Brisbane – Quarterly Update Jan – Mar 2023
· Brisbane has experienced moderate price gains over the last two consecutive months.
· Listings are still tight.
· The rental market is still robust and gross yields are rising.
Most property market professional will tell you it’s difficult to gauge the market direction for the coming year with the uncertainty around rising interest rates. The uncertainty around these rising interest rates was a contributing factor to changes we saw in the market conditions throughout the second half of 2022 where buyer confidence had dropped away. This was evident in the numbers of attendees at open homes and auctions being considerably less than the previous part of the year.
It has been widely reported that since peaking in June last year Brisbane housing values are down 11%, however, let’s not forget that this drop in values follows a 42.7% rise through the upswing and that Brisbane home values are still above their pre – COVID levels.
Fast forward to the first Quarter of 2023 and the news around the Brisbane property market has become more positive. According to Proptrack the rate of decline has slowed with Brisbane recording its second consecutive month of small median price gains, whilst these gains are moderate they are an indication that Buyer confidence is starting to increase again.
Whilst data from the larger data houses can help to paint a picture, as Buyers Agents we are able to see these changes in real time by attending Open Homes/Auctions and being in regular contact with Sales Agencies.
The past couple of months we have been seeing higher buyer activity in the right locations for good properties, with stronger demand for detached move in ready houses particularly in the inner and middle ring suburbs.
Recently we observed the following auctions:
· A house in Ashgrove with over 40 attendees and 8 registered bidders
· A house in the inner north with over 50 attendees and 3 registered bidders
· A house in the south with 30 plus attendees and 5 registered bidders.
Apollo Auctions have also reported across their auctions there was on average 4.9 registered bidders per property in February compared to 2.5 in January. According to Corelogic auction clearance rates for February were on average 58.5% whilst listings available in Brisbane is currently 29% lower than the previous five-year period and this is most likely compounding this effect, with less listings, competition amongst potentials buyers has increased and ultimately contributed to the small median price gains Brisbane has experienced.
Rental Market
Demand for rentals is also unlikely to decrease any time soon. Brisbane is still experiencing high levels of interstate and international migration, with the current migration rate hovering more than 63% above the average for the decade—an influx that remains very visible in rental vacancies still hovering at record lows of currently 0.8%. Gross yields for units are currently sitting at around 5.3%. These numbers become more attractive for investors, especially considering the long-term growth potential in Brisbane. Investor activity has increased considerably compared to this time last year and once again we are seeing higher buyer activity at these inspections.
While there are undoubtedly certain challenges that may persist in the near future, it's also important to take into account actual observations, and these show that from the final quarter of 2022 to the present, there has been a clear shift in buyer activity.
The next ten years will bring enormous change to our city and provide opportunities for those wanting to buy in. If you are looking to enter the market please contact us to learn more about our full buyers agent service and how we can assist you in finding the perfect property