The outlook for the Australian property market in 2023 and beyond is largely positive, with a number of factors expected to contribute to price growth over the next five years. One of the key drivers of growth is expected to be population growth, particularly in major urban centers like Sydney and Melbourne, which will continue to drive demand for housing.
Another factor contributing to price growth is low interest rates, which are likely to remain at historically low levels for the foreseeable future. This has the effect of making borrowing more affordable and increasing the purchasing power of buyers, which in turn increases demand and drives up prices.
However, there are also a number of factors that could potentially dampen price growth over the next five years. One of these is the potential for oversupply in some markets, particularly in apartment buildings, which could lead to downward pressure on prices.
Another potential factor is changes to government policy, such as the removal or reduction of existing incentives for first home buyers. This could reduce demand for properties and lead to a slowdown in price growth.
Overall, the outlook for the Australian property market in 2023 and beyond is positive, with a number of factors expected to contribute to price growth. However, as with any market, there are also potential risks and challenges that could impact price growth over the medium to long term.
Australia has a number of government incentives in place to assist first home buyers. The most well-known of these is the First Home Owner Grant (FHOG), which provides a one-time payment to eligible first home buyers. The amount of the grant varies depending on the state or territory, but can range from $10,000 to $20,000.
In addition to the FHOG, first home buyers may also be eligible for stamp duty concessions or exemptions, which can further reduce the cost of purchasing a property. For example, in New South Wales, first home buyers are exempt from paying stamp duty on properties up to $650,000, and receive a discount on properties up to $800,000.
These incentives can have a significant impact on the property market, particularly in areas where demand from first home buyers is high. The increased demand can lead to an increase in property prices, as buyers compete for limited supply. This is particularly evident in markets where the incentives are most generous, such as in regional areas where the FHOG may be higher.
However, the impact of government incentives on property prices can be difficult to predict, as other factors such as interest rates and economic conditions also play a significant role. Ultimately, the effectiveness of these incentives in promoting home ownership will depend on a range of factors, including affordability, availability of housing stock, and the level of demand from first home buyers.
The availability of credit for home loan borrowers in Australia has been affected by a number of factors in recent years, including changes to lending standards, regulatory intervention, and the impact of the COVID-19 pandemic. In 2018, the Australian Prudential Regulation Authority (APRA) introduced measures designed to strengthen lending standards and reduce risk in the banking sector, which led to a tightening of credit availability.
However, in response to the economic impact of the pandemic, the Reserve Bank of Australia (RBA) implemented a range of measures to stimulate the economy, including cutting interest rates and providing support to the banking sector. This has helped to ease credit availability, with many lenders offering competitive interest rates and more flexible lending criteria.
Looking to the near future, there are a number of trends that are likely to impact the availability of credit for home loan borrowers in Australia. One of these is the ongoing impact of the pandemic, which has created a degree of uncertainty in the economic environment. This could lead to a tightening of credit availability if lenders become more cautious about the risk of defaults.
Another trend is the increasing use of technology in the lending process, with many lenders now offering online applications and automated approval processes. This has the potential to make the lending process more efficient and streamlined, which could lead to greater credit availability for borrowers.
Overall, the availability of credit for home loan borrowers in Australia is likely to remain influenced by a range of factors in the near future, including economic conditions, regulatory intervention, and the ongoing evolution of technology in the lending sector.
The recent hike in policy interest rates by the Reserve Bank of Australia (RBA) to 3.35% on 6 February 2023 could have significant implications for property investors. Higher interest rates make borrowing more expensive, which can lead to reduced demand for property and, in turn, slower property price growth. This may be a cause for concern for property investors who are relying on capital gains to increase the value of their portfolios.
The RBA’s decision to raise interest rates was driven by concerns over rising inflation, which has been running at over 30-year highs. This may lead to further interest rate hikes in the future, which could further impact property investors. However, it is uncertain whether the bank will continue with its aggressive monetary policy long-term, as this will depend on a range of factors including economic conditions and inflation trends.
Overall, property investors should be aware of the impact that rising interest rates may have on their investments. While higher interest rates may lead to slower property price growth, they can also help to control inflation and promote a more stable economic environment in the long-term.
