Posted on December 4th, 2023

Forecasting the Brisbane property market and prices for 2024

Despite the challenges posed by high inflation and interest rates, Brisbane’s property market is defying the odds with a significant surge of 9.1% since bottoming out in Q3 2022, according to the latest CoreLogic data.

But here’s the catch: the window of affordability is closing fast as demand surges.

That’s because Brisbane continues to shine as an oasis of affordability, with a median house price of $848,680, compared to its more expensive southern capital city counterparts, Sydney and Melbourne.

So, what does this mean for property investors?

The time to invest in Brisbane is now.

With increasing demand and rising prices, investors who secure an investment-grade Brisbane property are likely to reap substantial returns on their investment.

Brisbane Property Market in 2023

Domain’s September Housing Report reveals Brisbane’s price downturn was short-lived, with property prices now on the rise. According to the report, house prices have already recovered $39,000 of the $47,000 lost since December 2022. The data also suggests Brisbane house prices will soon likely surpass previous peaks. Even a 1% increase in the median house price would signal a complete market recovery.

In 2023, Brisbane unit prices experienced a record high during the September quarter, a feat also shared with Adelaide. While the rate of quarterly gains decreased by more than half compared to the previous quarter, successive growth has led to the highest annual gains in a year. Unit prices in Brisbane have outperformed house prices for six consecutive quarters, leading to a 9.7% 12-month growth to $562,000.

With approximately 50% of the year’s growth concentrated in the last quarter, it appears that the temporary halt in the interest rate cycle may have positively impacted buyer confidence in Brisbane. The decision by the Reserve Bank of Australia to maintain the cash rate at 4.1% for the third consecutive month in September has instilled buyers with a sense of real sense of confidence that is carrying over into the market.

Factors Influencing Price

Brisbane’s unique combination of affordable property, attractive lifestyle, and significant population growth has established it as a booming hub for property investment.

A tight rental market and high construction activity have significantly influenced the rise in Brisbane house prices. At the moment, the total supply of houses for sale is about 40% lower than the five-year average for this time of year. As more people flock to the Queensland capital, housing demand continues to outstrip supply, this, combined with low interest rates, is creating a perfect storm for property investors in Brisbane.

The upcoming 2032 Olympic Games are anticipated to exert a substantial influence on Brisbane’s property market. Drawing from the experience of Brisbane’s Expo 88, where house prices experienced a remarkable surge of 238% during the 11-year period preceding the event, property experts predict that Brisbane’s 2032 Olympics may have a similar or even greater impact on house prices.

Proximity to the planned venues is expected to yield the greatest advantage amidst the flourishing prices. With Olympic facilities strategically planned throughout south-east Queensland, investors have ample opportunities to capitalize on the expected boost in property values.

Another critical factor driving Brisbane’s property prices is the city’s growing population. Modelling from the Australian government’s Centre for Population reveals that by the time the 2032 Olympic Games rolls around, Brisbane is expected to have a population of over 3 million people, further increasing demand for housing in the city. This population growth is expected to continue for the next decade, fueling housing demand and driving up property prices even further.

FOMO, or the Fear of Missing Out, has become an increasingly prevalent sentiment in Brisbane’s property market, further exacerbating the already high demand for housing. This sense of urgency to secure a property before prices rise even further has led to intense competition among buyers, resulting in very strong auction clearance rates.

2024 Forecasts: Where is the Brisbane Property Market Headed?

At present, the Brisbane market is exhibiting a promising trajectory, poised for robust and sustained price growth throughout the remainder of 2023 and extending into the year 2024. With favourable market conditions and increasing demand, Brisbane real estate is anticipated to continue its upward trend in the lead-up to the 2032 Olympic Games.

In 2024, the most high-performing areas within the Brisbane property market will likely be inner and middle-ring suburbs. Suburbs like New Farm, Paddington, and Ascot are expected to experience significant price growth due to their proximity to the CBD, established infrastructure, and desirable lifestyle amenities. These highly sought-after areas have consistently performed well in previous years and are predicted to continue this trend in the lead-up to the 2032 Olympics.

Investing in Brisbane Properties in 2024

Investors and potential buyers should be mindful of a few key factors when venturing into the Brisbane property market in 2024.

Property Type and Location: The location and type of property play a significant role in its potential for growth. Properties in the inner and middle-ring suburbs, particularly those with established infrastructure and amenities, may offer the best returns.
Rentability: With a growing population, rental demand in Brisbane is expected to increase. Properties with high rental yield potential, such as those located near universities and transportation hubs, may be a smart investment choice.
Infrastructure Development: The upcoming 2032 Olympic Games will spur significant infrastructure development in Brisbane, creating new opportunities for property growth and value appreciation. Keeping an eye on developments in key areas can help guide investment decisions
Market Trends: Careful research into market trends, including supply and demand dynamics, vacancy rates, and rental prices, can provide valuable insights into the current state of the Brisbane property market and help identify potential investment opportunities.

Summary

In the midst of a remarkable growth period. Brisbane’s thriving economy, growing population, infrastructure investments, and likely capital price growth as a result of the upcoming 2032 Olympics make it an attractive location for property investment in 2024 and beyond. However, thorough research and understanding of market trends and key factors such as property type, location, rentability, and infrastructure development are crucial for making informed and successful investment decisions.

For comprehensive insights into the latest trends and investment opportunities in Brisbane, consider downloading the MyCity Brisbane Property Report 2024. It’s a crucial resource for those looking to invest in this dynamic city.

MyCity Brisbane Property Report 2024

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