Brisbane Housing Market Hits Stride, While National Prices Poised for Further Growth - Property Inc

Brisbane Housing Market Hits Stride, While National Prices Poised for Further Growth

In a striking display of resilience and growth, the Brisbane housing market is on track to set new records as property prices continue to ascend. According to Sarah Richards in her piece “Brisbane housing market on track to set a new record as property prices continue to rise,” the Domain September housing report highlights a robust recovery with house prices regaining much of their lost value since December 2022. The data indicates that a mere 1% increase, equivalent to $8,000, would propel the market to a full recovery, reinstating confidence in Brisbane’s real estate prospects.

Nicola Powell, chief of research and economics at Domain, underscores the significant milestones achieved, particularly in the unit sector, where for six consecutive quarters, unit prices have outpaced house prices. “It’s narrowed the price gap between property types to just over a two-year low,” Powell asserts, spotlighting the opportune moment for unit owners contemplating an upgrade to houses (Richards).

In parallel, Campbell Kwan’s report, “Economists tip property prices to rise 7pc in 2024,” provides a broader national perspective, forecasting a 7% increase in home prices across Australia through the 2024 financial year. The rebound, defying the fastest rate-rising cycle in three decades, is attributed to a combination of low supply and a resurgence of buyers. Jarden Chief Economist, Carlos Cacho, remarks, “We do not see this price growth as sustainable or backed by fundamentals, but equally don’t see what will halt the current housing recovery” (Kwan).

However, this optimistic outlook is not without its potential pitfalls. Mark McCrindle, a demographer cited by Richards, warns of the looming challenges for future generations as house prices continue to surge ahead of wages. He emphasizes the importance of addressing this imbalance to prevent exacerbating the housing affordability crisis.

Urban geographer Rachel Gallagher further adds to the conversation, highlighting the potential dire consequences of unchecked price growth. “We have the re-emergence of slums in our city; we’ve got people sleeping in tents and then going to work the next day. If that’s not crisis point, I don’t know what is,” she states, underscoring the urgent need for intervention (Richards).

In conclusion, while the Brisbane housing market and national property prices show promising signs of growth and resilience, it is imperative to remain vigilant and address the underlying challenges of affordability and inequality. The interplay of supply, demand, and economic factors will continue to shape the landscape of Australia’s housing market, with the hope that sustainable growth and equitable access to housing can be achieved for all.

References:

https://www.abc.net.au/news/2023-10-26/queensland-property-market-housing-units-record/103019298

https://www.afr.com/property/residential/economists-tip-property-prices-to-rise-8pc-in-2024-20231024-p5eepf

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