Property sales in Brisbane in 2015 are expected to keep going up from the growth of last year.
While property values are currently rising at a healthy rate, property market analysts assumes Brisbane home values to outperform the capital city average over the coming year.
Brisbane Property Boom
CoreLogic RP Data head of research Tim Lawless said given consumer confidence remained low for so long now Brisbane had probably missed its opportunity to really experience a boom like Sydney and Melbourne did.
“But despite that it was still a strong performer last year in terms of capital growth. It’s not bad but pales into a weaker performance when compared to the strength of Sydney
and Melbourne,” he said.
“I am starting to think we won’t see the same level of growth that Sydney and Melbourne
experienced in the Brisbane market. I think if we were going to see the market really going to pick up by that extent we would have seen it by now.”
Place managing director Judy Goodger said 2014 was an encouraging period for Brisbane.
“This year was an exciting year for the Brisbane property market with strong results achieved injecting feelings of confidence back into the market,” Ms Goodger said.
“Demand has been high and we started to see some growth with Brisbane gaining momentum off the back of the big upswings we saw in the southern states.”
Aussie’s founder John Symond said there was no doubt Brisbane had underperformed the other capital cities of Australia over the past five years. However, the past 12 months had seen house prices jump by 6.7 per cent and activity was lifting.
“The median price for houses in Brisbane is now $470,000, with apartments at $380,000, representing pretty good value for buyers compared with other capital cities in Australia,” Mr Symond said.
“The Reserve Bank of Australia continues to hold the cash rate at a historic low, leading to affordable mortgage rates as lenders fight for business. There is a good balance between owner-occupiers and investors in the market, while first- home buyers continue to struggle to get into the property market.”
Mr Symond said home buyers should get themselves prepared and arrange pre-approved finance before bidding for a property.
Analysts expect values to grow in 2015, albeit at a slower pace than in 2013 and 2014.
The latest CoreLogic RP Data figures show a wide gap in average property values in Brisbane compared with Sydney and Melbourne, suggesting a period of growth is imminent despite some uncertainty surrounding the economy heading into the New Year.
When looking at the median price of houses, Brisbane currently sits 73 per cent lower than Sydney and 33 per cent lower than Melbourne.
Place chief executive Damian Hackett said this data showed Brisbane was due to perform well in the next 12 months.
“When you compare Brisbane to Sydney and Melbourne, who have had those huge price growths over the past couple of years, we’re positioned better than most,” Mr Hackett said.
“Brisbane housing prices are up 6.2 per cent and apartments are up 4.4 per cent in the last six months, which is the strongest growth we’ve seen for over five years.
“Conditions in Brisbane have been strengthening for the last 12 months and we expect this to continue well into 2015.”
As we enter the New Year, there is some negativity surrounding the economy, unemployment levels and the inability of the Federal Government to get the Budget pushed through.
Investors are still seeing good returns in
Brisbane suburbs and should continue to see growth over the year.