What's Causing The Boom Across Brisbane Real Estate Markets?
The typically underperforming Brisbane real estate market has recently experienced a boom like no other. The price of Brisbane houses have soared to record highs for it's seventh consecutive quarter, as reported by The Urban Developer and other leading Australian property experts. Prices are not expected to slow down anytime soon, with prices expected to increase a further 10% over the next year.
A recent Winter survey conducted by Terry Ryder identified that 141 Brisbane suburbs recoded rising sales activity. While there has been growth for Brisbane houses and apartments in the typically under performing inner-city locations, there's also been substantial growth across Greater Brisbane. Some of the leading locations for recorded value increases include:
Moreton Bay (28 rising suburbs)
Logan City (25 rising suburbs)
Ipswich (14 rising suburbs)
What's Causing The Increasing Values Of Brisbane Houses?
There are a number of factors reported to be contributable to increasing property values across Brisbane real estate markets. The first being that Brisbane was less vulnerable to the pandemic-driven economic downturn last year. In fact, last year, Brisbane experienced a surge in interstate migration with travellers increasingly buying property in this city.
Another contributing factor was the strong demand for detached houses within the inner and middle ring suburbs that support convenient lifestyle needs. Whilst Brisbane inner-city locations had typically suffered due to the oversupply of apartments, vacancies have now decreased for houses and apartments.
The demand for Brisbane houses has also been supported by rising consumer sentiment with record-low interest rates and relative affordability in the Sunshine State.
What Does It Mean For Real Estate Investment?
Metropole have also reported that there has been strong activity in Brisbane's real estate investment market. Buying property for investment purposes has also been strong for interstate investors seeking favourable rental returns.
Vacancy rates still remain relatively low for those interested in buying property for investment purposes. As there is great demand for rentals, tenants are becoming more likely to offer above rental asking prices just to secure property. This is benefiting investors by providing them with additional rental income.
Gross rental yields for properties across Greater Brisbane still remains much higher than in Sydney and Melbourne. While Sydney and Melbourne have an average rental yield of 2.7 and 2.9 per cent for their investors, the yield still remains relatively higher in Brisbane at 4.2 per cent.
Take Advantage Now!
Here at REIF we keep saying that there is no better time to act then now. That's because it's it's true!
Whether you're looking to buy property to live in or make it your smart real estate investment - now is the time to do it! Brisbane is the best market to take advantage of amazing market conditions combined with low rates and consumer positivity.
Our team of finance and property specialists at REIF would love to be able to sit down with you and map out your journey to buying real estate in Brisbane or across Australia. To learn more about these fantastic opportunities, reach out to our fastest growing finance and property group in the country!