Brisbane property values are taking a quick turn, with many of us wondering, are house prices in Brisbane falling?
The short answer is yes—the Queensland capital experienced their most significant decline ever, a mere seven months after reaching a peak. The values soared by over 43% due to a pandemic population surge, causing Greater Brisbane home values to hit a record high on June 19, 2022.
This surge occurred shortly after the Reserve Bank of Australia (RBA) initiated its ongoing rate-tightening cycle. Nevertheless, CoreLogic’s Daily Home Value Index (HVI) indicates that Brisbane’s home values have since dropped.
Let’s dive into insights into the real market, including the performance of houses vs. units, factors that have impacted Brisbane property prices, and potential future influences.
Further Reading: Worst Suburbs in Brisbane – we explore the suburbs that rank low in liveability.
Houses vs. Units: Performance Comparison
Houses: Slow Decline in Brisbane House Prices
Brisbane houses have been performing quite well, with a 6% increase in prices in 2023. In general, Brisbane’s house price growth in the last 10 years has been gradually increasing. The strong demand for houses in the local property market has pushed the median house price to $755,000.
Brisbane property prices fell by 0.4% in February alone, that’s 8.06% less than where we were in February last year.
Units: Moderate Growth in the Brisbane Unit Market
Units in Brisbane have experienced moderate growth, with the median unit price at $520,000. Despite slower growth compared to houses, units still offer attractive investment opportunities in the Brisbane property market, particularly for those seeking rental income.
Factors Impacting Brisbane’s Property Prices
Past Influences: Lending Restrictions and Oversupply
The decline in Brisbane property values in the past can be attributed to a few factors, including tighter lending restrictions, a drop in overseas migration, and an oversupply of new properties.
These factors led to a temporary slowdown in the Brisbane housing market, but it has since bounced back, and these issues are no longer major concerns.
Present and Future Factors: Population Increase and Infrastructure Investments
Brisbane’s property market is currently being bolstered by strong population growth, driven by net interstate migration. This growth fuels demand for housing, driving up Brisbane home values.
Furthermore, major infrastructure investments, such as the Brisbane Metro, Cross River Rail, and Queens Wharf development, are expected to have a significant impact on Brisbane property prices.
Potential Challenges: Rising Interest Rates
Rising interest rates might put some pressure on the Brisbane property market. When interest rates go up, borrowing costs increase, which can lead to a slowdown in demand. However, other factors like population growth and infrastructure investments should help to offset any potential negative impacts.
Brisbane Suburbs: Opportunities and Performance
When considering an investment in the Brisbane property market, it’s important to look at the performance of individual suburbs. Some suburbs have shown exceptional growth and potential for future capital gains. Notable suburbs include New Farm, Taringa, and Paddington, which have experienced strong price growth and high demand from Brisbane homeowners and property buyers.
Expert Tips for Investing in Brisbane
To make the most of the opportunities presented by the Brisbane property market, consider the following tips:
- Do your research: Stay informed about the ever-changing market conditions and factors that could influence Brisbane property prices. Investigate the performance of specific suburbs and property types that align with your investment goals.
- Consider rental yields: If you’re looking to invest in a rental property, evaluate the rental yields for houses and units to determine which option offers the best return on investment.
- Stay updated on infrastructure projects: Keep an eye on the progress of major infrastructure projects, as these can have a significant impact on Brisbane property values in surrounding areas.
- Factor in interest rate changes: Be prepared for potential interest rate increases, which can affect borrowing costs and market demand.
South East Queensland: A Region on the Rise
As a part of South East Queensland, Brisbane benefits from the region’s overall growth and development. This area has seen extraordinary price rises and increased demand, which has positively influenced the Brisbane market. In addition to Brisbane, other areas within South East Queensland, such as the Gold Coast and Sunshine Coast, a re also experiencing growth in their property markets.
Affordable Housing in Greater Brisbane
Affordable housing is a crucial aspect of the Brisbane property market. As Brisbane home values continue to rise, it’s essential to ensure that housing remains accessible for a diverse range of buyers. Areas within Greater Brisbane provide a mix of affordable options, from houses to units, catering to the varying needs of Brisbane homeowners and investors.
Brisbane’s Middle Ring Suburbs: Hidden Gems
Brisbane’s middle ring suburbs, such as Chermside, Holland Park, and Morningside, offer excellent opportunities for investors seeking potential capital gains. These suburbs have experienced strong growth in median property prices, and their relative affordability compared to inner-city suburbs makes them an attractive option for both owner-occupiers and investors.
Comparing Brisbane to Other Capital Cities
Brisbane’s property market has shown resilience and growth compared to other capital city markets. While Sydney and Melbourne have experienced peak to trough falls, Brisbane’s housing market has remained more stable. This stability, combined with ongoing housing demand and population growth, has positioned Brisbane as an appealing option for those looking to invest in the Australian property market.
Conclusion
Are Brisbane house prices falling? It looks like they are. But in comparison to other capital cities, Brisbane’s values took a while to decrease. House prices across the city are much higher than they were a year ago, meaning there’s still some way to fall for Brisbane.
But with the RBA still intending on increasing interest rates, many home buyers are likely to adopt the wait and see approach.
Some FAQs on whether Brisbane house prices are falling
Is it the right time to buy a house in Brisbane?
Determining whether it’s the right time to buy a house in Brisbane depends on your personal circumstances, financial situation, and investment goals. Consider factors such as interest rates, property prices, and your long-term plans before making a decision.
While there has been a recent decline in house prices, Brisbane’s property market still offers growth opportunities in specific suburbs and property types.
Will house prices drop in 2023 Australia?
Yes, median dwelling values are expected to drop in Australia this year. Experts are saying that the increased borrowing costs will put pressure on home buyers. Home values will in turn, also decrease.
What is the growth projections for Brisbane?
Brisbane property prices are expected to grow more than other parts of Queensland. Experts are predicting an increase of 1.9% in Brisbane property prices this year compared to 1.4% for the Queensland property market.
Which Brisbane suburbs are set to boom?
Some of the faster growing suburbs in Brisbane that are set to boom are:
- Caboolture
- Dakabin
- Deception Bay
- Eagleby
- Eastern Heights
- Edens Landing
Keep an eye out on these suburbs for an investment grade property.
