<p><span style="font-weight: 400;">According to data, Queensland appears to have outstripped the other states in 2020. </span></p>
<p><span style="font-weight: 400;">The <span class='b-autolinkshadowbox'>Sunshine<span class='b-autolinkshadowbox__links'><a href=https://www.smartpropertyinvestment.com.au/data/nsw/2264/sunshine>Sunshine, NSW</a> <a href=https://www.smartpropertyinvestment.com.au/data/vic/3020/sunshine>Sunshine, VIC</a></span></span> State recoded solid demand for detached houses, with buyer attraction towards lifestyle areas seen to deliver 6-10 per cent capital growth in 2021 across South-East Queensland.</span></p>
<p><span style="font-weight: 400;">Brisbane too saw solid growth on the back of interstate migration, a broad range of stimulus measures and positive changes in market sentiment, with local and interstate investors driving the property price lift. </span></p>
<p><span style="font-weight: 400;">At the end of 2020, Corelogic reported a 4.14 per cent increase in its Brisbane home value index over the last year, with houses climbing 4.66 per cent and units rising 2.33 per cent year-on-year.</span></p><div class="dfp-ticker interscroller f" data-catid="85" data-pcount1="38">
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<p><span style="font-weight: 400;">Apollo Auctions director Justin Nickerson said that all signs and indications point to</span><a href="https://www.smartpropertyinvestment.com.au/research/22098-5-predictions-for-queensland-s-property-market" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;"> Brisbane maintaining its strong finish in 2020 through to 2021</span></a><span style="font-weight: 400;">.</span></p>
<p><span style="font-weight: 400;">However, property experts have cautioned that the city’s growth may not be as grand as expected, so can the Sunshine State capital maintain its momentum this 2021? </span></p><div class="b_gxh">
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<h3><strong>Property values </strong></h3>
<p><span style="font-weight: 400;">After the property market finished the previous year with solid foundations, housing values continued to climb through the first month of 2021. </span></p>
<p><span style="font-weight: 400;">Australia’s housing value rebound continued into 2021 with the CoreLogic national home value index rising by 0.9 per cent in January. The monthly increase takes national prices to a record high, exceeding the previous record hit in 2017.</span></p>
<p><span style="font-weight: 400;">Brisbane’s market recorded a 0.9 per cent monthly increase in January with the median value at $527,826. This brought the quarterly capital gain to 2.5 per cent, with growth of 4.0 per cent year-on-year. </span></p>
<p><span style="font-weight: 400;">Similar to the other cities, houses in Brisbane performed better than units over the month, rising 1.0 per cent, while units climbed a moderate 0.4 per cent. </span></p>
<p><span style="font-weight: 400;">At an annual rate, Brisbane house values rose 4.9 per cent. </span></p>
<p><span style="font-weight: 400;">Based on the median price growth, a house in Brisbane that was purchased in January 2020 for $750,000 would now be worth $786,750. However, the current median value for a house in Greater Brisbane is $583,902, the highest it has ever been.</span></p>
<p><span style="font-weight: 400;">Meanwhile, Brisbane’s unit prices currently sit at a median price of $393,177.</span></p>
<p><span style="font-weight: 400;">Dwelling prices are expected to continue rising as investor activity continues to strengthen across the nation, with </span><a href="https://www.smartpropertyinvestment.com.au/research/22234-brisbane-s-appeal-grows-as-investors-return-to-the-market" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;">Brisbane proclaimed to be more appealing</span></a><span style="font-weight: 400;"> than its capital city counterparts. </span></p>
<p><span style="font-weight: 400;">According to a recent Property Investment Professionals of Australia (PIPA) survey, an increase in the number of investors, combined with stronger activity from owner-occupiers and first home buyers, is expected to exert extra pressure on prices across the nation. A majority of the 1,100 investor participants said that as the nation recovers from the economic impact of COVID-19, they are more bullish about Brisbane than </span><a href="https://www.smartpropertyinvestment.com.au/data/nsw/2000/sydney" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;"><a href=https://www.smartpropertyinvestment.com.au/data/nsw/2000/sydney>Sydney</a></span></a><span style="font-weight: 400;"> and </span><a href="https://www.smartpropertyinvestment.com.au/data/vic/3000/melbourne" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;"><a href=https://www.smartpropertyinvestment.com.au/data/vic/3000/melbourne>Melbourne</a></span></a><span style="font-weight: 400;">.</span></p>
