Brisbane house prices predicted to rise by 13% in the next 3 years

Brisbane is predicted to have the greatest median house price rise out of the capital cities over the next three years according to the latest analysis from BIS Oxford Economics, reports abc.net.au.

 

In Brisbane by 2021, a thirteen per cent growth is predicted in the median house price to $620,000.  In contrast, Sydney is expected to slow to three percent, and Melbourne will see six per cent growth.

 

As it has been widely reported, Sydney prices have gone through the roof in recent years.  In 2013, a typical house in Sydney cost around $650,000, while today, that price has blown out to $1.1 million.  It is anticipated the Sydney market will drop a further 2% in 2018/19 but will see a stabilisation in years to follow.

 

The report indicated growth in the short term may be subdued or possibly even decline in some markets as oversupply may be an issue due to increased tightening on lending, in particular interest only loans, as well as record levels of building approvals (over 200,000 per annum).

 

On the upside from 2021, "high net overseas migration inflows [are] likely to be sustained in the coming years" — and "economic conditions begin to strengthen and supply falls back below underlying demand," says the report.

 

Adding to the positivity for Queensland, a Deloitte research paper released earlier this year indicated that Queensland has overtaken Victoria in receiving the highest amount of migrants from interstate. The report indicated Sydney house prices as high as they are, and good job prospects in the Queensland worked in a push/pull way.

 

Hannah Schuhmann says it is hard to ignore the continued current positivity in the Brisbane property market from a such wide range of credible sources. 

 

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