The Brisbane real estate market is showing signs of upheaval as one out of every seven suburbs experiences plummeting house values, the steepest decline noted in nearly two years. This worrisome trend stems from rising numbers of homeowners eager to sell their properties, as potential buyers grow increasingly wary about making purchases.
Experts believe this significant dip could herald broader downturns across Brisbane, affecting the Queensland capital over the forthcoming months.
Recent statistics indicate more than double the average number of houses and units listed for sale across the top ten suburbs of Queensland, creating favorable conditions for buyers. The inner-city suburb of West End leads the charge, showcasing current market dynamics where buyers are now at the negotiating table.
Data compiled by PropTrack highlights astonishing numbers, with West End witnessing close to a 200 percent surge in property listings just last month. Following closely were Middle Park with 162 percent and Alice River at 147 percent. Meanwhile, the only Gold Coast suburb appearing on the list is Coolangatta, marking up by 146 percent, with similar trends noted across other regional areas such as Cairns and the Sunshine Coast.
Real estate agent Dan Rutherford of Place Estate Agents explained, "Pending redevelopment has prompted West End owners to list their homes, with the former industrial hub now earmarked for infrastructure related to the Olympics and ambitious three-tower construction plans." Notably, one of the proposed projects includes a substantial 50-level tower submitted for approval to the Brisbane City Council.
Rutherford described how this influx of listings pressures sellers to negotiate more favorably with prospective buyers. "A lot of individuals today are withdrawing from the market as they realize the price Zgrowth over the last three years may finally be reaching saturation," he noted. "The negotiation process has become more complex as buyers are not only cautious about price but also selective—exercising significantly more patience and bargaining power than previously observed."
PropTrack’s latest report reveals similar trends nationwide, pointing out an eight percent increase in new homes available across Australia, compared to the previous year. According to REA Group’s economic director Cameron Kusher, this trend signals increased inventory leads to slowed price growth. "With more options available, buyers are taking longer to make purchase decisions, prolonging the period properties typically remain on the market," he said.
Brisbane still holds its status as one of Australia’s most vibrant real estate markets, according to PropTrack senior economist Paul Ryan. He added, "Demand is shifting north, particularly to Townsville and Cairns, as buyers are increasingly priced out of several southern coastal hubs, impacting property values across the state rather than merely being concentrated within the capital itself."
Queensland’s soaring capital growth has fueled this spike in listings as sellers see considerable advantages to upgrading their properties. The current environment has also attracted interstate buyers who remain captivated by the Sunshine State lifestyle—a reality emphasized by the rise of remote working conditions.
Ryan pointed to optimism on the horizon, indicating many sellers and buyers look forward to potential interest rate reductions. Such adjustments could not only free up sellers' equity but also boost buyers’ borrowing capacities. "There’s certainly anticipation for interest cuts which could stimulate both sides of this market," Ryan remarked.
A forecast by LocalAgentFinder—a proptech company—suggests this year's trends paint the picture of a more sustainable and balanced property market. Although expectations indicate stronger listing activity will emerge, particularly within New South Wales and Victoria by early 2025, Queensland sellers are nevertheless presented with unique selling opportunities during the first half of 2025.
LocalAgentFinder’s acting CEO Suresh Raghavan advised sellers to contemplate early action: "The first half of 2025 promises to present sellers with exceptional results—especially those who decide to list within the first quarter, facing less competition and heightening buyer interest."