Brisbane Property Prices 2023: An Analysis of the Rising Real Estate Market
08 June 2023

As we navigate through 2023, Brisbane’s real estate market presents an enticing stage for savvy property investors and real estate enthusiasts. Brisbane’s unique combination of affordable property, attractive lifestyle, and significant population growth establish it as a booming hub for property investment. This article on Brisbane Property Prices 2023: An Analysis of the Rising Real Estate Market offers a comprehensive overview of the current trends, prime property markets, valuations, and forecasts in the Brisbane housing market, providing vital insights for potential buyers, veteran investors, and those captivated by Brisbane’s evolving property scene.

A Snapshot of Brisbane’s Real Estate Market Today

Brisbane’s real estate market is witnessing a marked upward shift. Both city dwelling values, including freestanding Brisbane houses, and unit dwelling values are on the rise, crafting a robust housing market. Over the past two years, Brisbane’s median value has jumped by 15%, with the median house price soaring from $650,000 in 2021 to $742,500 in 2023. Meanwhile, Brisbane unit prices have seen a 12% growth, leaping from $450,000 in 2021 to $499,000 in 2023. This remarkable expansion reflects the city’s economic stamina and the growing housing demand influenced by a multitude of key factors.

Fueling Brisbane Property Prices 2023: The Driving Factors

Several elements collectively propel the rise in Brisbane property prices.An Analysis of the Rising Real Estate Market by Brisbane Buyer's Agent Sam Price.

Population Growth: Spurring Housing Demand

With its population increasing from 2.28 million in 2018 to an estimated 2.6 million in 2023, Brisbane is among Australia’s fastest-growing cities. This expansion is igniting a surge in housing demand, affecting property values across Brisbane’s housing markets. The period between June 2020 and June 2022 saw a significant migration of individuals from Sydney (86,000) and Melbourne (60,000) to Brisbane, leading to a notable 12% increase in Brisbane’s population.

Several factors contribute to this population shift, including Brisbane’s relaxed lifestyle, lower cost of living compared to Sydney or Melbourne, and opportunities for a healthier work-life balance supported by a robust local economy and abundant job opportunities. The proximity to desired lifestyle locations in South East Queensland, such as the Sunshine Coast and Gold Coast, further boosts Brisbane’s appeal. This trend in population migration is anticipated to consistently bolster Brisbane’s property market.

The Remote Work Revolution: Transforming Housing Demand

The onset of the COVID-19 pandemic has triggered a wave of remote work, positively impacting Brisbane’s housing and rental market, and the broader South East Queensland property landscape. As more individuals adapt to home-based work setups, the demand for premium rental properties and accommodating home offices, like those in the Brisbane suburbs and middle ring suburbs, intensifies. This shift has also spurred a unique migration trend, with higher-income earners from cities with higher property values, such as Sydney and Melbourne, relocating to Brisbane. This influx strengthens Brisbane’s dwelling values and rental market, reinforcing its position as a real estate hotspot.

Infrastructure Expansion and Job Creation: Anchoring Growth

Brisbane is on the cusp of a transformative phase, with nearly $100 billion allocated for major infrastructure projects over the next decade. These investments, aimed at transport projects like the Cross River Rail and Brisbane Metro, are set to alleviate congestion, enhance public transport, and trigger further development. Concurrently, significant projects like Queen’s Wharf, Brisbane Live, and the International Cruise Terminal are set to revamp Brisbane’s cityscape, fuelling future growth in the property market.

These infrastructure expansions also drive job creation, with projects like Cross River Rail, Brisbane Metro, Queen’s Wharf, and Brisbane Airport expansion projected to generate thousands of jobs. This economic growth stimulation further amplifies Brisbane’s property market, making it more enticing for property buyers.

2032 Olympics: A Potential Game-Changer for Brisbane’s Property Market

The upcoming 2032 Olympics present another pivotal factor driving Brisbane’s infrastructure and property market growth. This monumental event is expected to instigate significant economic growth and infrastructure development. Along with the major infrastructure projects, the Olympics are set to redefine Brisbane’s cityscape and provide a significant boost to its property market.

Queensland’s First Home Buyer Scheme: Supporting the Residential Real Estate Market

The Queensland State Government offers an enticing First Home Buyers scheme, with eligible parties receiving up to $15,000 when purchasing a new or substantially renovated home valued at less than $750,000. Coupled with Brisbane’s comparatively lower property prices, this scheme bolsters the residential real estate market in the Queensland capital, offering affordable housing across the Queensland property market.

