House and land packages Brisbane
Why Brisbane for House and Land Packages
Brisbane’s house prices remained resilient over the last year, especially given the economic impact of COVID-19, and are now forecast to perform strongly in 2021. Reference
Large scale developments and affordable House and Land packages are leading the Brisbane growth.
And now a new report released from ANZ Bank predicts Brisbane house prices will rise to a strong 16% through 2021, before slowing to 8% in 2022.
What a turn around from all the pessimistic forecasts all the banks made in the middle of last year.
ANZ senior economist Felicity Emmett expect the Australian Prudential Regulation Authority (APRA) would then introduce macroprudential measures to slow house price growth into 2022.
The Sunshine State is shining and strong demand for detached houses and outstanding demand for lifestyle areas as well as extremely strong demand for houses in Brisbane, particularly in the inner and middle ring suburbs, is likely to lead to double digit price growth over the next 12 months, however the demand for apartments is likely to remain softer.
The resurgence of buyer interest in the Brisbane property market has meant that auction clearance rates have consistently been in the 70% range, which is unusual for Brisbane considering this city is not known for its auction culture like it’s 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.
Interestingly Westpac Bank recently updated its property forecasts, with Brisbane prices tipped to surge 20 percent between 2022 and 2023, meaning Brisbane is likely to be one of the best performing property markets over the next few years.
Of course, while some locations in Brisbane have strong growth potential, and the right properties in these locations will make great long term investments, certain submarkets should be avoided like the plague.
Increased demand for Brisbane houses has been underpinned by increasing consumer sentiment, historically low-interest rates and internal migration considering the relative affordability of houses in Queensland compared to Sydney and Melbourne.
Similarly, popular areas of the Gold Coast and Sunshine Coast have enjoyed strong demand considering the increased flexibility of being able to work from home and commuting to the big smoke less frequently.
At the same time, property investor activity has been strong, particularly for houses, not only coming from locals but from interstate investors who see strong upside in Brisbane property prices as well as favourable rental returns.
However, there is not one Queensland property market, nor one south-east Queensland property market, and different locations are performing differently and are likely to continue to do so.
Houses remain a firm favourite of prospective home hunters, with demand rising post-lockdown and it remains significantly elevated compared to last year.
However, 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.