4 Big Reasons why Brisbane’s Property Prices will Finish 2020 on a High
In a year like no other, house prices, property demand and supply have fluctuated, making accurate property price trends more difficult to assess than usual. However, the significant forecasted drops in house prices across Brisbane since the onset of Covid 19 have not materialised. In fact, according to CoreLogic, Brisbane house prices are up 0.8% over the last month, (Nov 2020) and 4.2% over the last year alone!
Reassuringly, Brisbane has remained remarkably resilient to the negative effects of the pandemic and is increasingly seen as a safe (ish) place to look to get on the property ladder, whether you are an investor or first home buyer looking to buy in 2020 and into 2021.
How has Brisbane done so well?
At the time of writing, the average values for Queensland dwellings are at an all-time high. How can this be? Without delving too deep into the year that was, there are a number of factors that are converging to make Brisbane, and greater Queensland, a safe place to hold and purchase real estate.
Increasing Consumer and Business Confidence
Following a nightmare year, business and consumer confidence are on the rise again. Increases in business trading and consumer spending have a positive effect on the local and national economy and these are always directly linked to housing market stability.
Increases in Internal Migration
The recent opening of Queensland’s southern border meant an influx of new buyers from NSW and Victoria. These new buyers are attracted to the affordability and lifestyle Queensland offers. Whilst there has been net positive immigration from other states to Queensland’s for decades, lockdowns and changes in working circumstances have meant that this has only fueled the desire for people to relocate. This desire drives up demand which supports and increases average house prices.
Properties listed for sale are way down.
Combined with unprecedented demand and rising confidence, we are also seeing property listings in Brisbane down by 22% compared to this time last year!
Nationally and locally, the economy is recovering faster and sooner than expected. This is influenced by many factors and reflects increases in consumer confidence, increases in trading levels, and the slow but increasingly recovery of the jobs market. Indeed, the Australia Economy has grown 3.3% in the last three months (since September 2020).
ANZ's head of Australian economics, David Plank, says “confidence is rising as Australians' perception of their economic and financial prospects continued to improve.” This is true across Australia, but especially true of Brisbane given some of the converging factors mentioned earlier.
What next: 2021 - Reasons to be Cautiously Optimistic.
Does this mean that any home purchase is a good idea? Absolutely not! House prices are an average, and as such there are some areas that will have seen property prices fall as people lost work, whereas other others will have seen large jumps in value as second-home buyers choose lifestyle locations over affordability or value.
The key is to always be informed and do your homework. Having said that, the Sunshine State’s future is looking bright!
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