The Brisbane housing market has had another strong month concluding November 2020. The forecast for 2021 is looking bright for the sunshine city.
Firstly, let's wrap up the month of November.
Dwelling Values.
As reported by CoreLogic Australia, national capital city dwelling values continued to rise over October, followed by a second consecutive monthly rise in November. Dwelling values saw a 0.8% growth over November [1].
Specifically in Brisbane, dwelling values continue to strengthen as the year nears an end, realising a solid 0.6% increase in house prices for November.
Vacancy Rates.
Over the past 3 months, vacancy rates have been consistently dropping across the third-largest city in Australia.
2.2% in July
2.1% in August
2.0% in September
The vacancy rate continues to sit tight for November, remaining at the low 2%, which is a positive sign for the property market as we move into the Christmas season where typically we see a spike in vacancy periods.
This also illustrates the underlying demand for rental properties within the Brisbane property market as a vacancy rate under 3% is considered an undersupplied rental market. Positive signs for investors that have exposure in the Brisbane property market [2].
Infrastructure.
In 2020 the Brisbane property market has been labeled the 'Infrastructure Capital of Australia' with billions of dollars being allocated to leading infrastructure projects in the city. These infrastructure investments are really changing the cities landscape in new and exciting ways.
With a long-term commitment to infrastructure delivery, the Queensland Infrastructure Plan has allocated $49.5bn under its capital works program over four years.
One of Brisbane's key projects is the Cross River Rail. This project has an estimated capital cost of $5.4 billion. It is expected to be the largest transport project ever completed in the state of Queensland.
The project is expected to complete in 2024 and will deliver a 10.2km rail link that includes a new 5.9km tunnel under the Brisbane river and the CBD which will assist in easing congestion and improve accessibility for commuters to the heart of the city.
Cross River Rail Artist Impression
Key Takeaways.
Overall, the Brisbane property market is finishing 2020 strongly. Looking ahead, the strength will continue as there are some very positive signs that the market is entering a potential growth phase of the property cycle come 2021 and beyond.
The economists at Westpac have released forecasts which project that Brisbane's property prices will surge 20% between 2022 and 2023.
For further read our '5 Key Reasons Brisbane Is Expected to Grow 20%' article.
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Jarryd Gauci – Property Investment Consultant
P: (02) 9939 3249
Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.
References:
[1] CoreLogic
[2] SQM Research