Brisbane’s 2019 Market Insights and Predictions

February 13, 2019

The latest prediction for the Queensland real estate market from FAL

Welcome to 2019 in Brisbane, and what a start of the year it has been. January, usually a quiet month for transactions, has been anything but quiet. Our agents came back to their desks after the holidays with the phones ringing off the hook from buyers and tenants hungry for deals. If it continues this way, the year ahead looks promising with a bullish property market.

In regards to specific Brisbane regions, here’s what we’re finding on the ground. The South Central industrial market has had its strongest start to the calendar year for a long time. The leasing market keeps improving, there is a tightening gap between the primary and secondary rents, yields seem to have peaked, and the scarcity of industrial land is pushing up values with no easing in sight.

The Trade Coast and Northern suburbs are performing very well, with growth in the area being driven by major upgrades to infrastructures such as the ICB, Gateway Motorways and Kingsford Smith Drive. The high demand in the area has been met with a lack of stock. Rental rates and sale prices continue to rise amidst fierce competition. On the smaller end of the spectrum, developments have primarily taken the form of workstores/sheds, as the end-product offers developers the highest and best returns. These developments consist of multi-units ranging from 50 to 150m² achieving rates of over $4,000m². Off the back of high demand areas like Pinkenba, we have seen substantial landholders begin the sub-division and sale of larger blocks. Land sales in the sub 4,000m² range have seen an increase in value of 25% up to rates over $400/m². With few parcels remaining, it is forecasted that this rate is set to continue as the baseline for the year ahead.

The Brisbane fringe office market is still in recovery mode, with vacancies down to roughly 13%. A significant decrease from 2 years ago. Leasing enquiries are up, incentives are still high around 30%, but as stock is expected to be absorbed the rental rates will improve and incentives will drop. The wind is changing direction and 2019 is definitely looking promising for office spaces.

Our team at FAL is excited for the year ahead. Since Christmas, we’ve already been appointed to many new solid property management listings, and we’ve conducted an above average number of sales and leasing transactions mainly in the industrial and office markets, with retail properties taking an unusual 3rd place.

We hope you have a prosperous 2019.

Phil Levesque, Director
And the FAL Team