The Sunshine State is on the verge of achieving a strong performance in 2019, driven by economic growth and increasing demand "
A few years ago, Brisbane was in a difficult position due to the slowdown in the mining industry. However, it is on the verge of becoming one of the best examples of recovery in the national real estate market.
According to CoreLogic's Hedonic Home Value Index for February 2019, where Sydney fell, Brisbane resumed, indicating the sub-region's best performance after Hobart and Canberra.
Another important indicator of the rise in Brisbane is that the number of luxury suburbs in this city has increased. In fact, the list of millions of suburban dollars in Queensland has increased every year since 2013. Between January and January 2019, this figure has gone from 34 suburbs to 38. Brisbane alone has claimed 26 of these luxury suburbs.
Even though concerns about excess supply have not completely faded, it seems reasonable to say that the state of Sunshine is about to have a good 2019.
"Queensland is relatively affordable. Population growth is growing and regions are benefiting from the growth of tourism, "said Geof Snell, BIS Oxford Economics' Senior Real Estate Economist.
"Queensland's economy is accelerating as migration increases, non-mining industries grow, and exports grow. The state will become an engine of the national economy starting this year. "
Excess supply in the pockets of the state
Investors should always be careful when buying in Queensland, as there is always a large influx of new apartments in some areas.
"Queensland's oversupply is less pronounced and could rebound a little earlier, possibly in 2021. Nevertheless, it is likely that unit markets in Sydney, Melbourne and Brisbane will continue to decline over the course of the year. year to come. Markets are under downward pressure on prices due to continued investor declines, "says Snell.
As a result, housing prices in Brisbane could also fall next year.
CoreLogic data suggest that the commitments of the first home buyers in Brisbane are also slightly down. Brisbane recorded its lowest number of commitments since October 2015, at 1,586, after falling 11.1% from November-December 2018. Homeowner loans accounted for only 24.3% of the total. new homeowner loans – unprecedented since February 2017.
SUBURB TO MONITOR
ALGESTER: Lower prices in an urban suburb
The year ending in January 2019 was not totally positive for the suburb of Algester, which experienced a decline in real estate prices.
Located on the outskirts of Brisbane, Algester has an affordable housing market, with a median value below $ 350,000. The average rental yield is also quite strong at 5.5%. However, unit values ​​during this period decreased by 1.7% after positive growth in 2016 and 2014. The residential real estate market experienced a slightly larger drop, with prices falling by 2%, 3% to reach a median of $ 489,712.
While the rental rate of homes remained unchanged at $ 430 in the 12 months to November 2018, rents fell 8.6% to $ 320.
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Top suburbs:
Harris Park
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Murdoch
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Goworthville
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Padbury
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