Navigating Brisbane’s dynamic real estate market requires strategic property advice, especially considering the potential influences such as rising interest rates and fluctuating Brisbane home values. Whether you’re interested in Brisbane houses or units, keeping a finger on the pulse of Brisbane’s housing markets can generate real estate booms for both seasoned and novice investors.

Potential Headwinds to Brisbane’s Property Market Growth

Despite the strong growth, it’s crucial to consider potential factors that could potentially dampen this trend.

Impact of Interest Rate Hikes

The Reserve Bank of Australia (RBA) has alluded to possible increases in interest rates in the coming months. Higher interest rates could reduce housing demand as the cost of home loans increases, potentially affecting both house and unit markets across Greater Brisbane.

Impact of Construction Boom on Property Prices

The current construction boom in Brisbane and the broader South East Queensland, is increasing the supply of available properties. This surge in supply could potentially exceed the demand from home buyers. As a result, the increased availability of properties might exert downward pressure on property prices, affecting both Brisbane house prices and unit values.

Slower Economic Growth

Projected slower economic growth for 2023 could lead to job losses and lower wages, potentially reducing demand for property.

Brisbane Property Prices 2023: A Glimpse into the Future

Brisbane’s property and unit market forecast shows a promising picture. The Sunshine State’s capital’s median house price is projected to hit $750,000 by the end of 2023, reflecting a 10% increase from the same period the previous year. Similarly, the median unit price is expected to reach $500,000, indicating a substantial 15% surge. These projections are anchored by the city’s robust economic growth, population surge, and ongoing infrastructure developments.

Investment Potential in the Brisbane Property Market

Brisbane’s property and rental market presents a plethora of attractive investment opportunities. Steady population growth, high-quality properties, and affordability, when compared with other major Australian cities, are attributes that continue to lure property investors to Brisbane. The city’s vibrant housing market is underscored by its remarkably low vacancy rates: 0.7% for houses and 0.9% for units, significantly below the national average and lower compared to both Sydney (1.2% for houses and 1.4% for units) and Melbourne (1.6% for houses and 1.7% for units).

The median property prices in Brisbane offer an enticing proposition for investors, with houses standing at $750,000 and apartments at $500,000. In the past decade, the annual growth rate of Brisbane’s property market averaged 7%, a healthy growth projection expected to remain around 5% annually over the upcoming decade. This steady growth in property prices, backed by Brisbane’s robust economy and appealing lifestyle, continues to pique interest from investors worldwide.

In the rental property domain, Brisbane shines brighter than Sydney and Melbourne, boasting the highest average rental yield of 5.2%. Moreover, property prices in Brisbane account for 8.0% of this yield. Brisbane further offers an attractive average annual rental return of $22,800, enhancing Brisbane’s standing as a profitable hub for investment-grade properties.

Charting Your Course through Brisbane Property Prices 2023: Enlist the Expert Guidance of Templeton Property

In summary, the Brisbane property market showcases enticing opportunities for both investors and buyers, buoyed by the city’s vigorous population growth, remote work trends, sustained capital growth, large-scale infrastructure developments, and the forthcoming 2032 Olympics. Brisbane dwelling values have demonstrated stable growth over the past couple of years, and the Brisbane market is showing no signs of slowing down.

Entering the vibrant and ever-expanding Brisbane property and rental markets might seem like a daunting task, but with the right expertise by your side, it need not be. The seasoned professionals at Templeton Property stand ready to demystify this dynamic landscape. Our dedicated team prides itself on providing bespoke advice tailored to your unique needs and aspirations. From identifying an ideal property to securing the best possible price, our unwavering commitment is to help you achieve your property goals.

No matter if you’re a first-time home buyer, a savvy property investor, or considering a relocation to Brisbane, we are fully equipped to assist you in making well-informed decisions. We invite you to engage with us for a consultation, allowing us to steer you confidently through Brisbane’s property market landscape.Sam Price, Brisbane Buyer's Agent from Templeton Property, outside a recent purchase, discussing Brisbane Property Prices.

Backed by over 25 years of extensive experience in the property market and with more than $150 million in property purchased, Templeton Property combines unparalleled industry knowledge with unwavering dedication, ensuring you navigate your property journey with ease and confidence. Book yourself a free consultation with one of our friendly team members today

If you are considering purchasing a home or investment property in Brisbane or South East Queensland and would like the assistance of an experienced Brisbane Buyer’s Agent that can help you find the perfect property, that meets all your requirements for the right price, please don’t hesitate to contact us.

Feel free to contact us via email or call me directly on 0418 159 993

We look forward to hearing from you.
Sam Price, Buyer’s Agent and Director – Templeton Property.