The facts on 2022 real estate

The facts on 2022 real estate

1. Buyers are not going into hibernation, as some suggest Ray White’s real time data from our auctions has shown total active bidders are at a record high, and the number of live property listings exceeds those from last year.

2. January 2022 was even stronger than January 2021. In January, Ray White handled $5 billion in sales, up 20 per cent on last year.

3. Interest rates and a Federal election might dampen markets. Finance restrictions are now in place, there’s an affordability inquiry currently being undertaken by the Federal Government and a growing realisation the days of very cheap finance are limited.

4. Tourism and migration returning will propel the market If borders continue to open up we should expect more migration and tourism, which in turn propels property demand and, subsequently, prices. International residents moving to a new city or new state generally rent before they buy. For some, places where rents have fallen considerably, such as high unit development areas, this will be good news for investors.

5. The reported slowdown is not reflected in Ray White’s data. While there’s been a lot of talk of a slowdown, there’s still very little evidence that it’s actually happening. In every capital city Ray White saw better price growth conditions in the final quarter of 2021 than they did in the previous quarter.

And what about Brisbane specifically? The outlook for Brisbane is particularly positive this year. In the first half of this year, it looks like price growth will continue to accelerate. Why?

6. Stellar population growth, driven last year by interstate migration and further pushed along this year by reopening international borders.

7. A high level of positivity – Queensland’s economy’s going pretty well and will do better again as it continues to operate more normally in 2022. Add to this the Olympics – while still some time away, it has given Brisbane international status and this seems to have  impacted premium markets in particular.

8. Brisbane remains affordable. This further exacerbates population movement given affordability challenges elsewhere but is also encouraging a high level of interstate investor activity.

The forward Brisbane outlook is as strong as ever and being considerably more affordable than our Southern states it is a great time to buy in Brisbane both for lifestyle and investment purposes. If you have been considering selling, and you’re not a gambler, well right now the prices are the fullest we have ever seen and with the unknowns that could be over the next 12-24 months, there has simply never been a better time to cash in your chips and walk away from the table while you’re up.

I hope you enjoy the read.

Matt Lancashire