by Danny Buxton
As 2024 is a leap year, does this mean investors have extra time to enter the market?
It is hard for us not to wax lyrical about the Sunshine State. I have the joy of living on the beautiful Sunshine Coast, and the SE Queensland market has seen record-breaking prices and high demand. But what does the future hold? Our team has looked closer at the Queensland property market forecast for 2024 and what factors may impact it.
Current State of the Queensland Property Market
Before we dive into the forecast, let’s take a quick look at the current state of the Queensland property market and where we are excited about:
According to the Real Estate Institute of Queensland (REIQ), the median house price in Brisbane boomed in 2021, with house prices recording their steepest annual climb in 13 years. After a softening of the market in 2022, Brisbane still had one of Queensland’s strongest-performing markets.
The rental market has also seen significant growth, with vacancy rates at record lows and rental prices increasing by 8.2% in the past year.
The GC has seen a chronic shortage of new stock. Our experience in 2023 was harsh buying conditions, but our clients have already seen a significant uptick in values… Affordability remains a challenge.
Along with the Gold Coast, Domain’s chief of Economics, Dr Nicola Powell, has the Sunshine Coast on the radar for price growth of 6% this year.
Why is our team personally investing in the SC this year? We have access to options close to the major hospitals, easy access to transport corridors and job hubs.
Factors Impacting the Property Market in the Sunshine State
Several factors have contributed to the current state of the Queensland property market, including:
- Interest rate rises: The Reserve Bank of Australia increased rates again at the end of 2023. However, there wasn’t the predicted wave of distressed sales when low fixed interest rates came up for renegotiation and values didn’t dive.
- Government incentives: The federal government’s HomeBuilder grant and the state government’s First Home Owner Grant have provided additional support for first-time buyers, but this caused overwhelming demand for supplies and the labour force. 2024 should see an easing in price increases in the construction industry. However, labour shortages can still be an issue.
- Interstate migration: Following the huge increase in interstate migration during the COVID-19 pandemic, people continue to move to Queensland for its lifestyle and affordability.
- Limited housing supply: The demand for housing has outpaced supply, leading to a shortage of properties and driving up prices.
Queensland Property Market Forecast for 2024
I have never admitted to owning a crystal ball or trying to predict prices. However, I continue to look at the indicators that lead to property growth.
Here are some key points to keep in mind:
- We will continue to see growth in the Queensland property market in the coming years. Terry Ryder from Hotspotting.com lists Brisbane and regional Queensland as top spots around the nation. It may be slower but the state’s economic outlook looks positive.
- Rental vacancy rates will remain low: It is expected that rental growth will slow this year as the state had some of the biggest increases ever recorded in 2023. Despite all the government targets and talk about affordable housing, the demand remains incredibly strong.
- Regional areas to see growth: Regional areas in Queensland, such as the Sunshine Coast and Gold Coast, are expected to see continued growth due to their lifestyle appeal and affordability.
Housing Forecast for Queensland
In addition to the overall property market forecast, it’s also important to look at the housing forecast for Queensland. Here are some key points to consider:
- Continued demand for detached houses: The demand for detached houses is expected to remain strong as more people prioritise space and privacy.
- Affordability concerns: While the Queensland property market is expected to see growth, there are concerns about affordability, particularly for first-time buyers. This may lead to a shift towards more affordable housing options, such as townhouses and units.
Market Analysis and Insights
To better understand the Queensland property market forecast for 2024, let’s look at some market analysis and insights from industry experts.
The REIQ’s CEO, Antonia Mercorella, provides some valuable insights into the Queensland property market. Here are some key takeaways:
- Strong demand for detached housing and unit price growth continues to rise slowly after a long slumber.
- The state will remain a consistent performer
- Affordability concerns, especially for first home buyers
- Shortage of sales listings to remain over 2024
PropTrack Market Update also provides some interesting insights into the Queensland property market. Here are some key points to consider:
- Strong growth in regional areas: Regional areas in Queensland have seen the strongest growth in the past year, with the Sunshine Coast and Gold Coast recording double-digit growth in median house prices.
- The total number of properties available for sale remains at low levels.
- International migration continues: the recent influx of international arrivals is expected to decrease this year from 2023 record levels… international students and internal migration will continue to put pressure on available stock.
Where to from here?
You may have an extra day in February this year, but don’t waste time with your property decisions. This year, there is a real opportunity to build new property in SE Queensland. However, proceed with caution! Success is based on market analysis, understanding the area, and sourcing the best block, builder, and design.
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This is where our team can help you… lean on our expertise to find the right property to suit your goals and strategy.
The market remains resilient, but you need a team behind you to achieve great results. Rather than reading the latest headlines and trying to analyse the latest market trends, take an actionable step and book a discovery session with our team to see what you can achieve in property this year.