Brisbane property market surpasses all expectations and continues to experience substantial growth
In April 2022, Elevate Residential was once again fortunate to host a market update with property analyst and commentator Tim Lawless, founder of CoreLogic Australia research division.
Last year at this event, we introduced the Elevate Residential Impact Commitment, and this year we were proud to share the BHC’s Impact Fund report. The report highlights the outcomes achieved to date through the Fund and shares some of the stories of the BHC residents who have accessed support through the Fund. Read more about Elevate’s Impact Commitment.
Tim provided a timely update regarding the state of the current Brisbane property market and future predictions- following is a summary of some of his key points:
Nationally, the annual growth in Australian housing values peaked in January 2022 at 22.4%. With the monthly pace of growth easing since April last year, the annual growth rate is set to continue softening through 2022. Most capital cities are seeing a slowdown in growth rates with a sharper decline in growth across Melbourne and Sydney, while Perth and Darwin markets have recently re-accelerated in their growth rates.
However, the Brisbane market is holding strong. Locally, house values have risen at a substantially faster pace than unit values before and during the pandemic. And whilst weaker conditions across the unit sector have historically been the case mostly due to an over-supply, this is no longer the case and we are seeing rising unit costs. The growth in Queensland has been driven by relative affordability compared with other states, low supply relative to demand and strong interstate migration trends- which are all predicted to continue.
Rental market conditions have been diverse, with strong growth conditions across regional areas and the smaller capitals. More recently, the trend rate of growth has slowed, but unit rents are picking up in Melbourne and Sydney. Vacancy rates have plunged to record lows nationally and Brisbane is now showing a vacancy rate of a historical low of 0.6%.
Moving forward property headwinds include Worsening housing affordability | rising interest rates | rising costs of living / less savings | potential for further credit tightening | higher supply | weaker sentiment | COVID.
Property tailwinds include: Relative affordability | low interest rates / gradual normalisation | Tightening labour markets / higher wages | economic recovery beating forecasts | migration and open borders | stimulus? | vaccine.
To view the presentation slides from the Market Update- visit here.
