Brisbane has cracked the global top 10 for the cities with the highest growth in property prices in the world, the only Australian capital to do so this year.
Queensland’s capital pressed in at 10 on the Knight Frank Global Residential Cities Index, beating 140 cities worldwide, including all in Australasia, with an annual growth rate of 28.4 percent.
According to Michelle Ciesielski, Knight Frank Australia’s head of residential research, the ranking was a huge jump from his Q1 position last year when he was ranked 89th globally.
“Inevitably Brisbane was one of Australia’s best performing cities given its relative value, recent population growth and excellent lifestyle, as we are seeing this trend in other smaller cities around the world,” said Ms Ciesielski.
“We saw Brisbane rise strongly in the rankings as a result of increased sales activity from East Coast investors following the reopening of the state border, and more good quality homes for sale strategically given increased competition in the buyers’ pool.”
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Despite recent price increases, Ms Ciesielski expected Brisbane to remain attractive given the current cost of living and households.
“Australia’s three best-performing cities for annual price growth at the end of Q1 2022 (Brisbane, Hobart and Adelaide) still have a $200,000 buffer between their city’s median value and Australia, attracting first-time homebuyers and investors. across the country,” she says. said.
Hobart was in 12th place globally with an increase of 26 percent, Adelaide in 14th (25.1 percent), Darwin in 23rd (19.9%) and Canberra in 26th (18.4 percent).
Australia’s largest cities – Sydney (16.1 percent growth) and Melbourne (9.2 percent) – ranked 31st and 66th respectively. The only city in Australia on the index that grew more slowly than Sydney and Melbourne was Perth (3.5 percent), which ranked 121st.
Asked if Brisbane is pricing itself out of its affordability advantage, Ms Ciesielski said: “While we predict that all capital cities will move back to more sustainable levels of price growth by the end of 2022, Brisbane is likely to endure modest market sentiment as the official monetary rate picks up. repositioned to support the economy and the cost of living has a further impact on local households”.
She said significant public investment across Brisbane for transport, technology and amenity hubs “would not only attract more workers, but also extend the life of its transformation as a global city”.
“The Olympics will put Brisbane and the surrounding areas on the global stage not only for those already living in Australia, but also for those currently living abroad,” she said.
“While Brisbane’s new housing pipeline is significantly lower than in recent years, key developments around activity and transport hubs will change the city’s livability, as well as the new jobs it creates.”
The Index found that despite the flight from cities during Covid-19, city house prices rose the fastest since the fourth quarter of 2004, an average increase of 11.5 percent per year.
Ms Ciesielski said Brisbane, Hobart and Adelaide attracted increased population growth relative to the Australian average until 2021.
“This was most felt in the rental space, as many people who move to a new area tend to rent before making a purchase,” she said.
“Price performance for mainstream housing in Australia has been heavily influenced by smaller towns and regional areas that have continued solid price growth in 2022, thanks to the relocation of families and digital nomads to more affordable locations, driving investors back to the market in search of a better rental house. proceeds and by buying others holiday homes for their pension plans in the coming years.”
Knight Frank expected housing price growth in cities to slow this year, but not fall dramatically despite heightened uncertainty, rising taxes and more regulation in the real estate market (such as a ban on foreign buyers in Canada).
“We think a sudden shift to negative price growth for most cities in 2022 is unlikely,” with possible slowdowns linked to economic growth, supply levels and employment, and the speed and scale of interest rates rising locally.
GLOBAL TOP 10 CITIES:
1 ISTANBUL 122.0%
2 ANKARA 111.7%
3 IZMIR 105.9%
4 HALIFAX 34.7%
5 PHOENIX 32.9%
6 MIAMI 29.7%
7 SAN DIEGO 29.1%
8 DALLA 28.8%
9 HAMILTON 28.5%
10 BRISBANE 28.4%
*Ranked by annual % change (Q1 2021-Q1 2022)
(Source: Knight Frank Global Residential Cities Index, Q1 2022)