This article is from the Australian Property Journal archive
HOUSE prices growth in Brisbane is forecast to remain flat in 2013 before increasing modestly in 2014, according to SQM Research.
In the SQM Research’s Brisbane Housing Boom and Bust Report, managing director Louis Christopher has taken a slightly more conservative approach to the forecasts outlined in the September 2012 issue of SQM Research’s Housing Boom and Bust Report, where he predicted house prices in Brisbane to rise between 3 – 7% for 2013.
He has revised down to 2-5% capital growth for this year for houses and 3-6% for units.
“However, given the latest interest rate cut, buyer demand should gradually increase over the course of the year and into 2014, which may allow for an ongoing housing market recovery where dwelling prices may rise towards 6%,” he said.
SQM predicts the inner city is likely to outperform over the next two years with dwelling price increases In the order of 4-8% a year. Followed by East Brisbane which may experience similar growth.
Brisbane’s West will likely record a negligible increase in real estate, due to a current abundance of supply. Please see table below for more details.
Region 2013 (F) 2014 (F)
Brisbane CBD 4% to 6% 5% to 8%
East Brisbane 3% to 6% 4% to 9%
Inner Brisbane 2% to 5% 3% to 6%
Northern Brisbane 2% to 4% 3% to 5%
South East Brisbane 2% to 5% 3% to 6%
Southern Brisbane 2% to 4% 3% to 6%
West Brisbane 0% to 3% 2% to 4%
Source: SQM Research
Christopher said Brisbane housing prices have now stopped falling.
“However we see no emerging property boom because there is simply too much real estate on offer for buyers right now and local economic conditions do not provide any stimulus for such a rapid rally.
“Nevertheless a modest to moderate rise in dwelling prices makes for a more sustainable and enduring recovery which is what is going to be the most likely outcome for the local market,” he concluded.
Property Review
