[Podcast] Brisbane Property Market Predictions: A Look Ahead with Brett Warren

Are you wondering what will happen to the Brisbane property market in 2023 and beyond?

Well... Brisbane was the strongest property market in 2021 exhibiting astonishing growth, with many locations experiencing 30+% house price growth.

And as growth slowed across Australia in 2022, Brisbane's housing markets continued to perform strongly during the first half of the year.

But now Brisbane’s housing market is in the slump phase of the property cycle.

So discuss what's ahead for the Brisbane market and whether you should consider buying, holding, or selling; today I'm joined by Brett Warren, national director of Metropole Property Strategists who is based in Brisbane to discuss the underlying fundamentals of the Sunshine State's capital city.

What’s ahead for the Brisbane property market?

Are you kicking yourself for missing the great Brisbane property boom of 2022?

Are you wondering if Brisbane is still a good place to invest?

Brisbane was a red-hot property market and has now officially gone cold, as property prices recalibrate.

During the property boom of 2020- 22, Brisbane property prices skyrocketed in excess of 40% in some suburbs, before falling close to 10% from their peak.

Of course, that is an average, meaning some areas and property types have fared far worse while for others, the downturn has barely registered.

But that’s not all… according to some media reports property prices could crash anywhere from 5% to 20% further.

Fuelling the flames is the fact that inflation remains high and interest rates may continue to climb.

The media speculation means that there is a great deal of economic uncertainty that is flowing down to our property markets.

So why would investing in property be on anyone’s radar in such uncertain times?

And after such a strong run, why should you even consider Brisbane?

Short or long term?

The first thing you need to decide is if are you considering investing for the short term or the longer term.

History would suggest that over that time, there will be a property boom and a property bust, with a black swan type even thrown in along the way that no one saw coming.

Interest Rates will rise and fall, as will inflation and a range of other variables.

The underlying message here is…. don’t make long-term investment decisions by what is happening this week or even this year. Instead, consider the underlying fundamentals over the long term.

Brisbane fundamentals

• With a softer market and property prices likely needing time to recover and reset, Brisbane could be easily overlooked.
• However, our fundamentals remain very strong.

Economic fundamentals:

• Brisbane's economy has been growing steadily over the last few years, with strong job creation and a diverse range of industries driving economic growth.
• The city has a vibrant and growing business community.
• The tourism sector is also a significant contributor to the economy.
• The Queensland government has been investing heavily in infrastructure development.
• The government has committed over $50 billion to infrastructure projects.
• These projects are expected to create thousands of new jobs and provide a significant boost to the economy.
• For the first time in 13 years, CommSec has reported that Queensland is now the best-performing economy in Australia.

Population fundamentals:

• Brisbane's population has been growing steadily over the last decade, with an average annual growth rate of 2.5%.
• The city's population is expected to reach 3 million by 2036, which will make it one of Australia's largest cities.
• Population growth is driven by both natural increase and net migration.

Brisbane in a decade

The biggest question for me is what happens next for Queensland and in particular Brisbane over the next 10 years.

The State has benefited from a bit of a perfect storm, after being led by a buoyant jobs market.

To the North of our state, there has been a range of mining and infrastructure building, but inner Brisbane has really led the charge.

The last few years have seen a massive boost for central Brisbane with projects like the Queen's Wharf, Airport precinct, Cross River Rail, and Brisbane Metro kicking off.

This created more than 200,00 jobs in Greater Brisbane alone.

But as these projects come to an end, what will take their place? We now have the answer.

Fast forward to 2032 and bring on the Olympic Games.

Conclusion:

Brisbane's residential property market is underpinned by strong economic, population, supply, and demand fundamentals.

The city's growing economy, population, and infrastructure development are driving demand for housing, while limited supply is putting upward pressure on prices.

With the continued investment in infrastructure and population growth expected to continue, Brisbane's property market is likely to remain strong in the years to come.

Links and Resources

Michael Yardney

Brett Warren – National Director Metropole Property Strategists

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Some of our favourite quotes from the show:

“What we’re looking for in the Brisbane property market are areas where these higher-paid workers can afford to live and are prepared to pay to live.” – Michael Yardney

“Hosting the Olympics is going to ensure that Brisbane gets put on the global map.” – Michael Yardney

“What we’re suggesting is over the long term, there are really strong fundamentals for Brisbane, but there isn’t one Brisbane property market.” – Michael Yardney

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