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Brisbane Property Market Update April 2024

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However, analysis of home value data reveals clear trends that point to a divergence in the performance of the house and unit markets within Brisbane. Price segment data also suggests that affordability pressures may be affecting the pace of growth of different segments of the Brisbane property market.

This is not unexpected given that Brisbane’s housing market has grown by 56.81% since the COVID-19 outbreak in March 2020. By comparison, Brisbane’s housing market has seen its median house price fluctuate by just under $300,000 over the past four years.

March saw a slight increase in new listings entering the market, providing some relief for buyers, but unfortunately, this trend was reversed in April. According to SQM Research, new listings in Brisbane were down 14.27% in April compared to March 2024. Total listing numbers also fell, down 8.15% in April compared to March.

When comparing April 2024 property listings to those 12 months prior, an interesting story emerges. New property listings increased 18.42% year over year in April 2024, but total listings decreased 8.31%. This data reinforces that regardless of the angle, buyers in the market throughout April 2024 had fewer options compared to buyers 12 months prior and the previous month.

Sales volume in Brisbane has increased by 4.4% over the past year, indicating buyer activity is on the rise. However, according to CoreLogic, the median days on market has decreased and now stands at 22 days. This downward trend in days on market suggests that properties are selling faster once they are listed for sale. Anecdotally, it has been observed that many properties sell after the first open house, suggesting that the days on market figure may include an unconditional period in any sales contract in Brisbane.

According to CoreLogic, Brisbane auction success rates remained steady at 63.9% in April, in line with other months this year. According to Apollo Auctions data, there were an average of 3.1 registered bidders per Brisbane auction in April 2024, down slightly from 3.7 in March. Additionally, 62.6% of registered bidders were actively participating in auctions throughout the month, up from 60.8% in March.

Brisbane house prices

CoreLogic data shows Brisbane house prices increased by 0.9% in April 2024. This was slightly down from the previous month which recorded growth of 1.1%. Quarterly growth is now at 3.1%, up slightly from last month’s 3%.

The median house price in metropolitan Brisbane soared to a new high of $827,822, representing an increase of $10,258 on the previous month and $31,004 on three months ago.

Breaking down the home price data by segment reveals that the bottom 25% of property prices have experienced the strongest quarterly growth. In the three months to the end of March, the bottom 25% of property prices increased by 4.6%, the middle 50% increased by 3.4% and the top 75% increased by just 2%. Compare this to the three months to the end of February, when the top of the market was up 2.3%, the middle segment up 3.2% and the bottom segment up 3.8%.

These trends in price segments indicate that the more affordable segment of the market, whether made up of units, townhouses or detached homes, is growing at a faster rate than the luxury segment of the market, which is typically dominated by detached homes due to its higher price tag.

This trend is also being seen in all other major capital markets, which are experiencing month-on-month growth in the current environment.


Source: CoreLogic

According to information from PropTrack, Brisbane house prices increased by 0.23% in April, with the annual growth rate based on this data source now standing at 12.82%.

Brisbane house prices

In April, Brisbane’s median house price rose by 0.8%, representing a slowdown from March, when it rose by 1.1%. The median house price in Greater Brisbane is now $920,046, and the gap between Brisbane and Melbourne’s median house prices continues to narrow month on month.
CoreLogic data shows the monthly change in median levels for the four weeks of April was $10,058, with the quarterly change in Brisbane house prices totalling $31,418.

Despite a slight increase in monthly residential growth last month, it is clear that growth momentum in the residential sector in the Brisbane market has slowed again throughout April 2024.


Brisbane unit value

Brisbane’s housing market is outpacing the residential market in terms of monthly growth. During April, the Brisbane housing market recorded growth of 1.6% with the median price now standing at $600,215. According to CoreLogic data, this is the first time in history that the median price of a home in the Brisbane metropolitan area has exceeded $600,000.

Quarterly growth for this market segment is currently at 5% in Greater Brisbane, with annual growth at 17.4%. This data confirms that Brisbane’s unit market is outperforming the residential market in terms of capital growth performance on a monthly, quarterly and annual basis.

To put this growth into perspective, over the past four weeks, units in Greater Brisbane have increased in price by $12,422 at the median level. Over the past quarter, the median price of a unit in Brisbane has increased by $31,620. This growth is noteworthy given that historically, the residential market has outperformed the unit market in Brisbane.

PropTrack data further supports this, showing that Greater Brisbane’s month-on-month unit growth rate increased by 0.9%, significantly outpacing the national average. Additionally, PropTrack data confirms that Greater Brisbane’s annual unit growth rate is outpacing Brisbane’s annual residential growth rate.

Brisbane rental market

Conditions have remained consistent across Brisbane’s rental market, with vacancy rates fluctuating between 1% and 0.9% each month since January this year. According to SQM Research, the city-wide vacancy rate in March was 1%.

With vacancy rates so low, it’s no wonder that annual rent fluctuations across Brisbane are rising, with CoreLogic reporting that last month the annual rate rose to 7.9 per cent, up from 7.6 per cent.

However, rent volatility in the unit sector of the market is easing slightly – for example, the annual rate of change in unit rents was 11.2% last month, decreasing to 10.5% this month – but nevertheless remains high, especially considering that many tenants in the city may be reaching the limits of what they can afford.

Brisbane’s gross yields for houses and units remained stable this month, with gross yields for houses now standing at 3.6% and gross yields for units at 5%.

summary

The fundamental situation in Brisbane has not changed in recent months: the Brisbane property market is characterised by limited buyer choice and growing demand.

Despite facing rising interest rates, weak consumer confidence, home buying constraints and ongoing cost of living challenges, Brisbane home and unit values ​​continue to rise rapidly.

Additionally, Brisbane’s rental market is in a tough spot, as evidenced by low vacancy rates leading to skyrocketing rents.

Ultimately, individuals looking to rent or buy in Brisbane in the near future may face difficulties if they are looking for shelter – a situation that is unlikely to change unless more properties become available for sale or rent.

Brisbane faces further challenges in terms of long-term supply from new home construction. These challenges stem from council restrictions on developable land, the current economic climate and significantly increased construction costs making it more expensive for developers to commence projects, and developers being unable to meet pre-sales targets to commence projects.

Building approvals for dwellings in Brisbane, particularly row homes, have been in decline for some time and this trend is unlikely to change in the near future, so future large supply of new build projects is not expected to immediately change the current baseline across Brisbane.

Population shifts in South East Queensland indicate that international migrants are fuelling the population boom in the south east of the state. These migrants may have different property preferences than those who traditionally prioritise larger homes with backyards. Perhaps this is why we are seeing increased demand in the high density unit market. This, combined with affordability constraints, could explain why the unit market is outperforming the residential market within Brisbane.

While recent commentary has suggested that interest rates are likely to remain high for an extended period due to persistently high inflationary pressures, most buyers are likely to factor in carrying costs when purchasing a property at current interest rates, so we are unlikely to see a change in buyer demand based on this commentary.

For buyers, navigating Brisbane’s current market conditions is tough. Competition is fierce and there is an increasing fear of missing out. Property buyers are feeling frustrated with limited availability and fierce competition. Unfortunately, judging by the current situation in Brisbane, this is expected to continue for the foreseeable future.

Melinda Jennison, president of Streamline Property Buyers and REBAA;

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