Queensland’s Property Market is set to boom!
Queensland is set to be Australia’s brightest housing market in the next three years, a report by the BIS Oxford Economics said. With Canungra and the Scenic Rim showing strong signs of growth.
Herron Todd White have stated locations in the Scenic Rim and Gold Coast hinterland are dominated by owner-occupiers and are proving very resilient in the face of negative media reports about the property market. Rural residential housing and housing in some village locations such as Canungra and Tamborine Mountain remain in good demand from buyers. Selling periods are relatively short and many properties are still selling at or around asking price. Some of these areas are commuting distance from Brisbane and Gold Coast and buyers get more bang for their buck in these areas compared to their city neighbours as well as offering certain lifestyle features.
The Queensland capital is projected to witness up to 20% price appreciation from 2019 to 2022, surpassing the modest growth expected in Sydney and Melbourne, Australia’s biggest housing markets.
Brisbane’s house prices are forecast to jump by 20%, while unit values are set to realise a 14% growth over the next three years. However, most of the increase would be concentrated towards the latter part of the period, according to the report.
The easing credit conditions and lower interest rates are expected to drive the demand for houses in Queensland, despite it currently experiencing weakness on the economic side.
“With credit conditions easing and interest rates falling, improving affordability will be a catalyst for raising price growth as stronger economic growth returns and the market moves into a rising deficiency,” the report said.
Overall, median housing values in Australia’s capital cities will likely increase over the next three years, with the surge of newly-built homes helping to prevent an all-out boom.
“Supply is running at record levels, with new dwelling completions having exceeded 200,000 in each of the past four years and expected to have peaked at a record of just under 227,000 dwellings in 2018/19,” BIS Oxford Economics associate director Angie Zigomanis said.
Something good is also in store for Adelaide — the South Australian capital is expected to record an 11% jump in house prices. With no oversupply, Adelaide prices are likely to be relatively stable.
“We see Adelaide as a ‘steady as she goes’ market — it’s got fairly moderate population growth. It hasn’t been experiencing an oversupply, like we’ve seen in places like Brisbane and Perth, or a recent undersupply, like in Sydney and Melbourne,” Zigomanis said.