Our highly anticipated first property update webinar for 2022 saw over 100 real estate agency leaders join Donna Kosiek Professional Services Banking Executive Queensland to hear the latest insights.

Mark Browning – NAB’s Head of Valuations & Property Advisory and Teri Roberts – Director of Gil Wright & Associates share property market and real estate agent market insights and outlook.

The strongest capital city property market in the country during 2021 and again over the Summer 2021/22 period, the Brisbane property market continues to see some of the strongest market conditions on record. Across calendar year 2021, housing values rose by +30.4%, as the market continued to benefit from relative affordability, limited supply in tandem with strong demand and the record low interest rates on offer to buyers.

Focusing on the early months of 2022, this buyer appetite has only intensified further, with sales activity remaining at record levels and further strong results being reported. This increase in demand has seen house values climb by +7.7% over the last three months to the end of February 2022 and now sit +32.8% higher over the last 12 months.

Supporting this, the continued imbalance between limited supply and demand has continued into year 2022. Despite new listings showing signs of improvement, total listing numbers remain well down on the same time last year. While new for sale listings sit just -21% down on the same time last year, such has been the strong absorption rate, total for sale listings remain -24.5% lower over the same period. As such, sales activity as at the end of February sat +62.8% higher than 12 months prior.

A continued improvement has also led to the Brisbane rental market also providing the strongest rental value gains of all capital city markets. House rents are now +11.3% higher than the same time last year, while the unit market has seen rents increase by +6.5%. Vacancy rates now sit at just 0.9% across Brisbane, having tightened since the same time last year, when 1.5% of all Brisbane rental properties were unoccupied.

Local Brisbane Regions

For the 12 months to February, sales activity increased across all regions of Brisbane, by at least +25% year on year. Sales activity climbed highest in the Logan-Beaudesert region, with activity up by more than +50% compared with February 2021. Similarly, strong activity improvement was also measured across Brisbane – Inner City, Ipswich and Brisbane – South, which all saw activity jump over the 12 months by more than +40%.

Price growth in houses over the 12 months to February, was widespread, and consistent, with all regions, with the exception of Ipswich, seeing housing values rise by between +31% and +35.5%. The strongest value gains have been seen in the Brisbane – South (+35.5%) and Brisbane – North (+35.2%) on an annual basis.

Over the last quarter, house value growth has continued to remain strong across the city, however the Logan – Beaudesert region, up +11.1%, and Brisbane – East, up +9.2%, have seen the strongest rise over the Summer 2021/22 period.

Strong unit value gains have also been seen across Brisbane over the last 12 months. The Brisbane – South, Brisbane – North and Brisbane – East areas, regions have seen the strongest rises in values, up by between +17.4% and +19% over the last year.

Market indicators

New listing levels for houses across Brisbane are up +0.2%, however down for units by -8.2% on a year ago. In comparison, total listings, for both houses and units, remain more than -20% down over the same period.

Despite the flooding challenges faced by many Brisbane residents in late February and early March 2022, this has not slowed listing, sales or auction numbers through this period. While auction clearance rates have been slightly inconsistent through the second half of February and into March, auction numbers continue to remain elevated.

Outlook

For agents the level of rental stock remains front of mind with many landlords taking the rise in value to sell their investment property, adding to pressures due to the surge of demand of rental properties following recent flooding.

Affordability, interest rate outlook are all key indicators of the market together with the range of listings and options for purchasers.

If you missed the webinar – you can watch the recording here.