Exploring the Brisbane Property Market and Investment Strategies

How is the Brisbane Property Market now?

Since prices fell slightly in early 2023, Brisbane’s property market has rallied and continues to show strong growth, with prices now up 13.1% since January 2023.

All indications suggest that Brisbane will be one of the strongest housing markets in 2024, with property values and rents projected to continue rising. According to CoreLogic’s December Home Value Index, Brisbane house prices underwent more than 1% monthly growth at the end of last year. This is a trend that is likely to continue as the year progresses. Reason being, the affordability factor coupled with strong economic conditions and high levels of demand.

At present, the median house price in Brisbane is $875,991, which is significantly lower than Sydney and Melbourne’s median house prices of $1,400,630 and $948,041 respectively. However, there are still plenty of affordable suburbs for both houses and units available within a reasonable distance from Brisbane’s CBD. This presents many opportunities for potential property investors looking to enter the Brisbane market.

Brisbane property prices up by 13.1%

In Brisbane, there is a distinct variation between the prices of houses and apartments, and rental properties. As of now, the median unit price stands at $571,040 showing a month-on-month increase of 1.1%. The cost of rent currently stands at $600 per week for houses and $560 for units.

The recently released Domain Rental Report shows Brisbane has experienced 10 consecutive quarters of growth for unit rents. This unprecedented growth is due to the combination of a strong economy and increased demand for rental properties.

On the other hand, Brisbane’s median house prices have experienced remarkable capital growth in recent years, surging by 50.2% since the onset of the pandemic. The city’s allure as a work-from-home hub, and its relative affordability compared to other capital cities, has attracted a significant portion of buyers from Sydney and Melbourne. A significant population increase and the resulting surge in housing demand and decrease in supply have created a highly competitive market for Brisbane’s housing sector, leading to skyrocketing house prices.

Why you should invest in the Brisbane property market?

Investing in the Brisbane property market is a strategic move for several reasons. First, the strong, sustained growth in property values offers an excellent return on investment. Secondly, the tight rental market, characterized by high demand and limited supply, ensures a consistent and competitive rental yield.

Brisbane’s growing population as well as significant infrastructure spending in preparation for the 2032 Olympic Games, will only further increase demand for property in the city.

Current investors in Brisbane’s property market have seen substantial benefits. Many have witnessed their property values escalate significantly, mainly due to the city’s ongoing population boom and the subsequent increase in demand for housing. Moreover, the rising rents have resulted in impressive rental returns.

For potential investors and homebuyers, several factors are crucial when considering investment in the Brisbane property market. Location is key; areas with proximity to the CBD, good transport links, and local amenities like schools and shopping centers are typically more desirable. The type of property – whether it’s a house, townhouse, or apartment – also impacts the investment’s potential return. Additionally, investors should pay attention to the local economy and job market, as these factors influence housing demand and property prices.

Highest Performing Areas in Brisbane/SE Queensland

Bulimba

Located just 4 kilometers from Brisbane’s CBD, Bulimba has become one of the city’s most sought-after suburbs. This riverside suburb offers a perfect blend of convenience and lifestyle, with trendy restaurants and cafes, boutique shops, and parks.

In the Bulimba Unit market, rental prices have experienced a significant surge of 14.1%, showcasing the growing demand in the area. With a rental yield of 4.6%, this presents a promising opportunity for investors looking to enter the market.

Caloundra West

Caloundra West, located on the Sunshine Coast just over an hour’s drive from Brisbane, has also become a top-performing area in terms of property investment. The suburb boasts beautiful beaches and parks, making it highly attractive for families and retirees.

In terms of rental returns, Caloundra West offers some of the highest yields in Southeast Queensland at 4.5%. In Caloundra West, the median price for houses stands at $755,000, while units are priced at $625,000. Over the past 12 months, there has been a steady 6% increase in prices in this suburb.

Southport

Southport, located on the Gold Coast, is another top-performing area for property investment. This bustling suburb offers a vibrant lifestyle with its stunning beaches, shopping centers, and dining options.

In terms of rental yields, Southport sits at 5.9%, making it an attractive choice for investors looking for higher returns. The median house price in this area is $903,000 and unit prices have grown 9% annually to $556,000.

What potential investors should know?

Sydney, Canberra, and Melbourne have always been considered Australia’s priciest cities for property. However, Brisbane has now joined their ranks after experiencing a surge in prices due to the COVID-19 boom. Since 2020, home prices in Queensland’s capital have risen by 50%, making it the third most expensive city in the country. However, this should not deter potential investors, as Brisbane continues to offer much more affordable options compared to other major cities.

Brisbane’s property market is experiencing a significant level of demand and this trend is expected to continue for some time, making it an ideal time for investors to enter the market. With Brisbane presenting as a preferred choice for overseas buyers and interstate migrants, the demand for rental properties is on the rise. This has led to a decrease in vacancy rates and an increase in rental prices, creating a favourable environment for investors.

Summary

The resilience of Brisbane’s property market, evident in its quick rebound from the 2023 downturn, cements its status as a top choice for property investment. With its strong rental yields, affordable prices, and high demand for rental properties, investors can expect attractive returns in the long run.

Investing in Brisbane is a strategic move for various reasons—sustained property value growth, competitive rental yields, and the city’s booming population make it an attractive choice for both local and international investors. Fuelled by preparations for the 2032 Olympics, the city’s infrastructure and economic development are expected to continue to improve

With Brisbane’s continuous growth and development, investors can expect attractive returns in both the short and long term, making it an ideal choice for building a diverse and profitable property portfolio.