EP 161 - Brisbane Property Market Update - June 2023
Welcome to the latest episode of the Brisbane Property Podcast with hosts Melinda and Scott Jennison! In this episode, we dive into the recent market update for the Brisbane property market, highlighting key trends and insights that buyers, sellers, and investors need to know.
After a period of modest growth, the May data reveals a significant spike in property values across Brisbane. This surge shouldn't come as a surprise, as low inventory levels and growing demand have been contributing factors. With fewer properties available for sale and increasing competition, buyers who have been searching for a while are starting to feel the pressure.
The availability of properties varies across different suburbs in Brisbane. Some areas, such as Clayfield, Petrie, and Kangaroo Point, have experienced significant decreases in new listings. On the other hand, suburbs like Aspley, Greenbank, and Jimboomba have seen listing volumes increase over the past year. It's important to understand that not all locations in Brisbane follow the same trend, as local dynamics can influence market performance.
The heightened competition in the market has led to properties selling quickly. Days on market have been trending lower, and it's becoming common for properties listed for sale to receive multiple offers after the first open home. Buyers need to be well-prepared, and ensure that they complete their thorough due diligence, pricing analysis, and have financing arrangements in place to make quick offers.
Demand for Brisbane properties is coming from local, interstate, and overseas buyers. Many individuals from other states are seeking a more affordable, warm, and laid-back lifestyle in Brisbane. Additionally, Brisbane is one of the top regions searched by international buyers from countries like the United Kingdom, United States, China, Hong Kong, New Zealand, and Singapore. The city's attractiveness as a destination for skilled migration further contributes to its demand.
Auction activity in Brisbane has increased, with a higher number of registered bidders and more active bidding during May. While auction clearance rates slightly decreased, it may be attributed to seller expectations being ahead of the market's pace.
Dwelling values in Brisbane experienced a significant jump of 1.4% in May, with quarterly growth now at 1.8%. This growth was observed across all segments of the market, with the most rapid recovery in property prices seen in the higher-priced quarter.
House values in Brisbane grew by 1.5% in May, representing a substantial increase compared to the previous month. PropTrack data confirms the price growth trend in Brisbane houses. Units across Greater Brisbane also saw positive growth, with a 1.1% increase in May. The unit market continues to outperform the housing market in terms of growth indicators.
The rental market in Brisbane remains tight, with vacancy rates at 1% for all dwellings and lower rates for units (0.7%) compared to houses (1.3%). This tightening is a result of reduced rental property supply and increased demand due to interstate migration and the reopening of international borders. Rents have continued to rise, with unit rents growing by 16.4% and house rents by 9.4% over the past 12 months.
Despite some uncertainty surrounding interest rates, buyer confidence has regained momentum, especially in inner-city and middle-ring locations. Forced selling due to mortgage arrears remains minimal, and low unemployment rates provide stability to the market. The fundamental mismatch between supply and demand will likely continue to support price growth
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