Brisbane Property Market in 2024: An Overview of Growth and Investment Opportunities

Are you curious about the state of the Brisbane property market in 2024? Well, you're in luck! Brisbane was one of the strongest property markets during the boom of 2020-21, and there are many signs...

Are you curious about the state of the Brisbane property market in 2024? Well, you're in luck! Brisbane was one of the strongest property markets during the boom of 2020-21, and there are many signs that it will continue to thrive in 2024. In this article, we will explore the current trends and forecast for Brisbane's property market, identify key areas of growth and investment opportunities, and provide valuable tips for buying property in this exciting phase of the property cycle.

Brisbane's Property Market Forecast for 2024

After experiencing a slight dip in housing values in 2022, the Brisbane housing market has rebounded strongly and is on track for a positive growth trajectory in 2024. House prices in nearly three out of four suburbs rose by 10 percent or higher in 2023, indicating a strong market performance. Furthermore, various research reports confirm the upward trend in Brisbane property values:

  • Corelogic's daily home value index suggests that Brisbane house prices rose by 1% in December 2023.
  • Dr. Andrew Wilson's My Housing Market showed a 12.3% increase in Brisbane house prices over 2023.
  • Proptrack report reveals that Brisbane home prices grew by 0.27% in December, amounting to a 10.45% increase over the year.

While there may be slight variations in statistics across different research sources, these figures collectively indicate the positive growth and recovery of the Brisbane housing market. The market has not only recovered from the previous downturn but has also reached new highs, making it an attractive option for investors and home buyers alike.

Brisbane's Strong Housing Market Insights

To gain a deeper understanding of Brisbane's property market, it is essential to consider valuable insights into the city's housing trends. In recent years, Brisbane experienced a significant surge in house prices, with almost 400 suburbs joining the million-dollar club. This property boom was driven by relentless demand and internal migration, particularly from Victoria and New South Wales.

While growth slowed in other parts of Australia, Brisbane's housing market continued to perform strongly in the first half of 2022. However, there was a slight dip from June 2022, with house prices falling by 11.0% from their cyclical peak. Nevertheless, home prices have now surpassed previous peaks, and the city is projected to end 2023 with an 8% increase in home prices.

The Brisbane real estate market in 2023 showcased fragmented performance, with certain markets significantly outperforming others. House prices rose dramatically in Queensland's top-performing markets, with some areas experiencing growth of more than $300,000. Brisbane's median house value, which sits at just 63% of Sydney's, indicates a powerful blend of growth and affordability, making the city an increasingly attractive option for investors.

Key Factors Driving Brisbane's Robust Market

Several factors contribute to the robustness and growth of Brisbane's property market. Firstly, there has been a significant influx of internal migration into Queensland, particularly from Victoria and New South Wales. Australians seeking more affordable property in lifestyle suburbs have been drawn to Brisbane's appealing housing market. Moreover, Brisbane remains more affordable than Sydney and Melbourne, making it an attractive option for those looking to get more value for their money.

Additionally, federal government forecasts predict a population growth of over 16% in Queensland by 2032 when Brisbane hosts the Olympic Games. This population growth, coupled with a shift in population spread towards the city, indicates increased demand for housing in Greater Brisbane. The projected growth in jobs, infrastructure development, and enhanced quality of life associated with the Olympics further underpins the strength of Brisbane's property market.

The Rental Market in Brisbane

Brisbane's rental market is currently experiencing a significant shortage of available properties, leading to historical highs in asking rents. The city has seen a surge in population and job opportunities, attracting people from various areas seeking a high-quality lifestyle. This increased demand for rental properties has resulted in a low vacancy rate, making it challenging for renters to find affordable housing. While this situation benefits landlords, it poses difficulties for tenants searching for suitable rental properties.

Investment Opportunities in Brisbane's Suburbs

To make the most of Brisbane's property market, it is crucial to identify key areas with strong growth potential. The following suburbs offer promising investment opportunities:

  1. Entry-level suburbs: Suburbs such as Keperra and Chermside West, situated around 9-10km from Brisbane, are attracting attention due to their favorable demographics and proximity to transport links. These suburbs have witnessed consistent growth and offer properties within a more affordable price range.

  2. Middle-ring suburbs: Cannon Hill, located approximately 6-7km from Brisbane's CBD, presents excellent investment potential. The suburb boasts strong incomes, a high owner-occupier percentage, and access to amenities and employment hubs. Other suburbs to consider include Stafford Heights, Mitchelton, Everton Park, and more.

  3. The bulletproof 5km ring: Ashgrove, within 4km of Brisbane CBD, stands out as a prime suburb for investment. With impressive demographics, rising incomes, and a family-friendly environment, Ashgrove offers a strong investment proposition. Other inner-ring suburbs worth considering are Auchenflower, Bardon, Wilston, and Kedron.

These suburbs demonstrate characteristics such as strong owner-occupier demand, excellent amenities, proximity to employment hubs, and growth potential, making them favorable options for property investment.

Key Tips for Buying Property in Brisbane

When purchasing property in Brisbane, it is essential to adhere to certain principles to ensure a successful investment:

  1. Buy below intrinsic value: Look for properties below their intrinsic value to ensure that you are securing a good deal. Avoid purchasing property solely based on photographs or without conducting inspections, as this can lead to misconceptions and potential issues.

  2. Outperforming averages: Focus on areas with a long history of strong capital growth and those likely to outperform the market averages. Consider suburbs with increasing wages, higher owner-occupier percentages, and favorable demographics to secure a property with strong growth potential.

  3. Find properties with a "twist": Seek properties that possess unique features or attributes that make them stand out from neighboring properties. Look for properties with potential for renovation or refurbishment, as this can help manufacture capital growth and attract quality tenants.

  4. Manufacturing capital growth: Opt for properties where you can manufacture capital growth through renovations or redevelopment. Consider properties that have renovation potential and add value, making them more attractive to tenants and boosting their rental income potential.

By following these tips, you can make informed investment decisions and maximize your returns in Brisbane's property market.

In conclusion, the Brisbane property market is poised for growth and offers exciting investment opportunities. With strong demographics, increasing incomes, favorable market conditions, and a range of desirable suburbs, Brisbane presents a compelling proposition for investors. By understanding key market trends and employing smart investment strategies, you can navigate the Brisbane property market successfully and capitalize on its potential for long-term wealth creation.