Do you know about the tortoise and the hare? Of course you do. So you also know that slow and steady wins the race. When it comes to Australian property markets, Brisbane is definitely an impressive tortoise. Slow and steady growth, particularly for houses, with QBE forecasting Brisbane median house prices to achieve cumulative growth of 11% by June 2021 and reach $615,000. A convincing winner.
However, Brisbane could be about to turn hare.
In fact, QBE is predicting that Brisbane is on the cusp of a ‘mini boom’, with house prices set to take off over the next three years, outperforming every other capital city. They’re predicting a 19% increase, or 6.4% per annum boosted by tourism, an improving economy, and affordability. This would bring the median house price up to $660,000 by 2022!
While the southern markets have had frantic fluctuations and skyrocketing prices followed by two years of declining property prices, Brisbane and South East Queensland have retained solid growth and an overall upward swing in property prices.
The Broader Brisbane Trend
South East Queensland has become a magnet for the southern states and beyond, rightfully developing a reputation for being the number one Australian city for migration.
The Brisbane population is increasing by 1.7% per year, and it is the most popular destination for people wanting to move interstate. It’s the first time in four years that Queensland has overtaken Victoria in interstate movement. The sunshine appeal is real!
People in the southern states are escaping the crowds, expense, and pollution and seeking more affordable housing in Brisbane. This holds true for both buyers and renters, and it’s made even more attractive because job creation has also increased in the South East economy.
The upshot is that the Brisbane property market is in an ideal situation to benefit from volatile conditions in the southern states, a growing population, and high demand. The steady performance of Queensland’s capital is going to continue getting it over the line.