A lot has changed in the Australian property market over the last 24 months, with one market experiencing a significant uplift. The change in the property market has seen astute buyers preparing to capitalise in new markets that they otherwise may not have considered in the past. This is due to a number of factors, ranging from availability, markets catching each other and the most recent global pandemic. It seems that the property market is all about Queensland and specifically Brisbane, but how did this happen?
To better understand just how Australia’s property market has changed, let’s discuss the factors that are driving this change and what they can mean for you.
Prices playing catch up
For years the two dominant markets from an Australian property perspective have been Sydney and Melbourne. The two largest Australian cities have battled it out for price growth and buyers for the better part of the last 10 years. One market is however playing catch up and is making good ground on both the leading markets. Property managers in Brisbane are reporting exceptional growth over, with record figures being hit in the last quarter of 2021. The Brisbane property market’s annual growth hit a whopping 25.1%, putting it on the map for many investors and home buyers.
The change is due to a number of factors, but one of the biggest influences is availability. There are a much smaller average number of homes on the market currently in Brisbane, meaning sellers are capitalising on the increase in buyers competing with each other. This perfect storm means sellers are getting top dollar and housing prices in Brisbane are quickly catching Melbourne and Sydney.
It’s not only investors looking to buy in Brisbane’s market, it’s also families, couples and individuals relocating. The global pandemic created a new wave of working from home, which effectively means, working from anywhere. With this newfound freedom for where people work, many people are taking the chance to relocate to Queensland’s sunny climate and spectacular beaches. This increase in migration has helped Melbourne and Sydney markets return to close to pre-pandemic stock levels, whilst simultaneously flooding the Brisbane market with new buyers. Other factors like the Olympics acquisition and new builds around Queensland may also be driving the hype.
Given the significant difference in housing prices in Melbourne and Sydney compared to Brisbane, this has helped raise the market price in Brisbane even higher. With the ability to work anywhere, the migration has also created a mini-boom in areas across Queensland as well, even those outside of the greater Brisbane area. The opportunity to purchase a large block and build a new home has become very attractive to people moving to any city across the country, with many regional areas experiencing good growth.
Investors looking for the next big return
With prices surging in Brisbane there is a new wave of investment coming from across the country. This increased investment is a result of record growth in the Brisbane property market. Investors are seeing the greater potential for returns in the Brisbane market than they are in any other city in Australia. The only city to come close to the growth Brisbane experienced in the back end of 2021 was Adelaide. The investment does however make it more difficult for buyers in Brisbane to purchase their dream home or even their first home. Investors from Sydney and Melbourne are used to higher prices and are prepared to spend large amounts of money to secure an investment property in Australia’s booming property market. This means first home buyers and other local buyers in Brisbane may find it difficult to get the keys to their next home.
The house may not matter
One of the more unexpected changes seen in the property market over the last 12-24 months is the number of buyers who are purchasing homes with the intent of knocking them down. The home itself is not particularly of interest, especially in the more sought after areas around the country. Buyers are simply looking for the right piece of land, to knock down the existing structure and rebuild. The Home Builder Grant went a long way to encouraging this portion and has helped see a significant boost in the construction industry. This boost however has seen shortages for materials experienced across the market and means there may be a delay and greater competition in the rental market as well.
~ Australia’s property market has changed significantly over the last two years, with the global pandemic and markets catching up to one another playing integral roles. Brisbane has experienced phenomenal growth and shows signs of becoming Australia’s most attractive market again in 2022. Investors, families, couples and individuals alike are all looking for an opportunity to capitalise on Australia’s property market