Brisbane house prices leap almost $12,000 in a month
Brisbane's property prices have reached a new record high, with little sign of those capital gains slowing in the short term.
In October, Brisbane’s property market achieved a remarkable milestone, with values reaching a new peak.
This resurgence followed the hard and fast decline in median prices experienced in the latter months of 2022.
Examining the growth from the beginning of this year, it’s evident that three major Australian capital cities have witnessed strong median value increases above 10 per cent. These standout cities are Brisbane (10.2 per cent), Sydney (10.9 per cent), and Perth (10.8 per cent).
When evaluating price fluctuations on a quarterly basis, a clear deceleration in the growth rate has become apparent in Brisbane.
Over the three months leading up to July 2023, Brisbane’s dwelling values surged 4.2 per cent. However, in the subsequent period, spanning August to October 2023, the growth trajectory moderated to a 3.8 per cent increase in dwelling values. While this change is still noteworthy, it signifies a slowing pace of growth.
Brisbane continues to set itself apart in the realm of capital city markets, standing as the second-best performer after Perth in terms of monthly dwelling value increases on a national scale.
This strong performance can be attributed in part to Brisbane’s relative supply stability during the spring months, with a mere 0.5 per cent increase in newly advertised properties, according to CoreLogic.
In contrast, Perth experienced a slight decrease of 2.1 per cent across the same period.
Supplementary data from PropTrack corroborates this trend, indicating a 7.3 per cent drop in newly listed homes for sale in Brisbane from August to September, alongside year-on-year listings in Brisbane showing a decline.
Sense of urgency among Brisbane buyers
Over the past year, Brisbane’s total number of listings decreased by 23.6 per cent, as per CoreLogic data.
In contrast, other capital cities have observed an increase in listings, potentially linked to less robust growth performance. A higher inventory level equips buyers with more options, eases the sense of urgency, and bolsters their negotiation power.
However, Brisbane paints a different picture in terms of days on market, which has consistently decreased month-on-month throughout most of 2023.
This signifies a growing sense of urgency among buyers.
With limited supply, buyers frequently encounter heightened competition, leading to highly competitive buying conditions and placing sellers in a favourable position.
Certain Brisbane suburbs have witnessed a significant surge in new property listings, as highlighted in the latest PropTrack listings report.
For instance, Warner experienced a 92.3 per cent increase in new listings over the past 12 months, while Redcliffe saw a 62.5 per cent surge, and Newstead recorded a 50 per cent rise in new listings. Conversely, the most substantial decrease in new listings over the past year occurred in suburbs like Calamvale (-33.3 per cent), Hamilton (-32.4 per cent), and Indooroopilly (-30 per cent).
These localised dynamics often exert influence on price movements in various locations within Greater Brisbane, a phenomenon frequently observed at a more local level in the real estate market.
Brisbane dwelling values up almost $9,000 in a month
According to recent data from CoreLogic, Brisbane’s dwelling values continued to show positive growth in October, with a notable 1.4 per cent increase, following a 1.3 per cent rise in September.
While this represents a consistent upward trajectory, it’s interesting to note a slight moderation in the quarterly growth rate, which shifted from 3.9 per cent last month to 3.8 per cent this month. Notably, the current median value for properties in Brisbane now stands at $770,575, marking an $8,836 increase from the previous month.
Brisbane’s median house values continued to display consistent growth, according to CoreLogic, with a solid 1.4 per cent increase throughout October, matching the rate of growth experienced in September.
While the monthly growth remained steady, there was a slight moderation in the quarterly growth rate, which shifted from 4 per cent in the previous month to 3.8 per cent this month.
The current median house value in Brisbane now stands at $860,465, marking a notable $11,785 increase from the previous month.
Brisbane’s median unit values increased 1.3 per cent throughout October, up from the 1.1 per cent growth observed in September.
While the monthly growth rate showed an upward trend, there was a slight moderation in the quarterly growth, which shifted from 3.7 per cent at the end of the September to 3.5 per cent at the end of October.
The current median value for a unit in Greater Brisbane now stands at $545,355, marking a jump of $6,168 from the previous month.
Brisbane rental market strangled
The rental market in Brisbane, according to SMQ Research, continues to grapple with remarkably tight vacancy rates, currently standing at a mere 1 per cent.
While this percentage reflects a slight increase from the previous month, when vacancy rates were at 0.9 per cent, it’s imperative to emphasise that this level remains substantially below the long-term average.
The persistent scarcity of available rental properties has resulted in an upward push on rental prices within the city, a trend that has grown increasingly evident since late 2021 and early 2022.
In Brisbane, the persistent high demand for rental properties combined with limited supply has posed an ongoing challenge for renters, resulting in steadily increasing rents.
Over the past year, house rents have climbed by 6.1 per cent, while unit rents have seen a more substantial increase of 13.9 per cent. Although rental prices continue to rise, the pace of annual rent growth in Brisbane has recently slowed, indicating a slight moderation in the rate of increase.
More property price growth to come
Brisbane’s property market has demonstrated substantial growth for the majority of 2023, however, the market’s trajectory is subject to various influencing factors.
Consumer sentiment remains at historically low levels, reminiscent of the early pandemic stages and the depths of the global financial crisis. The possibility of increased interest rates could further dampen confidence, especially against the backdrop of escalating global tensions.
The tightening of credit accessibility, although affecting some more than others, might lead to a softening in demand.
Nevertheless, Brisbane’s relative affordability and ongoing supply shortages serve as protective elements against significant declines in demand.
Moreover, with the positive contributions of interstate migration and a robust local economy, we maintain an optimistic outlook for Brisbane’s property values, with no immediate concerns of a market reversal in the foreseeable future.