<p><span style="font-weight: 400;">Consumers are also optimistic about Brisbane’s property values. </span></p>
<p><span style="font-weight: 400;">Figures from OpenAgent.com.au’s latest Consumer Sentiment Survey showed that Queensland sentiment is the highest it’s ever been, with almost 88 per cent of respondents believing that property prices will continue to rise in the following six months. Meanwhile, 10 per cent expect prices to remain flat, while 2 per cent believe prices will edge down. </span></p>
<h3><b>Supply and demand</b></h3>
<p><a href="https://www.smartpropertyinvestment.com.au/research/22224-property-listings-on-a-traditional-decline-in-january"><span style="font-weight: 400;">National residential property listings </span></a><span style="font-weight: 400;">fell in January 2021 by 2.9 per cent, sliding from 272,999 </span><span style="font-weight: 400;">in December 2020 to 265,116. All capital cities saw a decline in property listings over the month except for <span class='b-autolinkshadowbox'>Perth<span class='b-autolinkshadowbox__links'><a href=https://www.smartpropertyinvestment.com.au/data/tas/7300/perth>Perth, TAS</a> <a href=https://www.smartpropertyinvestment.com.au/data/wa/6000/perth>Perth, WA</a></span></span>. Compared with the same period in the prior year, listings were down by 10.5 per cent. </span></p>
<p><span style="font-weight: 400;">Brisbane’s listings fell at a monthly rate of 3.5 per cent to 25,720 in January 2021 from the 26,643 listings recorded in December 2020. Compared with 12 months ago, listings fell 12.0 per cent in the Queensland capital city. </span></p>
<p><span style="font-weight: 400;">According to SQM Research managing director Louis Christopher, January traditionally sees a drop in properties listed for sale as the market emerges from the “summer holiday mode”. </span></p>
<p><span style="font-weight: 400;">But he noted the increase in annual listings. “However, when we consider the number of new listings compared to January 2020, there was a material rise in nearly all cities. This finding is consistent with the observed early start to the auction market over January and February,” he said. </span></p>
<p><span style="font-weight: 400;">Demand for Brisbane properties are seen to ramp up this year, as </span><a href="https://www.smartpropertyinvestment.com.au/research/22233-city-exodus-to-drive-regional-growth" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;">Aussies ditch the cities for regional dwelling</span></a><span style="font-weight: 400;">. </span></p>
<p><span style="font-weight: 400;">Provisional internal migration data from the Australian Bureau of Statistics showed that the nation’s capital cities had a net loss of 11,200 people during July, August and September last year, which was the largest on record. According to ABS, Brisbane gained the most people through net internal migration (3,200), while </span><a href="https://www.smartpropertyinvestment.com.au/data/nsw/2000/sydney"><span style="font-weight: 400;">Sydney</span></a><span style="font-weight: 400;"> lost the most (7,800).</span></p>
<p><span style="font-weight: 400;">Propertyology’s head of research, Simon Pressley, explained that while the capital cities are being hampered by the COVID-19 pandemic, regional Australia has not suffered the same fate on the health front. On a bullish note, Mr Pressley concluded that the regions will continue to dominate the property game for years to come.</span></p>
<h3><b>Auction rates </b></h3>
<p><span style="font-weight: 400;">Auction activity continued to ramp up at the start of the year and capital city clearance rates are picking up as low borrowing costs are seen to stick around for another few years. </span></p>
<p><span style="font-weight: 400;">According to data from CoreLogic, </span><a href="https://www.smartpropertyinvestment.com.au/research/22239-auction-activity-continues-to-swell"><span style="font-weight: 400;">auction volumes </span></a><span style="font-weight: 400;">across the country increased from 884 in the week ended 31 January, which resulted in a clearance rate of 77.2 per cent, the highest final clearance rate recorded since February 2017.</span></p>
