THE PAST YEAR
Aided by a raft of government incentives and low interest rates, Brisbane’s market bounced back from the initial pandemic blip in March 2020 stronger than anyone could have imagined. It was then thought by September 2020 that the market would surely begin to show signs of slowing down, however, as we know now, this was not the case.
Over the year, Brisbane house values increased by close to 20%. Meanwhile, apartment values remained stable over the same period, however, apartments are set to ride the coattails of the house market and begin to rapidly increase in the coming months.
the present market
Figures from September quarter have substantiated the expectation that the Brisbane’s property market would continue to break records and show no indication of slowing down.
The one-sided house surge saw house values increased by four% over the quarter to $825,000. Coincidingly, the first material change in value of Brisbane apartments in over a year was realised, however, only increasing by one per cent over the quarter to reach a median value of $450,000.
The deteriorating house supply and increasing buyer competition that have pushed auction clearance rates above the 70% mark since February has widened the gap between house and apartment values to its greatest disparity in history at 59%.
THE FUTURE OUTLOOK
The trends witnessed over the September quarter are expected to continue into the new year, with all ‘big four’ banks releasing forecasts that suspect the tightened lending conditions will have minimal effect on Brisbane’s property market, estimating Brisbane house values to increase by 16%-21% over the next 12 months.
Projected rapid growth across the nation has now triggering the first fiscal intervention aimed at repairing the clear affordability disparities of Australia’s present housing market conditions.
However, the ‘one size fits all’ nature of the national tightened lending standards handed down in October are unlikely to impinge on the predominant drivers behind Brisbane’s excessive growth, being owner occupier house purchasers.