Brisbane Leads Price Growth, But Slowdown Ahead
According to Domain, Brisbane home values rose nearly 27% over the past 12 months. But that rapid growth is projected to ease to around 5% annually in 2023. Unit prices fell 1.4% in the last quarter, indicating weakness.
Regional Queensland Still Rising
Areas outside of Brisbane posted even stronger gains around 30% last year. Regions will continue outperforming in 2023, with projected growth of 10-15%. Towns linked to major infrastructure projects are poised to benefit most.
Falling Affordability Impacting First Home Buyers
Rising prices have deteriorated affordability, especially for first home buyers facing higher interest rates and living costs. Investors with equity are less impacted. The divide between owners and renters will likely persist.
Rental Vacancy Rates Stay Ultra-Low
Vacancy rates dropped below 1% in many parts of Queensland in 2022, but could tick upward slightly in 2023. Overall, the rental market will remain very tight, putting upward pressure on rents over the next year.
Southeast Queensland a Buyer’s Market
The Southeast Queensland market around Gold Coast and Sunshine Coast has lagged. Oversupply of new apartments along with economic uncertainty makes this region more favorable for buyers in the year ahead.
Infrastructure Driving Growth in Regional Areas
Major projects like Inland Rail, Bruce Highway upgrades, port expansion, and more will stimulate property markets in regional areas over this decade. Towns along these development corridors present growth opportunities.
In today’s shifting Queensland property market, flexibility and careful research will be key to securing a valuable investment. Enlisting a knowledgeable Buyers agent in Queensland can be invaluable for navigating changing conditions. Here are tips for buyers in 2023:
- Target Affordability – With banks tightening lending, focus on homes priced within your budget rather than maximum borrowing capacity. Consider townhouses or apartments to enter the market.
- Search Growth Corridors – Identify locations and neighborhoods benefiting from new infrastructure and development. Growth prospects make these areas worthwhile long-term investments.
- Consider Off-Plan Purchases – Buying off-plan lets you capitalize on today’s prices for brand-new properties that won’t be ready until 2024-25. Lock in value ahead of future rises.
- Look for Renovation Potential – Adding value through renovations or granny flat development can boost returns. Target fixer-uppers in desirable areas below market value.
- Think Long Term – Don’t try to time the market perfectly. The fundamentals supporting Queensland real estate remain positive. Focus on quality properties and locations with upside over the next decade.
- Pre-approval is Key – With competition still high for attractive listings, get pre-approved so you can act quickly when the right opportunity arises. Pre-approval signals you are a serious buyer.
- Consult the Experts – Enlist an experienced property investment advisor to help identify rising areas and assess market conditions in specific localities. Their guidance is invaluable for making smart purchases.
The Queensland market still offers opportunities in 2023 for savvy buyers who do their homework and invest strategically. Adjust your approach based on this year’s shifting conditions and emerging trends. I can help assess your budget, lifestyle needs, and investment goals to find a property with strong potential. Let’s connect for a consultation.
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