CoreLogic’s recent report shows that, at 29.3%, Greater Brisbane has the highest 12-month value growth compared with Australia’s other capital cities. Despite the recent rise in interest rates, it is clear that the Queensland property market is well-positioned to push ahead.
The report from CoreLogic shows that Brisbane’s dwelling values have increased by 5.7% over the past three months. This is the highest number in a group of Australia’s main cities, with Melbourne and Sydney’s values going down by 0.1% and 0.5% respectively.
With regard to the RBA’s cash rate rise, CoreLogic’s Research Director Tim Lawless says, “We are likely to see a further loss of momentum in housing conditions over the remainder of the year and into 2023.”
Whilst Brisbane’s total advertised home supply has decreased by 20.6% in the last year, this could mean good news for developers as competition has lessened.
As more and more Australians migrate to the sunny state, property demand in Queensland is rising. The Gold Coast has actually seen a 14% growth in apartment prices as this demand continues to soar. Data gathered in March shows an increase in Brisbane’s rate of growth in unit rents by 6.8% since March of 2021.
“The net result is that renting a unit is substantially more affordable than renting a house,” Lawless says, regarding this growth. “This affordability advantage, along with a gradual return of overseas migration, employees progressively returning to offices and inner city precincts regaining some vibrancy, are likely key factors pushing unit rents higher.”
This bodes well for Brisbane and Gold Coast developers and property investors in the current market amidst higher interest rates.
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