What's Happening in the SEQ Housing Market?

December 18, 2023

The property market in South East Queensland (SEQ) has undergone significant transformations in 2023, reflecting shifts in rental dynamics, sales market trends and building costs. This overview aims to provide a snapshot of these changes, focusing on key aspects such as rental prices, property sales and the cost implications of building a home in this region. Understanding these trends is crucial for investors, homebuyers and industry professionals navigating the SEQ property market.

Rental Market Trends in South East Queensland

The rental market in SEQ has demonstrated resilience throughout Quarter 3 of 2023. High demand for rental properties has been driven by population growth, economic stability and evolving lifestyles, leading to an upward trend in rental prices. The median rent for combined houses and units varies across key areas:

In Brisbane, the median rent is $692.28 per week, a 1.5% increase from the previous quarter.
The Sunshine Coast sees a median rent of $698.78 per week, slightly down by 0.7% compared to the previous quarter.
The Gold Coast experienced a notable 2.5% increase in median rent, reaching $904.87 per week.

Tenant preferences have evolved with the adoption of remote work, favouring properties with home offices and outdoor spaces like balconies or gardens (1).

Sales Market Outlook

The sales market in SEQ enjoyed vibrant growth in Quarter 3 of 2023, marked by increasing transaction volumes and steady price growth. Buyer interest varied across regions:

Coastal areas like the Gold Coast and Sunshine Coast remain popular for beachside or waterfront properties.
Suburbs with strong infrastructure and transportation access attract both homebuyers and investors.

Median asking prices for combined houses and units in key areas have also shifted:

In Brisbane, the median asking price rose by 3.2% to $1,000,029.
The Sunshine Coast saw a 2.4% increase to $890,816.
On the Gold Coast, median prices decreased slightly by 0.2% to $993,779 (1).

Cost of Building in South East Queensland

Building costs in SEQ are influenced by several factors:

Land price is a major cost factor. The median lot price in SEQ is $357,717, based on a median block size of 421sqm. In Brisbane, the median land value as of June 2023 was $620,000.
The complexity and size of the home design significantly affect building costs. Simpler and smaller designs are cheaper, while larger and more complex ones are more expensive.
Inclusions chosen during the building process also impact costs.
Additional costs include site surveys, soil tests, council building permits, site clearance, service connections, fencing, retaining walls and landscaping. Though these may seem minor, they add up and significantly impact the final building cost (2).

Get Tailored Investment Advice

The property market in SEQ in 2023 highlights the region's resilience and vitality with both the rental and sales sectors experiencing positive growth. For those considering property investment in SEQ, it's essential to be aware of these market dynamics and factor in the varying costs associated with buying or building a property. The market's continuous evolution necessitates thorough research and professional advice for informed decision making. Centro Concepts can assist with our expertise in property advisory and project management services to maximise returns and navigate the complexities of the SEQ market. So, if you're looking to make a move in this dynamic region, don't hesitate to contact us for tailored advice and support.

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