Brisbane house prices to boom into 2024
Brisbane has been one of the nation’s strongest-performing housing markets since the onset over the Covid-19 pandemic.
According to PropTrack, Brisbane dwelling values have soared by 51% since March 2020, led by 56% growth across the detached house segment:
Meanwhile, housing demand is running well ahead of supply across South East Queensland, according to new research by RPM Group Queensland.
Several south-east Queensland councils have expressed concerns over the state government’s draft SEQ Regional Plan, which aims to provide 900,000 new dwellings to accommodate an additional 2 million people in the region by 2046.
For example, Logan, south of Brisbane, would need to build 4330 residential lots each year, or nearly 83 lots per week, to keep up with escalating demand, according to RPM Group.
However, only 1800 lots were registered last year, indicating a substantial shortage in addressing the rising population’s housing needs.
According to the most recent Australian Bureau of Statistics demographic data, Queensland’s population increased by a record 124,200 (2.35%) in the year to March 2023, owing to substantial net overseas migration and internal migration:
Meanwhile, actual dwelling construction across Queensland has collapsed, pointing to worsening housing shortages:
Reflecting the above, NAB has updated its house price forecasts, which are especially bullish about Brisbane:
NAB tips Brisbane dwelling value growth of 12.1% in 2023 followed by 6.5% growth in 2024.
It is worth remembering that Brisbane’s median house price is only 54% of Sydney’s median price, according to Domain:
Brisbane’s median house price is also only 78% as expensive as Melbourne’s median price:
This implies that Brisbane housing is relatively affordable compared to its Southern big city cousins, meaning prices should grow faster over the long run.
The 2032 Olympics will also generate infrastructure investment and consolidate Brisbane’s status as a global city, enhancing interest from overseas buyers.
Simply put, the conditions for another Brisbane house price boom look to be in place.