<p><span style="font-weight: 400;">During the last week of January,</span><span style="font-weight: 400;"> 50 homes went under the hammer last week, up sharply from a week earlier when 390 auctions were held.</span></p>
<p><span style="font-weight: 400;">“Such strong auction results signal further upwards pressure on housing prices amid extremely tight advertised supply levels and above average buyer demand,” CoreLogic noted.</span></p>
<h3><strong>Rental values</strong></h3>
<p><span style="font-weight: 400;">Throughout the pandemic, stalled overseas migration has caused an oversupply and weak demand for units. But there are early indications that the rate of decline is easing across the unit sector, which is good news for landlords who may have unoccupied properties for extended periods of time.</span></p>
<p><span style="font-weight: 400;">Brisbane, which was also declining, recently showed signs of stabilisation as rents begin to slowly edge up. The city posted an annual decline 0.3 per cent, with houses in positive territory rising at 3.2 per cent. </span></p>
<p><span style="font-weight: 400;">The January figures show a promising return to normal, at least where the market is concerned. The recovery has likely been spurred on by the increased government spending and rising consumer confidence. </span></p>
<h3><strong>Vacancy rates</strong></h3>
<p><span style="font-weight: 400;">Every capital city saw a fall in the vacancy rate from December to January. Nationally, vacancy rates slipped in January to 1.9 per cent, the lowest vacancy rate since March 2020, prior to the pandemic according to Domain.</span></p>
<p><span style="font-weight: 400;">In Brisbane, vacancy rates declined to 2.3 percent in January 2021 from December’s 1.9 percent. This brings the annual vacancy rate to 1.6 percent during the first month of the year. </span></p>
<p><span style="font-weight: 400;">Dr Nicola Powell, senior research analyst for Domain, commented that it is typical for the rental market to tighten in January following a seasonal boost of supply over December. </span></p>
<p><span style="font-weight: 400;">“All capital cities have tighter rental markets than at the same time last year, except Melbourne and Sydney. Melbourne’s vacancy rate is more than double last year’,s while Sydney’s remains steady annually, following a COVID-induced bounce during 2020.” </span></p>
<p><span style="font-weight: 400;">“Strong exposure to international border closures in Melbourne and Sydney will ensure significantly less demand for rentals for the foreseeable future, at least until international border restrictions are lifted,” she concluded. </span></p>
<h3><strong>Hotspots</strong></h3>
<p><span style="font-weight: 400;">For those looking for the next Queensland hotspots, Apollo Auctions director Justin Nickerson pointed to Brisbane’s outer inner-ring as the “sweet spot”.</span></p>
<p><span style="font-weight: 400;">According to him: “That has always been the sweet spot for Brisbane – suburbs that are three to five kilometres from the CBD – traditionally with good schooling and lifestyle options. These suburbs have grown steadily across the past four years.”</span></p>
<p><span style="font-weight: 400;">He also flagged that the remote-working environment may also translate to an influx of buyers in areas such as </span><a href="https://www.smartpropertyinvestment.com.au/data/qld/4178/wynnum"><span style="font-weight: 400;"><a href=https://www.smartpropertyinvestment.com.au/data/qld/4178/wynnum>Wynnum</a></span></a><span style="font-weight: 400;">, <span class='b-autolinkshadowbox'>Manly<span class='b-autolinkshadowbox__links'><a href=https://www.smartpropertyinvestment.com.au/data/nsw/2095/manly>Manly, NSW</a> <a href=https://www.smartpropertyinvestment.com.au/data/qld/4179/manly>Manly, QLD</a></span></span>, </span><a href="https://www.smartpropertyinvestment.com.au/data/qld/4017/sandgate"><span style="font-weight: 400;"><a href=https://www.smartpropertyinvestment.com.au/data/qld/4017/sandgate>Sandgate</a></span></a><span style="font-weight: 400;"> or more coastal regions.</span></p><style>.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }</style>
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