Rising mining incomes to trigger Brisbane apartment investment spree
Property buyers waiting for price reductions in Brisbane will be disappointed, according to Pete Wargent, co-founder of Australia’s first national network of property buyer’s agents, BuyersBuyers.
"The idea that prices are going to decline in Brisbane any time soon is wide of the mark," he said.
The report by BuyersBuyers, inconjunction with RiskWise Property Research, noted interstate migration into Queensland recently hit the highest level in around 15 years.
"Houses and other family-suitable properties are experiencing strong demand across many areas of south-east Queensland” Mr Wargent said.
He noted the market for detached homes in Brisbane remained "extremely tight."
"But we are at least seeing more new listings coming through now, which is a healthier dynamic for the market, and in time this will naturally cool the rate of price growth next year.
"But overall, activity is still very buoyant, and we definitely expect to see prices higher than today by the end of 2023” Mr Wargent said.
Wargent added that “low mortgage rates are still attractive for investors, and asking rents are rising much more quickly now, up by about 5 to 10 per cent in Brisbane over the past year, albeit often less so for some high-rise and inner-city units."
Riskwise noted inner Brisbane apartments had experienced challenges with oversupply through the last housing market cycle.
"Although units in the more sought-after and supply-constrained areas may fair reasonably well as vacancy rates have fallen sharply," Doron Peleg, CEO of RiskWise Property Research, said.
Wargent noted Brisbane was seeing the incomes of some of his property buying clients increasing, especially for those in mining and engineering project roles, due to the current skills shortage.