Brisbane property market

Navigate the ever-changing property market

We all know that the Brisbane housing market can be subject to rapid change. While owning a home is a lifelong goal for most people, not knowing how to navigate the sometimes-volatile Brisbane real estate market can make the prospect of investing in it quite daunting. Fortunately, a professional Brisbane property market forecast will offer educated estimations as to the future market value of a certain type of property.

However, it’s important to note that property market forecasts are projected based upon previous and existing property market data, and should not be relied upon as qualified advice or accurate predictions of future performance. All forecast data is current only at the time of publication and it is subject to change over time. It’s important to note that forecast data is computer generated from a mathematical model using available market statistics, and does not take into account your individual circumstances.

What Influences The Property Market In Brisbane?

If you’re Brisbane based and wanting to buy, or if you’re living out of town and looking to invest within a city with a lot to offer, then understanding the factors that can influence Brisbane’s property market will serve as an invaluable addition to your real estate toolkit. Common variables can include:

Housing Supply and Demand: People tend to flock to areas that are beneficial for work, education, or recreational prospects, which can create increased population within a certain region. As a result, properties in the area can become less abundant and therefore more competitive, causing house prices in Brisbane to increase; and sometimes even causing other previously popular districts to become less favourable by comparison
Lifestyle benefits: Introducing popular cafes, restaurants, or other recreational establishments within an area can drive its market value up
Location to the CBD: Areas in close proximity to the Central Business District tend to be favourable to working-class renters or buyers, as a large portion of professionals have to commute there daily for work
Transportation: Due to its relative cheapness and positive environmental impact, many people choose to take public transport instead of driving to work. Therefore, houses located in a neighbourhood with easy access to ferry, bus, or train lines become highly coveted
School Catchments: In order to be eligible for enrolment into certain state schools, students need to live within the perimeters of a predetermined area, which can make certain suburbs increase in appeal and market value
Inflation: Inflation refers to the rate at which the overall prices of goods and services rise and the consequential drop in the purchasing power of currency
National Accounts: National accounts are the accounting techniques which measure the economic activity of an entire nation
Consumer Sentiment: Consumer sentiment refers to an evaluation of the economy which is determined by consumer opinion and takes into account personal financial wellbeing, the health of the short-term economy, and the potential for long-term growth. When consumer sentiment is negative, housing markets typically decline
Household Finances & Mortgage Lending: Most home buyers will need lending in order to take out a mortgage on a property, which creates a direct relationship between household finance and the ability to get a loan. If the average household income within an area is not sufficient to leverage a home-loan, the property market in Brisbane can depreciate or become less economically viable
Demographic Overview: While most Brisbane suburbs are home to hugely diverse groups of people, certain areas can appeal to specific demographics with varying socioeconomic characteristics. For example, certain suburbs may have a tendency to be heavily populated by retirees, students, or young families, which can ultimately influence the housing market within that area

What Is the Current State of the Brisbane Property Market?

Due to a slowdown in the national economy, experts anticipate that Brisbane’s real estate market will outperform other capital cities throughout the country within the year 2017.

In November last year, Brisbane’s median house price was $532,050 – a figure that is expected to grow by more than $20,000 within a 12 month period. Apartments and units, however, are anticipated to depreciate by roughly $15,000 within that same window. This decline, which is scheduled to continue into 2018, is attributed to the growing number of new developments throughout the propert market in Brisbane. There is a current surplus of supply and deficit of demand, though the demand should increase sometime into late next year, which should see an increase in prices.

Increasing numbers of investors have been attracted to Queensland by the affordability of apartments and generally favourable price difference between Brisbane and other Australian capital cities such as Melbourne and Sydney. While there is a mere 17 percent difference between the average income in Sydney and Brisbane, there is roughly a 70 percent difference in median house price.

While the appeal of Brisbane’s cheaper suburbs remains steady, economists have predicted that houses in the higher-priced districts will drive upcoming growth in the housing market in Brisbane. Investors with the means to do so should, therefore, set their sights on blue-chip suburbs that buyers will be willing to pay a premium for. These areas include: Paddington, New Farm, Auchenflower, Red Hill, Teneriffe, Milton, and West End. Entry into the market in these inner city locations sits between $700,000 and $1.1 million, but the resale value on a freshly renovated property in these addresses can be significant.

Brisbane Housing Market: Andrew Degn's Expert Opinion

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The housing market in Brisbane is solid and steady within the inner city suburbs. An increase in sales activity has recently rippled out into a 7 to 10 kilometer radius, reaching Stafford and Mitchelton. Yet, with many homeowners finding that they’re buying in outer suburbs for similar prices to inner suburbs – only without the convenience and lifestyle benefit of central living – the focus has come back to inner suburbs. Thus, the inner residential Brisbane property market is ready for its next increase, as buyers become all the more aware of its exceptional value for money.

This increase will start to take effect early next year, and should coincide with more profits following the southern state’s post-spring selling high, eventually filtering up into Queensland.

So, in the next year I would head back into town and choose character-rich suburbs close to great infrastructure, lifestyle options, and school catchments to ensure you’re getting better value for money. Buy the best you can in the following areas:
1. Paddington
2. Milton
3. Red Hill
4. Ashgrove
5. Auchenflower
6. Toowong

Throughout the different regions of Queensland, coastal regions within a 2-hour drive from the CBD are currently growing in value. This trend will continue as the prices are low and the population are planning ahead for retirement after realising capital gains from interstate sales. The Sunshine Coast is experiencing the benefit of major infrastructure approvals like the Sunshine Coast Airport and the Gold Coast the Commonwealth Games. These activities all instill confidence in our marketplace.

Brisbane Property Market Forecast: Key Takeaway Points

Brisbane’s property market has a comparatively low buy-in price, so if you select your property strategically, you could turn a profit
Increasing numbers of property owners from southern states are seeing Brisbane’s investment potential
Professional families with limited spare time are willing to pay a premium for a well renovated home, and project seekers looking to make some cash will act quickly to cater to this demand
There is an established demand for newly renovated family friendly homes in Brisbane’s real estate market, with a value of up to $1.5 million
A reasonably priced entry-level priced Queenslander in a desirable district is a sound investment
If you need to pick a position which makes it easy to ensure you don’t overcapitalise, aim for traditional inner-city suburbs where stock is limited and prices are rising
It’s generally better to buy a house in need of renovation that’s in a good location than a modern, recently refurbished home in a bad location
Act quickly; capital gains are underway in a number of coveted locations and it’s important to be the first to enter the Brisbane housing market, not the last
Maintaining strong relationships with active agents who will keep you in the know can add value to a property
Key indicators of a fruitful location that should not be overlooked are; proximity to city centre, established precincts/nodes, and school catchments
When you buy in the best location that your budget allows, the overall land value will support to price
While North, East, South, and West Brisbane all have their own redeeming characteristics which appeal to different demographics – the basic rule when choosing a location is to stay as close to the CBD as possible

How Can I Make A Wise Future Investment?

At Place Property, we have a finger on the pulse of the real estate market with access to rich, quantitative data to make educated estimations on behalf of our clients as to the future market value of a certain type of property.

Before selecting a property to purchase, it’s important to have an educated estimate of that property’s future worth. Talk to our house valuation experts about how we can help you gain a more accurate insight into a property’s potential future value based on a mathematical model using market statistics.

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