Our Brisbane Property Forecast for 2023
You might’ve heard the real estate experts' predictions that Brisbane will be one of the most popular locations to buy property in 2023 (along with other major cities like Adelaide and Perth).
But what does this mean for current or potential Brisbane real estate investors?
If you’re considering buying property in Brisbane this year, or if you’re concerned about how your property value will change throughout 2023 — especially as talk of a potential recession continues — this guide is here to help.
Find out what to expect from the Brisbane real estate market below.
Factors That Will Affect the Brisbane Market
Several factors will influence the real estate market in Brisbane in 2023, and the more you know about these contributors, the easier it is to prepare for the future.
Here are some of the most important ones to keep in mind:
Proximity to Jobs
One reason for Brisbane’s robust real estate market, even in times of economic uncertainty, is the fact that owning or renting property here will put residents close to five prominent employment hubs:
- The Central Business District
- Brisbane Airport
- The Trade Coast
- Fortitude Valley
- Enoggera Barracks
With employers across nearly all industries experiencing worker shortages, the need for skilled employees is higher than ever. Many people may choose to migrate to the Brisbane area to find work in 2023, which will undoubtedly impact the real estate landscape.
Increased Infrastructure Spending
For the last several months, numerous politicians have claimed that infrastructure spending will kickstart the Australian economy and help to protect it from a recession. After all, infrastructure projects create new, well-paid jobs and improve property values.
Infrastructure investments throughout Queensland, including Brisbane, have already taken place (including airport upgrades and the Cross River Rail), and more are expected in the coming years. The Queensland Government also plans to spend $13.9 billion on infrastructure this year.
These improvements will make Brisbane and the surrounding cities more desirable and may lead to increased property values and a stronger real estate market.
Population Growth
Brisbane has experienced steady population growth for the last several years, and it’s expected to continue seeing increases in 2023 and beyond.
With more people moving to Brisbane, property demand will also increase. This increased demand will contribute to a more competitive, healthier real estate market.
Increased Rental Demand
With the area’s growing population, there will also come an increased demand for rental properties.
Some people may choose to rent while they look for a property to purchase, and others may choose to rent because they’re not in a position to buy their own home yet.
Either way, population growth and the other factors listed above will create opportunities for property owners to generate more rental income and experience positive returns on their investments in 2023.
2023 Real Estate Predictions
In 2023, experts anticipate several changes in the real estate market — including many positive ones. Here are some of the most exciting and relevant predictions to keep in mind when planning your real estate investments for this year:
A Real Estate Crash Is Unlikely
In the wake of the 2008 financial crisis, many people naturally associate a recession with a real estate crash. While a recession is possible in 2023, a real estate crash is unlikely.
Experts believe that even if home prices fall this year, it is improbable that they will fall drastically enough to erase the significant increases in property values experienced in the last few years.
This news is great for current property owners, as well as those who are thinking about purchasing investment properties in Brisbane this year.
Interest Rates Will Remain High
For the first half of 2023, experts anticipate that interest rates will remain high. However, they will likely start to taper off as the year continues.
High interest rates can be a deterrent to some potential property investors. However, they can also help to lower home prices and make properties more affordable.
Some people may choose to move forward with investing in properties in 2023 to take advantage of lower prices — with the understanding that they can eventually refinance their mortgages to get a lower interest rate and reduce their monthly repayments.
More Buyers and Investors Will Enter the Market
Brisbane's population is expected to grow significantly in 2023, particularly with the increase in infrastructure spending and the availability of new projects.
Australia (including major cities like Brisbane) will also likely see an influx of immigrants relocating here from other countries this year. Some experts predict immigration rates will return to pre-COVID numbers in the coming years.
This immigration boom will lead to more buyers entering the real estate market. It will also create more opportunities for real estate investors to rent out properties, as there will be an increased demand for rentals in and around the city.
Increased Focus on Apartments
An increased focus on apartments and townhomes over single-family properties is also expected in 2023.
Some people may choose to invest in these property options because they’re more affordable, allowing them to enter the real estate arena even as higher interest rates affect their borrowing capacity. Others may choose apartments and townhomes because they create more rental opportunities.
With the city’s growing population and increased rental demand, there will surely be plenty of need for apartments and townhomes throughout Brisbane. Investing in these properties now will give buyers plenty of opportunities to gain rental income and flourish as the market shifts.
Get Help Navigating the 2023 Real Estate Market
Now you know what to expect, it’s time to turn that knowledge in to action. If you’re ready to conquer the Brisbane real estate market in 2023, let Aurora Realty Brisbane be your guide.
Our team of experts is here to give you the knowledge and support you need to make informed decisions, whether you're buying, selling, or managing property. Don't let uncertainty hold you back any longer. Contact us today to experience the difference that expert guidance can make!