Australia’s sunshine capital is experiencing a boom right now, with prices growing in all regions in Brisbane in February 2021.
According to CoreLogic figures, property prices in all the regions of Brisbane grew in February 2021. The February increase is the steepest rise since November 2007, where the monthly growth rate was 1.72%.
Why are prices increasing in Brisbane?
- The Gold Coast and Sunshine Coast are preferred destinations for internal migration.
- Since there is no international migration right now, buyers are setting their eyes on Brisbane.
- The threat of the pandemic eased in Queensland compared to other States and Territories in Australia.
- As remote working capabilities are possible, buyers are rethinking their options and choosing not to live in cramped inner-city apartments. They are going towards coastal areas and regional areas.
- Data from the Australian Bureau of Statistics (ABS) showed that in November 2020, Queensland experienced a quarterly wage growth of 0.6% amid reports of high buyer activity.
Queensland’s interstate migration at 20-year high
According to ABS data, Queensland had a net inflow of about 25,000 people, which is the highest figure for around 20 years.
- 7,200 people internally migrated to Queensland in the September 2020 quarter, compared to 6,800 in the previous quarter.
- About 4,000 people migrated from New South Wales to Queensland.
|June 2020 quarter||September 2020 quarter||City||Arrivals||Departures||Net||Arrivals||Departures||Net|
Figure: Internal migration, greater capital cities ABS (September 2020)
Brisbane has historically been experiencing strong capital growth in tandem with a rising Net Internal Migration (NIM).
As Queensland had a good outcome in controlling the COVID-19 outbreaks, it is operating a fairly open economic and social environment.
Why Brisbane is a hot market?
- Property prices are affordable, which has a wider appeal to budget buyers and rental investors who want rental yields.
- Property values in the fringe suburbs are steadily increasing.
- Brisbane is experiencing bidding wars at auctions as interstate buyers with pent up demand are getting into the property market.
- There is a sufficient supply of stock and there could be an uptick in demand closer to Central Business District (CBD).
- Even Aussie expats are setting their eyes on Brisbane to invest in a family home once they return.
- Even before the pandemic, Brisbane was on the wishlist for buyers. As remote working has become a possibility, many are looking to relocate to Brisbane.
Preferred host for the 2032 Summer Olympics
On 24 February 2021, Brisbane was announced as a preferred bidder for the 2032 Summer Olympic by the International Olympic Committee’s (IOC) Future Host Summer Commission.
The most recent time Australia hosted the Olympics was back in 2000 in Sydney.
Newington, which housed the athlete’s village experienced growth in house prices. According to data from realestate.com.au, the median price of a house in Newington in 2000 was $410,000 and it has grown to over $1.3 million.
Houses, townhouses and units constructed for the games were later sold as private homes.
We can expect a spillover multiplier effect if Brisbane hosts the summer Olympics in 2032, from jobs creation to infrastructure development.
Looking to buy a property in Brisbane?
Our mortgage brokers can help you get the best deal on your mortgage.
- We can get you free property reports for Brisbane and equip you with information so you can work out where you want to buy.
- We can get free bank valuations with some of our lenders.
- We don’t charge fees for these services.
- We have 50+ lenders on our panel and will find a home loan that suits you.
Talk to our award-winning mortgage brokers by calling us at 1300 889 743 or fill in our free assessment form.
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