- Two-bedroom units and houses seeing the strongest annual growth since 2009
- Rent for three and four-bedroom houses were the strongest since 2008
- Result of grants, low interest rates, first home buyer demand, and consumer “fear of missing out”
Weekly rents for Brisbane’s houses, units, and townhouses have grown at strong rates, with two-bedroom units and houses seeing the strongest annual growth since 2009.
To the June quarter, rent for three and four-bedroom houses were also the strongest since 2008.
Brisbane LGA unit and townhouse rents
According to Domain, Brisbane’s median house price rose by 15.29% to $702,455 over the year to the September quarter, while unit prices declined marginally to $396,609.
Brisbane house and unit prices
m3property researcher Casey Robinson said the growth has been the result of Government grants, low interest rates, strong first home buyer demand, and consumer “fear of missing out”, which are keeping residential demand strong, particularly for new housing in greenfield estates.
“Demand from interstate migrants has also been driving the residential market, with Queensland recording the highest national growth rate at 0.85% while the national growth was a paltry 0.14%.
“Queensland’s population was estimated to be 5.20 million as at March 2021, increasing by circa 43,933 persons over the 12 months from March 2020.”
Supply on rise
Ms Robinson said the latest figures from the Australian Bureau of Statistics (ABS) show new supply was on the rise with 13,041 units and townhouses approved across Queensland during the year to September 2021, increasing by a staggering 32.94% from the 12 months ending September 2020.
“Unit and townhouse approvals peaked in 2016, with close to 28,000 units and townhouses approved in the year to April 2017. Due to tighter lending restrictions and regulatory constraints, the apartment market slowed substantially between 2018 and 2020.
“Housing approvals increased by 51.78% to 31,079 approvals during the year to September 2021.”
Demand
m3property director Stephen Linnane said they have seen strong interest from developers for englobo land due to the low supply and the spike of interstate migration which has increased demand for land in SEQ.
Mr Linnane said housing demand in SEQ has been underpinned by historically low interest environments, interstate migration, increased consumer confidence (especially in Brisbane City LGA) and affordability of house prices in Brisbane compared to Sydney and Melbourne.
“The investor unit market has been weak over the last 12 months due to the COVID-19 pandemic, border closures and lockdowns. However, the owner occupier market has been quite strong given the positive sentiment in the housing market, especially in the inner and middle ring suburbs of Brisbane.”
