Wondering what the future holds for Brisbane's property market in 2022? Brace yourself for another exciting year ahead! In 2021, Brisbane witnessed remarkable growth, with many locations experiencing a staggering 30%+ increase in house prices. Undoubtedly, the city emerged as the standout performer in the Australian property market.
But what can we expect in 2022? Will the growth continue? Let's delve into the three major factors that will shape Brisbane's property market this year.
A Look at the Major Influencers
Flooding in Brisbane
Brisbane recently experienced devastating floods, affecting over 15,000 people across the city. With an unprecedented 6 months' worth of rain flowing in just 48 hours, concerns arise about the impact on the property market. Will the flooding dampen the growth momentum?
Coronavirus (COVID-19) and the Reopening of Borders
Despite the rising COVID-19 cases in Brisbane, interstate migrations show no signs of slowing down. Moreover, the reopening of international borders and the country's high vaccination rate add to the optimism. How will these factors shape the property market?
2032 Olympic Games
Anticipation builds as Brisbane prepares to host the 2032 Olympic Games. The two-week international event is expected to bring significant economic benefits to Brisbane and the entire country. Will the Olympics replicate the economic success witnessed during the 2000 Sydney Olympics?
With these events in mind, everyone is curious about the projected performance of Brisbane's property market in 2022. Let's explore three predictions:
Predictions for Brisbane Property Market in 2022
1. Soaring Median House Prices
As the 2032 Brisbane Olympics attract more commercial activity, the property sector stands to gain immensely. It is expected that the median house price across Greater Brisbane will exceed $1.2 million within a decade – a remarkable 40% increase above the 10-year average. However, it's worth noting that the investment required for the 2032 Olympics is significantly lower than previous games, potentially impacting the magnitude of the property market's growth compared to other cities.
2. Quick Recovery from Flooding
Historical data suggests that Brisbane will bounce back swiftly in the short to medium term from the impact of flooding. While properties heavily affected by floods may experience short-term drops in value, flood-prone areas have shown no long-term negative impact. If you're considering buying in a flood zone, consult the flood maps in Brisbane and secure appropriate insurance coverage.
3. Short-Term Market Fluctuations Followed by Steady Growth
Although COVID-19 continues to affect various sectors, including low-income earners and some high-rise apartment towers in and near Brisbane's CBD, residential properties in Brisbane have historically proven resilient during times of economic downturn. Furthermore, a recent analysis by BIS Oxford Economics suggests that Brisbane property prices could surge by up to 20% over the next three years.
Brisbane Flourishes in 2022
The property market in Brisbane is poised for a strong start in 2022, propelled by significant projects such as Queens Wharf, Howard Smith Wharves, and favorable housing affordability compared to Sydney and Melbourne. All signs point to a flourishing year ahead for Brisbane's property market.
If you're ready to take the next step towards purchasing a property, we're here to assist you. Contact our Home Loan Experts at Pivotal Financial by calling 07 3007 9088 or schedule a call today.