Buyer Demand
Supply remains the biggest issue across the Brisbane market. CoreLogic confirmed new listings coming to the market are 27.9 per cent lower than 12 months ago. Total listings in Brisbane are 15.4 per cent lower than this time last year. One of the biggest problems for Brisbane property buyers now, despite a willingness to transact, is the struggle to find something to buy.
Brisbane property remains much more affordable than other capital city markets. With the dwelling value to income ratio for Brisbane ranking below Sydney, Hobart, Adelaide, and Melbourne, it is no surprise that buyers from other east coast capitals have been flocking to our city. The Brisbane market remains one of the most affordable capital city markets in Australia.
Brisbane House Values
Median house values were up 1.3 percent across the month of June with quarterly growth now at 3 percent. The median value for a house in greater Brisbane is $806,781. Growth in the housing market was also reported by PropTrack with a 0.18 per cent increase in June. This brings house prices up 2.9 percent since December and confirms six consecutive months of price growth as per this data set.
Brisbane Rental Market
The latest SQM Research Vacancy Rates in Brisbane have remained consistent between April and May, holding at 1 percent. Some regions within greater Brisbane are showing an upward trend in vacancy despite the broader city-wide trend remaining unchanged.
The Ipswich region has come off lows of 0.5 percent in August last year and now has vacancy rates recorded at 1.5 percent.
The Brisbane CBD has also come off more recent lows of 0.9 percent in February, with vacancy trending higher every month since and now sitting at 1.4 percent.
International demand for Brisbane rental properties is strong. Net overseas migration is expected to reach 400,000 this financial year. This is almost 27 per cent above the previous record high recorded in 2008. Most overseas migrants typically rent rather than purchase when they first relocate.
According to PropTrack, the top countries for rental searches are New Zealand, the US, the UK, India, China, and Singapore. With the return of Chinese students to Australia, PropTrack data confirm that this has significantly impacted the increase in rental searches.
House rents are up 8.6 percent over the last 12 months according to CoreLogic.
Rental yields held firm this month with gross yields for houses remaining at 4 percent.
Summary
The Brisbane market remains resilient, despite the higher interest rate environment. Like elsewhere across Australia, the market is being underpinned by a very tight supply. Given the current circumstances, it is unlikely that we will see large changes in listing volumes in the foreseeable future.
Stay informed about Brisbane’s real estate market trends and make confident decisions with our comprehensive market updates. If you have any questions or need personalised advice tailored to your investment goals reach out to me directly at leonie@wealthology.com.au.
