17 Aug Have recent snap lockdowns created fast market rebounds?
Snap lockdowns have become commonplace recently, with cities plunged into isolation at a moment’s notice. Our thoughts are with anyone that’s affected by the current wave of cases and subsequent lockdowns. As you might expect, the increased restrictions that come along with this have a knock on effect on the property market.
But possibly not in the way that you might first think…
Bounce Back Brisbane
The start of 2021 saw a huge surge in house prices across the nation as a market that had become dormant in the height of the pandemic came out of hibernation and cashed up buyers competed tooth and nail for housing stock. Since then these steep price rises have led to a decline in affordability in most of Australia’s capital cities and the market is starting to show signs of softening.
In Brisbane however, it’s a different story. Queensland’s Capital remains affordable compared to its counterparts and continues to experience significant growth – 6% increase in dwelling values over the last quarter and 15.9% in the past year according to CoreLogic.
The current median value for a house in Greater Brisbane is $674,738 – the highest it has ever been and a $98,400 increase since the start of 2021. Look for this trend of big increases over a short period of time to continue as we approach the Brisbane 2032 Olympic Games.
It’s also important to note that investors are demonstrating market confidence with lending data showing 26.8% of all housing finance going to investors.
As we see these pockets of restrictions end, we may see isolated spikes in buyer demand across Australia characteristic of early 2021. For the reasons mention above these will be strongest in Brisbane as investors and owner/occupiers alike use this dormant time to plan their next move in the property market.
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Surging Sunshine Coast
A strong market is not just isolated to Brisbane. The Sunshine Coast continues to be one of Australia’s top performing locations. And it’s not just locals that are snapping these properties up…
Recent figures from Ray White highlighted that almost 13,000 Victorians in particular relocated to Queensland last year, many of them heading to the Sunshine Coast, driving up demand and prices as they go.
In suburbs such as Maroochydore and Buderim, the demand has been unprecedented – vacancy rates have been incredibly tight, holding firm well below 1.0% for over a year – and this demand is set to continue.
“When we go into lockdown, we don’t spend much, we tend to put money away and that means household savings have doubled since before the pandemic.”
“It has been one of the factors that has really driven house prices.”
– Nerida Conisbee, Ray White Chief Economist
Looking for more detail?
We have a number of exciting opportunities in both Brisbane and the Sunshine Coast ranging from large family homes to apartments to Co Living investment properties with a high level of customisation.
Find out which works best for your portfolio and take advantage of the booming market in South East Queensland by calling us on (07) 3871 2500 for a personal, no obligation discussion.