Interstate buyers cause Brisbane house prices to sky rocket

This increase falls second only to Canberra in the country, which had only a 0.6% difference in its house price rises when compared to Brisbane. Looking at these prices from an annual perspective, it was determined that Brisbane house prices grew by 25.7%. This is equivalent to over $444 per day. However, it seems as though house prices weren’t the only property type jumping in price as unit prices also witnessed a 3.5% annual rise for the first time since 2016. Yet the large growth gap between house prices and unit prices has led to an all-time high price gap between property types.

When we break these figures down further, it seems that the Brisbane north region underwent the biggest quarterly price change. The north region witnessed an increase in house prices from $775,000 to $881,000. This is equivalent to a 13.7 % increase. By comparison, the highest-performing area for unit prices was Moreton Bay South. This area saw unit prices increasing by 7.6% over the quarter – exacting a median of $366,000.

It appears these numbers were expected as professionals predicted that the Brisbane housing market would succumb to sky-high prices because of a low number of COVID cases, low-interest rates, higher household savings, reduced discretionary spending, and comparative affordability. These factors led many individuals from places such as Melbourne and Sydney to migrate to Brisbane in 2021.

Results surpass expectations

Yet despite these astronomical differences, there is no way professionals could have anticipated the level of price hike that was witnessed. The strong finish to house prices in 2021 outstripped the expectations of housing experts and property punters alike. While the last quarter of any calendar year is always the strongest for buyer engagements in Brisbane, no one predetermined the level of migration that took place.

Another potential reason for this rapid-fire increase is the new interest in travel after the worldwide pandemic. More families are preoccupied with the idea of travel after being denied the ability to do so for so long. Professionals are labelling this resurgence in travel as a result of ‘lockdown fatigue.’ Although there was a noticeable difference in consumer confidence with the Omicron variant of COVID-19, interstate buyers, locals, and international home hunters continued to purchase property in Brisbane.

When you compare sale prices in Brisbane to those in Melbourne, it’s easy to understand why many would prefer to move to the former. Melbourne homes sell for the median price of $1.6 million, which is almost double the prices in Brisbane.

The continuing interest in Brisbane homes makes it easy to predict that the housing market will soon outperform other capital cities and surpass the $800,000 by the next quarter. Yet with the number of interstate buyers on the lookout for property, the total number of homes for sale in the city is at an all-time low. This demonstrates that the heightened demand in Brisbane homes exceeds the supply rate.

Brisbane is fast becoming a burgeoning metropolitan

Despite this, a lot of money continues to be invested into Brisbane and the rest of southeast Queensland, which will only attract even more families and individuals over the coming years. Soon, with the amount of money being funnelled into the city, Brisbane is expected to become a burgeoning metropolitan that rivals both Melbourne and Sydney. By moving to Brisbane, families can benefit from a world-class city with median prices that are still half that of Sydney.

There are some other lifestyle benefits that are likely to contribute to an increase in buyer engagement in Brisbane. The Queensland government is expected to invest a lot more into the city’s infrastructure following the announcement of the Olympic Games being hosted there in 2032. These new development are likely to bring in new families who have a fear of missing out on the new city developments and investment benefits. Since it’s mostly families looking to purchase houses with gardens and education resources, the inner-city suburbs that surround good school catchments in Brisbane are expected to witness the largest price growth over the coming years.

It's important to account for the coastal setting of Brisbane too when considering this huge increase in migration. As people spend more time self-isolating or working from home, they’re looking for areas where they can spend time by the sea and beaches. It comes as no surprise that Brisbane would be a top qualifier as a coastal setting with bayside beaches and nearby islands.

Sparrow Real Estate is a Brisbane Sales agency looking to exact lower housing fees. Get in touch with us for more information.