As 2023 winds down, it’s an excellent time to take a quick look at the market’s current state and look into our crystal ball for the Brisbane and Sunshine Coast Property markets in 2024
While many forecasters predicted declines in Brisbane and Sunshine Coast property markets, once again, they proved resilient, with combined dwelling growth for Brisbane at a robust 9.5% and The Sunshine Coast with more moderate growth at 3.4%.
Even though we have seen many interest rate rises over the last 12 months, demand has remained more robust than expected, and the market has also been shored up by the shortage of stock on the market.
In November 2019, there was a total of 33,205 properties on the market in Brisbane and only 18,404 in November 2023. That’s a staggering 44% drop in stock on the market. Sunshine Coast is the same; in November 2019, there were 10,241 properties on the market, and in November 2023, there were only 6,158, a 40% drop in stock levels.
The rental market continues to be strong, and we regularly lease out new purchases at the high end of appraisals before settlement. According to SQM Research, the current vacancy rates for Brisbane (1%) and the Sunshine Coast (0.9%). Gross rental yields for all dwelling types in Brisbane are steady at 3.7%, with the Sunshine Coast declining slightly at 4%.
What’s the forecast for 2024? The rising interest rate cycle peaked in 2023, and there are predictions of two or three reductions in 2024, depending on inflation and consumer demand across the economy.
Based on current forecasts, growth rates are predicted to be between 4-10% across Brisbane and The Sunshine Coast. There will be a lot will riding on interest rate reductions throughout the year, to help avoid the economy slowing too quickly.
As with 2023, rental markets in Brisbane and The Sunshine Coast will remain tight due to increased migration, with many investors leaving the market due to profit-taking and over-regulation, which is contributing to low rental stock levels. As a result, rents will continue to grow. However, it will be more moderate than we have seen in the past few years.
There are still good signs in the SE Qld property market over the next decade. We have historically low unemployment and strong international and intrastate migration. The state economy is still performing well, and infrastructure projects are improving connectivity and livability in the region.
2024 will be an exciting time at the Edge Property Buyers, and we look forward to sharing some exciting news in the new year.
If you’re thinking of entering the Brisbane or Sunshine Property Markets in 2024 be sure to book your FREE Strategy Session with us here ??http://bit.ly/the-edge-strategy-session
