The Brisbane Property Boom In 2022
Rental house prices across the country have reached new heights, and Brisbane is one of the cities leading the charge.
With the city’s property market expected to continue performing solidly, we look at what’s driving the market and what it means for both Brisbane investors and tenants.
Off the charts: Brisbane’s property market
Brisbane house prices are at a record high, having grown a huge 29.2 per cent in the last year. That’s the fastest growth seen in 22 years.
Coupled with this, rental prices are increasing. In the year to December 2021, Brisbane’s median rental house prices rose by 12.9 per cent. This represented the fastest growing rental prices of any capital city in Australia.
According to Domain’s December 2021 Rental Report, Brisbane rents have increased consistently over a record six consecutive quarters, making this the longest period of continuous rent growth in the city’s history.
This galloping growth is predicted to continue across Brisbane as the year progresses. So what are the factors driving all this, and what does it mean for investors and tenants?
What’s driving the growth?
The Queensland population has boomed in recent years. In the last two years, this has been due in part to the pandemic, with people fleeing the longer, more widespread restrictions experienced in the southern states in particular, and seeking a lifestyle change.
The stats back this up. According to ABS data, Brisbane had the highest net internal migration in Australia in the March 2021 quarter. This influx has understandably increased demand for housing and helped drive up the city’s property prices.
The imminent reopening of Australia’s international border could also bring more migrants to the country, which could see further numbers of people hoping to call Brisbane home.
And it’s a trend that’s fueling property price growth across regional Queensland too.
Property investors reaping the rewards
All of this clearly puts property investors in the driver’s seat.
In 2021 Brisbane’s vacancy rates were recorded as being the lowest in the city for nine years. And they’ve continued to stay low, at just 1.3 per cent in December.
Rental yields are tracking well, too. In January 2022 the figure was sitting at 3.4 per cent, compared to Sydney’s rental yield in the same month of 2.2 per cent.
While all this is good news for those who currently own investment property in Brisbane, does it mean others have missed the boat? Not necessarily, as this growth is expected to continue. Remember, too, that the Games are coming up.
Brisbane’s successful bid to host the 2032 Olympic Games may further boost confidence in the city’s real estate sector, with countless jobs across a range of industries set to be created over the next 10 years.
If you’re currently considering buying an investment property, make sure you do your homework.
What can tenants expect in 2022?
While all of the above is beneficial to landlords, it makes for a tight market for tenants.
Rents are expected to increase, with some speculation that in the quarter to March 2022 house rental prices could top $500 a week.
Vacancy rates vary across the city, with some of the lowest, according to 2021 research, being in suburbs like Anstead (0.5 per cent), Rothwell (0.2 per cent) and Capalaba (0.2. per cent).
At Aurora Realty we have seen unprecedented growth in rental values throughout metropolitan Brisbane with Bulimba, Hawthorne and Balmoral being standouts. Not only have rental prices risen but demand from tenants has far outpaced supply. We have had up to 50 people viewing a home and properties leasing right from the first open home.
As a result of this tight market, REIQ called for additional housing supply to ease the difficult market conditions for tenants across the state, and prevent rental stress or tenants resorting to accommodation that isn’t suitable for their families.
There’s no doubt that as the boom continues and vacancy rates remain low, more tenants will be competing for fewer rentals. So landlords will be able to pick and choose tenants, and tenants will need to put their best foot forward and act fast, to secure a good rental.
For expert property management and advice, call us today.