As a capital city market not traditionally prone to large swings in price, Brisbane was already well placed to weather a potential COVID-lead downturn – and the latest data proves its resiliency.
That’s because the Queensland capital not only endured the challenges of 2020, but smashed them with outstanding results in the housing sector.
The city’s annual and quarterly median house prices have swung back above $700,000 in the latest analysis from the REIQ.
Brisbane’s yearly median to September 2020 was $710,000, smashing through the $700,000 barrier set in June this year.
In addition, the September quarter median of $720,000 is well in advance of when it first breached the benchmark back in December quarter 2019, when the median was $703,000.
It’s an excellent outcome given property owners were anxious about the future of real estate values back in March.
But as the year progressed, hard borders and quarantining saw us travel through the pandemic threat with few infections and a reasonably open local economy.
In addition, like many other centres, Brisbane sellers pulled their properties off the market and it’s this lack of stock, which helped prop up prices.
On top of that, there’s no question that first home buyers are back in force, with activity strong from first-timers keen to gain a foothold in the Sunshine State’s capital city market.
Property Prices Continuing to Firm
There’s a definite positivity in the air when it comes to Brisbane’s property market prospects this year.
Indeed, it’s highly likely we’ll see a strong start to 2021 that will continue through the rest of the year.
The fundamentals have been right for a number of years now and people have the confidence about moving to the state capital from elsewhere around the nation.
There’s a flight towards large suburban houses, which makes logical sense, given the increase in people working from home.
Homebuyers are also taking advantage of the super low interest rates that have supercharged their borrowing power.
Rental Market Robust
Brisbane’s rental market, like its sales market, held its ground during 2020, with the only softness being felt in the central city.
Investors with holdings outside of the one to two kilometre ring of the CBD are receiving multiple applications for their rental properties.
Brisbane’s overall rental vacancy rate came in at 2.8 per cent for the September 2020 quarter, which shows that the market is reasonably balanced but also bordering on more demand than supply.
The Brisbane three-bedroom house median was $445 per week for the year to September 2020, which was $15 per week more than in 2019 – not a bad result given there was a pandemic in between those two points of time!
Brisbane’s rental market has been moving further into undersupply territory for a few years now, which is a situation likely to continue next year.
This is not only due to the reduction of new supply coming to the market, but also the strong uptick in interstate migration – which was a situation that had well and truly begun prior to the pandemic.
Savvy investors are securing the best opportunities now, with the market cycle only in its early days, but with strong demand from tenants already well under way.