Brisbane property market update February 2022

By Melinda Jennison 09 March 2022 | 1 minute read

This article will highlight what has happened in the Brisbane property market throughout February 2022.

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Brisbane residents have become even more resilient over the last month. We have grown to accept the unexpected. No one imagined that we would see another flood event throughout our city, and yet the significant rain event throughout the last few days of February was enough to see this happen. Despite this intense weather event, Brisbane residential property markets remained the fastest-growing capital city market throughout all of Australia throughout the months of February. It has been a whirlwind of a month.

The driving force behind the continued strong growth in Brisbane is low supply and high demand. There has been a lot of discussion around what impact, if any, the recent flood event will have on the market as we look forward in the weeks and months ahead.

With supply already -30.2 per cent below where we were 12 months ago, and more than 40 per cent below the previous five-year average, it is possible that in some areas, supply might tighten further. You can see below that total listing volumes in Brisbane are trending lower than any other capital city market in our country. A decline in listings was something that we experienced following the 2011 floods, so we can often draw from experience to determine what we might see again in this instance.

Source: CoreLogic

A tight supply market is not something that is uniform across all markets in Australia right now as can be seen in the graph above. Brisbane and Adelaide are the two capital cities with the lowest total supply right now, whereas Sydney and Melbourne have returned to more normal supply levels. This helps to explain why Brisbane has continued to see price growth in recent months at the same time as Sydney and Melbourne property price growth has stalled.

When there is low supply, there is less choice for buyers. It creates more urgency, and there is a real fear of missing out.

There are some things that we now have to consider that might impact buyer demand in Brisbane. Some buyers might be concerned about the most recent flood event.  Other buyers might be feeling uncertain by the unfolding world events, where there is a degree of global uncertainty unfolding around us. 

We do not think that there will be any further immediate impact from COVID-19 now that international borders have reopened and our country’s vaccination status is high. We also do not think there will be any slow down in interstate migration. Now with international borders open, we are also able to see international migration, which means more people will need somewhere to rent or buy. We are still hosting the Olympic Games in 2032, and we are still building all of the infrastructure that will come as a result of that. We are still one of the most affordable cities to live in within Australia, and our climate and lifestyle remains one of the most sought after in the country. There are still a lot of reasons to believe that the demand for Brisbane property, especially flood-free property, will remain strong through the months ahead.

In this month’s update, we outline the performance of the Brisbane property market across all sectors and provide our insights in terms of the months ahead.

Brisbane property market prices

The latest Hedonic Home Value Index data by CoreLogic, released on 1 March 2022 for the month of February 2022, has confirmed that the median dwelling value in Brisbane increased by a further +1.8 per cent over the month. This price growth is lower than November, December and January, which now reflects a slowdown in the rate of growth across the city. The current median value for dwellings across Greater Brisbane is now $722,433, which is $15,893 higher than one month ago.

Annual growth for the last 12 months for Brisbane dwellings is now +29.7 per cent.

Source: CoreLogic

Brisbane’s middle segment of the market has now overtaken the top end of the market in terms of quarterly price growth. For the past several months, the price growth was being led by the top end; however, this trend has now changed.

Source: CoreLogic

Between last month and now, the growth in the top end of the market slowed because the top 25 per cent of property values across Brisbane was at 9 per cent and it has now dropped to 8.3 per cent. The middle 50 per cent of property values previously saw price growth up to the end of last month of 8.5 per cent, but this has increased slightly to 8.6 per cent this month. The lower segment of the market was previously at 7.2 per cent and is now at 7.3 per cent. These results indicate that the only segment of the market that has started to slow in terms of price growth is the top end in Brisbane. This will be something to watch again next month.

Brisbane house prices

The Brisbane housing market is still the top-performing housing market across all capital city locations throughout Australia. Median values for the greater Brisbane region increased a further 1.9 per cent throughout February 2022. The rate of growth has slowed down for the third month in a row, down from the November 2021 high of 3.2 per cent, followed by 3.1 per cent price growth across December and 2.5 per cent in January. Despite the slight slowdown in the momentum, this is another new record median value for Brisbane Houses. The 12-month change in Brisbane house prices has been 32.8 per cent, which is the strongest 12-month house price growth across all capital cities as well as the rest of state regions throughout Australia.  

The current median value for a house in Greater Brisbane is now $828,175, the highest it has ever been. This is $18,362 MORE than one month ago! Houses in Brisbane are getting more expensive month-on-month.

 Source: CoreLogic

Brisbane unit prices

The unit market in Brisbane grew strongly throughout February 2022, reaching a new record high. Unit median values in Brisbane were up 1.5 per cent this month, compared to 1.4 per cent last month. The 12-month growth for units across Brisbane is now +14.4 per cent. The current median unit price in Brisbane is $468,393, which is $10,244 more than one month ago.

Source: CoreLogic

Summary of price growth in Brisbane for the year to date

The graph below charts the per cent change in property values for houses and units since January 2020 in Greater Brisbane.