As the end of the year draws near, Queensland’s capital city of Brisbane is experiencing one of the most incredible pricing booms since the end of the pandemic. Along with the rest of the country, Brisbane is expected to see a property price explosion in the coming year.
Following a spectacular 9.1% price increase since January 2023, many are wondering whether the city can keep up this increase by January next year, and whether it will see an even greater price increase well into 2024. As Brisbane broke Bloomberg’s national projections of 7.7% in January 2023, it isn’t expected to stop anytime soon.
Factors Fuelling Brisbane’s Property Price Rises
Due to various factors, Brisbane’s property prices have been in a ‘boom’ phase. The Reserve Bank of Australia recently raised the interest rates to 4.35%, after several months at 4.1%. (This made housing affordable for first-time buyers and increased confidence in housing as a profitable and worthwhile investment.) The effects of the latest rise, however, are yet to be seen.
In more recent news, the Queensland Government doubled the First Home Owner’s Grant to $30,000. Experts believe this will increase house prices even further.
Other factors contributing to price increases include a high migration rate into Brisbane from elsewhere in Australia and the world. While outgoing inquiries for Brisbane were at 19% for the fifth month in a row, incoming Brisbanites rose to 24% in August and maintained that figure of 24% in September. The biggest reason for this? The cost of property. Brisbane property prices, although high, are comparatively cheaper than Sydney - 31% cheaper - a staggering differential considering they are two world-class Australian cities.
A resurgence was needed after the pandemic, and a resurgence is what Brisbane has experienced. Additional factors for the property boom are a lack of rentals available, making buying a property a more secure option. With the housing market projected to continue it’s rapid climb, buying a property for renovation, or an investment rental, is also a very attractive option to those looking to get on the ‘investment property’ ladder.
The Outlook
Property prices are predicted to continue to boom into 2024 for Brisbane. Westpac Bank has predicted that Brisbane’s property prices will have skyrocketed by an astonishing 43% in the last five years, higher than second-best Sydney (36%) and third-best Melbourne (33%).