Brisbane property market update November 2023
Brisbane continues to outperform the national average in terms of property price growth. At a national level, markets experienced the smallest monthly gain since the growth cycle commenced in February, however Brisbane’s market showed continued resilience and the monthly growth remains more robust.
Brisbane experienced median value price falls of -8.9 per cent in the previous cycle from its peak in June 2022 to the trough in February 2023, and since then the growth in median values has been 12.2 per cent, according to CoreLogic data. This demonstrates a clear V-shaped recovery for Brisbane property values.
In contrast, several other cities such as Melbourne, Hobart and Darwin saw negative growth throughout the month, with Sydney also displaying relatively stagnant performance. Brisbane, however, emerged as one of the top performers, joining the ranks of Perth and Adelaide. This may be attributed to the notably low levels of advertised supply, coinciding with sustained elevated purchasing activity, surpassing average levels.
So far, the rate hike on Melbourne Cup Day seems to have had little effect on the Brisbane market. However, only time will reveal whether this change puts pressure on some buyers. Additional factors like declining affordability and consistently low consumer sentiment are also posing challenges. However, at this point, they seem to be having a greater impact on the less affordable markets which also have higher listings, giving buyers more options.
In Brisbane, new listings saw a slight increase of +3.2 per cent from October to November 2023, as reported by SQM. Meanwhile, overall listing volumes remained relatively steady, experiencing a modest month-on-month increase of just 0.56 per cent, which is still more than 30 per cent below the long-term trend. While this briefly sparked interest among buyers, it fell short of meeting the high demand, as most properties continued to sell with multiple offers or multiple registered bidders at auctions.
As per data from Apollo Auctions, the average count of registered bidders rose from 3.4 per auction in October to 3.67 per auction in November. Clearance rates stayed consistent at 63.25 per cent, while the number of active bidders experienced a slight decline from 62.53 per cent to 58.15 per cent.
Dwelling values in Brisbane
Dwelling values across Brisbane increased 1.3 per cent throughout November according to CoreLogic, second only behind Perth in terms of monthly price growth. On a quarterly basis, Brisbane has experienced 3.9 per cent dwelling price growth. Annual growth is now sitting at 10.7 per cent. The median price for a Dwelling in Greater Brisbane is now $779,270, which is $8,695 more than one month ago.
Source: CoreLogic
PropTrack data also demonstrated positive dwelling price growth for the month in Brisbane, with annual growth performance in Brisbane exceeding both the national and capital city averages.
Source: PropTrack
Slightly stronger growth is evident in the lowest 25 per cent of dwelling values in Greater Brisbane, with the middle segment and the top 25 per cent of the market not trailing far behind. It’s crucial to emphasise that the lower 25 per cent of the market encompasses a majority of the city’s unit stock, primarily due to the price point. The unit market in premium locations throughout the city is robust, often drawing 20–30 offers for well-located and affordable options, showcasing high buyer demand.