Housing Market Intelligence: Brisbane

Welcome to latest edition of The Urban Developer’s housing market pulse check for Brisbane.

This resource, to be updated monthly, will collate and examine the economic levers pushing and pulling Brisbane’s housing market.

Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.

So, what were the highlights across Brisbane’s property market throughout December 2020?

Australia’s housing market finished the year on a strong footing with Corelogic’s national home value index rising a further 1 per cent in December; the third consecutive month-on-month rise following a 2.1 per cent drop in dwelling values between April and September.

At the year’s end Corelogic reported a 4.14 per cent lift in its Brisbane home value index over the year, with houses up 4.6 per cent and units 2.3 per cent, year on year.

The current median value for a Brisbane house is $577,638 with prices up 0.7 per cent across the month while the current median value for a Brisbane apartment price is $390,758.

Brisbane is also showing strength across the upper quartile, with dwelling values up 1.25 per cent in December compared with a 0.94 per cent rise in values across the lower quartile of the market.

The vacancy rate in Brisbane tightened to 1.8 per cent while rents for houses the dropped significantly over the month.

Westpac updated its property forecasts, with Brisbane real estate prices tipped to surge 20 per cent between 2022 and 2023.

ANZ economists forecast Brisbane house prices will rise by 9.5 per cent next year, as low interest rates and government stimulus flow through the economy.

CBA updated house price forecasts in early September for a 6 per cent peak-to-trough decline and a strong rebound in prices in the second half of 2021.

Since then, consumer confidence has surged, returning to an eight-month high.

Investor lending remains relatively modest overall, at a national level, although based on our own level of inquiry, there is definitely a lot of investor interest circling Brisbane at the moment.

The latest lending figures show that owner-occupier lending has risen to historical highs, with first home buyer numbers in Queensland up 70 per cent year-on-year.

December 2020

Policy Updates

The Home Builder scheme will continue until the end of March in a bid to prevent a major decline in construction activity.

Queensland faces a “hard road” over the next four years as the state recovers from the coronavirus pandemic, Treasurer Cameron Dick says.

The central bank, which introduced a package of measures at its latest meeting, cut the cash rate target to 0.1 per cent—the lowest in Australia’s history, in its bid to support a recovery.

Corelogic – Home Property Value Index

Type Month Quarter Annual MedianAll
All 1.1%▲ 2.1%▲ 3.6%▲ $521,686▲
Houses 1.2%▲ 2.5%▲ 4.6%▲ $577,638▲
Units 0.4%▲ 0.5%▼ -0.6%▼ $390,758▲

^Source: CoreLogic Hedonic Home Value Index – December

Moody’s – Housing Affordability Index

City Household income to meet mortgage repayments September 2019 Household income to meet mortgage repayments September 2020
Brisbane 21.0% 18.7%

^Source: Moody’s Investor Services – October

Knight Frank – Prestige Property Index

City Global ranking 3-month change 12-month change
Brisbane 23rd -1.4%▼ 1.1%▲

^Source: Knight Frank Prestige Property Index – November

December 2020

Corelogic – Auction Clearance Rates

Week Clearance rate Total Auctions
Week ending 6 December 2020 57.7% 99
Week ending 13 November 2002 64.1% 149
Week ending 20 November 2020 N/A N/A
Week ending 27 November 2020 N/A N/A

^Source: Corelogic Auction Clearance Rates – December (results for final two weeks of the year not available)

December 2020

SQM – Residential Rental Vacancy Rate

City Dec 2020 Vacancy Rate Monthly % change Dec 2020 total vacancies
Brisbane 1.8% 0.0% 6,190

^Source: SQM Research – December

SQM – Rental stock on market

City Dec 2019 vacancy rate December 2020 vacancy rate December 2020 vacancies
Brisbane 2.9% 1.8% 6,190
National 2.5% 2.2% 72,879

^Source: SQM Research – December

SQM – Monthly Rents Index

Type Rent Monthly % change Annual % change
Houses $475.10 1.6%▲ 0.4%▲
Units $380.10 0.9%▲ 0.6%▲

^Source: SQM Research – December

December 2020

ABS – Building Approvals

^Australian Bureau of Statistics – November (Suspension of trend series between May 2020 and Jul 2020 due to Covid-19)

Dwelling Approved Monthly % change
Houses 2,455 17.0%▲
Units 3,248 6.5%▲

^Source: Australian Bureau of Statistics; Reference period November

ABS – Lending

Region First home buyer loan commitments First home buyer ratio – dwellings First home buyer ratio – housing
Queensland 3,172 41.0% 34.9%

^Source: Australian Bureau of Statistics – November

ABS – Interstate Migration

Region June 2020 arrival June 2020 departures June 2020 net
Queensland 24,141 17,391 67

^Source: Australian Bureau of Statistics – June

December 2020

Brisbane Housing Market: Experts Weigh In

Tim Lawless

Tim Lawless
Head of Research

“Containing the spread of the virus has been critical to Australia’s economic and housing market resilience and Brisbane housing values have risen by 1.1 per cent over the month of December.

“In fact, Brisbane housing markets are now at a record high in terms of housing value.

“It really highlights how popular some of the lifestyle markets have become around the country.”

 felicity emmett

Felicity Emmett
Senior Economist

“Where things are a bit different, or where there is a bit more certainty now is the economy is entering 2021 with really quite a lot of momentum,”

“If anything, the risks to our forecast for the [near] 9 per cent gain in house prices next year, are probably tilted to the upside.

“Queensland’s final demand in the September quarter was higher than a year ago—it’s the only state for that to be the case.”

Adam Empringham

Adam Empringham
Sales Director
Image Property

“Lifestyle properties, including those with water views, semi-rural or acreage, have continued to be in strong demand in Brisbane and on the Sunshine Coast.

“The lifestyle market is also being driven by the interstate market through the fact that it’s very, very good value for money by comparison.

“So, that’s going to be a key market to watch, especially on the Sunshine Coast.

“Marketplaces on the outskirts of cities are also going to be ones to watch, so, areas like Brisbane’s bayside suburbs where water comes into play, where semi-rural comes into play.”



Article Source: theurbandeveloper.com