Brisbane Property Market Update October 2024
Melinda Jennison
October sees Brisbane’s property market continue to outperform, driven by strong buyer demand and limited listings.
As seen in the Brisbane Property Market Update September 2024, the Brisbane property market has continued to demonstrate strong growth throughout October 2024, despite an easing of momentum in certain sectors. Brisbane’s appeal for long-term growth remains high, underpinned by consistent demand, limited supply, and strong economic factors such as population growth and employment. With only six brief downturns in dwelling values over the past 40 years, Brisbane’s stability presents a reliable capital growth opportunity.
Recent data from CoreLogic highlights that Brisbane’s median dwelling values rose by 0.7% in October, bringing the quarterly increase to 2.4% and the annual growth to 13.0%. Brisbane has outperformed larger capitals, with other cities such as Sydney and Melbourne experiencing either slight declines or more modest increases. Over the last 30 years, Brisbane house values have surged by an impressive 454.8%, with nearly 98% of that growth occurring in the past decade alone.
Supporting demand are Queensland’s strong population growth and employment figures, with a 2.68% rise in population and a 4.6% increase in jobs year-on-year, according to the CommSec State of the States report. This influx has driven consistent demand, particularly in Brisbane’s more affordable segments, attracting both investors and first-home buyers. Investor activity continues to climb, with 40.5% of Queensland’s housing finance commitments attributed to investors, and 27.5% from first-home buyers. These cohorts make up the largest portion of property buyers across the State, which is one of the reasons why the more affordable end of the market is currently outperforming.
Based on the PropTrack Housing Affordability Index, Queensland’s score indicates relatively high affordability compared to states like New South Wales and Victoria. This affordability is a key factor driving continued interest and demand from buyers, as more individuals and families are drawn to the Sunshine State for its combination of lifestyle and comparatively accessible property prices.
Brisbane’s median values are higher than those in other capital cities, except Sydney, and therefore the appeal lies in the size and quality of property that a given budget can secure. Buyers can often find better value for money in Brisbane compared to markets where median values may be lower but offer less in terms of property size and quality. This combination of relative affordability and value continues to make Brisbane an attractive choice for those entering the property market.
Listing trends, reflect Brisbane’s ongoing supply shortage. While new listings rose 1% from September, total listings in October were still 4.2% lower than the previous year, underscoring the limited supply. Annual dwelling commencements are also down 18.2% compared to the decade average, contributing to a restricted flow of new properties to the market.
Auction clearance rates provide further insight into demand. Brisbane’s October clearance rate stood at 60.1%, while registered bidders averaged 2.7 per auction, with 68.3% actively bidding. Auction clearance rates provide further insight into demand. Brisbane’s October clearance rate stood at 60.1%, while registered bidders averaged 2.7 per auction, with 68.3% actively bidding. Compared to September, this represents a decline in the number of bidders per auction and yet the clearance rate was slightly higher month-on-month, reflecting an active market but slightly cooling buyer depth.
Brisbane Dwelling Values
Brisbane’s dwelling values continued to climb, with a 0.7% increase in October, following a 0.9% rise in September. This quarterly growth of 2.4% aligns Brisbane as one of the top-performing capital cities in Australia, alongside Perth and Adelaide, which saw larger quarterly increases of 4.1% and 3.7%, respectively. Brisbane’s annual growth of 13.0% highlights its strength in comparison to other capitals like Melbourne, which recorded a decline of 1.9% over the same period.
The breakdown by segment reveals that Brisbane’s most affordable properties continue to experience the highest demand and value growth, with 4.5% price movement in the lowest 25% of property values in the 3 months to September 2024, as affordability pressures shift more buyers to this market segment. Comparatively, the higher end of the market showed slower growth, with 2.1% growth in the top 25% of property values in Brisbane over the same period, underscoring the broader trend of value-driven interest in Brisbane’s property landscape.
House Prices in Brisbane
House values in Brisbane saw a steady increase of 0.7% in October, maintaining a quarterly gain of 2.1%. While this is a slight deceleration from the previous month’s 0.8% gain, Brisbane’s ho