Full Steam Ahead! Brisbane Boasts Property Growth For Nine Consecutive Quarters
While property growth seems to be slowing in rest of the country, it looks like full steam ahead for the Brisbane property market.
Brisbane’s house prices continue to rise, with median house prices increasing by 6.9% in 2014.
The unstoppable Brisbane property train barreled through a new median house price record last year, reaching $477,352, its highest median price since 2009. This is still significantly below the national median average of $627,940, making Brisbane the third cheapest capital city for property investment, behind Hobart and Adelaide.
And investors are warming up to the investment potential of the Sunshine State.
Not only do Brisbane properties offer value-for-money, but also significant infrastructure investment in the region, like airport expansions and hospital projects, means more jobs and an increasing demand for property. Low interest rates are also driving investors back into the property market, with auction clearance rates soaring to the highest levels since 2009 in February 2015.
Recent Australian Bureau of Statistics (ABS) reports suggest an increasing ‘frenzy’ in the Australian investment property market, with investors closing out 2014 with a flurry of investment activity, up 6% from November 2014 to December 2014. Investors committed 8.6% more to Queensland investment properties in December 2014 than in December 2013!
Steady population growth and low vacancy rates in Brisbane may mean a boon for property investors and many investors are racing to jump on board the Brisbane property train before it leaves the station.
Momentum on the Move
According to Dr. Andrew Wilson, Senior Economist for Australian Property Monitors and the Domain Group, the Brisbane housing market continues to “gather momentum”, now recording nine consecutive quarters of house price growth.
“Brisbane house prices increased by +6.9% over the year ending June 2014 which was the highest annual result for the city in four years.”
Consumer confidence and improved economic stability are key factors in Brisbane’s housing market success and these factors should continue, said Wilson.
“The Brisbane housing market is set to continue its solid revival. Low interest rates, a gradually improving local economy, restored and rising confidence and increased activity from investors attracted by high yields and the prospect of continuing capital gains from one of most affordable capital city markets will keep buyer activity ticking over.”
Best in the Country
In fact, things are looking pretty sunny for the Brisbane property market. In a recent report released by leading business research and forecasting firm BIS Shrapnel, Brisbane is set to lead the country in property growth over the next three years.
“The pieces are falling into place for the Brisbane residential market to continue to strengthen,” said Angie Zigomanis, BIS Shrapnel Senior Manager.
Zigomanis marks Brisbane and Sydney to be the only two capital cities that will experience significant growth between 2014 and 2017, with all other Australian capital cities expected to record price declines.
What do you think? Are you ready to hop on the Brisbane property investment train before it leaves the station?