After coming out of our fourth and longest lockdown of 2021, it appears that the pandemic is no match for Brisbane’s persistent property market. Showing no signs of slowing down, Brisbane recorded one of its’ strongest auction days of the year during the recent lockdown, strengthening the belief that we are on track to be the best performing property market across the country. Nation-wide, properties within a 5km bubble of the CBD historically outperform comparable dwellings further from the city centre, offering proximity to amenities, lifestyle, employment, and education opportunities, so, why should you invest in Inner Brisbane?
Housing prices across Brisbane are leading the upward charge, increasing in value by 17.7% within the past year and 6.7% over the 2021 April – June quarter. Making a long-awaited recovery, the Brisbane apartment market is catching up, recording an annual increase of approximately 5% in value. The current median house price in Brisbane is sitting at $675,000, while the median unit price is at $419,000. Following this trend, property experts predict that Brisbane dwelling values as a whole will rise upwards of 20% between 2022 and 2023.
^Source: Corelogic Hedonic Home Value Index – July
Lucrative Rental Returns
The increased demand for rental accommodation throughout Inner Brisbane can be attributed to the high level of interstate migration, amplified by numerous infrastructure projects currently producing employment opportunities across the city. Vacancy rates and rental stock have plummeted to levels not seen since 2012, resulting in attractive rental yields for investors averaging 3.8% return on houses and 5.1% for units. Rent prices in Southeast Queensland were amongst the highest in the country for the 2020-21 financial year, recording the strongest rental increase in more than a decade.
^Source: SQM Research – July
South-east Queenslanders have successfully implemented the necessary amendments to comply with COVID-19 restrictions, resulting in shorter lockdown stints and considerably lower COVID cases than the likes of Sydney and Melbourne. The Queensland Governments’ handling of the pandemic, in conjunction with our sub-tropical climate and laid-back lifestyle, has played a large part in the surge of interstate investment and migration, with an estimated 20,000 people set to relocate to Brisbane each year over the next four years.
Brisbane’s infrastructure commitment over the coming decade will see the city transform into a global destination, bringing with it economic prosperity well into the future. The announcement of the 2032 Olympic Games has also ramped up project numbers and timelines in preparation for the special event and subsequent population growth, including the $84 billion-dollar High Speed Rail that will connect Brisbane City with The Sunshine Coast, Gold Coast and Toowoomba. Major works are already underway for the Cross River Rail, Brisbane Metro and Queens Wharf Precinct, with upcoming projects including the redesign of Victoria Park Golf Course in Herston and an upgrade to the Gabba Stadium in Woolloongabba.
Brisbane recorded the highest population growth rate across the country during 2019-2020. Forecast to top 5 million by 2025, we will require an additional 23,000 dwellings to accommodate the anticipated number of overseas and interstate migrants. The pandemic has put a spotlight on lifestyle areas, contributing to Brisbane’s popularity as a desirable location to reside. Inner-Brisbane hosts venues including Southbank Beach, Eagle Street Pier dining precinct and Howard Smith Wharves, all of which take advantage of the opportune weather and picturesque surrounds that our city has to offer.
If the last 18 months are anything to go by, the ‘snap’ lockdowns have not slowed, but instead accelerated demand across the Brisbane property market. Rental vacancy rates are at a nine-year low, unit prices have experienced six months of growth and auction clearance rates are sitting at 70%. Local, interstate and international investors are purchasing property sight unseen to secure their share in our country’s’ best-performing property market whilst it is still affordable to do so, creating a highly competitive selling environment for Inner Brisbane.