Ring in the new financial year with the latest property updates

There is plenty in store for the Brisbane property market between now and Christmas. Here’s what’s changing and what to prepare for. 

It’s a new financial year… and we are riding the wave of the second half of 2022. 

At Ray White New Farm, we’re ringing in the midpoint of 2022 with some good news, updates and property predictions, including some highlights from the recent budget. 

Qld budget announcements

When he released the budget, Treasurer Cameron Dick shared, Queensland’s “economic growth has outstripped the national average and our jobs growth is the strongest of all states and territories.”

As part of its financial schedule, the government is committed to “creating more jobs in more industries, delivering even better services and protecting the great lifestyle synonymous with Queensland’s identity.”

This latest budget wasn’t focused specifically on home buyers, owners or sellers but of course the changes and announcements will flow on to the property market. 

For example: the budget includes $3.8 billion to be spent on productivity enhancing infrastructure and capital works, which are estimated to support around 11,200 jobs in the Brisbane area. There has also been $295.9 million allocated to education; to maintain, improve and upgrade schools in Brisbane and Redlands.

Over $920 million is being put towards the $1.22bn Gold Coast Light Rail Stage 3 project, which will run from Broadbeach South to Burleigh Heads. There is also funding for hospitals, including new beds in Brisbane’s QEII, Prince Charles and Princess Alexandra hospitals. 

Southeast Queensland is one of Australia’s fastest-growing areas, with the Courier Mail reporting more than 600,000 people are tipped for Brisbane and the Gold Coast within a decade. To accommodate the growing population, the Queensland Government has also partnered with the construction industry, to deliver more affordable and long-term rental housing in Brisbane’s inner-city, through the government’s Build-to-Rent Pilot Project. 

If you have never heard of Build-to-Rent, it provides an opportunity for the government to partner with the private sector to deliver discount-to-market affordable rental homes, which can help workers find a home closer to their job. We’re looking forward to this project bringing a diverse range of workers into inner city areas in the lead up to the Olympics. 

What does this all mean for property? 

New infrastructure and better hospitals make a city a better, more convenient place to live and therefore a perfect place to buy, invest and raise a family. From our perspective, the budget announcements are great news for anyone who is thinking of buying/investing soon, while it will also create a ‘perfect storm’ of high demand which will favour home sellers.

The key if you’re looking at property over the next few months is to be strategic. Brisbane raised the bar in terms of property growth during 2020 and 2021, keep an eye out for hotspots near you when supply is limited but demand is high. 

Any inner city suburbs which are set to be ‘places to be’ in the leadup to the Olympics will definitely remain hot property. These include: 

• Peninsula
• New Farm
• Teneriffe
• Newstead
• Ascot
• Clayfield
• Hamilton
• and prestige properties on the Bulimba and Hawthorne riverfront.

You’ll get extra points (i.e. value) if there will be easy access to the city via rail, road or even walking paths. 

Despite setting a new median house value record in the last quarter for house values (now at $865,968), Brisbane is still one of the most affordable capital cities in Australia. While Sydney and Melbourne’s averages are astronomical (albeit dropping), our city gives buyers so much more value for money. If you’re selling a premium home, this gives you the ability to attract buyers with healthy budgets. 

Other updates

The most recent NSW budget included news about changes to the way stamp duty is paid by first home buyers. Queensland’s budget did not have a similar plan, although there is pressure for our Government to follow suit.

If this change did come into play, first home buyers would have a choice to pay annual land tax instead of stamp duty upfront. This is a ‘watch this space’ scenario, with experts saying stamp duty is the “forgotten child of tax reform” as it has the potential to remove one of the biggest barriers to entry for new home buyers. 

Anyone who owns an investment property will also be interested to know about new rental laws coming into effect on October 1st. Under these, landlords will need a specific reason to say no to pets on the premises and there will be new rules around terminating periodic leases. These are the first of a number of tenancy law changes which will be introduced slowly over a few years. 

What’s your plan for the rest of 2022?

Regardless of what’s going on with the economy, interest rates and house prices, when it’s time to sell it’s time to sell. If you need some help to make a decision about your next property move, contact us for an informative and upfront discussion. 

I hope you enjoy the read.

Matt Lancashire