Brisbane November Market Update
Brisbane stands out in CoreLogic’s November 2024 Housing Chart Pack with noteworthy growth in property values, rising vacancy rates, and changes in rental yields. Here’s an in-depth look at Brisbane’s current market dynamics and what it could mean for investors, buyers, and renters.
1. Strong Property Value Growth in Affordable Segments
Brisbane continues to perform well in terms of property value growth, particularly at the more affordable end of the market. The city’s most affordable 25% of homes saw values rise by 3.9% over the past quarter, outpacing higher-end segments and reflecting sustained demand from first-home buyers and investors seeking accessible entry points in the market.
- Quarterly Value Increase: Brisbane dwelling values rose by 0.7% in October alone, contributing to a 13% annual increase—one of the highest among Australian capital cities.
- Record High: Brisbane property values are currently at an all-time high, emphasizing the city’s resilience and appeal in a cooling national market.
2. Rising Vacancy Rates Offer Relief for Renters
After months of intense pressure, Brisbane’s rental market is experiencing some relief as vacancy rates rise. Brisbane’s vacancy rate increased to 2.1%, up 60 basis points from the previous year. This growth suggests that renters now have more options, although Brisbane’s vacancy rate is still below the national average of 1.8%, indicating ongoing rental demand.
- Rental Growth: Rental growth in Brisbane slowed to 5.6% annually, aligning with national trends but still reflecting substantial year-on-year increases.
3. Shifts in Rental Yields and Investor Activity
Investor engagement remains high in Brisbane, with increased investor financing providing more rental stock and contributing to easing pressure in the rental market. However, changes in rental yields signal a shift: for the first time, Brisbane’s rental yield fell below Melbourne’s, with yields now at 3.65% in Brisbane compared to Melbourne’s 3.68%.
4. Sales Volumes and Listing Trends
Brisbane’s sales activity and listing trends mirror the broader national picture. October saw a steady flow of new listings, with Brisbane’s advertised supply rising by 4.9% compared to last year. The increased stock gives buyers more choice, but total listings in Brisbane remain below historical averages, meaning competition persists.
- Days on Market: Properties in Brisbane are now typically spending more time on the market, reflecting less urgency among buyers amid rising inventory.
What’s Next for Brisbane?
Brisbane’s balanced growth in property values and easing rental pressure position it as a promising market for both investors and buyers. The combination of affordable property options, a gradual increase in rental vacancies, and a steady flow of listings make it an attractive choice for those looking to enter or expand their footprint in Australia’s real estate market. Expect Brisbane to continue drawing interest as it maintains robust growth and offers more accessible options than other major cities.
At Golden Gates Realty, we’re here to guide you every step of the way on your real estate journey. With our deep local knowledge, personalized service, and commitment to achieving the best outcomes for our clients, we make navigating Brisbane’s vibrant property market a seamless experience. Let us help you unlock the full potential of Brisbane’s evolving market and turn your real estate goals into reality.