More Brisbane home owners are heading to auction, but just 25.2 per cent of homes sold, the weakest result among the capitals. One buyer’s agent says the slump runs deeper than the data suggests, though he sees the bottom end recovering within just months.
Brisbane home owners are increasingly testing the market despite deteriorating selling conditions, with rising auction volumes failing to translate into successful sales.
Cotality data showed Brisbane’s scheduled auctions jumped 25 per cent to 200 in the week ending 25 October, up 6.4 per cent from a year earlier.
However, only 25.2 per cent of properties sold under the hammer, the lowest clearance rate among the capital cities and Brisbane’s fourth-lowest result of the year.
The figures highlight growing pressure on sellers as rising stock levels and subdued buyer demand shift the balance of power towards buyers.
However, Buyers Club CEO Ali Hallak said navigating Brisbane’s property market was “a mixed bag”, with the bottom end of the market months away from a recovery.
“At the moment, the market has come back significantly more than the current data is stating. I feel that the rate of decline has actually been much higher than has been portrayed,” Hallak told REB.
“We are seeing this all over Brisbane’s property market.”
Hallak said rising stock levels, falling values, and fewer buyers coming to market have shifted Brisbane into a market where buyers hold the power.
He said that despite current conditions, the rental market's ongoing strength, driven by economic factors such as population growth, infrastructure spending, and employment opportunities, could shift the balance of power again.
“We are starting to see significant rental increases, which could convert back into a seller's market if we start to see a transition of renters becoming owners and landlords,” he said.
“However, the market right now, with more stock than there was six months ago and days on market much higher than it was six months ago, is definitely a buyer’s market.”
According to Hallak, while values were declining across the city, signs suggested Brisbane’s recovery could be closer than it may seem.
Hallak said the bottom end of the market, where properties could be bought below replacement cost due to rising construction costs, was already beginning to recover.
“Townhouses that were previously at around $700,000 are now sitting around the low $600,000s, and with the rental market increasing, we are starting to see yield return to where they were in 2024, between five and 5.2 per cent,” he said.
“I believe that the bottom end of the market in metro Brisbane will start to recover in the next three to six months, and have strong return and growth over the next 24 months.”
He said Brisbane’s recovery hinged on increased affordability, which could help arrest falling prices across the market and likely bring private investment back into play.
“If we see that continued influx in population, we will start to see rental prices increase, which will halt the property decline, with investors returning for cash flow reasons.”
Additionally, Hallak said those evaluating Brisbane needed to understand the difference between long-term fundamentals and short-term market sentiment, and how each impacts the market.
While sentiment in Brisbane has broadly softened, Hallak said opportunities remain if buyers know where to look.
“Sentiment is right now when people are feeling that they don’t want to pull the trigger; however, there is strong fundamental demand in Brisbane.”
“Personally, I think that what will work is properties in fundamentally strong areas, 20-40 km out, affordable properties that still have strong rental demand, owner-occupier appeal and sit below the million dollar mark,” Hallak said.
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