What’s in store for Brisbane property prices?

The city of Brisbane’s property market is expected to remain flat through 2013 or at best record modest price rises , according to SQM Research’s Brisbane Housing Boom and Bust Report.

The report details Louis Christopher’s (SQM Research’s Managing Director) assessment of Brisbane’s property market, both currently and looking forward, along with detailed information on the economy, demographics and hottest localities of this capital city.

Christopher has taken a slightly more conservative approach to the forecasts outlined in the September 2012 issue of SQM Research’s Housing Boom and Bust Report, where he predicted house prices in Brisbane to rise between 3 – 7% for 2013.

This has now been revised down to 2-5% capital growth for this year for houses and 3-6% for units.

However, given the latest interest rate cut, buyer demand should gradually increase over the course of the year and into 2014, which may allow for an ongoing housing market recovery where dwelling prices may rise towards 6%.

Turning to Brisbane’s regions, SQM believes that the inner city is likely to outperform over the next two years with dwelling price increases In the order of 4-8% a year.

This is followed by East Brisbane which may experience similar growth. Brisbane’s West will likely record a negligible increase in real estate, due to a current abundance of supply.

The table below gives some more details.

Region 2013 (F) 2014 (F)
Brisbane CBD 4% to 6% 5% to 8%
East Brisbane 3% to 6% 4% to 9%
Inner Brisbane 2% to 5% 3% to 6%
Northern Brisbane 2% to 4% 3% to 5%
South East Brisbane 2% to 5% 3% to 6%
Southern Brisbane 2% to 4% 3% to 6%
West Brisbane 0% to 3% 2% to 4%

 

 

 

 

 

 

 

 

Source: SQM Research

Speaking of the report, Louis Christopher says

“Brisbane housing prices have now stopped falling. However we see no emerging property boom because there is simply too much real estate on offer for buyers right now and local economic conditions do not provide any stimulus for such a rapid rally. Nevertheless a modest to moderate rise in dwelling prices makes for a more sustainable and enduring recovery which is what is going to be the most likely outcome for the local market.”  

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Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's been once agin been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


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