The Brisbane property market has been the subject of much attention and speculation, following a surprising surge in prices last month. This unexpected increase has left many wondering whether this upward trend is set to continue throughout the remainder of the year. According to CoreLogic, property values in Brisbane rose by more than 13% in 2023, with a further 1% increase in the first month of this year alone. Regional areas also saw significant growth, with an 8.5% rise last year and a 0.5% increase in January.
As potential buyers toured a newly listed apartment in inner Brisbane on a particularly humid afternoon, the atmosphere was charged with a sense of urgency and the fear of missing out (FOMO). Phoebe, speaking to the ABC, voiced the concerns of many, highlighting the fierce competition and rapid pace at which properties are being sold. "It's the competition really that we're struggling with. There's not a lot on offer and places are just getting snapped up super quick," she explained, indicating the high demand and low supply driving prices upwards.
This sentiment was echoed by another prospective buyer, frustrated by the speed at which the market is moving, with properties receiving offers before the first inspection can even be conducted. Angus Kizil, who recently purchased his first home in Indooroopilly, recounted the intense competition he faced. At the property inspection he attended, around 100 people turned up, reflecting the high level of interest in Brisbane's real estate. Kizil attributed the lack of government investment in residential construction as a significant factor behind the tight market conditions.
Despite these challenges, Kizil remains optimistic, planning to invest further in the market with his partner. This perspective underlines a broader trend of individuals looking to property investment as a means to secure their financial future in a rapidly changing market.
Eliza Owen, CoreLogic's head of research, pointed out that Brisbane's median property value of almost $800,000 continues to attract a diverse range of buyers, offering more value for money compared to the southern capitals. Brisbane's ascent to become Australia's third most expensive city for property, overtaking Melbourne, has been supported by intense levels of interstate migration and the return of overseas migration, further amplifying demand pressures.
Economist Diaswati Mardiasmo highlighted Brisbane's evolution into a more globally recognized city, with developments including seven-star hotels and upgraded entertainment centres enhancing its appeal. However, predictions for the future of Brisbane's property market vary among experts. Mardiasmo expects a moderation in growth, projecting increases of 3-5% in the next three months, followed by another 5% towards the end of the year.
In contrast, Owen is less optimistic about the continuation of rapid price rises witnessed last month, suggesting a potential cooling in the market. This divergence in expert opinion underscores the inherent uncertainty in predicting real estate trends, influenced by a complex interplay of local and global factors.
As Brisbane's property market continues to navigate through a period of significant growth, driven by high demand and limited supply, the outlook remains mixed. While some experts anticipate a continuation of the surge, albeit at a moderated pace, others predict a cooling period ahead. For potential buyers and investors, staying informed and agile will be key to navigating the uncertainties of Brisbane's evolving real estate landscape.