In February. The ANZ-Roy Morgan Consumer Confidence Index recorded a 3.2 point decline to 83.6 for the week, the largest weekly drop in six months since August 2022. This is 16.3 points lower than the same week last year, indicating low consumer confidence in the current economy. Concerns about personal finances and major household item purchases contributed to the decline in confidence, and all five mainland states experienced a decrease in confidence.
The report indicates that consumer confidence has a significant impact on the property market, as low confidence may lead to reduced demand for property and slower price growth. The decline in consumer confidence may be driven by concerns about rising inflation and the potential for further interest rate hikes. Property investors should be aware of the impact that consumer confidence can have on the property market, and may need to adjust their investment strategies accordingly.
Employment is a key driver of the Australian property market, as it directly impacts the ability of potential buyers to enter the market. The latest ABS statistics show that in January 2023, the unemployment rate remained at a low 3.5%, indicating a strong labour market. However, the participation rate decreased to 66.5%, which may reflect a decrease in confidence among jobseekers.
Employment increased to 13,753,200, while the employment to population ratio decreased to 64.2%. This suggests that while there are more jobs available, a smaller proportion of the population is currently employed. Additionally, the underemployment rate remained at 6.1%, indicating that many Australians may be working part-time or in jobs that do not fully utilize their skills and qualifications.
Overall, the strength of the labour market is likely to have a positive impact on the property market, as more people are able to enter the market and secure mortgages. However, the decrease in the participation rate and employment to population ratio may indicate that some Australians are struggling to find meaningful employment, which could impact their ability to enter the property market.
The Brisbane property market is expected to experience a reset in 2023, reaching a trough before the next property cycle begins. While there may be a temporary decline in property prices due to interest rate hikes, the long-term fundamentals of the market are strong. Hosting the 2032 Olympics will ensure that Brisbane experiences strong infrastructure growth, economic growth, and population growth over the next decade. Federal government forecasts suggest that Queensland’s population is expected to grow by more than 16 per cent by the time Brisbane hosts the Olympic Games in 2032. This will attract overseas migrants as well as plentiful jobs for highly paid knowledge workers. The top three factors driving the property market in 2023 are affordability, population growth, and the economy and job market. While there may be declines in the Brisbane property market, careful property selection will be critical. Overall, the Brisbane property market is expected to continue performing strongly in the long term, creating a window of opportunity for investors to get into the market before it picks up again.
The affordability of the Brisbane property market is influenced by several factors. The most obvious factor is the supply of houses available in a given market. Planning restrictions, population growth, lending, and government policy also play a role in determining affordability.
Brisbane’s cheapest suburb is Ellen Grove, with a median house price of $445,000. Strathpine is another affordable suburb with a median house price of $445,000 and units priced at $266,000.
Rental yields are decent at 4.6% for houses and higher for units at 6.3%.
Brisbane’s housing market has seen a steep annual climb in 2021, with the city’s property market experiencing a once-in-a-generation property boom resulting in almost 400 suburbs joining the million-dollar club.
However, the decline in property prices began in January 2023, with Brisbane recording the largest property price decline on record, falling 10.9% in seven months.
While Brisbane property values are likely to fall further in 2023, it is possible that the rate of decline will continue to slow over the coming months.
With low vacancy rates, rising interstate migration, and record-high prices, Brisbane is one of the country’s most in-demand rental markets. September was the fifth consecutive quarter where rent prices rose, according to Domain’s Rent Report.
This has led to a shift toward suburbs further afield, as families look for greater affordability with good access to schools, parks, and nature. Middle and outer ring suburbs such as Mount Ommaney, Cornubia, and Fig Tree Pocket all saw significant rent rises up to 20%.
Overall, the Brisbane property market is driven by multiple factors, including interest rates, domestic migration, relative affordability, and strong rental returns. The top end of the market is seeing the largest gains, with spacious family homes proving the most popular.
With the recent announcement of Brisbane winning the 2032 Olympic games, there is a perfect storm of positive growth drivers that will see Brisbane’s house prices continue to perform strongly going forward.
