A lot of Melbournians start thinking about the warmer air in Brisbane this time of year and investors might also want to start thinking about property there.
Brisbane appears ready for the biggest house price rises of all our capital cities over the next three years.
The forecast comes from the new BIS Oxford Economics Residential Property Prospects 2019-2022 report which also says Melbourne prices should soon bottom out and start rising albeit more slowly than Brisbane.
Angie Zigomanis from BIS Oxford Economics spoke to Domain.
“A lot of the downturn in prices has been more conservative lending policies by the banks,” he said.
“Despite lower interest rates, people won’t be able to borrow as much as they were able to three years ago.”
“From an affordability perspective and a borrowing perspective, people can’t pay the same prices.”
According to BIS figures, Melbourne’s median house price has fallen 15 per cent since its peak.
The median house price in sunny Brisbane is set to rise by around 20 per cent over the next three years and looks appealing for buyers after avoiding the harsher end of the boom and bust cycle Melbourne and Sydney went through.
Melbourne’s median house price is forecast to rise by a much more modest 7 per cent over the same period.
“In Sydney and Melbourne it’s really going to be a demand and supply story,” Mr Zigomanis told Domain.
“Completions start falling over the next couple of years, we also expect the economy to start showing a few more positive signs at that stage.”
Forecast median house price growth 2019-2022
City % Growth
Melbourne 6
Sydney 7
Brisbane 20
Adelaide 11
Perth 7
Hobart 4
Darwin 7
Canberra 10
Source: BIS Oxford Economics
