In 2021, the property market grew at a rate of 30%, and things are looking up in 2022 as the first quarter increased by 7.2%. What should we expect for the remainder of the year, and how does it look going to 2023?
Should We Expect a Property Crash in 2022?
Experts have warned that prices could drop by 20%, but we’ve seen a turnaround. Brisbane was ranked number three in Australia as one of the places that experienced a tremendous increase in annual property growth.
This is not to say that other cities haven’t experienced slow growth–Brisbane is among the fewest cities that have weathered the storm and experienced tremendous growth despite the property market grappling with high-interest rates. But will house prices continue to surge, or is there likely to be a property crash in Brisbane?
There isn’t one concrete answer to this, and only time will surely tell. Some experts have warned that property prices may fall while others are of a different opinion, partly due to high-interest rates. Others believe the prices could rise in the next six years, like in the past. A case in point is twenty years ago when Australia experienced a property boom, interest rates increased by twenty times, but the median price growth increased by 127%.
High-interest rates don’t necessarily mean that house prices automatically go down–many other factors come into play. If the housing structure is in order, prices should remain constant or increase even as interest rates surge.
Is the Situation the Same in Other Cities in Australia?
No–different cities, and even areas in the same city, are being affected differently by the high-interest rates. Despite property for sale in Brisbane experiencing tremendous growth throughout 2022, other areas aren’t so lucky. This includes both Melbourne and Sydney, which are most likely to be affected because they don’t have strong property market fundamentals.
What Drives Brisbane Property Market?
The most important determinant of property prices is the demand versus the supply. Here are some factors that determine the prices of property in Brisbane:
Population Growth
Brisbane has experienced a boom in population–especially through immigration–meaning many people are looking for properties to lease or buy. It’s expected Brisbane’s population will continue to grow, among other factors such as:
- Employment opportunities
- Good health facilities
- Lifting of travel restrictions
Wondering about the cost of conveyancing in Brisbane or property management fees in Brisbane? Take a look at our recent articles.
Economic Growth
When the economy of a region is on an upward trend, it creates more jobs, which attracts more people. Economic growth also encourages better compensation, meaning people can borrow and finance their homes.
Infrastructure
There are mega infrastructure projects under construction or in the pipeline in Brisbane. Infrastructure impacts the property in two ways: those working will need housing, and people are attracted to regions with well-developed infrastructure, including hospitals providing world-class health services.
While some cities in Australia are predicted to experience a decrease in the property market, investors in Brisbane can expect high growth in 2022 and beyond. If you’re looking to buy a property, the time is now; if you’re unsure how to navigate the current murky real estate waters, you should consider hiring a reliable real estate company to help.