According to the United Nations population projections, the current metro area population of Brisbane in 2023 is expected to be 2,505,000, which is a 1.33% increase from 2022. Brisbane’s population is projected to reach 2.834 million by the end of June 2023. The forecast growth rates suggest that 50.06% of Queenslanders will be living in the capital by 2032-33, with Brisbane being home to 3.082 million people. As the population grows, more people need a place to live, which drives increased demand for housing and results in a strong property market. Hosting the 2032 Olympics will ensure that Brisbane is put on the global map and has unique lifestyle and economic benefits that will attract overseas migrants as well as plentiful jobs for highly paid knowledge workers.
Brisbane’s property market experienced a flat patch in 2022, but the long-term fundamentals are strong, creating a window of opportunity to get into the property market before it picks up again. While Brisbane’s house prices saw the steepest annual climb in 13 years in 2021, annual growth tipped into the red at -6.4% in January 2023, and that number can be expected to drop further as gains from the first half of 2022 begin to slip away. While Brisbane property values are likely to fall further in 2023, it is possible that the rate of decline will continue to slow over the coming months.
The recent announcement of Brisbane winning the 2032 Olympic games will underpin strong infrastructure growth, economic growth, and population growth over the next decade. Anyone who buys an A-grade home or investment-grade property in Brisbane now will look back in a couple of years’ time and recognize they bought a bargain, as the Brisbane market is likely to reach a floor in 2023, and then the next property cycle will begin. Rather than trying to time your next property purchase based on where we are in the cycle, take a long view, and if your income is secure and the time is right for you, this may be an ideal time to get a foothold in the Brisbane property market while others are sitting on the sidelines.
The outlook for the Brisbane economy and job market in 2023 and beyond is positive. Brisbane is expected to be a growth market in 2023 due to population growth, a strong economy, and infrastructure spending generating economic activity, jobs, and demand for real estate. The city has all the major ingredients for upward movement in property values, including strength in the underlying economy, a high level of spending on infrastructure, and the biggest population boost from internal migration of anywhere in Australia.
Hosting the 2032 Olympics will ensure that Brisbane is put on the global map and it has a unique lifestyle and economic benefits that will attract overseas migrants as well as plentiful jobs for highly paid knowledge workers. Federal government forecasts suggest that Queensland’s population is expected to grow by more than 16 per cent by the time Brisbane hosts the Olympic Games in 2032. Despite some sections of the Brisbane market currently struggling, the future for the city, its economy, and its property markets looks positive.
The Brisbane economy is being underpinned by major projects like Queen’s Wharf, HS Wharf, TradeCoast, Cross River Rail, the second airport runway, and the Adani Coal Mine, but jobs growth from these won’t really kick off for a few more years. Wage growth is expected to fall back to 3.6 per cent in 2024 as the economy weakens and as an increase in immigration helps fill labor. Greater Brisbane is expected to grow faster than the rest of Queensland, with a rate of 1.9 per cent projected for the capital in 2022-23. Based on data from the Department of Jobs and Small Business over the five years to May 2023, the projected employment growth for construction is set to increase.
In summary, the Brisbane economy and job market are expected to continue growing in 2023 and beyond, driven by population growth, infrastructure spending, and major projects. While there may be some short-term fluctuations, the long-term fundamentals are strong, creating a window of opportunity to get into the property market before the Brisbane market picks up again.
Ashgrove has a range of attributes that make it an appealing property investment hot spot. The suburb’s low vacancy rate of 0.38% means that there is a low chance of properties sitting empty, resulting in shorter vacancy periods between tenants. This is good news for investors as it reduces the risk of lost income from vacant properties. Additionally, the 34-day market period is a sign of good demand, which will have an upward effect on prices, benefiting investors who want to see capital growth in their properties.
The low stock on the market of 0.42% is another positive indicator for property investors. It means that properties in Ashgrove are being snapped up quickly, indicating a high level of demand from buyers and renters. This is good news for investors who want to ensure that their properties are rented out quickly and for a good price.
In terms of rental returns, Ashgrove offers a gross rental yield of 4.52%, which is a good return and will make it attractive to investors seeking rental income. The suburb’s 7.06% rental growth rate is also a positive sign of sustainable rental demand, indicating that rental prices are likely to continue to rise, providing investors with a reliable source of rental income.
While Ashgrove’s long-term growth rate of 1.71% is below the median, this leaves room for the suburb to catch up to the rest of the market, making it a potentially lucrative investment opportunity. Overall, Ashgrove’s low vacancy rate, high demand, attractive rental yields, and sustainable rental growth make it a smart choice for property investors seeking long-term capital growth and rental returns.
