Why is there such high demand for Property in Brisbane?
Brisbane’s property values remained resilient over the last year, especially given the economic impact of COVID-19 which has meant that it has been a difficult market for buyers across the city. At the end of 2020 Corelogic reported a+4.14% change in its Brisbane Home value index over the last year, with houses +4.66% and units +2.33% (year on year.) Over the last quarter we have seen excellent gains in the property market in Brisbane which is being driven by multiple factors.
1. People are moving into the city, and less are moving away
Whether it’s because of the good outcomes for the state and city during COVID over the past year, or that people need to move back home due to job losses, or young people who are choosing to move from the parental home out into Brisbane rather than interstate or international – there are more people buying in Brisbane than are moving out of the city than in the past. This has resulted in a shortage of stock and there are not enough houses on the market to supply to demand of the new local first-time buyers, interstate buyers in addition to the usual upsizing or downsizing buyers. According to statistics, more people are moving to Brisbane from Melbourne, up by 37% since July 2020. People moving from Sydney is up 21% and Adelaide is up by 55%.
2. Working from home is becoming more normal
Instead of needing to move to Sydney or Melbourne to be near the head office of the company, it’s become much easier to live in a sunny, liveable city like Brisbane with flexible work arrangements being seen as necessary and more possible than they ever have before.
3. There are buyers who have been approved since March 2020
Since the start of COVID in Australia (and the world) was such an uncertain time, there was a huge dip in properties prepared and presented for sale just after March last year. This meant that there has been a backlog of pre-approved buyers who were and still are looking for a property to buyer. It’s a little bit like a wave where there is a huge amount of people who are ready to buy and the number of people who join them day by day is increasing. This is also impacting the supply and demand issue.