Source: CoreLogic
After a year of declines, Brisbane's property market is finally back on the rise. Both houses and units have seen capital growth, indicating that the period of decline may be coming to an end. This positive trend is supported by increasing buyer activity and a decrease in new 'for sale' listings. While overall listing volumes have increased slightly, buyers are becoming more selective in their purchases, favoring quality properties over B and C grade options.
Recent clearance rates in Brisbane have remained steady, and there has been no shortage of registered bidders at auctions. This renewed sentiment in the market is driven by a combination of factors, including strong population growth in Queensland, lower interest rates, and more affordable housing compared to cities like Sydney and Melbourne. Additionally, the tightening rental market is attracting property investors with attractive rental yields.
Source: CoreLogic
While this recovery is encouraging, it's important to note that the Brisbane property market is not uniform. The inner Brisbane precinct, comprising areas such as Fortitude Valley, New Farm, and West End, has been particularly resilient due to its concentration of higher-income earners. However, the full impact of higher interest rates and inflation levels may still be yet to come. Nevertheless, overall fundamentals point towards a more positive outlook for Brisbane's property market.
It's crucial for property buyers to focus on long-term fundamentals rather than getting caught up in short-term changes in sentiment. By considering factors such as population growth, interest rates, and housing supply, buyers can identify good opportunities even in a fluctuating market. The Brisbane property market may have weathered the storm, and with the right approach, investors can make the most of the recovering market.
