Brisbane’s property market is growing thanks to population growth and affordability. House prices are expected to increase by 13.9%, with a 4% rise in 2024 and 3% growth in the years after.
Factors like interest rates, limited supply, and high demand play a key role in shaping prices. Despite rising costs, Brisbane remains cheaper than other major cities like Sydney and Melbourne.
When investing, timing is important. Diversify your investments to lower risk. Do thorough research and look for suburbs with potential for growth and strong amenities.
Brisbane House Prices: Will They Keep Growing in 2024?
This article directly addresses whether Brisbane house prices will keep rising in 2024. It looks at key drivers like population changes and interest rates that could impact the market.
Brisbane faces economic challenges and opportunities this year, and we provide an overview of expected trends without much guessing.
Brisbane’s Property Market Overview
Source: Corelogic
Brisbane’s property market has grown a lot in the past ten years. Property prices have increased by an average of 5.2% each year. Much of this growth is due to a population boom, especially in the middle-ring suburbs.
This has led to more property development and construction, pushing up the demand for housing.
The market’s recovery is mainly driven by supply and demand, along with affordability. Even though prices are climbing, Brisbane’s market is still appealing because of its mix of growth and affordability.
These factors have caused property prices to rise, and this trend could continue into 2024.
Population Growth and Its Impact on Housing Demand
The positive correlation between population growth and housing demand makes it a crucial consideration for property investors.
People moving from other states has greatly increased Brisbane’s population, adding tens of thousands to Queensland’s numbers in recent years.
This increase, along with Brisbane’s good lifestyle and affordable living, has made housing more in demand, causing property prices to go up.
The cycle goes on. More people move to Brisbane for a better life. This makes housing more in demand. As a result, prices go up even more.
Price Growth and Affordability
“This growth is expected to continue in 2024, with house prices predicted to rise by 13.9%. The market is set for a 4% growth in 2024 and 3% in the following years.”
Even with rising prices, Real estate in Brisbane market keeps an attractive level of affordability for buyers. The average house price in Brisbane is significantly lower than that in other major Australian cities like Sydney and Melbourne.
This relative affordability, combined with the city’s attractive lifestyle and growing population, makes Brisbane a compelling choice for property buyers and investors.
Factors Influencing Brisbane House Prices in 2024
Looking towards 2024, multiple key factors are likely to steer Brisbane house prices. The anticipated interest rate for Brisbane in 2024 is expected to remain relatively stable, potentially bolstering ongoing demand for housing and contributing to stable or rising property prices.
However, rising interest rates may diminish purchasing power and property demand, potentially leading to a decline in property prices.
The limited supply of housing in Brisbane, along with rising demand, has driven up property prices. The current housing supply is not enough to meet the need for homes.
This increasing gap between supply and demand is expected to significantly impact Brisbane’s property prices in 2024.
Rising Interest Rates and Their Effect on Property Prices
The property market is significantly impacted by interest rates. As interest rates rise, the buying capacity of prospective purchasers can decrease, resulting in a decline in property demand.
Changes in the official cash rate affect property prices. When interest rates go down, property prices usually go up. When interest rates go up, property prices often slow down or even drop.
However, the Brisbane market has displayed resilience in the face of interest rate changes. Even in the context of rising interest rates, the market has bounced back from downturns and achieved record high prices.
While future rises in interest rates may potentially dampen the housing market, the robust demand for property in Brisbane could counterbalance this effect.
Buyer Demand and Market Trends
A surge in buyer demand in Brisbane’s property market in recent years has led to a rise in house prices and a scarcity of affordable housing. Interestingly, Brisbane buyers tend to favor houses over apartments due to the better capital gain potential of houses.
This preference, along with the robust demand for houses, has resulted in a 12-month growth of 9.7% for unit prices, indicating a growing interest in the apartment sector as well.
This strong demand and the market’s preference for houses over apartments and inner/middle-ring suburbs over outer suburbs are driving property prices in Brisbane.
As the demand for housing continues to outstrip supply, we can expect property prices to remain robust in 2024.
