Look what’s happening in our capital city property markets – Brisbane & Adelaide

This is the second in a series about the current state of play in the property markets of each of our eight capital cities.  We’ve already looked at the property markets in Sydney and Melbourne in this blog.

Today we feature Brisbane and Adelaide, with Perth, Darwin, Canberra and Hobart to follow.

 Brisbane

Just over 2 million people live in Brisbane.

Its population is projected to grow by about 44,000 new residents each year over the next decade.  The city holds 820,000 private dwellings, of which four out of five (79%) are detached, with a further 11% being apartments and one in twenty-five being semi-detached in nature.

The median house price is just over $460,000.  Attached dwellings average about $380,000.  House prices are falling at present, albeit slowly, at about 2% per annum.  Apartment values are dropping slightly more with falls closer to 4.5% per annum.  New property prices, however, are rising, up 3.4% on this time last year.

There are just over 4,000 properties for rent across the city which equates to a 1.5% vacancy rate.  Average gross rental yields range from 4.6% to 5.6% respectively for detached houses and attached product.  Close to 90% of Brisbane’s renters pay less than 30% of their income on rent.

One-third of the city rents their accommodation, whilst just under 30% own their homes outright and 36% have a mortgage.

There are 2.7 people on average per dwelling.  One in five of the city’s residents live alone.  Another 25% live as couples without children at home.  Just under half of Brisbane’s homes have children living in them.  Three-quarters of the city’s dwellings have three or more bedrooms.

The time it takes to sell a property in Brisbane has increased slightly over the previous quarter, currently averaging 133 days.  Many established homes are still being discounted to help make a sale, but the average private treaty discount rate is about 8%.  At present there are just under 23,000 houses and close to 6,000 attached dwellings for sale across Brisbane, which is 8% less than late 2011- a good sign for things to come.

And on that note, Brisbane’s dwellings prices are expected to increase by around 6% per annum over the next three years.

And did you know that 60% of Brisbane residents were born in Australia and that 12% of the city’s workers travel to work by public transport.  Close to 24,000 established houses sold and settled in Brisbane over the past twelve months.

Adelaide

Just over 1.2 million people live in Adelaide.  Its population is projected to grow by about 12,000 new residents each year over the next decade.  The city holds half a million private dwellings, of which three out of four (77%) are detached, with a further 10% being apartments and one in eight being semi-detached in nature.

The median house price is just under $430,000.  Attached dwellings average about $340,000.  House prices are falling at present, at about 2% per annum.  Apartment values are holding up better than house prices, but still falling to the tune of 1% per annum.  New property prices remain steady, up 0.1% on this time last year.

There are close to 2,500 properties for rent across the city which equates to a 1.5% vacancy rate.  Average gross rental yields range from 4.2% to 4.7% respectively for detached houses and attached product.  Just over 90% of Adelaide’s renters pay less than 30% of their income on rent.

Just under 30% of the city rents their accommodation, whilst one-third own their homes outright and 36% have a mortgage.

There are 2.4 people on average per dwelling.  Close to a third of the city’s residents live alone.  And just under one-third live as couples without children at home.  Just over 40% of Adelaide’s homes have children living in them.  Three-quarters of the city’s dwellings have three or more bedrooms.

The time it takes to sell a property in Adelaide has fallen, currently averaging 134 days.  Most established homes are being discounted to help make a sale, but the average private treaty discount rate is about 7%.  At present there are just over 14,000 houses and 2,500 attached dwellings for sale across Adelaide, which is almost 3% more than late 2011.

And on that note, Adelaide’s dwellings prices are expected to increase by between 2% and 3% per annum over the next three years.

And did you know that 70% of Adelaidians were born in Australia and that 8% of the city’s workers travel to work by public transport.  Just over 14,000 established houses sold and settled in Adelaide over the past twelve months.

Data sources:  ABS 6416.0 & ABS 3101.0; 2011 Census; BIS Shrapnel; Australian Property Monitors; RPData-Rismark & SQM Research

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Or listen to me on Kevin Turner’s Real Estate Talk and his real estate show between 8am and 9am most Saturday mornings on 4BC1116.

Michael Matusik is the director of independent property advisory Matusik Property Insights and writes the  Matusik Missive which is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.

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