Brisbane house prices experienced the nation’s strongest growth over the pandemic, with values rising an incredible 45% between February 2020 to the peak in June 2022:
Brisbane house prices grew the strongest over the pandemic.
Data released this week by the Australian Bureau of Statistics (ABS) helps to explain why, with Queensland experiencing the strongest internal migration in the nation over the five years to the 2021 Census, gaining more than 100,000 people from other states or territories:
Queensland experiences turbo-charged net interstate migration.
By contrast, NSW lost 102,000 people to other states or territories over the same five-year period, while Victoria lost 9,500 people.
The strong internal migration also helps to explain why Brisbane experienced the nation’s strongest rental growth in the year to October, with rents soaring by 13.5% versus 10.0% growth nationally:
Brisbane leads nation’s rental growth.
Having experienced the biggest price boom over the pandemic, Brisbane house prices are now falling fast, down 6.9% from June’s peak on the back of the Reserve Bank of Australia’s (RBA) aggressive monetary tightening.
This goes to show that interest rates are the primary driver of house price growth, with immigration, supply and rental yields playing secondary roles.
That said, when the RBA does begin cutting rates next year, Brisbane house prices should be off to the races again.
Net internal migration is likely to remain strong, Brisbane housing is still relatively affordable against Sydney and Melbourne, and the 2032 Olympics should ensure massive infrastructure investment across Brisbane.
