- This sharp lift in prices over the 23 months is the fastest observed in decades. according to the latest ANZ CoreLogic Housing Affordability Report
- Rents in Brisbane rose by 13.6% in the year to October 2022
- Queensland enjoys strong economic diversity, says Eliza Owen of CoreLogic
Internal migration and relative affordability compared to its eastern state counterparts have resulted in both investment and population increases across Queensland during the pandemic.
Housing values rose by 42.7%, between August 2020 and June of this year, following price stability for much of the 2010s, highlights the latest ANZ CoreLogic Housing Affordability Report.
This sharp lift in prices over the 23 months is the fastest observed in decades.
Although dwelling prices are down 5% since the June 2022 peak, interest rate rises have pushed up the cost of servicing a mortgage, making it less affordable to buy property than with higher prices.
Rents have been rising strongly across the state. Brisbane saw the highest increase in capital city house rents in the year to October 2022, at 13.6%. Across the rest of Queensland, house rent rose by 11.7% and units by 13.3%.
“The drivers of a soft rental market at the onset of COVID-19, including closed international borders, reduced interstate migration and job loss have now reversed,” noted Felicity Emmett, ANZ Senior Economist.
“For Queensland in particular, greater relative affordability and a desire for more space through the pandemic drove a shift to lifestyle markets and higher than-usual interstate migration in 2021.
Felicity Emmett, ANZ Senior Economist
“Increased rents are the result of demand and supply factors. Stronger demand for rentals from migration and higher levels of household formation, coupled with limited levels of rental supply, have driven vacancy rates to record lows, and resulted in declining rental affordability across the state.”
CoreLogic’s Eliza Owen said the factors driving rent and house prices must be balanced against buyers and renters’ affordability social challenges.
“Queensland has long been a top destination for Australians moving around the country, it has so much economic diversity and the Brisbane Olympic Games will only add to growth and prosperity,” said Ms Owen.
“It is key that housing supply keeps up with the growth of the state, so affordability constraints don’t deter people moving there or erode the lifestyle of the Sunshine State.”
