Brisbane Property Market Facts to know before Purchase
Brisbane’s dwelling values are up 10.6 percent over the last year and are now at new highs (Source – CoreLogic reports published on Property Update). As a result, many across the country look forward to buying a property in Brisbane. If you are one, knowing a few facts about the city’s property market can help.
Prices of Houses in Brisbane
When you dig deeper into the 10.6 percent growth in dwelling values, you will find that some properties have outperformed others and freestanding Brisbane houses by a large margin. For instance, the value of homes in Brisbane, situated at a distance of around five to seven kilometers of the CBD or in good school catchment zones, has grown enormously.
Segments that performed the worst include high-rise tower apartments and new and off-the-plan apartment sites. Alongside, properties in blue-collar areas and new housing estates are another part of the worst-performing segments.
Brisbane Property Market Trends
Brisbane is one of the top real estate markets in Australia. However, that does not mean all of its properties will rebound strongly in the years to come. Properties in the inner ring suburb, specifically in improving areas, will outperform less expensive properties in other suburbs. One of the reasons for it is the impact that the pandemic had on low-income earners. People with high or middle-income are likely to recover quickly. While some, on the other hand, haven’t had any effect.
House Values Outperform Unit Prices
Since the onset of the pandemic, Brisbane has witnessed a 15.5 percent rise in the values of houses, compared to a mere 5 percent in the case of units. However, the gap between house and unit values has increased fairly consistently since the mid of 2015, and five years annualized growth rates are at 4.3 percent for houses, compared with a -0.1 percent decline in units.
The house price premium throughout Brisbane exhibits minor signs of slowing down. That’s because monthly growth rates over June continued to show a higher uplift in houses (2.2 per cent) compared to units (0.7 percent). This can also reflect interstate demand for relatively cost-effective homes in Brisbane, as the Work from Home, as the new normal, has encouraged movement from Melbourne to Queensland over 2020.
Another reason that pulls people toward Brisbane is that values are relatively low, specifically relative to the recent acceleration of values across other cities, including Sydney, Canberra, and Melbourne. According to CoreLogic estimates, around 41 percent of properties across Greater Brisbane would be less expensive to service a mortgage than rent. This is compared to 2.1 percent properties across Sydney, 3.3 per cent across Melbourne, and 30.3 percent across the ACT.
We hope these insights will be helpful to you. Of course, there’s much more to the above. However, connecting with an experienced local Brisbane company can prove even more helpful in your endeavors to buy a property in Brisbane.