While many of Australia’s property markets have been experiencing falling property values over the last year the Brisbane market has remained relatively steady.
But many are forecasting Brisbane to be one of the strongest property markets over the next few years, including Trent Wiltshire – economist at Domain and author of their Property Price Forecast report who Brisbane property values could grow 4% in 2019 and 5% in 2020.
Just to be clear the report suggests that overall Australian prices will fall further in the first half of 2019, but at a slower pace before the Australian property markets move into a phase of moderate growth.
Domain expects that Sydney and Melbourne will be two of the weakest markets in 2019 and then forecast prices to grow at about 4 per cent in 2020.
Brisbane, Perth, Adelaide and Canberra will see modest house price growth over the next couple of years and Hobart house prices should stabilise after rapid growth in recent years.
Here is Wiltshire’s forecast for the Brisbane real estate market for 2019:
We forecast Brisbane house prices will increase by 4 per cent in 2019 after not changing over the year to December 2018.
We then expect prices to grow by about 5 per cent in 2020.
After modest price growth in recent years, we expect that Brisbane houses will grow faster than most other markets over the next couple of years.
Brisbane unit prices are expected to grow by about 3 per cent in 2019 and 2020 after falling by about 6 per cent in 2018.
Brisbane unit prices are predicted to bottom out in late 2018 or early 2019 after falling about 9 per cent from their peak of $411,000 in 2016.
Our forecast for relatively strong house price growth in Brisbane is underpinned by a pick-up in population growth and declining unemployment.
In addition, relatively affordable housing compared to Sydney and Melbourne will continue to attract new residents and investors.
Brisbane unit price growth will be held down in the near-term by a large pipeline of new units that have come onto the market.
However, new construction is now declining so the supply of new units is forecast to drop, which should support price growth in 2019 and 2020.