Why investors will flock to Brisbane in 2024

She believes that “all the signs are pointing to strong investor activity” in the local Brisbane property market in 2024, thanks to a winning combination of low supply and high demand.

“The first key demand factor is Brisbane’s rapid population growth, which is being fuelled by both external migration and interstate migration,” revealed Ms Jones.

Ex-Sydneysiders who have been priced out of the harbour city are particularly drawn to Brisbane, Ms Jones said. According to the buyer’s agent, “affordability is a key demand factor, with Brisbane’s median price 31 per cent lower than Sydney’s”.

“This is encouraging both Sydney home owners and investors to buy in Brisbane,” Ms Jones explained.

Despite the booming demand for Brisbane property, however, supply remains low. Ms Jones stated: “The number of new homes being started right now is below average.”

“During the 10 years to June, work was started on an average of 10,026 new homes in Queensland each quarter, according to the most recent from the Australian Bureau of Statistics. But during the year to June, the quarterly average was only 8,763 dwelling starts – 12.6 per cent lower,” she said.

“At the same time, the number of new homes being approved for construction – for which we might expect work to start in the next six to 18 months – is also low,” the buyer’s agent added.

This ongoing dearth of properties is putting upward pressure on prices, with Domain and SQM Research forecasting that dwelling prices in Brisbane would grow 7 to 11 per cent in the next year.

And Ms Jones shared that rental values are also experiencing a major boost thanks to the “ultra-low vacancy rate in the rental market”.

She disclosed: “Interstate investors are also being enticed by the strong rental conditions – vacancy rates are amongst the lowest in the country and rents, in percentage terms, are growing a double-digit annual rate.”

Another factor feeding Brisbane’s notable growth is the city’s infrastructure pipeline “with a host of important projects scheduled ahead of the 2032 Olympics”.

Ms Jones concluded that Brisbane appeared on track to continue experiencing major growth in the new year, even amidst market challenges.

“Despite interest rates remaining elevated and consumer confidence remaining low, there are still lots of eager buyers in Brisbane right now and it’s hard to see that changing anytime soon,” she said.