Housing Supply and Its Impact on Property Prices
The escalation of property prices in Brisbane can be significantly attributed to:
- Limited housing supply
- Lack of innovative solutions, such as modular housing and community land trusts
- Inability of housing supply to keep pace with demand
Specific areas of Brisbane that are particularly affected by this housing shortage include:
- Moreton
- Redlands
- Logan
- Scenic Rim
- Ipswich
- Toowong
- Richlands
- Springfield
- Hamilton
- Mackenzie
- Bowen Hills
- Sunnybank Hills
This shortage of housing supply has resulted in a rental crisis in Brisbane, further exacerbating the upward pressure on property prices.
Brisbane’s Rental Market and Its Influence on House Prices
Another key driver of property prices is the rental market in Brisbane. The city’s rental market is experiencing a significant increase in demand, with rents for new tenancies in Brisbane surpassing a 17% increase over the past 12 months.
This increase in demand, coupled with a constrained rental market, has led to a surge in Brisbane house prices.
In Brisbane, rental demand can considerably impact house prices, as high rental demand is often associated with price growth.
Furthermore, there is a correlation between the affordability of properties in certain suburbs and the rental yield they generate, leading to potentially lucrative investment prospects.
Tight Rental Market and Its Effects on Property Values
Another factor contributing to the rise in property values is Brisbane’s tight rental market. Some reasons for this are:
- Low vacancy rates have the potential to drive up rents as a result of high demand
- Rental properties become more appealing to investors
- This leads to an uptick in property values.
Historically, Brisbane has experienced low vacancy rates and rising median rents, resulting in a significant increase in house prices. The increasing abundance and appeal of the suburb have resulted in a high demand for properties in the area, leading to an escalation of property values.
Rental Properties as Investment Opportunities
Investing in Brisbane’s rental properties offers opportunities for:
- Capital growth
- Attractive rental income yields
- Steady cash flow
- A persistent high demand for rental properties with scant vacancy rates
Rental yield is a clear measure of investment performance and can be calculated by dividing the annual rental income by the property value and multiplying by 100 to get the rental yield percentage.
Strong rental yields in the Brisbane property market are primarily influenced by:
- Increasing demand for rental properties, driven by the city’s robust population growth
- Strategic positioning of the investment property
- Stage of market cycles
- Low vacancy rates
- Substantial rental demand
Promising Suburbs for Property Investment in Brisbane
Certain suburbs in Brisbane are emerging as particularly promising for property investment. The following factors have all contributed to high capital growth in these suburbs.
- the city’s strong economy
- sustained growth in property values
- robust migration
- tight rental markets
- a shortage of housing
- affordable property prices
- attractive lifestyle
- significant population growth
- increased internal migration to the city
Suburbs such as Gumdale, Ellen Grove, New Farm, Norman Park, Indooroopilly, Camp Hill, East Brisbane, Graceville, Manly, and Taringa have exhibited high capital growth in recent years within the Brisbane area.
Meanwhile, the appeal of a suburb for property investment in Brisbane is often influenced by factors such as proximity to schools, parks, cost of living, closeness to family, coffee shops, and a thriving nightlife.
Affordable Property Options
Suburbs like Keperra and Chermside West offer growth potential and are suitable for investors seeking affordable property options.
In Keperra, the median property prices for houses are $825,000 and for units are $626,000. In Chermside West, the median prices are $875,000 for houses and $652,000 for units.
Despite a recent decline in median sale prices, Keperra is showing signs of potential for future appreciation. Similarly, Chermside West has experienced a significant 29% rise in the median house price in the past five years, indicating robust growth in property value.
The relative affordability of these suburbs, combined with their growth potential, makes them appealing options for property investment.
High Capital Growth Suburbs
Annerley and Woolloongabba are prime examples of Brisbane suburbs with high capital growth. Significant infrastructure developments and attractive features such as period-style homes and proximity to essential amenities have boosted their attractiveness for property investment.
Over the past year, there has been significant growth in median property prices in Annerley and Woolloongabba, with houses ranging from $1,203,500 to units at $565,500.
With an average growth of approximately 30% over the previous five years, these suburbs hold considerable potential for further price escalations in the next five years.
