Brisbane’s property market has hit record highs, chalking up more transactions than New South Wales and Victoria during the September Quarter. Analysis by Place Advisory shows the volume of house sales is up 10% across Greater Brisbane. It also found that investors are back, with a 148% increase in investment purchases of houses in Brisbane since the start of 2020. Place managing director Sarah Hackett says she has never experienced such a large level of interest in Brisbane properties from interstate buyers in her three decades of working in Brisbane real estate. She says Queensland is popular with interstate buyers as it has not been impacted as significantly as other states by lockdowns and restrictions. Hackett says Brisbane is more affordable compared with Sydney and Melbourne markets as well and many people were moving to Queensland to take advantage of the lifestyle. Queensland’s population increased by 38,000 in the past quarter
Gold Coast Tipped To Pass Brisbane
Lockdown-fatigued buyers wanting to escape the city are pushing up prices on the Gold Coast, which is forecast to overtake Brisbane prices within three years. The demand for homes on the Gold Coast and elsewhere in Queensland is being driven by interstate arrivals fatigued by long lockdowns and restrictions. The Australian Housing Outlook report from BIS Oxford Economics has found that while there was a slight downturn in the market in early 2020, as concerns grew during an emerging pandemic, it has proven “remarkably resilient” since. For Queensland, which largely skipped the lockdown lethargy forced on Victoria and New South Wales, it meant a rush of interstate arrivals. The report found that while Brisbane’s market is “set to get even stronger”, it would not keep up with the interstate demand for houses on the Gold Coast and the Sunshine Coast. The Gold Coast’s median house price is forecast to rise from $815,000 to $915,000 in 2024.
Quote of the Week
“There’s still a relative shortage of properties on the market and demand remains really strong. People are encouraged by the lockdowns ending in NSW, Victoria and the ACT and very confident because of low interest rates and job security.”
CommSec economist Craig James
House-Land Package Sales Rise
Australians are snapping up house-and-land packages, with new figures revealing building approvals increased 3.5% in August. The latest ABS figures show the number of buildings approved during August hit 12,009, well above the 8,458 recorded at the same time in 2019. Oliver Hume data reveals in September there was a 30% increase in Melbourne of people paying a reservation fee to secure a block of land. The increase in demand for house-and-land packages comes as the cost of construction increased since February by 10% for a single-level home and 5% for a double-story home. While the timber shortage has started to ease, glass is in short supply and many buyers are still waiting for tradesmen to be available. Oliver Hume national head of research George Bougias says the challenges have not put off buyers of house-and-land packages. He says some buyers are rushing to get loans to build ahead of the APRA move to tighten lending criteria.
Confidence High At Auctions
Australia has chalked up its second busiest auction week of the year, with over 3,000 properties going under the hammer as NSW and Victoria emerge from lockdowns. Preliminary auction clearance rates were above 80% in every capital city last week, except for Perth. CoreLogic figures show a national clearance rate of 81% last week, compared with 67% during the same week in 2020. Adelaide had the highest preliminary clearance rate at 90%, followed by the ACT 87% and Sydney 81%. Brisbane recorded 80%, Melbourne 80% and Perth 43%. CommSec economist Craig James says the ending of lockdowns in NSW, Victoria and the ACT contributed to the strong auction results. “There’s still a relative shortage of properties on the market and demand remains really strong,” he says. “People are encouraged by the lockdown ending in NSW, Victoria and the ACT and very confident because of low interest rates and job security.”
