The property market in Brisbane entered the Covid-19 crisis at record highs that will give it the strength to rebound strongly once economic activity and confidence return.
Prices rose consistently across the city and regional Queensland, according to new data from CoreLogic.
Brisbane prices increased 3.8% in the April quarter compared with the corresponding period in 2019, while regional Queensland rose 4.5%.
In the April quarter alone, Brisbane property jumped 1.5% and regional Queensland registered a 1.6% increase. The city experienced consistent growth across all categories of property, including prestige.
The first sign of Covid-19’s impact began to emerge in April when prices grew by a comparatively flat 0.3%. That was not a bad performance given Melbourne (-0.3%) and Hobart (-0.4%) went south in the same period.
The number of settled sales in the April quarter remained strong in regional Queensland, which achieved growth of 4% over the corresponding period in 2019. The city was flat by comparison, down just 0.2%.
The days-on-market measure illustrates local demand remained strong across Queensland. The city registered an average of 40 days in the April quarter, compared with 43 in 2019. The rest of the state was positive too, moving from 61 days on market to 57.
Vendor discounting also declined in the April quarter. It moved from a median average of 4.8% to 3.8% in another sign of buyer demand for Brisbane property. Less discounting was seen in the rest of the state, down from 5.7% to 4.6%.
CoreLogic estimates a 40% fall in completed sales in April due to owners pulling their properties off the market. National auction clearance rates also fell by 50% for the same reason.
Another sign of the COVID crisis taking its toll has shown up in the rolling 28-day count of total national sales listings to May 3. They fell to 156,714 against totals since 2016 that have consistently hovered around 230,000.
New listings across Australia dropped to 20,500 in April, down from around 40,000 just a couple of months before.
Brisbane’s new listings are -37.9% lower compared with a national average of -40.9%. Total listings are down -27.2% compared with the corresponding period in 2019, which was almost equal to the national average.
As your real estate agent, we have seen a drop in activity. But as the state begins to open up economically and we restart open house inspections, we’re noticing signs of pent-up demand.
Good buying certainly exists right now, but the market could regain strength quickly. Owners of existing property who have been thinking of upgrading can make financial gains right now.
We recommend that if you’re thinking seriously about buying a first property or upgrading, give us a call to discuss your options.
Overall, the data shows that Brisbane’s property market entered the lockdown in a strong position. While these latest figures have probably not yet revealed the full impact of the lockdown, there is ample evidence to suggest the city and state’s property markets will pick up pace quickly when confidence and business activity return.
