The latest analysis by BIS Oxford Economics released this week predicts a significant jump in the Brisbane property market over the next three years. The forecasted growth rate for Brisbane house prices is expected to exceed 20 per cent over the next three years. While it’s no secret that the Brisbane market is set to recover from the nationwide downturn faster than its other capital city counterparts, the Oxford Economics report indicates Brisbane’s house price growth rate will be nearly double that of even the runner-up growth rate capital, Adelaide, with an expected growth rate of 11%. Canberra is the only other city expected to reach the double digits, just trailing behind Adelaide with an anticipated growth rate of 10%. Melbourne, Perth and Darwin are all cities at 7%, while Sydney is expected to only experience a property price growth rate of 6% within the next three years.
This data, coming from the Residential Property Prospects 2019–2022 report, is also accompanied by greatly-improved confidence in the entire Queensland market in general, with other major Queensland cities following closely behind Brisbane. With a demand driven by relative affordability, high levels of interstate migration, Brisbane’s future is well and truly looking up. Queensland is also expected to benefit from a major economic shift, with Chinese demand for coal pushing prices up and creating a stimulus, and regional farmers expected to enjoy a much more successful season than 2018.
Director of BIS Oxford Economics, Angie Zigomantis says it’s in 2020 that Brisbane will see the biggest increases in house price growth, with the next 12 months still expected to be fairly weak.
“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,” he told The Courier-Mail.
Talk of oversupply of apartments seem to have quietened down, with local and interstate buyers now committing again across both the inner-city suburbs as well as middle-ring suburbs with good transport connectivity. Continuing development and State and Federal Government infrastructure funding pouring in to Brisbane, it’s expected the River City will cope well with increased demand and growth.
When comparing the 2022 forecast with previous market peaks, Brisbane is one of only four Australian cities that come out in the green. In three years time, Brisbane is anticipated to be in a market position 17% higher than the previous market peach, with Adelaide (11%), Canberra (9%) and Hobart (4%) also expected to reach new market peaks by 2022.