There has been a notable change of the guard in the Australian Property Market!
According to CoreLogic’s latest data:
Brisbane has overtaken Australia’s Capital City, Canberra, as having the second-highest median dwelling value across all capital cities.
While Queensland’s capital city remains behind Sydney, this is a significant achievement for the River City of Brisbane, which hasn’t recorded this position since 1997 – nearly 30 years ago!
(That’s before I was even a Queensland Property Buyers Agent!)
How did Brisbane’s property change so much?
Brisbane’s new position is the result of Southeast Queensland housing values consistently posting solid capital gains over the last few years while the ACT values remained relatively stable.
Yes, you read that correctly.
So:
- not only did Brisbane overtake Canberra as having the second-highest median dwelling value across the capitals in May, but
- it also overtook Melbourne’s median in January, signifying a two-position jump in the first half of 2024.
This changing of the guard for Brisbane property poses an important question:
- Why is the Brisbane and surrounding Southeast Queensland Property Market experiencing such outstanding growth?
And more importantly…
- What does this mean for your wealth creation goals for the second half of 2024?
Let’s take a look.
The factors behind the Southeast Queensland Property Boom
According to CoreLogic, the reasons behind Brisbane’s outstanding growth are partly compositional:
- Unlike Melbourne’s market which has been weighed down by a high concentration of relatively cheap units, Brisbane is a far less concentrated market.
- Southeast Queensland is experiencing a quickly accelerating population growth due to interstate migration since the pandemic as well as a growing number of international arrivals.
- This continued population increase is fuelling demand for housing and leading to a rise in property prices making the market a perfect environment for investors.
- The city and its surrounds such as the Sunshine Coast and Hervey Bay Region are also emerging as one of Australia’s fastest-growing regions with significant investment into infrastructure and public innovation.
If you’d like to dive deeper into these factors, read my blog article How (And Why) Queensland’s Rental Yields Continue To Outperform The Market.
But for now, this is the important point:
Brisbane dwelling values have increased at more than five times the pace of Melbourne values since the onset of COVID, with a growth of 59.8% and 11.2% respectively.
Brisbane has also substantially outpaced growth in the ACT where values are only up 31.8% since the onset of the Pandemic.
So why should you care?
What does Brisbane’s real estate growth mean for your goals in the second half of 2024?
As we pass the halfway point of 2024, now is an ideal time to reassess your financial goals (with your financial professional) and ensure you’re on track for the remainder of the year.
This is especially the case in Australia with the end of the financial year occurring and tax time presenting a perfect opportunity to review your financial strategies.
As a Hervey Bay Region Buyers Agent and a Sunshine Coast Buyers Agent, I’ve found that most Australians fall into two camps at this time of year:
- Your tax return offers a healthy return and you’re well on track or even ahead of your 2024 financial goals, or
- Your tax return indicates you’re paying more tax than anticipated, you’re falling short of your goals (for now), and you need a change of strategy.
In either instance, now is a great time to potentially consider investing in property to enhance your wealth portfolio… and the best part is that this aligns with incredible investment opportunities in the Southeast Queensland Property Market.
But why invest in Queensland property?
In the latter case, property investment can offer substantial tax advantages, including depreciation, negative gearing, and other deductible expenses, making it a strategic option to reduce your taxable income.
In the former case, property investment enables you to put your excess funds to good use and continue to grow your portfolio.
And in both cases, by investing in the Southeast Queensland property market, you not only grow your asset base but can also secure a tangible, appreciating asset that can provide long-term financial security.
The Takeaway
To conclude, I’d like to return to the questions I posed at the start of this article:
- Why is the Brisbane and surrounding Southeast Queensland Property Market experiencing such outstanding growth?
And more importantly… - What does this mean for your wealth creation goals for the second half of 2024?
Here are the answers:
- The Brisbane, Sunshine Coast, Hervey Bay and broader Southeast Queensland Property market is booming due to increased infrastructure spending, a booming population and a less concentrated housing market.
- July is the perfect time to either get back on track with your financial goals or take them to the next level and the best way to do that is by investing in high-potential real estate such as that in the QLD market.
While this is not intended to be financial advice, when you’re ready to make the most of this potential opportunity with Queensland property… I’ll be here.
Are you ready to invest in the Sunshine Coast, Hervey Bay or Southeast Queensland Property Market?
Worth Property Investing can help. My team and I are passionate about helping you make the right investments to achieve your financial goals and lifestyle aspirations.
Think of us as your property-buying partner, here to support you in making the ideal property decisions and making the most of Queensland’s booming property market.
As your trusted, licensed Buyer’s Agents, we do everything from searching, connecting, researching, bidding, negotiating and securing the best investment for you.
Please note: This article is not to be considered financial advice and is not intended as financial advice as it does not take into account your specific circumstances. For specific financial advice, speak to your financial advisor.
