Brisbane Residential Market Update

brisbane residential

PART 1: Brisbane Residential Sales Market

Overall, the house market has generally outperformed the apartment market. The number of properties for sale is also trending upwards.

The most expensive suburbs in Brisbane were again Teneriffe, New Farm, and Ascot. While the suburbs that sold the highest volumes were Forest Lake, Bracken Ridge, and Wynnum.

 

brisbane residential
Brisbane House Market

Brisbane LGA’s annual median house price grew to a record high of $665,000 by the end of 2017. Unsurprisingly, the most popular price range is from $500,000 to $750,000.

It’s steady but modest growth has been an attractive quality for investors in the property market who see Brisbane as a solid performer. The REIQ has classed Brisbane’s residential house market as a rising market for 2018 so watch this space.

 

brisbane residential
Brisbane Apartment Market

2017 wasn’t a great year for Brisbane’s apartment market with the median apartment price falling to $435,000 at the end of 2017. However, the medium-term performance was positive with a 7.8% increase in the median price from December 2012 to December 2017.

The short term predictions for Brisbane’s apartment market are unclear. Some property commentators are saying that last years slow market was impacted by low employment growth, tighter lending restrictions on investors, and the fear of oversupply. With these factors becoming more commonplace, these commentators believe we may see a slight uplift in 2o18.  A key reason for this uplift is that demand and supply should catch up to each other. Housing construction has slowed meaning there are less available properties however, Brisbane’s population is growing meaning demand for housing should increase too.

Conversely, some commentators are predicting tougher conditions and believe that we won’t see any uplift in 2018. These commentators believe the gap between supply and demand for Brisbane apartments is too wide to bridge in 2018 and that we won’t see a change until 2019 or later.

 

brisbane residential
Brisbane Residential Land Market

The price of vacant residential land around Australia hit a record high by the end of 2017 Nationally, the median vacant residential land lot price rose to $267,368. Brisbane residential vacant land sales were the second highest in the country with 1,928 lots sold in the final quarter of 2017. Despite increasing media coverage on the housing affordability crisis, Greater Brisbane was the second most affordable of the capital cities with a median price of $231,000 per lot. Brisbane LGA was slightly higher with a median price of $421,500.

Brisbane residential land was selling for an average of $546/sqm. This a much more affordable price when compared to that of Sydney and Melbourne where land was selling for an average of $1,051/sqm and $737/sqm respectively.

Key Sales Statistics for Oct – Dec 2017
brisbane residential

Click on the table to see an enlarged version.

Source: REIQ QMM 

 

PART 2: Brisbane Residential Rental Market

Brisbane’s rental market performed relatively well in 2017. In positive news, Brisbane LGA vacancies returned to the healthy range of 3%. In not so positive news, rents have come slightly down for houses and apartments. This has been most keenly felt by Brisbane apartments. Despite this slight decrease, Brisbane apartment yields are still at around 4.8%, which is one of the higher yields in the country (Sydney apartment yields were around 3.57% and Melbourne’s were around 4% in 2o17). House yields are around 3.2% and are the smallest across Queensland. However, they are above Melbourne were yields are only around 2.7%! This indicates that investors may be relying on capital growth to achieve wealth creation when buying houses in Brisbane LGA.

Key Rental Statistics for Oct – Dec 2017
brisbane residential

Click on the table to see an enlarged version.

Source: REIQ QMM

 

Sum Up

These past few months have hinted at two emerging trends. Firstly, that the Brisbane residential prestige market seems to be excelling with unprecedented volume and price levels achieved recently.  For example, there have been at least two sales over $7m reported in Brisbane in February alone. This is a good sign as it can lead to a price uplift across the general market.

Secondly, it seems as though our population is growing faster than many other Australian capitals. With around 113,000 jobs being created last year it’s no surprise that interstate and international migration is increasing. This is a good sign for the demand/supply debate.

What next?

If you’re feeling positive about the market, why not have a look at our current residential properties for sale or contact our agents if you’d like some information about selling your Brisbane residential, or even commercial, property.

If you’re thinking that renting is probably your best option right now we also have plenty of apartments available around Brisbane.

 

 

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Brisbane Residential Market Update