THE stars are about to align for Brisbane’s property market with analysts predicting stronger price growth in 2017 driven by demand from interstate and expat buyers.
With Sydney property prices now more than 70 per cent higher than Brisbane’s the local market has become more attractive to southern-based investors.
Brisbane’s median dwelling price is $366,000 lower than Sydney’s.
Expats are also taking advantage of the softer Australian dollar securing high end homes while the buying is good.
Market analyst Terry Ryder of Hotspotting said population numbers were growing and there were signs the state economy would improve this year, which he thought would flow through to the property market.
“The improvement in commodity prices in particular for coal which has precipitated a number of miners sort of bringing projects back on line, if that is sustainable that is going to have a big impact on the state economy.
“Tourism is strong as well, so all of that feeds into the Brisbane property market,’’ he said.
“If the Queensland economy improves, as it appears to be doing, you are going to see Brisbane real estate improve.’’
Mr Ryder said southeast Queensland had four of the top growth local government areas in terms of property sales in Australia – Gold Coast, Sunshine Coast, Moreton Bay and Logan City.
“There is quite a lot of momentum in markets in southeast Queensland, to some degree that has translated into price growth but I think the biggest price growth is probably going to come in 2017,’’ he said.
“I expect it (2017) to be stronger for price growth in and around the Brisbane metropolitan market area, with the proviso that there are going to be some markets, that are oversupplied with apartments where price growth is not going to happen, we are actually probably going to see prices contraction in apartment markets.’’
Real Estate Institute of Queensland CEO, Antonia Mercorella, said confidence was returning to the Brisbane market.
“When we look at the Brisbane market we did hit a new high in that inner Brisbane market, we did reach that new high of $635,000 so we did break some records in that respect,’’ she said.
“We did see some new suburbs making their way into the $1 million price bracket, what we have seen is that confidence returning.
“Keep in mind the affordability advantage we have over both Melbourne and Sydney. So absolutely we are already seeing those southern state investors flocking to Queensland because you can get a property more cheaply and the rate of return is greater in Queensland.
Ms Mercorella said Brisbane’s market would continue to perform “really solidly” in inner Brisbane area.
“I do expect it to continue to rise at fairly modest levels,’’ she said.
Buyer’s agent Meighan Hetherington of Property Pursuit said expat buyer numbers lifted in 2016 and she expected that to continue this year.
“We had a resurgence, if you like, of Australian expat buyers this year, so Australian citizens that are living overseas that might be over there for a period of time for work, so not foreign buyers but expat buyers,’’ she said.
Ms Hetherington said normally about 9 per cent of her clients would be expats, that lifted to 12.5 per cent last year.
“As the Australian dollar has dropped that has presented opportunities for expats to utilise their money,’’ she said.
“They are buying future homes, they are not buying $500,000 or $600,000 properties they are buying $1.5 million to $2 million properties that they will leave until they return to the country.’’
Place CEO Damian Hackett predicted a stronger market in 2017.
“The dramatic increase in property prices in Sydney and Melbourne over the past few years has
dried-up affordable investment housing stock. We predict there will be rising competition in
Brisbane as interstate investors look to the city for prospects.’’
Mr Hackett expected substantial growth in the $500,000 to $800,000 housing market, with middle-city suburbs leading the way.
Pockets such as Holland Park, Carindale, Oxley, Tingalpa, Wynnum, Manly, Sunnybank, Northgate, Hendra, Mitchelton and Aspley would be high demand.
Originally Published: http://www.realestate.com.au/