Amid a worldwide pandemic and the first recession in 30 years, the Brisbane property market has remained stable and shown positive signs of growth throughout the turmoil of 2020. Key indicators contributing to the performance of the market in recent months include an increase in interstate buyers, record-low interest rates and government stimulus, supporting an anticipated rise in Brisbane dwelling values as we enter 2021.
The desirability of the Sunshine State has seen an increase among interstate buyers based on affordability and the lifestyle on offer. The price-to-income ratio required to purchase property in Brisbane is roughly half that of the other eastern seaboard capital cities at 5:3 to Sydney’s 10:8 and Melbourne’s 8:4. Victoria is currently leading the northerly charge of interstate buyers with these numbers expected to rise further once the state borders are completely reopened.
In conjunction with the state’s response to the pandemic, the level of infrastructure and employment opportunities in Brisbane are another reason why many are looking to make the move. Our economy has been aided by major construction progressing across the city including the highly anticipated Cross-River Rail and Queens Wharf Precinct projects.
The Brisbane City Council has forecast that up to 60,000 people will relocate to Brisbane to work on such projects once the border restrictions are lifted. This will put pressure on rental accommodation and drive investment, assisting in the recovery of rental loss during the COVID period. The government stimulus around land, new-builds and renovations are also providing further demand for builders and tradespeople within the construction industry.
With the RBA cash rate at an all-time low of 0.1%, all major banking institutions are now offering the lowest interest rates in Australian history. Buyers are taking advantage of these record-low interest rates, along with the state government’s incentives that are in place. The response to COVID-19 has allowed demographics that may have been previously excluded from purchasing property to participate, including first-home buyers who are creating higher levels of competition in the market. As a result, we are beginning to see an increase in buyer demand and lower supply of new dwellings within the Brisbane marketplace.
Property experts are tipping Brisbane’s real estate prices to surge 20% from the second half of 2021, through to 2022 and into 2023. This prediction will position our city as the best performing market out of the Australian capital cities over the coming years. South East Queensland real estate agents are currently experiencing low days on markets, multiple offer situations and seeing record prices achieved throughout the region. The consensus within the real estate industry is that if these current conditions continue, this will create the perfect storm for the Brisbane property market to thrive.