Brisbane has become one of the most compelling markets for investors in Australia. With prices on the rise and vacancy rates low, it is finally about to realise its long hoped-for potential.
Property analyst Terry Ryder of Hotspotting says Brisbane has been predicted by many analysts over the past three years as “poised to take off”, but for various reasons it hasn’t.
That has now changed with the property market already showing signs of a long-lasting boom.
“I believe the city’s property market is about to realise the potential that many people have seen in it over the past two or three years,” he says. “Now, it is Brisbane’s time to shine.”
Sales activity has soared in the past six months and prices are starting to show significant uplift, propelling the Brisbane property market from dormant to dynamic.
The latest Price Predictor Index published by Hotspotting reveals sales levels higher than have been experienced for many years in the Brisbane market.
“The number of suburbs with rising sales activity in the greater Brisbane area has quadrupled since mid-2020,” Ryder says. There were now 124 suburbs within greater Brisbane recording rising sales activity compared with 28 suburbs just nine months ago.
“This is going to be a very, very big year for Brisbane, with the sort of price growth that Brisbane has not had any time in the past ten years,” Ryder says.
The Moreton Bay region on the northern fringe of Brisbane is the strongest-performing area with 31 suburbs showing increases in sales activity. Logan City is also improving well with 17 growth suburbs.
Brisbane isn’t the only market to enjoy its time in the sun, as Ryder says there is a national real estate boom under way, something that is a very rare occurrence in Australia. “The last time we had one was from 2001 to 2004, when all the major markets across the nation were showing significant, double-digit annual growth for multiple years.”
He says while low interest rates contribute to more activity in the market, it is only one of the multiple reasons why property is surging now.
Ultra-low vacancy rates not experienced for decades and increasing rents were also contributing to the boom. Five of our eight capital cities and most regional centres now have vacancy rates below 1%, with many closer to zero than to 1%.
“Which means that there’s almost nothing available for rent and that’s putting tremendous upward pressure on rentals,” Ryder says. “You can’t have a location with a vacancy rate close to zero and rents rising strongly without prices also reacting to that.”
Ryder says stronger demand started to emerge in Regional Australia 2-3 years ago as the move toward a more affordable lifestyle built up momentum. He believes the regional boom will be substantial and long-lasting.
CoreLogic figures confirm Ryder’s analysis that prices are on the rise throughout Australia, with figures revealing in the 12 months to the beginning of March all capital cities except Melbourne recorded increased values.
While Melbourne’s growth was a little slower, it is starting to catch up with price increases recorded in the past quarter.
Ryder says another market to keep an eye on is Regional South Australia, which doesn’t appear on many investors’ radars, but is starting to perform extremely well. “It doesn’t get talked about in the media, but it’s has been showing nation-leading uplift in the last year or so and continues to show good growth.” Tasmania remains one of the strongest markets in terms of price up in the last 12 months as well.
Investors interested in the Brisbane market can purchase a copy of our Top 5 Brisbane Hotspots HERE
And developers and corporate clients interested in acquiring one of the limited edition “Why Invest In Brisbane” reports can contact Terry directly at ryder@hotspotting.com.au.
