As Brisbane continues to progress as one of Australia’s powerhouses, the demand for apartment living is higher than ever. With its laid-back atmosphere and great amenities, more and more people are looking to call Brisbane home.
But what has caused apartment prices in the city to remain strong? Here we will take a look at five key factors that have kept Brisbane’s residential market healthy even amidst this period of economic uncertainty.
Whether you’re an existing investor or considering entering the scene yourself, discover why now is still a great time for making investments in quality apartments in Brisbane.
5 Fundamental Reasons Brisbane Apartment Prices Are Strong
1. Strong Economic Fundamentals
One of the key reasons why Brisbane apartment prices remain strong is because of the city’s strong economic fundamentals. The city has a diverse economy that is driven by several key industries, including tourism, education, healthcare, and finance.Â
Additionally, the city has a low unemployment rate and a high level of population growth. All of these factors contribute to the strong demand for apartments in Brisbane.
2. Limited Supply
Another reason why Brisbane apartment prices remain strong is because of the limited supply of apartments in the city.Â
The number of apartments available for sale in Brisbane is significantly lower than the number of people looking to purchase them. This imbalance between supply and demand is one of the key drivers of price growth in the city.
Building approvals dropped in Brisbane during 2022 with apartments slightly off at 1.8% according to Housing Industry Australia statistics.
3. Strong Rental Market
The strong rental market in Brisbane is another key reason why apartment prices remain strong. There is high demand for rental properties in the city, due to the large number of people who are moving to Brisbane each year. This high demand helps to keep rents high, which in turn helps to support strong prices for apartments.
Brisbane unit rents recorded an increase of 14.3% in 2022. Vacancy rates were low at .8%; thereby putting pressure on rents.
4. Lifestyle Factors
Brisbane is also a popular choice for buyers due to its lifestyle factors. The city offers a great climate, plenty of recreational activities, and a relaxed lifestyle. These factors make Brisbane an attractive place to live, which helps to support the strong demand for apartments.
Migration to Queensland remains strong with 47.8 percent of interstate movers coming from NSW AND 27.9 percent from Victoria according to the Australian Bureau of Statistics.
This equates to around 92,000 people calling Queensland their new home with 50% of those people staying in the S.E Qld region.
5. Affordable Prices
Despite the strong price growth that has been seen in recent years, Brisbane remains an affordable city when compared to other capital cities such as Sydney and Melbourne. This affordability is another key reason why apartment prices remain strong in Brisbane.
In September 2022, CoreLogic reported a small decline in Brisbane property prices but it remains a more affordable option to Sydney, Melbourne and Adelaide markets.
Potential Brisbane Apartment Prices Growth In 2023
Competition for property in highly sought-after school zones remains high. While demand is mostly for housing, Brisbane apartment prices remain strong in these areas too.
Inner-city private schools like All Hallows (Fortitude Valley), Sommerville House (South Brisbane), Brisbane Boys Grammar and Brisbane Girls Grammar (Spring Hill) and Brisbane Boys College (Toowong) are always in hot demand.
According to Hutton and Hutton CEO, Peter Hutton “Not only do these schools represent the best in Brisbane education, they are also handy to Brisbane city where many parents work. It’s easier for drop-off and pick-up”
With private schooling averaging $28,000+ per child, public schools are growing in demand.
Here are the top 10 high school precincts
- Springfield Central High School
- Bremer State High School
- Flagstone State Community College
- Brisbane State High School
- Marsden State High School
- Kenmore State High School
- Morayfield State High School
- Tullawong State High School
- Murrumba Downs State High School
- Bellbird Park State Hight School
Primary Schools in West End, Cleveland, Camira, Chatswood Hills, Ashgrove and Sandgate have highly sought after.
The 2032 Olympics effect on Brisbane apartment prices
The 2032 Olympics is set to be held in Brisbane, and this could have a huge impact on the city’s property market. With the demand for accommodation likely to skyrocket around the time of the event, apartment prices could go up significantly.
A 190-million-dollar infrastructure spending is already underway to improve the city’s sporting and transport hubs; the spin-off will be huge for the immediate suburbs.
Airbnb is an Olympic Partner for the 2032 event and you can be assured it’ll be looking for Brisbane apartments to fill the needs of thousands of tourists flying in for the 2 weeks spectacular.
This could be great news for those looking to buy an apartment in Brisbane as prices are likely to increase significantly.
Don’t be surprised to see strong interest from international buyers in the lead-up to the Olympics.
Conclusion
In summary, Brisbane apartment prices will remain strong in 2023 due to many compelling factors.
Firstly, the stable economic growth and strong job market are driving individuals to pursue their career potential, resulting in high housing demand.
Secondly, a lack of available land for new construction is putting pressure on existing stock levels. Furthermore, rental yields have grown, as numerous corporations are relocating their head offices to Queensland more recently, making for an attractive market for investors.
In addition, even with all of these factors at play, the average prices of apartments in Brisbane remain relatively affordable compared to other main cities like Sydney and Melbourne.
Lastly, the upcoming Olympic promises further economic benefits that will undoubtedly benefit property prices within the area leading up to and beyond 2032 when it takes place.
As future outlooks suggest an increase in overall confidence regarding real estate investment within Australia’s third most populous city, now may be one of the best times to invest in Brisbane’s property scene before everything changes.
Brisbane apartment prices are attractive today but come 2032, they’ll be very different. Click Here For a FREE Appraisal of your Brisbane Apartment.
