Brisbane apartment prices play catch-up

In The Agency’s Winter Property Report 2021, it was reported that Brisbane dwelling values were up 1.9 per cent over June and 5.7 per cent over the second quarter of 2021.

Compared with 12 months ago, dwelling values are up an impressive 13 per cent, bringing the median to $586,142.

But while the housing market has been leading the charge in price growth across the capital city, the growth in apartment values has been catching up, Mr Price said.

“Unit prices had been languishing for many years, but now, they have recorded growth every month since November 2020.

“[This is] a natural follow-on from price growth in houses,” according to the general manager.

Most of the demand for units has been coming from owner-occupiers, particularly first home buyers, who are looking at units as an affordable way to get their foot on the property ladder amid rising house prices.

Lifestyle locations such as Gold Coast and Noosa are of particular interest to buyers – and “firing more” than Mr Price has seen in 25 years in the industry.

Additionally, Marcoola and Coolum offer good value with great proximity to services and amenities, he noted.

With properties selling well and fast, Mr Price revealed that the only roadblock that occurs is “when a vendor has unrealistically high price expectations that the market can’t sustain”.

Looking ahead

As the Brisbane property market goes from strength to strength, Mr Price said the capital city holds exciting prospects for growth and momentum moving forward.

For one, listing volumes across Brisbane have tightened to a decade-low, but buyer sentiment remained consistently strong through 2021.

Having reported multiple buyers for every property listed, and backed by returning expats, overseas buyers and interstate migration from NSW and Victoria, the general manager said it was proof that the current boom will last for some time.

“Plus, there are far too many buyers missing out at auctions, which indicates there are more buyers than stock,” he added.

Price growth forecasts have also been positive, with NAB predicting a 16 per cent growth over 2021, while CBA and ANZ forecast growths of 16.6 per cent and 9.5 per cent over 2022, respectively.

As such, Mr Price advised both buyers and sellers to make their moves as soon as possible.

“We believe buyers should get in now because, from our perspective, the market is only going to keep improving over the next six to 12 months,” he concluded.