Ashgrove’s demographics are a key factor that make it an attractive investment hot spot. With a population of 13,716, the suburb offers a diverse range of residents, from young professionals to families. The median age of 38 indicates a relatively young population, which is a positive sign for investors seeking a demographic that is likely to have high demand for rental properties.
Additionally, the fact that 27% of residents are renters is another positive sign for investors. It indicates that there is a strong demand for rental properties in the area, providing investors with a reliable source of rental income. The fact that 74% of households in Ashgrove are family households is another positive indicator for investors, as families are more likely to stay in a property for a longer period, providing investors with a more stable source of rental income.
Overall, Ashgrove’s demographics make it an attractive investment opportunity for those seeking a diverse population, a high demand for rental properties, and a stable source of rental income.
Ashgrove’s location just 5 kilometers northwest of the Brisbane CBD makes it a highly attractive spot for property investment. Its close proximity to the city center provides residents with easy access to a range of urban amenities, including employment opportunities, shopping, dining, and entertainment options, making it a desirable location for renters and homebuyers alike.
Additionally, the suburb’s strong public transport links, including several bus routes and a train station, further enhance its appeal to residents who value convenience and accessibility.
These factors, combined with Ashgrove’s mix of housing options, ranging from traditional homes to modern apartments, contribute to making it a smart choice for property investors seeking long-term capital growth and rental returns.
Ashgrove offers a high level of amenity, which makes it an ideal suburb for property investment. The suburb has a range of schools, including several prestigious Catholic schools such as Marist College Ashgrove and Mt St Michael’s College, which are highly regarded and popular choices for families. The availability of quality schools in the area is a key attraction for families looking to rent or buy in the area, providing investors with a reliable source of demand for their properties.
In terms of public transport, Ashgrove is well-connected to the Brisbane CBD and other parts of the city. The suburb has several bus routes that run through the area, providing residents with easy access to the city and other nearby suburbs. Additionally, the nearby Newmarket train station provides access to the Ferny Grove train line, further enhancing the suburb’s accessibility to other parts of Brisbane. This makes Ashgrove an attractive location for commuters, students, and professionals who value convenience and accessibility.
Ashgrove also offers a range of shopping options, with the main commercial hub located along Waterworks Road. The area has a variety of shops, cafes, and restaurants, providing residents with easy access to everything they need. The suburb is also home to several supermarkets, including Coles, Woolworths, and Aldi, making grocery shopping convenient for residents.
Finally, Ashgrove has several parks and nature reserves, providing plenty of opportunities for outdoor recreation. Dorrington Park is a popular choice for families, with a playground, picnic areas, and a large sports field. The Enoggera Creek Bikeway runs through Ashgrove, providing a great route for walking, running, or cycling.
Overall, Ashgrove’s high level of amenity, including its range of schools, public transport options, shopping, and parks, make it an ideal suburb for property investment. These amenities provide residents with a convenient and comfortable lifestyle, making the suburb an attractive location for renters and homebuyers, providing investors with a reliable source of demand for their properties.
Shailer Park appears to be a good suburb for property investment based on several key factors. Firstly, the renter percentage is within the ideal range of 15-35%, sitting at 19.6%, indicating a healthy mix of owner-occupiers and renters. Additionally, the vacancy rate is currently at a low of 1.23%, which has been trending downwards since reaching a high of 3.5% in July 2020, indicating a strong demand for rental properties in the area.
The average vendor discount percentage is under 0, which is a good sign for investors, as it indicates that properties are being sold for close to their asking price. The stock on the market percentage is also within a good range, currently at 0.9%, indicating that there is not an oversupply of properties in the area.
The demand to supply ratio is in the first percentile of markets, with a value of 71, which has been increasing recently. This suggests that demand for properties in Shailer Park is strong and likely to continue to grow, making it an attractive investment opportunity. Online search interest is also high, indicating that the suburb is gaining attention from potential buyers and renters.
In terms of financial returns, Shailer Park offers a gross yield of 5.8%, which has remained stable around the 6% mark for the past two years. Rental growth rate has seen a massive increase recently, currently sitting at 35.99%, which may attract more investors looking to capitalize on this growth.
