Brisbane Property Market Insights: 2022 Edition

• Uncover the key economic and demographic trends for Brisbane.
• Understand the rental yield for different property types in Brisbane.
• Learn about key performance metrics like Brisbane's growth and clearance rates.

Looking to buy or invest in property in Brisbane? We've crunched the numbers, so you don't have to!

Read on for everything you need to know about the Brisbane property market.

Market trend statistics

The housing market in Brisbane has seen double-digit growth in the past year. Specifically, the increase is 25.7%, and even though this growth rate is slowly declining, it is still predicted to continue in a positive direction into 2022.

The growth rate for units is roughly around half that of houses. This is over both the monthly and yearly period. The median house price is now $702,455 while the median unit price is $396,609.

Although affordability is a subjective matter, the dwellings in Brisbane offer a less expensive option when compared to Sydney and Melbourne.

The greatest indication of demand in Brisbane is the fact that the number of sold properties is the highest it's been in over six years. Another indication of demand is the high clearance rates. The percentage of auction clearance settles around 70%.

From April 2020 to April 2021 there were 70,152 properties (of varying types) sold across Queensland. This number of sales is a massive 40.4% increase over the previous year. It is presumed that this boom results from record low-interest rates on mortgages as well as relatively affordable Brisbane prices.

Brisbane’s average rental yield

The rental market in Brisbane is still very lucrative for would-be landlords. Though it may often make more sense to get a mortgage rather than rent, there is still great demand for rental accommodation.

The rental yield figures expressed as percentages refer here to gross rental yield. The average rental yield for all houses in Brisbane as of November 2021 sits at 3.5%. The value for three-bedroom houses specifically is slightly higher at 3.7%.

The average rental yield for all units in Brisbane is 5%. The value is slightly higher for two-bedroom units, and is 5.1%. Over the past decade, the yields for units have increased by 0.2% and decreased for houses by around 0.6%.

Economic and demographic trends

Brisbane is currently home to 2.4 million people. There is a very high population density of 896 people per square mile. The population growth rate is less than 2% per year and the median age of the residents is 35 years old.

In greater Brisbane, the most popular dwelling type is standalone houses. To be precise, 74,4% of the population currently reside in standalone houses and this type of property attracts mainly families and those wishing to settle.

The number of unoccupied properties sits at 7.6%, which is lower than other Australian state capital cities. This indicates a low vacancy rate which can increase demand, especially for rental accommodation.

In terms of education, around 24.1% of the population aged over 15 hold a Bachelor’s Degree or higher qualification. The percentage of those that have a post-high school qualification is close, at 25.2%.

Approximately 59% of the residents work full time, 29.1% work part-time and a low 7% are unemployed. This signifies an excellent socio-economic profile.

The top 5 employment industries include:

• Health care and social assistance
• Retail
• Manufacturing
• Professional, scientific and technical services
• Construction

The median weekly household income varies from $1,669 to $2,347 and the median weekly rental amount is $440.

It needs to be mentioned that Brisbane does have a full-fledged economic recovery plan in place to combat the adverse effects of the pandemic. The local government plan includes a $21.7 million investment to boost economic activity.

FAQs

Where should I invest in Brisbane?

Choosing a suburb to invest in can be a bit tricky. You want a good mixture of affordability, decent rental yield, and high year-on-year growth. While there are many suburbs that may have hidden gem properties, it’s best to invest in ones that have had, and are projected to have, great growth. One of Brisbane's best suburbs for growth is Ashgrove. The median house price is $1,280,500 (rental yield 2.5%) and the median unit price $495,500 (rental yield 4.4%). Lastly, the year on year growth is 34.0%

Are house prices dropping in Brisbane?

Housing prices are increasing in Brisbane and are projected to increase into 2022.

What is the cheapest Brisbane suburb to live in?

The cheapest suburb in Brisbane (located within 20km of the CBD) is Ellen Grove, with many of the homes not exceeding $300,000.

What income is needed to buy a house in Brisbane?

To comfortably afford the mortgage repayments, the average Brisbane household should earn at least $98,280 annually. This is calculated in accordance with the median house prices and the average mortgage repayment amount of about $567/week.

Making the most of the property trends

Brisbane has a great combination of affordability, growth, and demand. It’s a wonderful option for first-time investors as well as the more experienced. It’s important to not only review the current statistical data regarding this area but also keep up to date with it. This is true even if you’ve already purchased a property.

Remember to also browse the numerical data as one part of a well-thought-out investment plan. You will need to conduct on-the-ground research when you’ve compiled your shortlist of dwellings that you’re considering.

Objective facts are extremely useful but so too are opinions from the locals. Stay well informed and you should find that you have no struggles standing by your decisions.