While Brisbane hasn’t had a great decade, with a fairly flat property growth rate, it is slowly becoming the golden word with prices finally forecast to swell on the back of tightening supply.
Compared to Sydney and Melbourne, Brisbane’s property market has struggled to gain momentum and while some pick-up was finally seen at the beginning of 2020, it quickly dissolved when COVID reached Aussies shores.
But good things are on the horizon for Brissie, Streamline Property’s Melinda Jennison said during a recent Smart Property Investment Show.
“We were seeing some strong price growth in certain pockets around the city,” Ms Jennison said of the marker prior to the pandemic.
However, more recently, that momentum has begun to increase.
“Certainly, in the last two to three months, we’ve seen that momentum increase again and we’ve seen price growth over the last three months consistently,” she said.
She, however, admitted that the excitement is currently contained to the housing market.
“The unit market is performing a little bit differently at the moment and I think that’s caused by a shift in the way people want to live and also a shift in the fact that the international borders are closed and there is less demand for those higher density dwellings,” Ms Jennison said.
Brissie is also becoming fairly popular among Sydneysiders and Melburnians looking to either relocate or enter the property market before its predicted boom.
“We’ve had interest from returning expats too. From overseas, buyers are buying in Brisbane sight-unseen, so when they come out of their two weeks of quarantine they’ve got somewhere to go,” she said.
“There’s been a number of people coming to Brisbane, predominantly interstate migration drives our population growth.”
In regards to hotspots, Ms Jennison explained that they’re popping up all across the market.
“We’re seeing them across all levels of the market. I think first home buyers have really been driving the lower part of the market, up to the $500,000 price point. We’ve also seen a lot of vacant land sales in that price point driven off the back of the HomeBuilder package and other government stimulus,” Ms Jennison said.
“But the middle ring suburbs of Brisbane, based on our own on the ground experience, I feel that is probably one of the hottest segments of the market.”
She revealed that property investors are flocking to this region due to its good combination of capital growth and a reasonable rental return.
Touching on the top end of the market, Ms Jennison noted that it is currently one of the strongest performing markets in Brisbane.
“It’s all about bang for your buck,” she said.
"What you get at that price point here in Brisbane in comparison to Sydney and Melbourne, it’s really an affordable style of living and you are getting a premium product.”