The QBE Australian Housing Outlook 2019 – 2022 Report released today is predicting a Brisbane property price boom. A picture tells a thousands words, so we include the key graph below.
So why is Brisbane ready for a boom? Quite simply due to its relative housing affordability according to the Report. Brisbane has not experienced the huge boom that both Sydney and Melbourne have experienced over the past few years, albeit with small decreases in the past 2 years.
Numbeo is a great data service for comparing relative costs for many items around the world, and Budget Direct have done a great job of building a nice interactive comparison tool to demonstrate the differences in housing affordability between Brisbane and both Sydney and Melbourne. Numbeo figures are estimates only and are collected through voluntary online submissions, so its accuracy is relatively poor, but it is a great tool for looking at trends and general indications of costs, so we use it here to illustrate our point.
Please note that mortgage rates really should not be different in the 3 capital cities as the rates are published nationally. Perhaps it reflects a difference in the type of loans being taken out in the 3 markets, with interest only and investment loads being higher than a standard principle and interest loan for an owner occupier.