Although experts are predicting that real estate prices will correct themselves instead of crash, what does the future of the property market look like?
The latest figures from the Australian Bureau Of Statistics show the value of the country’s 10.8 million residential dwellings rose by $221.2 billion in the three months to March 2022, bringing the total to $10.2 trillion – and the first time in history that the Australian property market has reached such an eye watering figure.
Despite market conditions running red hot around the nation for close to two years, all the signs are showing things might finally start to cool down. Suburbs in inner city Sydney and Melbourne have long been regarded as the most sensitive to market changes, and the recent spate of interest rate rises have appeared to start taking effect – but what does it mean for us in Queensland?
The Future Of The Queensland Property Market
After bottoming in September 2020, residential property prices surged in 2021 to their strongest 12-month gain in over thirty years. However, after a 25% national price rise on the back of this period, Australian house prices are finally beginning to soften.
Everyone from investors, owner occupiers and even first home buyers have closely been watching what the property market is up to, especially since the national average home price fell 0.1% in May. Based on data sourced from CoreLogic, this is the first monthly decline since September 2020.
While the decline was led by falls of 1% in Sydney and 0.7% in Melbourne, Queensland figures paint a different story. In contrast, Brisbane prices have risen almost 5% in the last three months, and appear to be bucking the trend of falling house prices.
Brisbane’s house prices have increased by a staggering 32.1% in the past 12 months alone, with the median price now sitting at $856,731. Although unit prices have dipped slightly across a handful of areas, not one suburb in Brisbane has seen a drop in quarterly or annual prices for houses.
The reason why Brisbane market growth is looking so strong will generally vary depending on who you ask. For some, hosting the 2032 Olympic Games means billions of dollars being invested into local infrastructure, particularly for transport and liveability improvements. For others, it’s because Brisbane never quite reached the same levels of growth that Sydney and Melbourne saw in the last two decades, and therefore had less room for market fluctuations.
Given that the upcoming 2032 Olympics will be covering a number of regional hubs and not just focussing on Brisbane itself, other areas expected to reap the rewards of the event include the Gold Coast, the Sunshine Coast, and even Toowoomba.
For those trying to predict the future, it’s also worth noting that CoreLogic Research Director Tim Lawless was quick to point out that if the Sydney 2000 Olympics were any indication, Brisbane could be tracking a similarly strong performance. Figures show that between the 1993 announcement of the Sydney Olympics to when they were held in 2000, Sydney dwelling values jumped by 60% – almost twice the growth recorded across the combined capital cities benchmark region, which grew by 34.6%.
While the headlines may indicate financial stress linked to falling house prices, rising interest rates, and inflation levels not seen for decades, it’s easy to understand why Queenslanders may feel nervous about the state of the property market. Although we’re not immune to the cost of living pressures that every corner of the country is currently facing, the long term future over the course of the next decade is certainly looking bright.
For those ready to purchase their first home, refinance their existing one, or even kick start their journey as a budding property investor, it should come as no surprise that six in ten Australians are now working with a mortgage broker for help in navigating the world of home loans – but where do you find one?
Partner With The Property Finance Experts
Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.
Relentless in their pursuit of gold star customer service, the team at Madd have now expanded their services to include end to end financial planning. Through Madd Life, the aim is to collaborate with clients to identify long term goals, and transform them into a road map.
If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd proudly work together as a collective to turn your goals into reality.