The heat is on: Brisbane’s property market is set to fire up

Should you invest in Brisbane’s property market? We say yes–and here’s why.

All the signs are that Brisbane’s property market is experiencing a high growth phase, with currently low median house prices representing fantastic opportunities to take advantage of capital growth potential.

Thanks to strong economic fundamentals, substantial investment in infrastructure development, population increases and affordable house prices, Brisbane’s housing market has been experiencing a growth trajectory which has outperformed the rest of the country’s property markets. With many factors driving demand, the market is anticipated to grow at 3-5% in the next 12 months.

The Brisbane property market has been demonstrating solid performance in contrast to the national context of fewer listings, dropping values and a general market slowdown. Brisbane’s resilience is being attributed to a robust state economy fuelled by an infrastructure boom creating jobs, as well as consistent population growth.

The state’s population growth has been stimulated by strong interstate migration (up 50.5% since 2018) together with 12.7% of all overseas migrants settling in the sunshine state. These interstate and international migrants have been attracted to invest in property in Queensland, and Brisbane in particular, thanks to lifestyle factors and the greater affordability of property in the state when compared to its Eastern competitors.

Tom Uhlich at Boss Money says:

“Not only are there lower median house prices in Brisbane than Sydney and Melbourne, but rental yields are higher as well, making it an especially attractive proposition to investors.”

In terms of capital growth, economic experts are predicting that Brisbane property prices could experience double-digit growth over next few years. Forecasting by BIS Oxford for the next three years show that the Brisbane market will see the greatest growth compared to all national property markets, with median prices expected to see a 13% increase, to $620,000.

In keeping with standard property market behaviour, of course, there is variance across sub-sectors and certain properties in certain locations are performing better than others. With property inevitably being a heterogenous, highly fragmented market, some city locations demonstrate better growth potential than others. Which sub-sectors of the market represent a better investment than others depends on factors such as geographic location, price and property type. For example, CoreLogic data for 2018 shows that apartment prices decreased by 0.5% but at the same time, house prices went up by 0.1%.

Says Tom Uhlich:

“Drill down into the figures and you find that the best performers are freestanding houses and townhouses in premium locations, such as near the CBD, by the river in the inner ring or near school catchment zones. These properties experienced much stronger growth in value, with some of these properties having double-digit growth.”

Overall, at least 68 Brisbane suburbs demonstrated greater growth than the national average. Further data from CoreLogic indicates that over the next two years Brisbane can expect to see one in 10 houses sold for more than $1 million.

So where are the most promising capital growth opportunities in Brisbane? According to Tom Uhlich:

“Looking at the longer term, we predict the best opportunities for investors are likely to be found in the inner and middle sectors of Brisbane’s suburbs such as Cannon Hill, Kedron, Tarragindi. Keperra and Ashgrove

Based on our analyses, it’s clear that Brisbane’s property market is due for a high growth phase, meaning Brisbane currently offers great opportunities for long term investment. But making a well-informed investment decision depends on being armed with all the facts to enable you to find the perfect property to invest in. We can help steer you in the best direction, so give us a call, sms or email here at Boss Money today.

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