Qld real estate: Expert predictions of what to expect in 2022
After a recordbreaking year for real estate, Queensland is on the cusp of more double digit growth. Here’s what the experts predict will happen across the property spectrum.
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After a recordbreaking year for real estate, Queensland is on the cusp of more double digit growth, making it still the perfect time to sell, though it will be a challenging time buying.
With so much happening in the Queensland market, we asked a panel of experts what they expect in 2022 across the property spectrum. Here is a snapshot of their predictions.
Antonia Mercorella, Real Estate Institute of Qld
We’re going to see interstate demand accelerate and that will create a very competitive landscape. and it will also mean our rental market will remain tight or get tighter.
Covid has seen the emergence of flexible work arrangements and as a result that makes living in Qld very viable and appealing. Even at the local level we’re seeing people really wanting to secure property. We are in for a competitive 2022 and it’s likely we will see property demand and prices continue to escalate.
Cameron Kusher, REA Group
Property prices in Queensland also remain significantly lower than those in the southern capitals. We are expecting high single figure growth in 2022 which is a marked slowdown in growth from a year ago. For buyers, it is expected the very tight rental market will continue to pique the interest of investors, while owner-occupier upgraders will continue to account for the majority of housing demand.
SEQ will likely be the most in demand area. Beachside and tree-change areas of the Gold and Sunshine Coast are expected to remain popular. However, we expect that demand for these properties will ease from the highs of the past 18 months.
Paul Bidwell, Master Builders Queensland
We think 2022 will be more of the same, which is the cost of the materials keeps increasing as well as delays in getting materials. It will be very tough for residential builders. The only shining light is so long as the property market holds there’ll still be some life. Qld and Brisbane are expecting strong growth, that’s going to hold across the Sunshine and Gold Coasts. That will continue to hold up demand for new construction. The challenge will be just making sure they can sign contracts they can deliver.
Luke Fryer, Metricon Homes
We’re forecasting a buoyant housing market in South East Queensland for 2022. Second and third home buyer segments will be especially active, with first home buyers competing with these groups and investors to enter the market. We will see investors become especially active in SEQ throughout 2022, as the combination of high yield and capital growth presents a very attractive proposition.
New home building – domestic and international supply chain constraints are impacting many. It’s no doubt challenging, however Metricon will continue to build a high number of new customer homes. We are confident that our strong quality trade and partner network will ensure Metricon home completions have minimal delays.
Don O’Rorke, Consolidated Properties Group
We’re expecting boom conditions across every market and that’s due primarily to migration. Around 40,000 people moved to Queensland last year in the middle of a very difficult Covid time and imagine the numbers that are going to move when the border restrictions are down.
The other two factors driving sentiment are the Olympic effect and employment. We’re in that cycle already. People will come here because there’s infrastructure to be built but also the intangible of us also now being an Olympic city.
Jason Adcock, Adcock Prestige
I think that the Brisbane, Gold Coast and Sunshine Coast markets will continue to strengthen as a result of ongoing interstate migration. Brisbane will see property increases of between 8 per cent and 14 per cent in 2022.
In addition to interstate buyers we will see the number of expats returning to Brisbane increase and they will lift demand, particularly in high end and riverfront markets.
Once international students start to return to Brisbane and inner-city apartment vacancies drop, those properties will once again become popular with investors.
Sarah Hackett, Place Estate Agents
Everyone in the company had their biggest year.
We do predict 2022 to start strongly, we’ve got appointments booked and a lot of interstate buyers trying to relocate, a lot of companies are moving up staff for projects. We predict that it will be a strong 2022.
We start auctions January 18 and I just think there’s not much stock on the market so people’s properties will really stand out because there are still a lot of buyers. So I think it will be very strong straight away.
Pete Wargent, BuyersBuyers
We expect to see more modest house price growth of 5 to 8 per cent in SEQ. We also expect to see strong growth in asking rents in 2022, as rental vacancy rates have fallen to very low levels. Stock levels have remained low throughout 2021. We expect houses in Brisbane to continue performing.
Potential for changes to land tax rules could see investors moving to lower price brackets. Affordability constraints will also become more important particularly if lending standards are tightened further. We expect to see more affordable suburbs in high demand. First homebuyers will still be active, but less so than in 2021.
Simon Pressley, Propertyology
Record low interest rates are underpinning demand. Whenever rates rise, it will make little to no difference because they’ll still be dirt cheap and wages are on the up.
Migrants from interstate will have a presence. The most active buyer demographic will again be existing owners looking to upgrade their family home.
Strong household budgets, the popularity of work-from-home, and a thirst to convert home into a private oasis are driving factors, APRA permitting, investor activity will increase in 2022. It needs to increase, too. Rental supply is so tight, even more so in regional Queensland locations than Brisbane.
Daniel Herbert, SSKB strata managers:
One of the indicators we see in the strata market is the number of searches being booked by search agents and this has increased by 50 per cent over the past few months of 2021 and shows no signs of slowing down yet. Brisbane, the Gold and Sunshine Coast regions have not experienced anything like the growth that the Sydney and Melbourne markets have enjoyed over the last decade but the next decade will likely see a correction.
Australia has an ageing population and Queensland has always been the retirement destination for southern states but with the changing sentiment towards remote working, more and more southerners will choose the climate and lifestyle of Queensland while being able to remain in the same job. This has already started with Queensland recording the highest population growth of any state or territory in 2021 and will continue in 2022 and beyond with record infrastructure spending and a once in a lifetime Olympics boost for SEQ.
Eddie Dilleen, Author ‘30 Properties before 30’, Dilleen Property
In 2022 I expect the Queensland property market to continue to boom and have strong growth by around 10 per cent this year particularly in the greater Brisbane region, Brisbane council, Ipswich, Logan council, Moreton Bay etc.
Over the last five to seven years many investors have predicted a huge growth cycle, housing boom in Queensland and only the last 18 months it’s finally started to happen, the 2032 Olympics have only pushed the buyers further, along with low interest rates and affordable prices. I believe we’re in for three to five years of phenomenal growth.
Suburbs within 10-35 km of Brisbane will be the hottest.
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