Despite the news indicating that the world of real estate is in a downward spiral, this couldn’t be further from the truth for the Brisbane property market.
Although Australia is home to some of the most transparent and factual news sources in the world, we are still not immune from the sensationalist headlines that are designed to capture the attention of the general public.
With popular buzzwords currently including inflation, interest rates and real estate, one such example of these anxiety inducing headlines includes the likes of ‘Australian house prices fall at fastest rate since 2008 financial crisis’.
While this may apply to the nation’s most expensive markets that are traditionally the first to feel such fluctuations, the state of the Brisbane property market tells an entirely different story. With record low rental vacancy rates, property values holding steady and a healthy low economy, the real estate freefall affecting other parts of the nation simply isn’t as relevant here in Queensland.
Unpacking The Strength Of The Brisbane Property Market
According to data sourced from property analytics firm CoreLogic, figures generated in the last financial quarter show that the nation’s median property value has dropped by 2% since to $747,182, which includes houses and apartments.
While this may bring a sense of optimism to first home buyers and a contrasting sense of dread to investors, what the numbers don’t show is that not all corners of the nation are following this trend – particularly the Brisbane property market.
Although Brisbane’s house prices have increased by a staggering 32.1% in the past twelve months alone, the latest quarter saw our median house price fall by just 0.1% – a very different story when compared to the national average of 2%. In addition, the retraction is nowhere near the fall in median values in Sydney, which fell -2.2%, Melbourne at -1.5%, Hobart at -1.5% and Canberra at -1.1%.
While the River City is not immune to feeling the pinch of inflation and rising interest rates, the Brisbane property market has a number of other big factors that are protecting it against the drops that other capital cities are currently facing, and a healthy economy that is only set to secure the health of our real estate market even further.
Interstate Migration Levels – While Queenslanders have long championed the fact that there’s no better place to live than the Sunshine State, it would seem that the data is finally there to back this statement up. Given that our state was relatively lockdown free for the last two years, it’s not surprising that Queensland is currently the fastest-growing state in Australia driven by interstate migration, with over 50,000 new arrivals in the last twelve months alone. When compared to our southern counterparts, the attraction of moving to Brisbane for a better lifestyle is undeniable. If the forecasts are to be believed, it would seem that this isn’t set to slow down anytime soon, which is ideal for filling our many employment vacancies.
Upcoming 2032 Brisbane Olympics – On the back of Queensland’s bid to the first ‘carbon positive’ Olympic Games, this is expected to drive further investment into our already burgeoning renewable energy industry. In fact, ANZ plans to commit an eye watering $10 billion dollars to Queensland energy projects over the next decade, particularly those targeting bioenergy and hydrogen, to help fund the state’s clean energy transition. Moreover, our Institutional business will support Queensland’s ambition to reduce carbon emissions by 50% by 2030, in addition to providing as much as $15 billion dollars in funding for the green infrastructure Brisbane will need to support the upcoming Olympic Games.
Employment Opportunities – Westpac has predicted that the 2032 Brisbane Olympic Games could produce at least $17 billion of economic and social benefits for Australia, with approximately $8 billion of that figure flowing straight into Queensland. In fact, the Value Proposition Assessment from the Queensland Government is expecting roughly $20.2 billion in international visitor expenditure alone. Furthermore, forecasts indicate that the event could generate up to 130,000 jobs, particularly in the construction, logistics and transport sectors. In addition, tackling transport issues is one of the key areas covered by the recently announced $1.8 billion dollar funding package, known as the SEQ City Deal.
Industry experts believe that regardless of the upcoming Olympics Games, Brisbane is also likely to outperform the market as it’s long overdue for a surge after years of sluggish growth. The probability is that outperformance could go on for longer than one or two years post-Games, and Brisbane property investors who take the opportunity to capitalise on the northern regions with a view to holding can expect to have more than sporting wins to celebrate in 2032.
In a nutshell, our strong economic growth and bright future means that the Brisbane property market isn’t set to fall off a cliff anytime soon. If you’re one of the thousands of people currently considering making the move to Queensland, partnering with a local expert can be revolutionary when it comes to mastering the world of finance, particularly if you’re new to living in the great city of Brisbane – but where can you find them?
Partnering With Home Loan Professionals
Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.
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.
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 work together as a collective to turn your goals into reality.
