Brisbane Housing Prices Set to Rise
Next year Brisbane’s property market is likely to experience slightly stronger gains than those posted in 2017 with property prices forecast to rise between 3 to 7 percent, according to a newly released report.
The latest SQM Research Boom & Bust Report predicted that the Brisbane price growth would mirror that of Sydney in 2018.
According to SQM Research Director, Louis Christopher, “the persistent overhang of surplus property listings will hold back Brisbane property from a faster rate of inflation”.
Across Australia, the housing market will likely record moderate dwelling price rises in 2018, which will be at a slower rate than the price gains in 2017, led by a slowdown in Sydney.
SQM Research’s base case forecast is for capital city dwelling prices to rise between 4 to 8 percent in 2018, which would represent a fall from a growth rate of approximately 8.5 percent over the past 12 months to 30 September 2017.
“Our Sydney forecast for 2018 is for a 4 to 8 percent increase in prices whereby Sydney will record a soft market in the first half of the year, but property prices will start to recover in the second half as the banks will likely increase investment lending once again. There have been reports of banks investment lending ratios being under the maximum thresholds allowed, so we can expect a rise next year as banks increase investment lending up to this limit,” Mr Christopher said.
Melbourne’s property market will also lose some momentum, however, this will only be a relatively modest slowdown, according to the Report.
The base case for all capital cities forecasts assumes no changes in interest rates next year, a stable exchange rate and the existing restrictions by APRA on investment lending to remain in place.
“Through the actions of APRA earlier this year, a possible deeper housing correction in Sydney and Melbourne has been averted, for now. Accelerated population growth rates in Melbourne and Sydney have enabled the cities to avoid severe property downturns. On the flipside, housing affordability will likely continue to deteriorate in 2018 with growth in property prices still outpacing wages growth,” he said.
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