While long-term growth rate percentage is below the median at 0.13%, it has recently started to creep up again after peaking at 2% in the third quarter of 2022. This could be a good sign of catch-up potential for investors.
Overall, the combination of high demand, low vacancy rates, stable gross yield, and recent growth in rental growth rate make Shailer Park a promising suburb for property investment.
Shailer Park is a suburb located in the Logan Region of Queensland, Australia. According to the 2016 census, the population of Shailer Park was 11,759 people, and the estimated resident population in 2021 was 12,366. The suburb has a population density of 1,540 persons per square km. The median weekly personal income for people aged 15 years and over in Shailer Park was $784. Shailer Park is an attractive suburb for property investment due to its high rental yield. Houses in Shailer Park rent out for $600 per week with an annual rental yield of 4.1%, while units rent for $372 per week with a rental yield of 5.4%. Based on five years of sales, Shailer Park has seen a compound growth rate of 18.1% for houses and 1.4% for units. Profits due to an upward trend in home prices in the suburb averaged 16.19% per annum over a 3-year period. Shailer Park is also a great place to live, especially for families. It has lovely houses and spacious well-kept gardens, fantastic views, stunning sunsets, and beautiful birdsongs. The suburb has a good blend of elderly residents and families, and everyone seems friendly. In terms of demographics, there are more married people than single people in Shailer Park, and the majority of employed people work as professionals, clerical and administrative workers, or technicians and trades workers. In conclusion, Shailer Park is an attractive suburb for property investment due to its high rental yield and compound growth rate. It is also a great place to live, especially for families, with lovely houses, spacious gardens, and a friendly community.
Shailer Park is quickly becoming a top spot for property investment due to its strong employment opportunities, entertainment options, and proximity to major transport hubs. The suburb is located in the City of Logan, Queensland, and covers an area of eight square kilometers with a population of 11,759 people according to the 2016 census. Shailer Park is a major activity center in the South East Queensland Regional Plan 2005-2026, as designated by the Queensland Government. The Logan Hyperdome, which is the largest regional shopping center in the city, is also located in the suburb, providing easy access to commercial and community facilities.
Although Shailer Park is not located in Brisbane, it is only 26 km southeast of central Brisbane and is well-connected to the city’s major employment centers through public transport. Brisbane operates one of the largest bus fleets in Australia, along with the iconic CityCat and Cross River ferry network. The Loganholme bus station, which is a major bus interchange, is located at the Logan Hyperdome in Shailer Park, making it easy to travel to Brisbane without a car.
Shailer Park is a suburb that offers a range of amenities that make it an attractive location for property investment. One of the most notable amenities is the Logan Hyperdome, which is the largest regional shopping center in the city and is located in the heart of Shailer Park. The center features a wide range of retail outlets, restaurants, and entertainment options, making it a popular destination for residents and visitors alike. In addition, the suburb also boasts other commercial and community facilities, including medical centers, schools, parks, and sporting facilities.
Furthermore, Shailer Park is a center for employment, entertainment, and leisure in southeast Queensland, making it a highly desirable location for property investment. The suburb is well-connected to major employment centers in Brisbane through public transport, including one of the largest bus fleets in Australia, the CityCat, and Cross River ferry network. The Loganholme bus station, which is a major bus interchange, is also located in Shailer Park, providing easy access to Brisbane and other surrounding suburbs.
Overall, the combination of amenities, including shopping centers, commercial and community facilities, and excellent transport links, make Shailer Park an ideal location for property investment. The demand for rental properties in the area is high, with low vacancy rates and strong rental growth rates, making it a promising opportunity for investors.
