Looking at the best places to live in Brisbane or searching for property for sale in Brisbane? Maybe you’re wondering what might happen within the Brisbane real estate market in 2022, as many are saying it’s close to crashing, while others say it’s set to flourish. So, what’s really going on?
Last Year
Brisbane had the strongest real estate market in 2021, with many areas enjoying 30% or more growth in house prices. Even though growth in other regions of Australia is decreasing, Brisbane’s real estate markets are expected to remain strong in 2022.
Sure, it recently experienced severe floods but records show the Brisbane housing market is resilient and recovering quickly. Property values climbed in practically every section of Brisbane last year–which is rare.
This Year
Depending on supply and demand, some places’ property values will rise sharply, others will rise moderately, others will freeze, and a few will plummet. However, Brisbane is still one of the country’s hottest real estate markets, with housing values climbing 1.7% in April, bringing the three-month growth rate to 5.7%, the fastest quarterly growth rate among capital cities.
The imbalance between limited supply and high demand is likely to put upward pressure on housing prices and by the end of the year–home values are projected to be 10% higher than at the start of the year, and unit values are projected to be 7% higher.
The Sunshine State capital is currently shining, but this cycle is still just getting started, as there’s much more development ahead for the right properties–Brisbane is still relatively affordable compared to the other east coast major cities.
Will It Crash?
You might be thinking, is the market going to crash? How much more can it increase? Due to rising inflation and interest rates, many are rightfully anxious that the present real estate boom may end. However, strong buyer demand stands between the market crashing and any decline in housing prices.
Queensland is Australia’s fastest-growing state due to interstate migration, and the population grew by 0.9% in 2020 and 2021, far exceeding the national average of 0.2%; the population increased a little by about 46,000 inhabitants. Outstanding demand in Brisbane for lifestyle locations and extremely high demand for detached houses, especially inside the central and middle-ring suburbs, has led to a substantial price rise, with Brisbane’s costlier properties outperforming.
Because of the resurgence of buyer interest in the Brisbane property market, auction clearance rates have consistently been in the 70% range. This is unusual for Brisbane, given the rates aren’t this high normally, but this is just another indication that there are more buyers than sellers, which always leads to higher property prices.
Increased demand for Brisbane homes has been fueled by rising consumer confidence, historically low mortgage rates, and internal migration, given Queensland’s relative affordability compared to Sydney and Melbourne. Similarly, popular Gold Coast and Sunshine Coast regions have seen increasing demand. Likewise, property investor activity has been robust, particularly for homes with interest from locals and interstate investors who see significant potential in the Brisbane real estate market–both in prices and rental returns.
Brisbane, Not Queensland
Keep this in mind: there is no such thing as a Queensland property market. Different areas are performing differently and will continue to do so. Houses remain a clear favourite among prospective home buyers with demand increasing post-lockdown and remaining much higher than the previous year. However, apartment demand has been declining, and flats in Queensland are a riskier investment than homes, due to a large supply of apartments inappropriate for families.
Closing Thoughts
Anyone buying a home in Brisbane today will look back in a few years and realise they got a good deal, as this property cycle is still in its early stages. A perfect storm of positive growth factors will keep Brisbane house prices strong in 2022, and the recent announcement that Brisbane will host the 2032 Olympic Games will support significant infrastructure growth, economic growth, and population increase over the next decade.
This shows that South East Queensland will remain a popular interstate destination for many Australians–and expats–due to lifestyle, health, and affordability considerations. Ready to make the move? Be sure to complete your checklist for buying a house in Brisbane, and we’ll see you soon!
