Buyers across Australia are being rallied by a new report from QBE showing that house prices will see an increase of 20.3% by 2022 in Brisbane. The increase is set to be the highest across the country, and far exceeds the predictions of any other capital city over the same time period.
Previous reports and trends have shown concern over Brisbane's property prices due to an oversupply, especially in apartments and townhouses. While in the short term this may continue to be a problem, the oversupply is expected to be consumed in the next couple of years resulting in significant price rises. Prices are expected to remain stable or see only modest increases in the next 12 months, so many first home buyers and investors see that this is the time to buy.
According to the QBE Australian Housing Outlook 2019-2022, median house prices will increase from $552,000 to $665,000 in Brisbane by the end of the period. That is more than double the increase expected in Sydney and Melbourne. The major capitals have already seen high property prices for many years, and the smaller metropolis is now poised to start to catch up. Those considering property investment have been tentative about Brisbane due to its uncertain long term potential, but these results suggest that more buyers will be seriously considering the city's possibilities before the predicted rises take place.
Brisbane
So why is Brisbane set to excel?
Firstly, the city has faced a decade of modest price gains that have kept the market relatively affordable. The oversupply of housing that has been negatively affecting the market, however, is slowly being consumed by an increasing population (likely drawn to the cities lower prices). The Queensland economy is also expected to strengthen significantly, which will see the city's infrastructure improve and make it even more appealing to prospective buyers.
Queensland generally has seen a time of economic hardship due to a downturn in mining investment, but South East Queensland is leading the state's recovery with growth in non-mining sectors. Employment growth has been largely responsible for the population increase that has been observed. There is a steady flow of residents from other States and territories that are now no longer coming just for the state's natural assets.
Close to some of the best beaches in the world, with the extra benefits of being a city, Brisbane is certainly capitalising from the improved tourism caused by the low Australian dollar. With major infrastructure projects on the cards like the Queens Wharf Precinct and the Cross River Rail, Brisbane will continue to provide appeal to a wide array of buyers, especially those who are priced out of the market in other areas.
The bottom line? Now is the time to act on the bargains presented in Brisbane before it's too late. Many buyers are rushing to secure an investment loan in order to buy Brisbane property. With price increases expected to accelerate in 2020/2021 as the dwelling oversupply is absorbed, the race is on.
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