2-12-2021
While price growth in other capital cities is starting to slow, home values continue on to accelerate in Brisbane.
Brisbane has cemented its place as the fastest growing capital city market throughout Australia, leading the nation in terms of dwelling price growth, ahead of all other capitals, but even more so in the housing market compared to the unit market.
And there are few surprises as to why this has happened.
Housing affordability is less pressing in Brisbane, and we have had fewer lockdowns due to COVID-19. Additionally, we have continued to see a positive rate of migration, especially from those moving interstate. This continues to fuel the housing demand throughout the city.
Listing volumes are also a lot lower in Brisbane with 33.9 per cent fewer properties available for sale in the 4 weeks up to November 28, compared with the five-year average. This is different to Sydney, where listing volumes are more in line with the long-term average, and Melbourne, where listing volumes are actually 7.9 per cent above the long-term average. These differences in supply dynamics are certainly playing a part in the upward price growth momentum in Brisbane.
With the stimulus from the federal government boosting construction, new builds in fresh estates are thriving, but this is having little impact on the low supply levels of established properties in locations where there is a scarcity of land and high demand.
There is definitely no slowdown in the demand for property in Brisbane at this time.
Sales volumes were 51.5 per cent higher in the 12 months up to October 2021 compared to the same period last year. There is a high volume of property transactions occurring, which is evidence of the confidence that buyers have in the Brisbane market.
There has been a shift in the composition of buyers recently with lending data now showing that first home buyers have dropped to 26.9 per cent of all loan commitments. Instead, we are seeing an uplift in investment buyers with investors now making up 32.8 per cent of all lending commitments across Queensland.
With the vaccine roll-out in place, we also now find ourselves in a position where international migration will again be possible. This will add further ongoing demand to housing markets.
Brisbane property market prices
The current median value for dwellings across Greater Brisbane is $662,199 which is $20,102 higher than just one month ago.
The quarterly growth in dwelling values across Greater Brisbane is now up 7.4 per cent. Annual growth for the last 12 months for Brisbane Dwellings is now 25.4 per cent.
Brisbane’s higher value properties are still driving the growth as you can see in the CoreLogic Data. All segments of the Brisbane market are in a strong growth phase right now.
Brisbane house prices
The Brisbane housing market is on fire! We saw median values for the greater Brisbane region increase 3.2 per cent in just one months throughout November, up from 2.8 per cent growth throughout October.
This is a new record high for monthly growth figures recorded for Brisbane in the current property boom. The 12-month change in Brisbane house prices has been 27.9 per cent
The current median value for a house in Greater Brisbane is now $757,194, the highest it has ever been. This is $25,802 MORE than one month ago! Every month this seems to keep growing and growing.
Brisbane unit prices
The Unit Market in Brisbane retracted slightly again in its rate of growth throughout November 2021.
Units were up 1.1 per cent this month, compared to 1.3 per cent last month. The 12-month growth for units across Brisbane is now 11.4 per cent. The current median unit price in Brisbane is $443,981 which is $6,895 more than one month ago.
Summary of price growth in Brisbane for the year to date
The graph below charts the percentage change in property values for houses and units since January 2020 across Greater Brisbane.
It is obvious that the housing sector is continuing to outperform the unit sector in Brisbane on a month-to-month basis.
This has been a trend observed since October 2020 and has become especially apparent in the last 2 months where we can clearly observe a divergence in the rate of growth in the different property types.
Below we have charted the actual median value changes for houses and units across Greater Brisbane since January 2021.
You can see the median value for houses has increased $173,292 over the last 11 months, whereas the median value for units has increased $50,804 across the same period of time. In simple terms, the growth in the dollar value of Houses has been 3.4 times the growth in the dollar value of units throughout Greater Brisbane during 2021.
Brisbane rental market movements
Vacancy Rates at a city-wide level in Brisbane remained stable between September and October, at 1.4 per cent. The table below highlights where vacancy rates across Brisbane sit at the end of October 2021.
Vacancy remained relatively unchanged this month across every sub-region throughout Greater Brisbane. These tight vacancy rates are continuing to put upward pressure on rents throughout the city.
Housing rents have demonstrated annual growth in Brisbane of 11.7 per cent according to Corelogic Data, which is up a further 0.4 per cent compared to one month ago.
Rental incomes in the unit market throughout Brisbane have seen an annual increase of 6.8 per cent and were up 0.3 per cent, compared to last month.
The months ahead …
With the planned State border openings in December, we do expect that the buyer depth will return quickly early in the New Year as those who are relocating become buyers who will compete with the already heightened demand here in Brisbane.
Of course, not all people who relocate will buy, so we also expect a further tightening in vacancy early in 2022.
With Brisbane already experiencing a tight rental market, it is likely that tenants will find it even more difficult to secure a property as more people compete for limited stock.
At some stage we do expect that the rate of growth in Brisbane will start to slow, and this is likely to occur at some stage throughout 2022, perhaps once house prices increase to a level where affordability constraints become an issue.
Additionally, further tightening of credit policies and increases in fixed interest rates could slow some of the housing activity or even an increase in listings which is a trend already observed in Sydney and Melbourne.
That said, there are no signs of any of the above at this stage, so hold on for the ride everyone. Brisbane property growth is leading the nation and we expect this may continue in the months ahead.
https://www.apimagazine.com.au/news/article/brisbane-solidifies-status-as-fastest-growing-city?ce_code=P58BqSC52Uhnuf212DYS4RAMPBMOEIf&utm_source=api+newsletter&utm_medium=email&utm_campaign=api+newsletter&utm_content=2021-12-09