Brisbane’s property values remained resilient over the last year, especially given the economic impact of COVID-19, and are now forecast to perform strongly in 2021.
Both house and unit values are trending higher across Brisbane, although houses increased by more than twice the pace of units over the past three months, up 2.4% compared with a 1% lift in values across the unit sector.
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Rising home values have been accompanied by a significant lift in buyer activity at a time when available housing stock is close to record lows.
While home sales were 11.8% higher than a year ago over the past three months, listing numbers in Brisbane are 29% below last year’s level.
The mismatch between demand and supply is creating some urgency in the marketplace and contributing to the lift in prices.
Across the sub-regions of Brisbane, the strongest growth conditions over the past three months have been in the Moreton Bay region and Ipswich with both areas recording a rise in values around 3.5%.
Here’s what’s happening in Brisbane property
The Sunshine State is shining and strong demand for detached houses and outstanding demand for lifestyle areas are projected to deliver 6–10% capital growth in 2021 for the south-east Queensland property market.
Westpac Bank recently updated its property forecasts, with Brisbane prices tipped to surge 20 percent between 2022 and 2023, meaning Brisbane is likely to be the one of the best performing property market over the next few years.
Of course, while some locations in Brisbane have strong growth potential, and the right properties in these locations will make great long term investments, certain submarkets should be avoided like the plague.
Increased by demand for Brisbane houses has been underpinned by increasing consumer sentiment, historically low interest rates and internal migration considering the relative affordability of houses in Queensland compare to Sydney and Melbourne.
Similarly popular areas of the Gold Coast and Sunshine Coast have enjoyed strong demand considering the increased flexibility of being able to work from home and commuting to the big smoke less frequently.
At the same time property investor activity has been strong, particularly for houses, not only coming from locals but from interstate investors who see strong upside in Brisbane property prices as well as favourable rental returns.
Of course, there is not one Queensland property market, nor one south-east Queensland property market, and different locations are performing differently and are likely to continue to do so.
Houses remain a firm favourite of prospective home hunters, with demand rising post-lockdown and it remains significantly elevated compared to last year.
However, apartment demand has been sliding and, in general, apartments in Queensland are a higher risk investment than houses, particularly due to a high supply of apartments that are unsuitable for families or owner occupiers.
Brisbane Property Top Performers 2020
2020 was a challenging year for all our property markets due to COVID-19 and a recession, but Brisbane’s property values remained resilient over the year and is now forecast to perform strongly in 2021.
During recent months houses in Brisbane have enjoyed improve demand and the number of transactions in the Brisbane housing market are higher and they were pre-Coronavirus.
Of course, there is not one “Brisbane property market” and some segments outperformed others. Here are some of the best of the best for Brisbane’s housing markets in 2020:
These are the Brisbane Suburbs with the top sales in 2020
The best of the best in Brisbane property markets
As Australia’s second largest city, Melbourne’s housing markets are vast and diverse.
These are some of the best performing segments…
And these are Regional Queensland’s top performing locations.