Following the slowdown of Sydney and Melbourne property markets, many parts of the country are witnessing a fall in property values.
However, the Brisbane property market seems to be the prime beneficiary of a slowdown in the country’s two important cities.
Now, lots of families and downsizers are moving from the southern cities to South East Queensland.
No wonder, Queensland has emerged as Australia’s most preferred destination for internal migration.
As the economic scenario improves and more jobs are being created in the wake of massive infrastructure spending, a growing number of investors are now on the lookout for opportunities in Brisbane.
And there are good reasons for that. The properties are more affordable and the market outlook is positive. Plus, rental yields are relatively higher. BIS Oxford Economics predicts Brisbane to lead the capitals in property prices, with a whopping 13% growth by 2021.
Brisbane is a fabulous city and livability, affordability, and economic prospects are any criteria, Brisbane is definitely a market where you can invest.
True, over the next few years, Brisbane is going to be Australia’s best- performing property market.
There are some locations in the city that have stronger growth potential and they may prove good long-term investments.
However, certain sub-markets should be completely avoided.
Information is the key here.
Your investment decisions should be based on reliable facts and objective analysis.
In this blog, we will try to examine the Brisbane Property Market in all its dimensions so that you can make an informed and sound investment decision.
If you look closely, Brisbane isn’t one homogeneous property market. It is divided into multiple markets characterised by geographical locations, property types, and price points.
Brisbane property market prices
Brisbane properties are all set for their turn in the sun and those who stand to benefit the most are freed standing, well-located houses, and townhouses.
Over the last year, the Brisbane property market reported flat figures. However, the market is highly fragmented and the sales figures may not truly represent the entire market.
As per CoreLogic, house prices increased 0.1 percent over the last year while apartment prices dropped 0.5 percent in Brisbane. However, freestanding houses close to CBD or in school catchment zones have reported strong growth in value. Many of the properties have in fact reported double-digit growth in value over the past year. This is how a typical property market behaves — some properties underperform while others do exceedingly well.
However, the apartment market remains oversupplied and it can take a while before it picks up. In saying this, the apartment market is going through a correction now and is presenting great buying opportunity, if you know what to look for.
Brisbane’s economy is expected to get a major boost from projects like HS Wharf, Queen’s Wharf, Cross River Rail, TradeCoast and the second airport runway. Job creation is set to skyrocket off the back of these large infrastructure projects.
Meanwhile, there are a number of factors such as affordability, interstate migration, the return of investors that indicate that the Brisbane property market will see stronger rental yields and capital growth in 2019.
The apartment market has been more sluggish in the face of excessive supply levels. However, unit values have started to pick up recently, perhaps hinting that the rough patch for the Brisbane apartment market is likely over now.
Since the unit construction peaked back in 2016, supply concerns are not a pressing point now.
Premium properties close to CBD or the river in the inner ring areas are much sought after by local upgraders and southern migrants.
Brisbane property market trends
The Brisbane property market is performing well and belies the prevalent gloom in the real estate sector. This is good news in the backdrop of falling listings and cooling southern markets.
The Brisbane housing market has put up admirable resilience in the face of the current slowdown in the property values in major markets across the country. This has been possible because of strong economic fundamentals and a steady population growth that drives demand.
Last year, while some areas under-performed, 68 suburbs reported growth far higher than the average level of growth. And about a dozen of the properties had double-digit growth in price over the last year.
Source: YPM
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