The residential property market in Brisbane is expected to grow steadily in 2017, despite mixed projections of ups and downs in home prices.
Some economists predict that prices for house and land in Brisbane may increase, as opposed to projected declines in apartment prices. According to Domain Group chief economist Andrew Wilson, a price upswing in the apartment market will continue to fall due to the high volume of new projects scheduled to be launched in 2017.
Still, the city’s housing market would outperform other capital cities in Australia amid a slowing national economy.
By the end of November 2016, the median home price in Brisbane amounted to more than A$532,000. For the next 12 months, the price is tipped to increase to more than A$553,000. On the other hand, apartment prices would fall from more than A$367,000 to over A$353,000 in the same period.
Wilson said that the price downturn in apartments would possibly continue into 2018, as that would be the time when demand is expected to be equal to the available supply. As a result, unit prices are bound to increase when people begin to search for more apartments.
In terms of an investment perspective, several buyers have preferred properties in Brisbane due to the large price gap compared to prices of apartments in Melbourne and Sydney. There is a continued interest in homes, as planbuild.com.au says it is more than just ‘bricks and mortar’. Homes remain a place for nurturing and growth, says the Queensland home developer.
Wilson suggested nine Brisbane suburbs with the most potential to offer great investment returns for buyers. These locations would also be some of the best areas for sellers to offload their assets. For the high-end market, Hawthorne ranked first among Wilson’s top three picks, followed by Highgate Hill and Kelvin Grove, reports domain.com.au.
Sinnamon Park, Toowong and Burpengary East comprised the premium suburbs, while the affordable suburbs consisted of Keperra, Heritage Park and Redcliffe.