Insights from Australia’s top property minds

We hosted a full room on Wednesday night at The Calile Hotel for the latest instalment of the Collective Property Event series. This one was perhaps our most crucial in terms of the information shared, given the current global uncertainty and associated local pressures around costs, disruptions and behavioural shifts.

At the helm for the evening were leading experts from Ray White Projects, Ray White Luxury and Ray White Commercial. This included special guests Dan White, CEO of Ray White Group, and Nerida Conisbee, so we’re talking about some of Australian real estate’s heavyweights.

The panel also addressed the global fuel shortage driven by the 52-day old conflict in the Middle East. Drew Morland, IOR CEO, confirmed a critical partnership with the Federal Government to procure additional fuel supply, particularly for regional Australia.

Mr Morland stated that 80+ per cent of his company’s supply comes from the Strait of Hormuz, with current supply secure to June. He described the post-June to July period as “uncomfortable,” with potential for a “break in supply”

I won’t share all the details and insights from the evening, as I’d like you to attend our next event; however, see below for an overview of selected key discussion points.

General commentary:

Growth remains strong. While we saw around 20% last year, this has eased to approximately 16% in March this year. These are extraordinary figures and not sustainable long term.

The Gold Coast, Sunshine Coast and Brisbane are the strongest markets, driven by population growth. Around 600 people per week are moving to Brisbane.

In Brisbane, only 5,000 properties sold under $750k over the past 12 months, reinforcing commentary that very few affordable homes now exist in this price bracket.

Queensland’s investor activity is higher than Victoria’s.

Market overview:

Brisbane has higher buyer engagement than the national average. Brisbane units are moving more quickly than houses, despite houses typically outperforming in price growth. Housing stock levels remain low, pushing buyers towards units.

RBA and inflation:

There is a 70% probability of another rate hike in May. This outlook may change rapidly depending on incoming data. The RBA is closely monitoring labour market conditions. There has been an increase in overseas migration, historically it was more interstate, which is a key driver of demand in Brisbane.

The Collective Luxury:

4,481 buyers are actively searching across Brisbane for properties over $5 million. Buyer enquiry is up 60%, while stock is down 40%. There have been more $10 million sales in the past 12 months than in the previous 10 years combined. Reports indicate riverfront homes selling for over $40,000 per sqm. 

Open home attendance has averaged over 20 buyers per inspection above $4 million. 

Construction costs are exceeding $10,000–$13,000 per sqm.

Rentals:

Living Here manages 1,200 properties, with only 12 currently available. There are more applications than inspections. Rental increases are outpacing inflation.

Additional points of interest:

The 2032 Brisbane Olympics and Paralympics account for only around 30% of current construction in Brisbane, with the majority driven by general housing demand.
Some suburbs have had zoning increased to allow buildings up to 40 storeys, similar to cities like New York and Singapore, which have addressed housing shortages through density.

For more in-depth analysis and a complete picture of what’s happening in your backyard, please consider attending our next Collective Property Event. Alternatively, feel free to give me a call.

I hope you enjoy the read.

Matt Lancashire