Suburbs with Desirable Local Amenities
Buyers are increasingly gravitating towards suburbs with desirable local amenities. Ashgrove is one such suburb, where development includes:
- Tree-lined streets
- Roads
- Hills
- Numerous amenities and park areas
The proximity and quality of neighborhood amenities play a significant role in influencing property values in Brisbane.
Factors such as the accessibility of schools, transportation options, and attractions are key elements that affect the desirability of properties and, consequently, their prices.
The increasing abundance and appeal of these suburbs have resulted in a high demand for properties in the area.
3 Strategies for Investing in Brisbane’s Property Market
A strategic approach is required when investing in Brisbane’s property market. Key strategies include timing the market, diversifying the property portfolio, and conducting thorough research and due diligence. Each of these strategies plays a crucial role in making well-informed investment decisions and maximizing returns.
Timing the market can greatly affect property investment returns. However, it is a risky strategy. You might miss opportunities and potential earnings.
On the other hand, diversifying a property portfolio reduces an investor’s vulnerability to risk and enhances the potential for capital appreciation.
Furthermore, conducting comprehensive research and due diligence is essential in evaluating property potential and understanding local trends and forecasts.
1. Time the Market – Capitalise During the Growth Spurts
In Brisbane, timing the market can greatly affect property investment returns. By strategically capitalizing on the periodic property growth spurts that occur every few years, investors have the potential to double their investment returns.
Certain times of the year may offer more favorable property prices in Brisbane. From March to May, the market experiences an increase in listings and buyers tend to withdraw from the market in June, leading to a buyers market.
Furthermore, the period before or just after winter can present opportunities for more favorable negotiations as homeowners are less inclined to sell their properties.
2. Diversify Your Property Portfolio – Houses, Units etc.
Diversification of a property portfolio is crucial in reducing an investor’s risk exposure and enhancing the likelihood of capital appreciation. A diversified property portfolio in Brisbane should encompass a range of residential properties, including:
- Houses
- Apartments
- Townhouses
- Units
across multiple suburbs.
By diversifying across suburbs and property types, investors can:
- Spread their risk
- Take advantage of different market conditions
- Benefit from various wealth opportunities
- Facilitate the attainment of long-term financial objectives.
3. Conduct Thorough Research and Due Diligence
To make well-informed investment decisions, it’s crucial to conduct comprehensive research and due diligence.
By thoroughly examining the market, evaluating property potential, and understanding local trends and forecasts, an investor can mitigate risks and enhance the likelihood of a successful investment outcome in Brisbane’s property market
Investors should:
- Carefully inspect the property and the neighborhood
- Research the title and ownership of the property
- Obtain a professional inspection to check for any structural damage or potential problems
- Understand the zoning regulations outlined in the Brisbane City Plan 2014 to make informed investment choices
Summary
Brisbane’s property market gives home buyers and investors great opportunities. The population is growing, and there is a high demand for housing. However, there is a limited supply of homes. As a result, housing prices are increasing. This trend is expected to continue into 2024.
Investors can lower their risks and increase returns by buying at the right time, diversifying their portfolio, and researching carefully. Staying updated on market trends helps them make smart decisions as the market changes.
You can also compare Brisbane’s market with other cities like Newcastle. Similar factors, such as population growth and interest rates, are shaping these markets and giving buyers a broader view of real estate across Australia.
Suggested reading: Before you go further, get a comprehensive understanding of the property market cycles in our top-tier hub article. It’s a must-read for all enthusiasts!
Frequently Asked Questions
What is the property forecast for Brisbane in 2024?
Experts expect Brisbane’s property market to grow in 2024, with strong demand in the inner and middle-ring suburbs.
Which Brisbane suburbs will boom in 2024?
Suburbs like New Farm, Paddington, and Ascot are set to see big price increases in 2024.
What will property prices be in Brisbane by 2025?
By mid-2025, unit prices should rise by 3.1%, and the median house price could reach $810,000.
What is driving Brisbane’s property market growth?
Brisbane’s market is growing due to affordability, more people moving in, high demand, and not enough housing.
How will rising interest rates affect Brisbane’s market in 2024?
Higher interest rates may lower demand, but Brisbane’s strong property market could balance this out.
Disclaimer: Some images in this article may have been enhanced using AI.
