Brisbane property market update October 2023
Brisbane property market update October 2023 by Melinda Jennison – Streamline Property Buyers
In October, Brisbane’s property values achieved a new all-time high, rebounding strongly after a brief and substantial decline in median values witnessed in the latter months of 2022. When examining the growth since the beginning of this year, three major Australian capital cities have experienced remarkable increases of more than 10%. These cities are Brisbane (+10.2%), Sydney (+10.9%), and Perth (+10.8%).
When assessing price movements for our Brisbane property market update October 2023, we found that on a quarterly basis, there is a noticeable deceleration in the growth rate. Over the three months leading up to July 2023, dwelling values in Brisbane recorded a 4.2% increase. However, in the subsequent period, spanning from July to October 2023, the growth trend has moderated to a 3.8% rise in dwelling values. While still substantial, this shift indicates a slowdown in the pace of growth.
Brisbane consistently stands out among the capital city markets, ranking second only to Perth in monthly dwelling value increases on a national scale. This strong performance may be partly attributed to the relatively stable supply levels in Brisbane throughout the spring, with a mere 0.5% increase in advertised properties, as reported by CoreLogic. Conversely, Perth witnessed a slight decrease of 2.1% in the same period. Additional data from PropTrack confirms a 7.3% drop in newly listed homes for sale in Brisbane in September compared to August, with year-on-year listings in Brisbane also declining. Over the past year, the total number of listings in Brisbane decreased by 23.6%, according to CoreLogic. In contrast, other capital cities experienced a noticeable increase in listing numbers, potentially correlated with a less robust growth performance in recent months. A larger inventory provides buyers with more choices, reduces the sense of urgency, and enhances their negotiation leverage.
However, the situation in Brisbane paints a different picture. The “days on market” statistic has consistently decreased month-on-month throughout most of 2023, indicating an increasing sense of urgency among buyers. With a limited supply, buyers often face more competition, creating highly competitive buying conditions. Sellers have the upper hand in these scenarios.
Nevertheless, some suburbs in Brisbane have witnessed a significant surge in new property listings, as indicated in the latest PropTrack listings report. For instance, Warner experienced a remarkable 92.3% increase in new listings over the past 12 months, while Redcliffe saw a 62.5% increase and Newstead recorded a 50% rise in new listings.
Conversely, the most substantial decrease in new listings over the past year occurred in suburbs like Calamvale (-33.3%), Hamilton (-32.4%), and Indooroopilly (-30%). These localized dynamics can often influence price movements in various locations within Greater Brisbane, an aspect frequently observed in the real estate market.
In October, subtle shifts in auction clearance rates, as reported by Apollo Auctions, were noticeable. The average auction clearance rate for Brisbane decreased from 68% in September to 63.3% in October. Additionally, there was a slight dip in the average number of registered bidders per auction, declining from 3.8 to 3.4 over these two months. The number of active bidders also saw a decrease, dropping from 65.35% in September to 62.53% in October.
While auction activity exhibited a softer trend, there has been a rise in the number of properties being sold before reaching the auction stage in Brisbane. This could be a signal that some buyers are opting to avoid competing with others on auction day. It also suggests that sellers might have some reservations about achieving the desired price during the auction when early offers are made throughout the sales campaign.
Brisbane Dwelling Values – Property Market Brisbane
According to recent data from CoreLogic, Brisbane’s dwelling values continued to show positive growth in October, with a notable 1.4% increase, following a 1.3% rise in September. While this represents a consistent upward trajectory, it’s interesting to note a slight moderation in the quarterly growth rate, which shifted from 3.9% last month to 3.8% this month. Notably, the current median value for properties in Brisbane now stands at $770,575, marking an $8,836 increase from the previous month.
In line with the positive growth trend, PropTrack’s data reveals that Brisbane’s dwelling values experienced a 0.52% increase throughout October, following a 0.39% rise in September. While both CoreLogic and PropTrack data indicate growth in values, the percentage change slightly differs, emphasizing the fact that both data sets use different hedonic regression equations to calculate property price movements.
Brisbane House Prices – Property Market Brisbane
Brisbane property market update October 2023 showed that median house values continued to display consistent growth, according to CoreLogic, with a solid 1.4% increase throughout October, matching the rate of growth experienced in September. While the monthly growth remained steady, there was a slight moderation in the quarterly growth rate, which shifted from 4% in the previous month to 3.8% this month. The current median house value in Brisbane now stands at $860,465, marking a notable $11,785 increase from the previous month.
Based on the latest PropTrack data, Brisbane’s house values continued their upward trajectory, posting a 0.53% increase throughout October, following a 0.33% rise in September.
Brisbane Unit Values
The latest data from CoreLogic shows that Brisbane’s median unit values increased 1.3% throughout October, up from the 1.1% growth observed in September. While the monthly growth rate showed an upward trend, there was a slight moderation in the quarterly growth, which shifted from 3.7% at the end of September to 3.5% at the end of October. The current median value for a unit in Greater Brisbane now stands at $545,355, marking a jump of $6,168 from the previous month.
PropTrack’s data reveals that Brisbane’s median unit values exhibited a 0.48% increase throughout October, following a 0.76% rise in September. While this data indicates a somewhat slower growth rate compared to CoreLogic’s findings, it underscores the city’s overall positive trend in unit value appreciation, as CoreLogic also reported a monthly increase in values rather than a decline.
Brisbane property market update October 2023
Brisbane Rental Market
Brisbane’s rental market, according to SMQ Research, is still experiencing exceptionally tight vacancy rates, hovering at just 1%. While researching for the Brisbane property market update October 2023, we found that this figure represents a marginal uptick from the previous month when vacancy rates were at 0.9%, it is crucial to note that this level is significantly below the long-term average. The persistent shortage of available rental accommodation has exerted upward pressure on rents in the city, a trend that has become increasingly evident since late 2021 and early 2022.
Source: SQM Research
With a high demand for rental properties and a limited supply, Brisbane’s renters have faced the challenge of rising rents for some time now, reflecting the competitive nature of the local rental market. Over the last 12 months, house rents have increased 6.1% whereas unit rents have increased 13.9%. The rate of annual rent growth in Brisbane has eased over recent months, even though rents are still increasing.
Brisbane property market update October 2023 | Summary
For the property market Brisbane, we have found that throughout the majority of 2023, Brisbane’s property market has displayed robust growth. However, certain factors are influencing the market’s future direction. Consumer sentiment remains at historically low levels, akin to the early stages of the pandemic and the worst point during the global financial crisis. Further increases in interest rates are likely to have a dampening effect on confidence, and escalating global tensions may exacerbate this trend.
Should access to credit become more challenging for property buyers, albeit affecting some more than others, we could witness a softening in demand. Nevertheless, Brisbane’s relative affordability, compounded by persistent supply shortages, acts as a safeguard against significant declines in demand’s impact. Benefiting from positive factors such as interstate migration and a robust local economy, we hold a favourable outlook for Brisbane’s property values, without immediate concerns of a reversal in the foreseeable future.
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