The overall dwelling market of Brisbane is poised to register a double-digit price growth this year. However, some market segments are likely to stay muted due to the impacts of the COVID-19 pandemic, an expert said.
Michael Yardney, director of Metropole Property Strategist, said one indicator pointing to a bright outlook for the city is the resurgence of buyer interest. The city's recent auction results reflect the robust demand, with clearance rates consistently being in the 70% range.
"This is unusual for Brisbane, considering this city is not known for its auction culture like its southern cousins, but this is just another suggestion that there are more buyers than there are sellers and this always leads to higher property prices," he said.
Citing a report from ANZ, Yardney said prices in Brisbane could grow by 16% this year and 8% over the following year.
Figures from CoreLogic show that dwelling prices in Brisbane are up 3.2% over the past year and have reached new heights since bottoming out in June 2019.
"During the height of COVID-19, Brisbane’s housing market defied the odds, shone through, and even came out relatively unscathed. By the end of 2020, Greater Brisbane’s property price median hit a new record high of $616,387, which is $28,000 above the previous record set in early 2020," Yardney said
However, Yardney said the markets in Brisbane are very fragmented, with some segments likely to stay muted over the next months.
"Apartment demand has been sliding and, in general, apartments in Queensland are a higher risk investment than houses, particularly due to a high supply of apartments that are unsuitable for families or owner-occupiers," he said.
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