Interest Rates Rise, Brisbane Real Estate ‘Steady As She Goes’!

brisbane property report

Good day, it’s Henry here and I want to look at a couple of recent topics that have been in the media a bit recently. 

One is a comforting look at the state of the Brisbane (and Queensland) property markets. This news won’t take any of us interested in Brisbane real estate by surprise, but there are some interesting statistics to look at. 

The second may not be so comforting, but it’s something we’re all very familiar with now. Interest rates have risen again, putting the squeeze on homeowners and making life a bit tricky for anyone trying to enter the market. 

Let’s take a look at interest rates first, and the latest hike.

Interest Rates Up in November, Held in December

November saw the RBA hit us with a 13th interest rate hike, taking the cash rate up to 4.35%. Interest rates are now at the highest point they’ve been at in 12 years, with the majority of lenders passing on the rise in full to their borrowers. 

Thankfully, at the December RBA meeting that takes place on the first Tuesday of every month, we were spared another rate rise. Looks like we’re good until February too, in that regard. Inflation easing in October has been responsible for the rates being held steady. 

What it does mean though is if you’re looking for a home loan for under 6%, you’re probably going to be disappointed. A competitive rate is around the 6.14% mark, according to Sydney Mortgage Choice Broker Terri Unwin. If you can get that, you’re doing well. 

The result of this is mortgages are far more expensive, placing pressure on anybody having to work them into their monthly budget. Borrowing capacity has also diminished, putting the property dream out of reach to many, particularly first home buyers.

You’d think that would paint a pretty grim picture for the property market. However, tight housing supply, strong population growth and increased wages are countering the effects of high interest rates. 

Brisbane Property Looking Good

coorparoo population and housingThere was a solid spring selling season in Sydney, Melbourne and Brisbane, and confidence amongst vendors is still high. In Brisbane and around Queensland, we have an added attraction of a sunny, outdoors lifestyle, which has helped property stay in good nick in the last quarter of 2023. 

How good, you ask? Well, it’s consistent in the face of pressure. Let’s take a look at some stats from REIQ.

  • Median house price in Brisbane is a solid $760,500.
  • Queensland median house prices lifted 2.07% in the last quarter to $690,000, and unit prices went up 3.92% to $530,000. 
  • Brisbane had the highest number of house sales in the last quarter at 2,888, followed by the Gold Coast at 1,822. 
  • Regional growth was strong, with Rockhampton, Bundaberg and Toowoomba all enjoying double digit growth. 
  • The statewide median days on market was just 28 days.

What we’re seeing is a shift in buyers looking to units as a stepping stone to get into the real estate market. As a result there’s a lot of value and growth in the unit market, particularly close to public transport. 

Interstate migration to Queensland is also strong and looks set to continue that way. It’s helping to keep the property market on a strong footing. There is limited supply though too, with owners wary of selling in this market only to have to buy in the same market with its tight supply. 

Contact the Brisbane Real Estate Expert

If you want to chat about the state of the market, me and my team are always here to take your calls. We love talking about all things real estate, and are happy to answer any questions you may have. We always feel that the right time to sell is the one that suits you and your family. If you’re at that point in life, then the state of the market becomes less important. It’s your future that counts!

Let’s talk more about it. Contact me here