05/12/2022

RESIDENTIAL PROPERTY IN 2023: WHAT CAN WE EXPECT?

2022 Recap

In 2021, house prices in Brisbane went up at the fastest rate in 13 years. Though growth slowed in other parts of Australia in the first half of 2022, Brisbane’s housing market continued to do well and unlike in Sydney and Melbourne, prices in the city are still much higher than they were a year ago.

As of November, the median house price in Brisbane was $817,684. This is a drop of 2.2% from the previous month and a drop of 6.2% from the previous quarter. But compared to a year ago, house prices in Brisbane have gone up by 8%.

It’s the same for units. The median unit price in Brisbane is $494,785. This is 0.9% less than last month and 1.2% less than the previous quarter, but it is still 10.7% higher than the same time last year.

What to expect in 2023?

The residential real estate market is expected to start growing again in 2023, and signs of this are already prominent across Brisbane.

Christopher’s Housing Boom and Bust Report 2023, released at the end of November by SQM Research, found that housing prices in Brisbane will increase by 5% in 2023. Due to uncertainty about interest rates and inflation, earlier forecasts stated we could expect drops in Brisbane and other parts of Queensland in 2023.

The SQM report also states that renters would have it worse in 2023 until the end of the year, when the number of completed homes goes up, the number of new homes goes down, and more renters buy their first homes. Rents are expected to increase even further, by between 8% and 13%.

And beyond?

When we consider the Australian market in general, Brisbane is likely to be one of the best performing real estate markets over the next few years. There are many areas of Brisbane that have strong growth potential, and as the Olympics gets closer, development is set to increase further, improving infrastructure and setting the path for the delivery of more properties.