Property investors have found Brisbane’s housing market to be an ideal place to invest in in the past few years. In addition to recent and upcoming improvements made to Brisbane’s infrastructure and economy, this is a perfect time to invest. Queensland’s capital remains one of the most affordable in the country, despite value increases.
Real Estate Market in Brisbane
The ability to assess a location’s housing market based on current and previous trends can be helpful for those interested in finding suitable investment homes in Brisbane. The Brisbane housing market hasn’t traditionally experienced the same gains as Sydney or Melbourne, but recent trends display that it might continue to see rapid growth rates.
In December 2020, the median house price in Brisbane will be $575,000, an increase of over 17 years from $296,400 in December 2003. Historically, the Brisbane housing market has performed well due to a gradual increase in the median house price just about every year.
Brisbane’s median house and unit prices increased in 2020 despite the Coronavirus pandemic. As of March 2021, Corelogic’s Home Value Index3 reports that Brisbane’s housing market has grown by 6.84% in a year.
While COVID-19 has impacted the Brisbane housing market, steady levels of growth have been maintained, which could be attributed to the historically low-interest rates the market is enjoying, government incentives, and Brisbane’s ability to handle the pandemic well. Brisbane’s suburbs experienced annual growth in 85% of them in 2020.
As per the historical records, there is reason to predict further growth in the Brisbane property market. Approximately 20% of property prices in Brisbane are expected to rise over the next two years, and now is an excellent time to enter the Brisbane property market and buy property.
Rent Yield In Brisbane
An investor’s rental yield is among the most important considerations when purchasing a property. The difference between your costs and the income generated from a rental property determines the amount you make on investment homes in Brisbane.
You will be more effective in finding the right investment property if you are informed about the rental yield in the area you plan to invest in. For example, Brisbane is experiencing one of the strongest rental markets in the country due to an increase in interstate migration in 2020.
In February of 2021, the rental vacancy rate reached a record low of 1.5%7, resulting in record rent prices of $328.80 for apartment units and $478 for houses. We can expect vacancy rates to remain tight as the popularity of rental properties grows in Brisbane due to the ongoing increase in demand.
Brisbane houses’ current gross rental yield is 3.7%, while the gross rental profit for units is 5.2%8. Brisbane’s rental market is booming due to the growing demand for rental properties and the affordability of apartments and homes compared to other capital cities like Sydney and Melbourne.
Investment Homes In Brisbane
Brisbane has a great deal of great suburbs to invest in or start an investment portfolio. Our analysis of the Brisbane property market has shown that suburbs at the high, middle, and low end may provide an excellent opportunity to begin your investment journey. As a result of their proximity to the CBD, historical property growth, and potential rental yields, these three suburbs were selected as a guide that we feel provides an excellent investment opportunity.
