Property prices in Australia are set to surpass peak levels over 2020 as the robust turnaround across the nation’s biggest markets continues to gather pace. Brisbane seems to be an outlier with incredible expected growth in both units and houses.
New research from property platform Domain reveals that house prices across Brisbane are forecast to surge by up to 8 per cent over the next 12 months, with the river city making impressive runs for both houses and units across a multiple year period.
Domain’s forecast, which has doubled figures released in June of last year, also expects price growth to remain impressive over 2021.
House price forecasts
Median house price Dec 2019
Domain economist Trent Wiltshire said low-interest rates and the expectation that interest rates will remain low will be the key drivers of rising property prices in 2020.
“Strong population growth, a slowdown in new housing construction, low levels of listings and the First Home Loan Deposit Scheme will also contribute to higher prices.
“Rising market sentiment and a jump in buyer demand, shown by rapid growth in mortgage lending and also more people viewing property listings, will also push up prices.”
Unit price forecasts
Median unit price 2019
Brisbane house prices are forecast to see strong price growth in the next two years as buyers continue to look beyond Melbourne and Sydney to buy. This makes sense to investors particularly.
“We forecast the median house price to rise by 8 per cent in 2020 and in 2021,” Wiltshire said.
“This follows a period of soft price growth when Brisbane’s house prices rose only 5 per cent in the previous three years.”
After falling almost 10 per cent from the 2016 peak, Domain has tipped Brisbane’s median unit prices to rise by 6 per cent in 2020 then 4 to 6 per cent in 2021.
THE RECAP STORY
With median prices in Brisbane making it Australia’s most livable city, the predicted growth in both units and houses, you really can’t go wrong with buying in the river city in 2020. For investors, it makes the most sense, with investment properties being all about the numbers, your price entry point is significantly lower than other capital cities (particularly units), predicted growth rates are higher, and rental yields is still increasing as per below. These all make the decision to buy in Brisbane a no-brainer for astute investors.
Source: SQM Research