Brisbane’s property market is setting the stage for a bustling year of investor activity. With strong growth potential on the horizon, Brisbane exhibits a compelling combination of robust demand and insufficient supply. Lauren Jones, a Brisbane-based buyer’s agent, attributes this to various factors that are drawing both local and interstate investors to the city.
Lauren Jones points to Brisbane’s rapid population growth as a principal driver of demand. “The first key demand factor is Brisbane’s rapid population growth, which is being fuelled by both external migration and interstate migration,” Ms Jones explains. This influx, coupled with the city’s relative affordability – it boasts a median price 31% lower than Sydney’s – is attracting Sydney homeowners and investors alike.
According to forecasts by notable sources like SQM Research and Domain, dwelling prices in Brisbane could surge by up to 11% next year. Encouraged by these promising figures, investors are taking a keen interest in Brisbane’s market. Not only do the property prices lure in investors, but the strong rental conditions also play a pivotal role. “Interstate investors are also being enticed by the strong rental conditions – vacancy rates are amongst the lowest in the country and rents, in percentage terms, are growing at double-digit annual rates,” states Ms Jones.
Adding to this is Brisbane’s robust infrastructure pipeline, with a series of significant projects planned ahead of the 2032 Olympics, which further excites potential investors.
Challenges in supply are evident as Ms Jones mentions the decline in new home developments. “During the year to June, the quarterly average was only 8,763 dwelling starts – 12.6% lower,” she said, referencing data from the Australian Bureau of Statistics. Similar trends are observed in building approvals, further illustrating supply constraints.
Despite this supply shortage and the presence of elevated interest rates and low consumer confidence, the buyer’s agent remains confident in the market’s appeal. “Despite interest rates remaining elevated and consumer confidence remaining low, there are still lots of eager buyers in Brisbane right now and it’s hard to see that changing anytime soon,” said Lauren Jones.
Her analysis suggests that the dynamic between the growing demand and the lagging supply is contributing to the heightened investor interest in Brisbane, making it a city to watch for those looking to invest in property in 2024.