With market confidence on the rise and economic basics on the improve, Brisbane is the city to watch for property values
The Brisbane residential market continues to strengthen, supported by ongoing low interest rates and improving employment conditions across Queensland.
Economic forecaster BIS Shrapnel predicts that Brisbane will be Australia's top performer in property values over the next three years - estimating that average house prices will rise by 17% in that period!
Property cycle entering the next phase
With increased sales volumes, investors back buying properties and home owners upgrading their homes, the market is already looking up.
Brisbane saw a 1.5% increase in home property values in the first quarter of this year with a 2.9% increase for the month of March.*
This brings the average cost of a home in Brisbane to $435 000.*
Good news for investors
It is worth mentioning that the Brisbane market is 5.2% below its previous peak and also has one of the best rental yields of Australian capital cities.*
Vacancy rates dropped significantly in the first quarter of 2014 compared to the last three months of 2013.
This means a tighter rental market due to:
- Stronger tenant demand
- Decrease in the availability of properties
More property investors have rejoined the market with good purchasing opportunities available compared to the other major capital cities.
Favourable economic climate
Over the year to April 2014, Queensland recorded a 52 400 person increase in trend employment (up 2.3%), the strongest gain by any state and more than half of the national employment growth.**
This is great news for us all particularly here in South East Queensland and underlines the confidence from home buyers and investors in our market at present.
* RP Data-Rismark Hedonic Home Value Index results, released 1 April 2014.
**ABS 6202.0, released 8 May 2014