Queensland’s housing markets have maintained their strong gains over the last few months.
The state’s COVID battles have been less debilitating with more sporadic lock-downs but less often and much shorter than those in NSW and Victoria.
Remarkably, turnover is over 60% above its pre-COVID level, and price gains in Brisbane are still tracking just under 2% each moth.
The state’s wider fundamentals still make it the most conducive market for sustained gains.
The latest price detail shows a marked pick-up in momentum for houses and for middle and top tier properties in Brisbane.
Qld consumers: housing-related sentiment
Qld housing composite vs turnover
Regionally, the Sunshine and Gold Coast areas are also seeing very strong gains.
The recent announcement that Brisbane will host the 2032 Olympic gains may well be creating a ‘halo-effect’ for what is already a strong market.
The fundamentals remain very supportive.
All markets are tight both in terms of on-market supply (barely half the usual supply in terms of months of sales in Brisbane) and rental vacancy rates (pushing towards 1% in Brisbane).
The Queensland Consumer Housing Sentiment index is pointing to moderating turnover growth ahead, although at current levels that would still leave activity very elevated.
Sentiment around ‘time to buy’ has fallen away sharply over the last few months suggesting affordability is becoming an issue.
However, price expectations remain sky high and exposure to COVID disruptions looks limited.
Brisbane dwelling prices
Qld: dwelling approvals, vacancy rate
Source of charts and commentary: Westpac Housing Pulse August 2021.