What CoreLogic are saying about Brisbane’s 2023 prospects

CoreLogic’s Head of Research Eliza Owen said Brisbane’s housing market is adjusting to a sharp increase in borrowing costs over the second half of 2022, which have likely hit buyers hard off the back of extraordinary price rises. The median dwelling value in Brisbane has increased from $506,553 at the onset of COVID-19 in March 2020, to $707,658 at the end of 2022, a $200,000 difference in values.

“Despite the large decline from peak, Brisbane maintains the third highest gain in house values of the capital cities since the start of the pandemic,” Owen said.

“For this reason, there is marginal risk of negative equity for Brisbane homeowners, with the exception of very recent buyers, who purchased around the peak in June 2022 with less than a 20 per cent deposit.”

However, Owen said some factors may be placing a floor under the market as the pace of price falls across Brisbane has been slowing in recent months.

“The first factor is relative affordability. Although housing values remain higher than pre-COVID levels, Brisbane retains a lower price point than Sydney, with a $435,170 difference in median house values and $280,749 difference in median unit values,” Owen added.

“The gap between Brisbane and Melbourne housing values is also significant, with a $119,697 gap between median house values and $97,692 difference in median unit values. This could encourage ongoing housing demand from those willing to migrate to the state or own an interstate investment.”

Brisbane also continues to experience above average levels of interstate migration. Based on the most recent demographic data to the June 2022 quarter, migration into Queensland was tracking 63 per cent above the decade average, with net interstate migration into Queensland by far the largest across the states and territories.

Rent values increased a further 13.4% in 2022, suggesting an underlying shortage of available housing across the city.

“Similarly, a low volume of listings persists, where the volume of advertised stock is trending almost 40% below the previous five-year average,” Owen said.

While Brisbane property values are likely to fall further in 2023, it is possible the rate of decline will continue to slow over the coming months, which makes it an ideal time for savvy investors to acquire southeast Queensland property for a steal.

This post was originally published on https://gallerygroup.com.au/how-will-brisbane-property-markets-perform-in-2023/