Brisbane house prices could rise by up to 6% next year, with the capital likely to record the strongest growth in the nation.
PropTrack's exclusive new research shows Brisbane house prices rose 8.9% in the 12 months to the end of November this year, defying interest rate pressure and initial forecasts of an economic downturn, to a record high.
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Brisbane house prices are expected to rise further in 2024. Photo: Brendan Radke
Driven by the perfect storm of strong buyer demand, inventory shortages, population growth, and rising construction costs, home prices have recouped post-boom losses and hit new monthly highs.
According to the report, River City home prices (homes and single-family homes combined) rose another 0.2% last month, reaching a new high of $775,000, 8.85% higher than a year ago.
Cameron Kusher, director of economic research at PropTrack, said he expects price increases to be between 3% and 6% next year, on top of the 8.9% rise in the first 11 months of 2023. .
“While Brisbane is expected to see the highest rate of price growth of all capital cities, this forecast shows price growth has slowed compared to this year,” he said. .
“We recognize that interest rate increases have a time lag and it will take time for the 425 basis points worth of rate hikes to have their full impact on borrowers.
“Furthermore, unemployment is expected to rise and economic growth to slow, which could also dampen price increases.
“Finally, some of the main drivers of last year's price recovery are unlikely to be as strong as in 2024 due to worsening economic conditions: a strong recovery in sales, increased buyer demand , a persistently low amount of inventory available for sale.”
Cameron Kusher, REA Group Executive Manager – Economic Research
The December PropTrack Real Estate Market Outlook considered the current market trajectory, as well as predictions about housing supply, the direction of interest rates, and the impact of historical interest rate increases.
Brisbane's current inventory of properties for sale is historically low, at 38% below the 10-year average in November, with demand per property on realestate.com.au up 63.2% year-on-year, research shows. It was revealed.
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A derelict property at 16 Forest Glen in Browns Plains was sold at auction to an online bidder for $540,000 after attracting 32 registered bidders. Saturday, November 25, 2023 Photo David Clark
The report suggests smaller capital will be the biggest beneficiary of rising home values, led by Perth (up 5-8%), Adelaide (up 4-7%) and Brisbane.
Harcourts Queensland chief executive officer Mitch Peelboom said Brisbane offered a popular lifestyle for a variety of people.
“Over the past 12 months there have been fewer listings on the market and fewer options,” he said.
“However, buyer interest in capturing the Brisbane lifestyle remains strong, resulting in increased competition and clearly driving up sales prices.”
There were nine registered bidders at a recent auction for 13 McDonald Street, Norman Park.
Mr Pierreboum said sellers were putting their homes on the market with confidence because they knew Brisbane was looking for buyers.
The report said Sydney house prices are expected to rise between 2 and 5 per cent, while Melbourne house prices are expected to rise between 1 and 4 per cent.
Canberra (-1% to +2%), Hobart (-2% to 1%) and Darwin (-3% to 0%) could go either way.
The latest Sight Unseen report by virtual inspection platform Little Hinges shows south-east Queensland continued to attract the majority of interstate tourists in October, with the Gold Coast (35%), Sunshine Coast (34%) and Brisbane ( 28.9%) was the driving force. cent).
This compares with Perth (26.2 per cent), Melbourne (22.1 per cent) and Sydney (11.9 per cent).
“October was a strong month for Brisbane, with interstate buyer inspections reaching 28.9%, up from 25.6% in September,” the report said.
The region also attracts the most international buyers in the country, led by the Sunshine Coast (9.2 per cent), Gold Coast (8.5 per cent) and Brisbane (7.3 per cent).
Perth came in fourth with a total share of 6.7%, followed by Sydney (6.1%) and Melbourne (6.1%).
Gordon Park, 132 Gordon Street, will receive the hammer at 8 a.m. Saturday.
The report also found that Brisbane (25.8%), Sunshine Coast (27.9%) and Gold Coast (33%) also received the most interstate inspections by renters looking to move to the Sunshine State. It was revealed.
The competition is now on for those looking to buy or sell ahead of Christmas, with just two weeks left before this year's chances narrow.
According to PropTrack data, 358 homes are scheduled to be destroyed by Sunday, an increase of 3% from a year ago.
Of those, 189 were scheduled across Brisbane and 169 regionally.
25 Plaistow Crescent, Hendra, will be auctioned today, December 7, at 6pm.
Next week, 340 cases are expected to be disposed of, down 4% from last year.
According to Prop Track, only 66 auctions are scheduled in the state from Dec. 18 to Dec. 23, an 85% decrease from a year ago.
In a testament to Brisbane's auction frenzy, an uninhabitable dump site in Logan recently broke an Australian record, attracting an astonishing 161 registered bidders and more than 500 spectators.
The Crestmead home sold under the hammer for $494,700.
There was a lot of confusion at the recent Crest Mead auction. Saturday, October 28, 2023 David Clark
But it's not just homebuyers who will continue to influence Brisbane's values, with Brisbane buyer's agent Lauren Jones hinting that investors will also start looking for local properties.
“Despite interest rates remaining high and consumer confidence remaining low, Brisbane still has a strong pool of eager buyers at the moment and it's hard to see that changing anytime soon,” she said.
