Brisbane is predicted to see some of the biggest house price rises in Australia over the next two years, according to new forecasting, rising by a whopping 8 per cent over the next 12 months alone.
In 2021, Brisbane could lead the price rise charge nationally, with predictions of an additional 7 to 9 per cent house price hike.
According to Domain’s Property Price Forecasts – February 2020 , released Wednesday, the city’s new year real estate cheer is just the tip of a price growth iceberg that’s being buoyed by rising confidence, low interest rates and interstate migration.
Domain economist Trent Wiltshire’s 2020 and 2021 predictions placed the Queensland capital in equal second with Melbourne for median house price growth and just two percentage points behind Sydney over the coming year. In 2021, it’s even better news for Brisbane, with house prices predicted to rise by a further 7 to 9 per cent.
With Greater Brisbane’s current median house price hovering at $577,664 (as of December 2019), this could bring the median price to a record-breaking $620,000, making it the first time it’s risen above the $600,000 mark.
Mr Wiltshire placed the incredible market turnaround largely down to lower interest rates that he said could not only drop further, but stay there.
“It’s also probably feeding off what’s happening in Sydney as that generally spills over into Brisbane and south-east Queensland,” Mr Wiltshire said.
“Brisbane has been pretty sluggish over the past few years and this is going to be the most significant price growth [the city has seen in some time].
“The forecasts are also showing a population growth of 2 per cent in Brisbane … and this has picked up from interstate and overseas.”
In positive news for the apartment sector, Mr Wiltshire predicted a 6 per cent rise in Brisbane’s unit market over the next 12 months and said the end of the construction cycle boom for units was rapidly coming to an end.
“This will support a much-needed price growth [in the unit sector],” he said.
The median unit price in Brisbane, as of December 2019 was $377,549.
While Mr Wiltshire’s report could spell tales of champagne wishes and caviar dreams, he said external factors such as the coronavirus would impact on the market.
“I’ve based my forecast on the most likely scenarios [of these external impacts] so the first one is the coronavirus and it’s going to have a strong but short-term impact.
“If those forecasts are wrong and it does worsen, it will hit Brisbane and Perth hard.”
Following one of the busiest months for buyer inquiry in a decade, Christine Rudolph from Ray White New Farm said she wasn’t at all surprised by Brisbane’s long-term price predictions, with a plethora of key factors placing the city in property watcher’s sights.
“Brisbane is seen as stable … and we have certainly been having a quiet confidence in the city for the past two years,” Ms Rudolph said.
“Seventeen per cent of our buyer inquiries are from interstate purchasers [from Melbourne and Sydney] who are relocating for lifestyle and 8 per cent are from Australian expats who are looking to relocate. This is driven by a few factors such as Brisbane being seen as stable and we have great long-term projections.
“Banks have also softened lending criteria and all those factors are definitely key drivers.”
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