While Sydney and Melbourne have seen housing prices increase by 50-60% these past few years, Australia’s third largest capital city, Brisbane, had grown by an unexceptional 1.2%. However, Sydney is now trying to keep their head above water due to its largest annual drop in house prices since the global financial crisis. Melbourne’s property prices have also suffered their biggest losses since 2012.
Brisbane’s growth in the past 12 months
Brisbane, on the other hand, continues its slow but steady growth where house prices increased by just 1.8% in the past year. Brisbane’s property market has done well to encourage first home buyers and other ordinary buyers to purchase property in the city.
According to BIS Oxford Economics head of property research, Angie Zigomanis, this type of stable environment is what other cities in the country should strive for. He adds, “In an ideal world, this is what happens: affordability doesn’t go crazy and incomes go up.”
What’s next for Brisbane’s property prices?
Even though the future of property investments in Brisbane look exciting, it is likely that house prices in the city will not experience heady price growth due to the tighter lending conditions in the country. AMP chief economist, Shane Oliver, suggests that it would be more likely that Brisbane will see moderate increases of 2-3% in the months ahead.
Michael Yardney of Metropole Property Strategies believes that just like Sydney and Melbourne, Brisbane will also have its “time in the sun.” Mr Yardney believes that “Once the economy improves and wages go up, that’s what will give owner-occupiers confidence.”
He believes that due to new infrastructure being built in the city like Queens Wharf and the new airport runway, people will come to Brisbane to chase those job vacancies. He adds, “It’s a snowball effect: these people move up to Brisbane and rent, then they want to buy.”
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