Adam Empringham,
Director of Sales at Image Property.
What’s ahead for the Southeast Queensland property market in 2023?
[lwptoc]By the end of 2022, the Southeast Queensland property market had ridden the wave of eight interest rate increases to finish the year in great shape.
Median property values in Brisbane and across regional Queensland generally remained higher than they were a year ago, whereas Sydney and Melbourne had posted steep value declines.
It appears we are nearing the end of the rising interest rate cycle, which is positive news for our property markets next year, with supply still constrained and our rental sector struggling with a critical undersupply of properties.
So, what’s ahead for the Southeast Queensland property market in 2023? Let’s check in with two of our experts to find out!
Positive market conditions ahead
“In 2023, I am optimistic despite the negativity particularly around inflation and interest rates. I’m optimistic for Southeast Queensland for two reasons. One, population growth and the fact that the rental market is still so tight,” Image Property Sales Director Adam Empringham says.
“That is having a heavy influence and factor in the lower price segment of our marketplace. Units, townhouses, and anything sub-$800,000 is still demonstrating a strong market, which then has a knock-on effect for everything else, too.”
Population growth is the other factor because when you consider the basic economics of supply and demand, our demand is still strong, Mr Empringham says.
“Mainly what we’re seeing is inconsistency, which is being driven by consumer sentiment. There are some people that are optimistic and positive and there are others that are a little more tentative and indecisive, particularly around the cost of money,” he says.
“I believe what we’ll find is that, statistically, when we look at a market just transitioning from what was a phenomenal market to a normal market, it’s historically never lasted 12 months. So, when we tick into 2023, we’re going to start to see, not things going through the roof again, but just going to see solid market conditions.”
Infrastructure a key driver
Mr Empringham says that the southeast’s major infrastructure project will continue to underpin the region’s property markets going forward.
“One of the key drivers in our markets is our infrastructure spend, with everything moving towards what needs to be created for the Olympics, which is starting now, and will have a significant influence moving forward,” he says.
“Another element that is going to be a mitigating factor and influential in a positive way is our value for money by comparison to other areas of the country.”
Southeast Queensland property still represents exceptional value for money, based on dollar per square metre for quality, which will definitely be a positive moving forward, he says.
“Then there’s still the knock-on of the COVID-affected lifestyle proposition – for example, work from home is now widely accepted. We’re still seeing people choose lifestyle positions and balancing where they live with their careers,” Mr Empringham says.
Interstate migration a sector to watch
According to Apollo Auctions Director Justin Nickerson, interstate migration is continuing to have a positive influence on the Brisbane and wider Southeast Queensland property market.
“We are seeing more and more interstate arrivals who are often bringing the proceeds of property sales in more expensive city locations around the nation with them to bid strongly at auction,” Mr Nickerson says.
“When our region experiences strong interstate migration this is usually a precursor to solid market conditions for some time.
“Also, the relative affordability of property in our region continues to be a calling card for many homebuyers and investors who recognise the excellent opportunities and value for money a parcel of Sunshine State real estate represents.”
2023 Olympics planning under way
Even before the 2032 Olympics were announced, Queensland had a plethora of major infrastructure projects under way, Mr Nickerson says.
“From the Cross River Rail and Brisbane Metro to the new Maroochydore City Centre and Queen’s Wharf, the sheer volume of major projects under way was mind-boggling,” he says.
“Now, we have earned the right to host the 2032 Olympics which will see even more infrastructure constructed over the next decade.
“With tens of billions of dollars being invested in infrastructure in our state this is going to have a positive impact on employment for our residents which will flow through to our property markets in the years ahead.”
