Is Australia's Property Market Dropping? The Facts Vs Media Hype
For the last few months, many Australian media outlets have triggered anxiety among potential homebuyers and property owners, saying that the market is dropping because of rising interest rates.
Are you wondering what the current state of the market means for you as a potential buyer or seller?
Whilst it’s true that the market has been slower lately than it was during the height of the COVID-19 pandemic (which, to be fair, was a complete anomaly, the market is still quite strong overall. In fact, despite the doom and gloom from the media, Brisbane’s market has experienced its 6th consecutive month of price growth!
To help you stay informed, we’ve put together some key insights so you can learn more about the property market (in Brisbane, regional Queensland and Cairns).
What's Happening in the Market?
Let’s start by addressing the Brisbane property market as a whole.
Earlier in 2023, Brisbane’s property market flatlined, which caused some panic among buyers and sellers. However, it’s important to note that a temporary flatline or even decrease in the market does not necessarily indicate long-term real estate turmoil.
Despite a slow start to the year, Brisbane’s property market has seen consistent growth for most of the year. The latest data (linked above) shows that it’s increased by 1.4 per cent in the past six months.
There’s plenty of time for the market to continue growing, too, especially when upcoming events like the 2032 Olympics are factored in. Although the 2032 games are a little over eight years away, many projects have already begun -- projects that will increase property values throughout the area and make it more enticing to potential buyers.
According to the Brisbane City Council, a variety of projects, including “the Brisbane Metro, Green Bridges and the transformation of Victoria Park,” have been kicked off and will ensure Brisbane is ready to accommodate visitors and new residents in 2032.
Strike While the Iron’s Hot
Considering the Olympic games on the horizon and the overall market growth Brisbane has experienced this year, it seems that now is an excellent time to consider investing in real estate in the area.
As Brisbane and the rest of the Queensland area become more popular, property values will surely go up. Those who buy now and sell later will likely see significant returns on their investments.
What's Happening in Regional QLD?
Brisbane as a whole is currently doing well from a real estate perspective. However, what about specific areas in regional Queensland?
The entire state is thriving, exhibiting Australia’s best property market performance with price increases of 70 per cent since 2020 (at the beginning of the pandemic). Furthermore, many regions in Queensland have performed exceptionally well.
Cairns Real Estate Market
One of the top performers in Regional Queensland is Cairns, a stunning seaside property on Far North Queensland’s tropical northeast coast.
The median home price for a Cairns property is currently $480,000. That’s 41.42 per cent higher than 2020!
First in, First out
The information about Cairns’ steadily rising property values is good news for people who want to invest in a home that is likely to increase in value over the next several years. However, it’s also good news for current Cairns residents interested in selling their homes.
Many people purchased homes in Cairns during the pandemic -- including people who wanted to leave the city and go somewhere where they could spend more time outdoors -- when home prices were quite a bit lower.
Now, after a few years, these buyers have decided to sell and move back to a more metropolitan area. Thanks to the dramatic increase in property values, these sellers have the potential to generate a significant profit when they find a buyer.
Cairns — Project Population Growth
Don’t let the news about people leaving Cairns worry you. Although some individuals have decided to sell their homes and relocate, there are still plenty of people interested in moving to the area.
According to the Cairns Regional Council, the population currently sits at around 165,000. It is also predicted to reach 265,000 by 2050. The long-term projected growth in this area makes it a safe location for buyers who want to make wise investments that pay off (literally) down the line.
What's to Come?
Overall, the future looks bright for Australian buyers and sellers -- particularly those in Brisbane. With home values rising consistently, combined with significant infrastructure improvements in preparation for the 2032 Olympics, it’s safe to say that the real estate market will remain healthy for the next several years.
As demand for property in or around Brisbane increases, so will the prices of homes, which is good news for residents interested in selling. Property owners looking to rent out their houses will also benefit (they will have the potential to raise rental rates significantly and generate impressive profits).
The Regional Queensland area is on track for positive real estate outcomes as well.
Seaside spots like Cairns are in an especially good position now and in the coming years as home values have risen dramatically. Even though some people have decided to move back to the city, the area is still expected to experience significant growth for the next several decades.
Navigate The Property Market with Champions in Real Estate
As you can see, the country’s real estate market is much stronger than the media would have you believe. While things have slowed down post-COVID, and there is a smaller supply of properties available overall, there are definitely buyers who are ready to move forward with their purchases -- and sellers who are eager to work with them.
It doesn’t matter if you’re buying, selling, or leasing your property. Partnering with a skilled real estate team can make all the difference, especially when you’re navigating a rapidly changing marketing.
At Champions in Real Estate, our team has years of experience in buying, selling, leasing, and managing properties in Cairns and the surrounding area. We’re confident that we can help you understand the Brisbane market and make intelligent decisions that benefit you long-term.
Do you want to learn more about us or our services? Get in touch today.
