Brisbane’s median house price of $691,000, is still less than half of Sydney’s.
Experts now say this post-pandemic boom could fuel a further 15 per cent rise in house prices in the coming year and more than double, with a likely median of $1.5 million, by the time the 2032 Olympic Games begin.
Olympics to push Brisbane market’s limits
Brisbane house prices will hit the $1-million median well before the 2032 Olympics with suburbs near venues tipped to move up to $3.9 million.
Property projections from PRD Research indicate the median price would reach $1.7 million by 2033 and would be “immensely” boosted on the Gold and Sunshine coasts.
86,000 interstate migrants, health and education investments as well as infrastructure spending are expected to boost the state economy.
What the experts are saying about Brisbane’s housing market
Louis Christopher
Managing Director
SQM Research
“Regardless of the Olympics, Brisbane is likely to outperform the market as it’s due for a surge after years of sluggish growth,” he said.
“So the probability is that outperformance could go on for longer than one or two years post-Games.
“Developers are likely to position themselves early, looking to secure development sites with the intention of capitalising on increased investor demand in key areas.
“I think developers will be aiming to position themselves in key precincts early.
“We are likely to see increased competition among developers for prime development sites, especially around the inner south where so much of the infrastructure activity is taking place.”
Eliza Owen
Head of Residential Research
Corelogic
“Migration figures over the past year show there has been an uplift in movement from Melbourne to Queensland.
“So that may have helped ease rental pressures across Melbourne and put upward pressure on Brisbane rents.
“The other factors come back to income. So where you’ve had less lockdowns across Brisbane, Adelaide and smaller capital cities, that means that incomes have been less disrupted, which has supported rental growth.”
Steve Mickenbecker
Home Loans Expert
Canstar
“The runaway property prices seen since the end of the first Covid lockdown have blown the deposit-saving timeline further out, making the task all the more challenging.
“Many commentators have speculated that reduced numbers around migration, overseas student intakes and tourism have created an unsustainable property price bubble that will inevitably correct.
“However, prices have risen so far that any correction is now going to be from a very high base.
“First-home buyers will be hoping for a price correction, but the easing of the release valve in a post-vaccination Australia could mean another price eruption before we see correction.”
Peter Burgin
Chief Auctioneer
Place Estate Agents
“Everything about August was unprecedented. In terms of volume, it was unprecedented; the number of buyers was unprecedented.
“We’re now averaging eight people for every auction. That number last year would have been three, possibly four.
“There are so many powerful forces working in the Brisbane market.
“Brisbane as a city is a very desirable place to live. The locals are getting that—there’s more and more interest in our market. I think we’ve got every right to see that Brisbane’s future is bright.”
Brisbane housing market forecasts
NAB is forecasting Brisbane house prices to rise by 19.5 per cent over the next 18 months with a 4.4 per cent rise across 2022.
ANZ has tipped house prices to jump by more than 21 per cent this year in Brisbane, lifting its forecasts despite the lockdowns, off the back of the stronger than expected property market.
CBA now expects Brisbane house prices to increase by 16.6 per cent to December 2022 compared to 13.7 per cent in Sydney and 12.4 per cent in Melbourne.
Westpac has also updated its property forecasts, with Brisbane real estate prices tipped to surge 20 per cent between 2022 and 2023.