Brisbane boom: Housing price growth set to outperform capitals
Brisbane housing prices grew almost three times as much as expected this past year, with prices set to rise further amid fresh predictions it will outperform all other Australian capitals in 2022.
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Brisbane housing prices grew almost three times as much as expected this past year, with prices set to rise further amid fresh predictions it will outperform all other Australian capitals in 2022.
Christopher’s Housing Boom & Bust Report, out Thursday, found Brisbane surpassed expectations of a dwelling price rise between 4 to 8 per cent in 2021 to instead notch a massive 22 per cent jump off rampaging demand.
Report author Louis Christopher of SQM Research said “Brisbane’s North rose by 24 per cent and was a hot spot. But it was inner Brisbane houses which was the primary hotspot, with house prices rising by over 28 per cent for the year.
Rents across the Qld capital also jumped during the period, rising 9 per cent.
INSIDE THE BRISBANE BOOM
Housing price rises
2021 prediction: 4 to 8 per cent
2021 reality: 22 per cent
2022 prediction: 8 to 14 per cent
Biggest 2021 price surge:
Northside 24 per cent
Inner city houses: 28 per cent
Where to watch
Brisbane east coast – Wynnum through to Redland Bay
Southside – Woodridge, Logan (most affordable houses, some under $400,000)
(Source: Christopher’s Housing Boom & Bust report)
The Brisbane forecast for 2022 was that prices would continue to rise by between 8 and 14 per cent, Mr Christopher said – a scenario that held fast even if the official interest rate rose to 0.25 to 0.5 per cent in the second half of the year.
“We expect the recent surge on inner-city house prices to continue into 2022. I would also add in Brisbane eastern Coast (Wynnum through to Redland Bay) for those that have the budget,” he said. “And for those looking at the most affordable end, you can still pick up houses south of Brisbane and on the train line (Woodridge, Logan) for under $400,000.”
He said even if APRA cracked down on lending, Brisbane would escape the fallout given housing prices were still better value than Sydney and Melbourne.
“In 2017/18 it was Sydney and Melbourne that had the price corrections. Brisbane flatlined,” he said. “Right now the leading indicators such as lower listings, surging rents and higher auction clearance rates suggest more is to come at least over the next few months”
Peter and Christine Taylor are among thousands of Queenslanders who’ve taken their homes to market in the hottest period on record, with their stunning sky home in New Farm’s Aquila development set to go under the hammer December 11. The couple had paid $5.4m a decade ago for the three bedroom full floor stunner off the plan, and are set to see strong returns off the lifestyle property.
“It’s a unique site and the aspect is just breathtaking. When you’re in the living room, you feel like you’re floating over the river. We’ve had lots of great parties on the balcony and in the living room.”
Top 5 Brisbane boom suburbs:
4500 Brendale
4300 Brookwater
4017 Brighton
4053 Stafford
4509 North Lakes
(Source: Christopher’s Housing Boom & Bust report)
Mr Christopher said the next decade would be a golden one for Brisbane, with multiple drivers of positive energy around the Olympics and Qld’s limited exposure to Covid-19 lockdowns, with a surge in interstate migration and buyers.
“The win of the 2032 Brisbane Olympic Games is clearly a positive for the city economy and that is likely to help with the housing market over the next ten years. So we can expect outperformance of the Brisbane housing market compared with other Australian cities over this time.”
“It will also benefit over the short term from interstate migration inflows from Sydney and especially Melbourne, notwithstanding any future state border closures.”
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