The hype surrounding the Brisbane property market has been a hot topic for months, with recent substantiating data confirming that the ‘boom’ we have been hearing about is in fact happening. The amalgamation of economic factors attributing to this event dismiss the notion that what we are currently experiencing is a ‘bubble’, with substantial evidence supporting Brisbane as the go-to capital city for capital growth over the next two to three years.
The Brisbane apartment market is set to soar once again after nearly a decade of oversupply, largely due to the volume of apartments built between 2015 and 2019. Attractive rental yields and low vacancy rates have prompted an increase in investors (both local and interstate) as our inner-city apartments remain affordable in comparison to those in Melbourne or Sydney. Brisbane currently has $28 Billion worth of large-scale infrastructure projects underway, including the Brisbane Metro, Cross River Rail and Queens Wharf Precinct, which are also driving up the demand for inner-city properties and the accompanying lifestyle.
This month marks the sharpest monthly increase in Brisbane property prices since 2007, with net interstate migration to Queensland at the highest it has been in 20 years. The ban on international travel has increased both interstate migration and levels of disposable income, in addition to more than half a million Australians returning home from overseas. What we are left with is a higher population with more money to spend that cannot leave the country, so interstate becomes the next best option for travel, relocation and investment.
Also being seen throughout Brisbane is the shift towards auction campaigns, a trend that is looking more and more likely to stay. Based on low stock levels and increased competition, recent auction clearance rates have been recorded as high as 82%, more than double than that of previous years. Attendee numbers at open homes are hitting triple figures, replicating those seen in Sydney and Melbourne where a greater volume of homes follow the auction sales process. Auctioneers and real estate agents are seeing a record number of registered bidders, ultimately resulting in higher prices being achieved for sellers.
The announcement of Brisbane as a candidate to host the 2032 Olympics is a testament to the appeal of our City, offering an increasingly desirable lifestyle, state of the art amenities and enticing year-round climate. All-time low interest rates, Government incentives and Queensland’s management of the pandemic are among the additional contributing factors pushing Brisbane’s property market forwards. Originally forecast to see 10% growth in 2021, Brisbane has now been projected to grow an additional 10% by 2022, dwarfing Sydney and Melbourne’s 7-8% property growth predictions.