As reported by Elizabeth Tilley in The Courier-Mail, Economists at Westpac who were forecasting price falls of 10 per cent at the start of the year are now predicting a 20 per cent rise in Brisbane property prices over the next two years — the highest of any capital city.
QUEENSLAND is on the cusp of a property boom that could lead prices to skyrocket by more than 20 per cent in some areas and last for years to come. From Cairns to Coolangatta, buyer demand is at an all-time high and suburb sale-price records have been smashed since COVID-19 took hold in March, while the state’s southern counterparts are languishing.
New data from CoreLogic.com.au, analysed by Finder, has found the number of house sales in Brisbane jumped 21 per cent in just one month in July, and rose in value by nearly 23 per cent to a staggering $1.4 billion — a bigger rise than in any other capital city.
Propertyology head of research Simon Pressley is expecting boom conditions “not seen in this country since the turn of the century” by Christmas — but not in Melbourne or Sydney this time.
“Queensland can expect to finally be the beneficiary of strong property market performance,” Mr Pressley said. “We have to go way back to 2007 since anywhere in the state except Noosa produced a year or more of strong capital growth.
Mr Pressley said the boom would be driven by upgraders taking advantage of low interest rates, first-home buyers, and buyers motivated by a permanent work-from-home shift.
“And this is before the enormous amount of federal government funding for infrastructure projects and job creation programs kicks in,” he said.
Ryder Property Research managing director and Hotspotting.com analyst Terry Ryder agrees, although he expects price growth to be more in the range of 10 to 12 per cent.
Mr Ryder is also predicting a nationwide property boom, excluding Sydney and Melbourne, with Queensland set to be a major driver because of the “exodus to affordable lifestyle”.
CoreLogic head of research for Australia Eliza Owen said Brisbane and other parts of southeast Queensland would likely see a boost to housing demand once interstate border closures eased.
“This is because Queensland has been the highest recipient of interstate migration over the past few years, and the normalisation of remote work through COVID-19 may only boost that demand further,” Ms Owen said.
“Between low mortgage rates, low COVID-19 cases and an improvement in consumer sentiment, there may be a broader increase in values in late 2020 and early in 2021.”
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