Brisbane and Sunshine Coast Property Review 2021

What a ride for the Brisbane and Sunshine Coast property markets over the last 12 months.

Buying property in this market has been hectic, and we have constantly had to adjust search locations and property specifications due to the dramatic price shifts earlier this year. We have regularly been competing with 20-50 offers on a property at the 1st open house. The only comparable market I can think of is Sydney in the late 90s, early 2000s.

2021 By The Numbers

According to SQM Research, Brisbane house prices?jumped 24.2%,?and The Sunshine Coast also had significant growth with a?whopping 22.1%.

Rental prices have followed suit, although with less at a slower pace as you can only increase rents at the end of leases?Brisbane house rents up 15.9%, and Sunshine Coast up 22.1%

2022 Predictions

Brisbane and the Sunshine Coast look set to continue seeing strong growth moving forward. Last month alone,?Brisbane house prices jumped 3.7%, and the Sunshine Coast 3.2%.

There are many major infrastructure projects in Brisbane and The Sunshine Coast under construction. Due to the 2032 Olympics confirmation and strong population growth for the region, many more projects will be announced and fast-tracked.

Unlike NSW and Victoria, stock coming to the market is still meagre in these locations, increasing buyer competition and, therefore, putting further upward pressure on house prices.

Brisbane Houses,?stock on market down 32%?since November 2019

2019 33,205??

2020 29,072??

2021 19,305

Sunshine Coast Houses,?stock on market down 48%?since November 2019

2019 10,241??

2020 7,741??

2021 5,333

Rental Markets

With both rental markets, we have a perfect storm coming.

Both locations have already very tight vacancy rates; we will add border openings, intrastate migration, reintroduction of overseas immigration, the return of ex-pats and overseas students. I believe there will also be a decent cohort of investors from interstate moving into their investment properties which will remove rental stock from the market.

Rents appear likely to increase in 2022, and vacancy rates will be tightening further. Therefore, all investors should keep in contact with their property managers and conduct regular reviews at the end of each lease to keep up with the market rent.

Don’t forget January 1, 2022, new smoke alarm legislation comes into effect in QLD so if you haven’t upgraded your alarms, you should contact your property manager urgently.

The Variables

Interest rates?are still at record lows, but they won’t be this low forever. Fixed rates are on the rise; however, banks have already been stress-testing loans at 5%+ for a while, and mortgage delinquencies are at record lows, so i don’t think there is too much of a worry there. Nevertheless, we expect at least one rate hike in 2022, so if you’re concerned, start building a buffer.

Next year, we have a?federal election, but it is too early to tell how property markets will be affected. The early feeling is property will be left alone after Labours dramatic loss at the previous election.

APRA?tinkering with lending requirements. This one is always hard to judge, but with a dramatic shortage of rentals and the percentage of investors in the market at low levels compared to previous interventions, I can’t see them doing anything too surprising in the short term.

Conclusion

As we finish a tumultuous two years, we should be optimistic about how the country and economy has managed. As a result, 2022 will bring more travel, long-awaited family and friend reunions and hopefully a period of economic prosperity for us all.

Next year we plan to share more market statistics, videos and stories of the changes happening in SE QLD and the property markets, so stay tuned.

Thanks to all our clients and partners who have been a pleasure to work with over the last year. May everyone have a happy and safe Christmas break, and we look forward to whatever 2022 brings.

If you’re interested in data on specific suburbs in?Brisbane and The Sunshine Coast, simply reply to this email or?CLICK HERE?to book a time for an obligation-free conversation about your property plans.