the sharp rise in construction costs and labour and materials shortages having slowed the delivery of new builds, hampering the supply of new housing." Source
2. Median Property Value in Brisbane
A new report from CoreLogic has showed that Brisbane now has the third highest median home value in Australia after Sydney and Canberra. Source
‘Brisbane has officially outstripped Melbourne for property values, with a new report showing the Queensland’s capital managed to surpass Melbourne’s median value by about $7000 late last year, making it the first time Brisbane has outshone its larger southern sister since July 2009.’ Source
With a median property value of almost $800,000 this new price point is said to be relatively affordable with more value for money compared to the rest of the nation according to CoreLogic head of research Eliza Owen."It's still got a relatively affordable price point with more value for money than what we see in the major southern capital cities," she said. Source
3. Property Price Records
Record Brisbane property values have rapidly increased since the pandemic and the market remains strong into 2024. "A shortfall of housing supply, along with rapid population growth, a strained construction sector and what Domain research and economics chief Dr Nicola Powell described as “the tightest rental market on record” resulted in a rise in Australian property prices. Source
According to Ray White chief economist Nerida Consibee there has been a rapid price rise for the top properties in the market in the last four years. “The median price for properties in the top 5 per cent has risen by 67 per cent in four years – that’s how quickly things have changed." Source
'Dwelling values increased 0.9 per cent in Brisbane throughout February. The quarterly change had been 2.9 per cent, which was progressively slowing with a quarterly growth rate of 3.2 per cent recorded at the end of January 2024, and 3.7 per cent at the end of December 2023. So, while property values across the city are still increasing month-on-month, the rate of growth is decelerating throughout Brisbane. For the first time in history, the median value of a dwelling in Greater Brisbane has surpassed the $800,000 mark. It is currently $805,593, which is $8,775 more than last month and $26,323 more than three months ago.' Source
4. Low Property stock for Queensland Sellers
Despite record property prices the availability of housing stock in Queensland remains low. According to CoreLogic head of research Eliza Owen ‘‘property stock levels were 30 per cent lower than what the capital would historically see."
The average time a property is spending on the market before it sells has decreased with according to CoreLogic,’ the median time it takes to sell a home is on a downward trend, with the median days on the market decreasing from 27 days in December 2022 to 21 days in December 2023.’
'Numerous high-quality, sought-after properties are securing buyers after the very first weekend of open houses, underscoring the imperative for prospective buyers to be prepared to act swiftly or risk missing out.’ Source
5. Brisbane Real Estate Market upswing
In comparison to the rest of the nation Brisbane’s real estate market is distinctly different.
Domain research and economics chief Dr Nicola Powell said, "Australia-wide, the property market had defied high-interest rates to record significant growth. While a series of rapid rate hikes had been expected to hit housing demand and impact price growth, Powell said what actually happened “defied logic”.’ Source
Furthermore ‘According to CoreLogic, since the onset of the upswing, capital city house values have risen by 11 per cent, while unit values have seen a 6.9 per cent increase nationwide. In contrast, Brisbane has experienced a 15 per cent increase in house values and a 13.6 per cent growth in unit values.'
Markedly the average growth rate of the housing market for Brisbane has exceeded the national capital city average growth rate by 36 % due in most part to the robust unit market. ‘This significant performance difference sets Brisbane apart from other locations across Australia.’ Source
Read River City Conveyancing's Home Buyer's News Blog to stay up to date with property market and conveyancing news from Brisbane and the greater Queensland area.