Despite experiencing the worst recession since the Great Depression, a number of the property predictions from early last year largely held true. In fact, much of the property market in Brisbane actually performed pretty well throughout 2020. While the market displayed some extraordinary resilience as a whole, it certainly wasn’t without its challenges.
Demand was one of the more divisive issues in both residential and commercial areas of the property market. While buyer demand in 2020 was pretty solid, the tenant demand was unfortunately not as good. This was compounded by the loss of many foreign students who left the country, which caused a sudden increase in short term properties entering the long-term rental market.
Unfortunately the reduced faith in rental properties had a knock on effect with the property market, as new development slowed dramatically, and investor demand weakened overall. So, while some of Brisbane’s outer regions seemed to perform well, areas like Moreton Bay and Ipswich experienced some of the largest reductions in price.
Despite the combination of dramatically slowed developments, lower investor demand, and rental markets suffering, the sale price of some Brisbane properties still rose. Some of the biggest winners were the inner city and fringe areas, which ended up seeing some of the best price growth during 2020. When it comes to interest in new developments recently, West End in particular has had some of the most enquiries in Australia.
Ultimately, the inner, eastern, and western suburbs all look to become some of Brisbane’s strongest performing areas in 2021. Thanks in part to people moving from interstate, Brisbane along with the Gold and Sunshine Coast markets are all beginning to experience stronger conditions. While momentum from the end of 2020 looks set to continue this year, it’s unlikely to be at pre-pandemic levels for a while yet.