The Queensland Government introduced changes in April to the frequency with which landlords can increase rent on their investment properties. As of July 1, a lessor is not permitted to increase rent on a new lease if it was already increased less than 12 months previously. Rental price increases more frequent than every 12 months are no longer permitted in Queensland.

In a rental report issued by the RBA, just over 70 percent of all rental properties have lease agreements of 12-months or more already in place, so this is not likely to impact many investors.

It is, however, another small disincentive for property investors, who have been hit with a number of proposed and legislated changes over recent years. It impacts investor sentiment, and the number of investors willing to get into the market. This is especially true when a lot of the changes appear to be retrospective.

Buyers are, however, out in higher volumes at open homes, auction attendance is strong, bidder registrations remain elevated, and auction clearance rates have increased from a weekly average of 53 percent across March to 62 percent in April, according to Domain. 

For every property, there appears to be more than one buyer, so demand is outstripping supply, which is what is putting upward pressure on prices once again.

Property Values in Brisbane April 2023

Brisbane dwelling values, reported by CoreLogic, increased for the second month in a row, with 0.3 percent growth throughout April. This has also resulted in a turn-around in the quarterly growth for Brisbane dwelling values, which is now positive once again. The median value for a Brisbane dwelling is currently $705,016, which is $6,945 more than last month. The price segmentation data for all dwellings from CoreLogic up to the end of March 2023, still shows that properties in the bottom 25 percent of values are outperforming higher value properties. In the first quarter of 2023, the lowest 25 percent of property values that sold, showed a decline in values of 0.6 percent in Brisbane.  Alternatively, the top 25 percent of properties that sold showed a median price decline of 2.1 percent.  The explanation for this, is that the unit market has been outperforming the housing market in Brisbane over the last 12+ months. There may also be some compositional bias based on what has been selling, with lower listing and sales volumes; therefore, a smaller volume of transactions would have contributed to this data.

Brisbane House Prices April 2023

House values continue to recover in Brisbane, according to CoreLogic. With a further 0.2 percent change in the median value throughout April, it is evident that prices have stabilised.  Quarterly, house prices are still slightly down by 0.1 percent. The median value for a house in Greater Brisbane is now $781,881, which is $9,861 more than last month. Brisbane Unit Values April 2023 Unit price growth in Brisbane continues to outperform house price growth across the city.  In April, CoreLogic data showed 0.9 percent unit price growth, with quarterly data now demonstrating a 1.1 percent increase in values. The median value for a unit across Greater Brisbane is $498,374; this is $5,959 more than last month.

Rental Market in Brisbane April 2023

There has been little change in the rental market across Brisbane throughout April.  Vacancy rates remain well below 1 percent across the city, an indication that supply is limited for most property types. The change in rents has been more significant in the unit market over the last 12 months, compared to the housing market. Unit rents in Brisbane have increased 16.5 percent based on CoreLogic data, whereas house rents have increased 10.3 percent.

This is becoming more problematic in some locations, compared to others. Lower income earners are finding a higher portion of their income is now being spent on housing, and rental affordability is becoming a more significant issue for many individuals and families.