If so, now might be a good time to start considering your options. The Brisbane market has been performing exceptionally well over the past few years, with many areas seeing house price growth of 30% or more. Even with the challenges of the past year, the market has remained strong and resilient.
In 2021, Brisbane saw the steepest annual climb in house prices in 13 years, with almost 400 suburbs joining the million-dollar club. While prices have recently fallen from their peak, the market has done so with a significant lag compared to the rest of Australia. In fact, prices are still far higher than they were just 12 months ago. The same is true for units as well - while there has been a slight dip in prices over the past month and quarter, they are still up 10.7% compared to last year.
There has been a significant amount of internal migration to Queensland, particularly from Victoria and New South Wales, with people looking for more affordable property in lifestyle suburbs. Additionally, the market has benefitted from historically low interest rates, which have allowed some households and investors to upgrade their homes or buy investment properties. All of these factors have contributed to the robustness of the market.
It's worth noting that the Brisbane market is somewhat fragmented, and not all properties have performed equally well. In general, freestanding houses within 5-7 km of the CBD or in good school catchment zones have seen strong growth, while apartments in high-rise towers and new housing estates have underperformed. That being said, there are still opportunities to be found for those who are willing to do their research.
On the rental side of things, the market in Brisbane has been tight, with vacancy rates hovering below the 2.5% level that typically represents a balanced market. According to some data, the vacancy rate for houses in Brisbane is currently at 0.8%, while the rate for units is at 0.7%. As a result, rents have been on the rise, with house rents increasing 18.1% over the past year and unit rents rising 13.6%. This trend is likely to continue for the foreseeable future, given the city's high demand for rental properties and relatively low supply.
Looking at capital growth, it's worth noting that more expensive properties in Brisbane have generally outperformed middle and lower-priced properties. Moving forward, houses in the inner and middle-ring suburbs of the city are expected to offer the best prospects for long-term capital growth, as these areas are home to a large number of high-earning workers. On the other hand, the apartment market in Brisbane has been a bit more mixed - while demand has been high, there has been a mismatch between demand and supply. As a result, some experts predict that vacancies will fall further and rents will continue to rise, which could support the next wave of buy-to-sell apartment supply.
Overall, the Brisbane market has shown itself to be resilient and strong, even in the face of challenging circumstances. If you're thinking about getting into the market, now might be a good time to start exploring your options. While there are always risks involved in any property purchase, the current market conditions in Brisbane could make it a good time to take the plunge.
Finally, it's worth addressing the question of whether the Brisbane property market is at risk of crashing in 2023. While there are some concerns about the future of the market given rising inflation and interest rate hikes, most experts believe that strong supply and demand dynamics will continue to support the market. Additionally, Brisbane has been less vulnerable to economic downturns in the past, thanks in part to its strong job market and high quality of life. All of these factors suggest that the market is likely to remain strong for the foreseeable future.
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