Brisbane Tipped To Lead Price Growth

Posted on 23/07/2019  
Brisbane Tipped To Lead Price Growth

Brisbane is tipped to head house price growth in the capital cities over the next three years, at a rate almost double the next best state capitals.

Latest analysis by BIS Oxford Economics has forecast 20% growth in house prices in Brisbane, with demand driven by its relative affordability compared to the larger capitals and a pick-up in positivity.

Brisbane did not experience the price boom experienced in recent years in Sydney and Melbourne, because it lacked the growth drivers of a strong underlying economy, growing population and big spending on infrastructure. But, steadily, these factors are now falling into line for Brisbane.

The latest Deloitte Access Economics Business Outlook has predicted Queensland will be among the biggest beneficiaries of a major shift in the economy, with stimulus coming out of rising coal prices pushed by Chinese demand, expectations that farmers have a better season coming up, and rising housing demand driven by interstate migration.

BIS Oxford Economics associate director Angie Zigomanis expects Brisbane to be a big winner by the end of 2022, bucking the slow recovery coming out of southern markets. He says Brisbane was shaking off factors that had kept it down including a lack of employment and income growth, plus a big upturn in housing supply particularly in the apartment market.

The Residential Property Prospects 2019—2022 also predicts solid growth in Adelaide (11%) and Canberra (10%). In contrast, prices in Sydney and Melbourne were forecast to grow in single digits in terms of percentage growth over the three years.

Hotspotting founder Terry Ryder says these forecasts tend to be very conservative and often the outcomes exceed those predicted. In particular, Hotspotting expects growth stronger than the BIS forecasts in Adelaide and Canberra. 

It also expects a pick-up in the Perth market.

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