It feels like the Brisbane and Sunshine Coast property markets have had a Jekyll and Hyde moment over the last two quarters. We started with a steady ramp-up from September, and then there felt like a change in sentiment in early December, and then from New Year, it was like being slapped in the face with a wet fish. Buyers galore fighting over limited stock, Sales agents, complaining about the number of enquiries they had to deal with, and prices were spiking substantially over recent comparable sales. Rents are also increasing due to high demand and record low stock levels.
What do we think is happening?
There are many factors at play in the current market, record low stock levels, strong intrastate migration, low vacancy rates, returning ex-pats, and COVID19 has seen a structural shift in how and where people want to live work and play.
In Brisbane, inner-city apartments are still struggling with high vacancies and sales price reductions. Further out of town, we see intense competition for detached dwellings on larger blocks of land in the middle 10km ring. There’s also a lot of activity in the more affordable 20km ring further into Moreton Bay with multiple offers and many properties selling on the 1st inspection day.
The Sunshine Coast has also seen a dramatic increase in activity since the beginning of the year. We have seen many investors and buyers looking to move up from Brisbane, Sydney and Melbourne for the work lifestyle balance and ex-pats looking to bring funds back into the country. Coincidentally there are quite a few cash buyers who obtain an instant advantage over the competition.
Whether living on the coast or a hinterland acreage, there is a strong appeal for those workers who need to travel interstate weekly or monthly, only 30 minutes from Sunshine Coast airport and just over an hours drive to Brisbane.
So what do the numbers say?
Brisbane dwelling values increased 4.8% over the last three months, and regional Queensland increased a whopping 5.8%. As mentioned earlier, there has moved away from High-Density living, which reflected in prices. Nationwide detached houses rose 6.5% for the quarter while units had less than half that at 3.1%.
Vacancy rates are still extremely tight in both Brisbane and the Sunshine Coast. Brisbane is at 1.5% compared to 2.5% in March 2020, and The Sunshine Coast is 0.6% compared to 1.4% in March 2020.
Of course, there are markets within markets, but overall it’s an excellent time to be a landlord, but so great being a tenant looking for a new rental in the current market.
Brisbane and Sunshine Coast Post Code Snap Shots
Post Code 4053 3 Bedroom Houses: Everton Hills, Everton Park, Mitchelton, Stafford, Stafford Heights, Mcdowall
Asking prices last quarter Up 4.3%,12 months up 7.9%
Vacancy rate March 2020 1.1%, March 2021 0.9%
Gross Rental Yield March 2020 4.2%, March 2021 4.1%
Post Code 4502 3 Bedroom Houses: Petrie
Asking prices last quarter Up 2.9%, last 12 months up 10.5%
Vacancy Rate March 2020 2.8% March 2021 0.1%
Gross Rental Yield March 2020 4.7% March 2021 4.5%
Post Code 4575 3 Bedroom Houses: Birtinya, Bokarina, Buddina, Minyama, Parrearra, Warana, Wurtulla.
Asking price last quarter Up 19.5%, last 12 months up 20.1%
Vacancy rate March 2020 2.2%, March 2021 1.1%
Gross Rental Yield March 2020 4.3% March 2021 4.1%