News

Brisbane looks set to lead Australia's house price rises for the next three years

16 July 2019

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                                                       

Latest

The best thing you might want to do if investing in commercial property is assemble a ‘dream team’ of experienced operators that understand the process and understand why you are investing.

Read more

Mortgage Professional Australia has announced that Perry Finance Director and Melbourne Finance & Equity Group CEO Cameron Perry is one of MPA’s Top Ranked Commercial Brokers of 2022.

Read more

Prospective home buyers and investors are being warned to temper their expectations as the dust settles on the Reserve Bank’s first interest rate rise in years.

Read more

The Reserve Bank this week pulled the trigger on interest rates as expected, hiking the official cash rate by 25 basis points to 0.35 per cent.

Read more