Brisbane
Blake Wever, Managing Valuer
Brisbane continues to record growth in dwelling and unit values. It is currently one of the three best-performing capital city markets in Australia. The Brisbane CoreLogic daily home value index is up 3.6% over the last quarter, with a year-on-year increase of 15.2%. Prices are increasing across the city for dwellings, units, and townhouses.
The market is being driven by strong interstate migration, affordability, a low vacancy rate, and a low level of stock. The number of homes advertised for sale is 34% lower than the five-year average.
Much of the growth is happening in the lower quartiles of the market, including strong growth in unit values. According to CoreLogic, the unit market has increased by 10.3%, whereas dwelling values have increased by 6.3%.
There is potential for the market to experience headwinds such as rising interest rates, increased cost of living, and affordability pressures. However, at present, the market has shown to be incredibly resilient and is a high performer among other Australian capital city markets. It is expected that the market will continue to grow throughout 2024.
Gold Coast
Peter Fitzgerald, Managing Valuer
The Gold Coast property market continues to be underpinned by low levels of supply. Demand has continued to push prices to record levels in most areas. Properties at lower and ‘more affordable’ price points have been the market segment which has benefited most by this trend. The median unit value in Surfers Paradise is now $725,000, an increase of 10.5% in the year to June 2024. The median rental cost for a unit in Surfers Paradise is now $650 per week, an increase of 9.2% in 12 months. Southport is a coastal suburb which is also dominated by unit development, much of which is considered to be ‘entry’ level. The median unit value in Southport is now $659,000 showing an increase of 11.3% in the year to June 2024.
The prestige market remains particularly strong in beachside locations. A 2022-built 3-bedroom, 3-bathroom 4th floor unit at The Esplanade, Burleigh Heads recently sold for $4.35 Million. It was purchased off-the-plan in May 2020 for $2.416 Million. The re-sale shows growth of 80% over the 4 year period.
The suburb of Robina is representative of a relatively modern ‘middle’ market suburb with good access to a amenities including a regional shopping centre, public transport and schooling. The Median house value in Robina is now $1,362,000, an increase of 18.3% in the year to June 2024. The median rental cost for a house in Robina is now $900 per week, an increase of 5.9% in 12 months.
Anecdotally, market activity has cooled since about mid-June as it became clear that inflation remains a concern for the Reserve Bank and the timeline for a reprieve from ‘relatively’ high interest rates is likely to be longer than market expectations thus far.
Sunshine Coast
Nathan Cobb, Managing Valuer
Despite interest rates remaining high and cost to living pressures starting to impact mortgage belt areas, the Sunshine Coast Property Market continues to perform strongly. Interstate and Intrastate migration is driving demand for coastal and hinterland living. Whilst the new estates at Harmony and Aura provide most of the new supply of houses on the Sunshine Coast, they are barely meeting demand.
The rental market is very strong, with rental vacancies at low levels and weekly rentals up as much as 20% over the past 12-18 months. Market values in some locations have increased by as much as 10% over the past 12 months, with agents still reporting low listing rates for new property to the market. Some markets are price sensitive with strongest demand sub $700,000.
The prestige market, say above $2m has mostly plateaued in the past 6 months however sales rates are low on the back of limited property for sale. It is expected the migration levels will continue to provide support to the Sunshine Coast Property Market, in the short term, with supply not meeting demand for both rental and sale properties.
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