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Is Brisbane’s Property Market Turning a Corner?
Brisbane property prices have stabilised, suggesting the worst of the price falls of recent months may be over.
The news around property market movements in Brisbane, based on CoreLogic data, has suddenly become more positive due to a rapid easing in the pace of decline in dwelling prices throughout February.
According to PropTrack, Brisbane has now seen its second consecutive month of small median price gains.
With the Qld State Govt as well as the Federal Govt striking a $7 billion deal for the Brisbane 2032 Olympic and Paralympic Games this is a huge injection of funds into new infrastructure for Brisbane.
This is set to have a long term and transformational impact within Brisbane. The city will become a global city, thus boosting economic activity, employment opportunities and its long term prosperity.
Buyer Activity up in Qld capital
There is an increased level of buyer activity that has built upon the number of buyers who were out and about throughout January.
It is not just the volume of people at open homes and auctions that has been increasing, but also the average number of registered bidders at auction and the percentage of active bidders who are participating in auctions through Brisbane. Clearance rates have also been improving month-on-month throughout the city.
Clearance rates in Brisbane for February were an average of 58.5 per cent according to CoreLogic. Apollo Auctions have their auction clearance rate for Brisbane throughout February at 71.2 per cent. Both values are much higher than the latter months of 2022.
Brisbane House Prices
House price changes continue to lag behind the performance of the unit market in Brisbane.
PropTrack reported Brisbane house values actually increased marginally throughout February off the back of a small drop of 0.13 per cent house price changes in January. PropTrack data placed the median value for a house in Greater Brisbane at a more generous $798,000.
Brisbane’s unit market continues to outperform the housing market month-on-month.
In February, according to CoreLogic data, Brisbane unit values held firm with no change. Unit values have increased over the last 12 months in contrast to Brisbane house values.
Rental Market crisis persists
For this reason there may be opportunity for property investors to capitalise on the yields being pushed up due to property values retracting in recent months at the same time rents have been escalating.
CoreLogic data shows the gross rent for a house in Brisbane has increased 11.9 per cent over the last 12 months. For units the rent price growth has been even higher, at 15.6 per cent.
Buyer volume expected to deliver price stability
In the absence of any significant increase in the number of properties that become available for sale, prices can be expected to remain stable. There are simply too many buyers and not enough stock for major price falls to occur.
Source: PropTrack, Corelogic