Thinking of buying into Brisbane’s real estate market in 2019? According to industry experts it’s a pretty good idea!
We mean, what’s not to like? With a subtropical climate, laid back lifestyle, beaches and city combined, as well as a relatively affordable property market – it sounds like real estate paradise, right?
Well, when compared to its city neighbours, Brisbane is considered affordable. And, the New South Wales and Victorian real estate market are only doing it’s northern brother favours, and could very well help stimulate the local market with their medium house price only on the increase.
Talk to real estate agents and they will tell you that more and more people are opting out of expensive and crowded Sydney and Melbourne and choosing to move to Queensland, attracted by the prospect of a laidback lifestyle and a smaller mortgage.
So where to buy in Brisbane in 2018?
Many investors are voting on Brisbane’s eastern suburbs, which have posted a rise of 16 per cent over the last three years. But if you want to invest in a house then it is worth looking at the following Brisbane growth regions:
- Pallara, which recorded price growth of 35.8 per cent in the past year.
- Nudgee, has posted capital growth of 7.7 per cent annually over the last ten years.
- Highgate Hill, has recorded average price growth of 7.6 per cent each year over the past decade, and has a relatively affordable median house price of $650,000.
- Gaythorne, has grown 7.4 per cent annually, and where the media house price is $798,500.
In terms of units, you need to tread cautiously as oversupply is still an issue for inner Brisbane and the CBD. Unit completions eased this year, but underlying demand remained weak. This is going to apply pressure on rents and prices.
Here are some facts
- Over the four years to June 2016, median house price growth in Brisbane averaged 5% per annum
- Rising supply appears to be having a dampening effect on prices in the city.
- Across metropolitan Brisbane, vacancy rates vary and are significantly higher in Inner Brisbane and lower in Outer Brisbane
- House price growth has been positive (2.9%) in the more affordable outer suburbs of Brisbane over the year to June 2018.
An Outlook, according to the QBE
Affordability in Brisbane will remain significantly more attractive than in Sydney and Melbourne, and (on another positive note), a rapid acceleration in prices is not expected until the oversupply in apartments is absorbed.
Competitive unit rents and prices due to the oversupply may encourage some potential first home buyers to remain as renters, or alternatively preference an apartment purchase over a house.
And the median house price?
The Brisbane median house price is expected to see cumulative growth of around 11% over the next three years, reaching $615,000 by June 2021. The strongest price growth is expected to occur at the end of this period, once the oversupply in the unit market is absorbed.
So there you have it, Brisbane’s housing market is as strong as ever and only looking better as we enter into 2019. If you’re thinking about buying or investing, now is the time to get your search tabs working and book your property inspection with our team at Your Building Inspector!