How did the Brisbane and Queensland property market perform in June, and what can we expect moving forward?
In these uncertain times, Brisbane and Sunshine state have had the benefit of being relatively unscathed by Covid-19 from a healthcare perspective, with low infection rates and mortality. This has meant the state has eased restrictions earlier than expected, which the Real Estate Institute of Queensland (REIQ) believes has brought renewed interest to the housing sector.
This is not to say the lockdown and restrictions have not been felt there, with the tourism sector in freefall, the jobs of hospitality workers remain uncertain and there is little likelihood tertiary students will return in the foreseeable future. Despite this, the housing market there has remained true to form, displaying traditional resilience and lower volatility overall than Victoria or NSW.
How has the Queensland and Brisbane property market been tracking?
According to the latest CoreLogic Home Value Index, the Brisbane property market edged a slight -0.4% over June, which leaves it +0.8% for the quarter and +4.3% for the YTD for a median dwelling price of $503,148. If you look at distinct dwelling types, houses were marginally down -0.4% for a median of $557,265, with units a little softer at -0.8% and a median of $387,420.
Overall, regional properties in the Sunshine State are down -0.3% for June and -0.1% for the quarter. Looking at the longer term, property prices are still up +4.5% over the year. The median dwelling price for regional properties currently sits at $379,942.
Taking a look at houses by dwelling type – houses have softened over June sliding -0.4% to a median of $386,454. Units have remained unchanged at 0.0% for the month with a median of $363,549.
Brisbane and Queensland rental market update
Rental data compiled by Domain found that some Brisbane inner city listings, “…were forced to slash median weekly rent prices by more than 30 per cent during the COVID-19 pandemic peak in April”. This has since firmed up to 24.0 per cent in May, which is not as aggressive as the discounting seen in Sydney – City and East (36.7%) or Inner Melbourne (33.2%) over the same timeframe.
Gross rental yields for Brisbane houses in June are still higher than Melbourne or Sydney – at 4.2%, with units at 5.2%, while yields for regional property are even more attractive with houses producing 5.1% and units 5.5% over the month.
What does this mean and what can you expect?
Overall the sun is still shining for the Brisbane and Queensland property market, with a minor drop in price growth. This is to be expected given the impact health restrictions have had on the real estate sector, consumer sentiment and unemployment.