Capalabla is an ideal suburb for property investment in Australia, based on the market factors. The suburb has a healthy renter percentage of 26.4%, which is within the target range of 15-35%. This indicates a good balance between homeowners and renters in the suburb. Capalabla’s vacancy rate has consistently been under 1% since 2020, which is well below the target range of <2%. This is an excellent sign for property investors, as it suggests a high demand for rental properties in the area. The average days on market for properties in Capalabla is 37, which is below the target range of <65 days. This steady decrease in days on market since 2020 is another sign of high demand, as properties are selling quickly. The average vendor discount is ranging from 2.25% to 3.5%, which is below the target range of <5%. Low discounting means that buyers are willing to pay close to the asking price, which is another positive sign of demand. The stock on the market has decreased since September 2021, indicating that the supply of properties is low and demand is high. Capalabla’s gross yield of 5.13% is still attractive, despite a slow decrease from 7% in 2020. The demand to supply ratio is in the 1st percentile and has been steadily increasing since 2020. Capalabla’s long-term growth rate peaked in September 2022 and has remained steady since October 2022. This indicates that there is still room for growth in the area. Finally, Capalabla’s rental growth rate has increased from -10% in May 2021 to 12.67%, indicating high rental demand. Overall, Capalabla’s market factors make it an attractive suburb for property investment in Australia.
Capalaba is a suburb located in Brisbane, Australia. The suburb has a population of approximately 17,000 people, with a median age of 38 years. The majority of the population in Capalaba are families, with around 54% of households having children. The average household size in the suburb is 2.6 people.
These demographics are significant for those looking to buy an investment property in Capalaba. The high percentage of families in the area suggests that there is a strong demand for family-friendly housing, such as homes with multiple bedrooms and outdoor space. This may present opportunities for investors to purchase properties that cater to this demand, such as townhouses or houses with large backyards.
Additionally, the median age of 38 years indicates that there may be a demand for properties that are suitable for young families, as well as older couples and individuals. Properties that offer accessibility and ease of maintenance, such as single-story homes or apartments, may be particularly attractive to these demographic groups.
Overall, the demographics of Capalaba suggest that there is a demand for family-friendly properties that cater to a range of age groups. Investors may find success in purchasing properties that meet these demands and cater to the needs of the local population.
Capalaba is a suburb located in the southeastern part of Brisbane, Australia. The suburb is approximately 19 kilometers from the Brisbane CBD and is located close to several major employment centers, including the Port of Brisbane and the Brisbane Airport.
Capalaba is also well connected to major transportation routes, with easy access to the Gateway Motorway and the Pacific Motorway. This makes it an attractive location for commuters who work in the Brisbane CBD or other parts of the city.
In addition to its proximity to major employment centers, Capalaba also offers residents access to a range of amenities. The suburb has several shopping centers, including the Capalaba Park Shopping Centre and Capalaba Central Shopping Centre. These centers offer residents access to a range of retail and dining options, as well as supermarkets and other essential services.
Capalaba also has several schools and parks, making it an attractive location for families with children. The suburb has a range of sporting facilities, including the Capalaba Bulldogs Rugby League Football Club and the Capalaba FC soccer club.
Overall, Capalaba’s location makes it an ideal suburb for investment. Its proximity to major employment centers and transportation routes, combined with a range of amenities, makes it an attractive location for both renters and buyers. The suburb’s family-friendly atmosphere and range of recreational activities also make it an ideal location for those looking to purchase investment properties that cater to a diverse range of lifestyles.
Capalaba is a suburb located in the southeastern part of Brisbane, Australia, and offers a range of amenities for its residents. The suburb has several schools, including Capalaba State College and St Luke’s Catholic Parish School, making it an attractive location for families with children. The suburb also has several parks, including Capalaba Regional Park, which offers residents access to a range of sporting facilities, including cricket pitches, tennis courts, and playgrounds.
Capalaba has several shopping centers, including Capalaba Park Shopping Centre and Capalaba Central Shopping Centre. These centers offer residents access to a range of retail and dining options, as well as supermarkets and other essential services. The suburb also has a range of cultural attractions, including the Capalaba Art Gallery and the Redland Museum, which offers a range of exhibits showcasing the history of the Redlands region.
Capalaba also offers residents access to a range of recreational activities, including the Capalaba Bulldogs Rugby League Football Club and the Capalaba FC soccer club. The suburb is also located close to several beaches, including the Redland Bay area, which offers residents access to a range of water-based activities, including boating, fishing, and swimming.
The range of amenities in Capalaba makes it an ideal suburb for investment. The suburb’s family-friendly atmosphere, access to quality education, and range of recreational activities make it an attractive location for both renters and buyers. The availability of shopping centers and essential services in the area also adds to the suburb’s appeal, making it an ideal location for investors looking to purchase properties that cater to a diverse range of lifestyles.