The Brisbane housing market and economy are showing signs of improvement compared to a lull in the past decade; however, several risks could derail the projected growth in the city, according to the latest market research by Herron Todd White (HTW) Residential.
After suffering from the sharp fall in net interstate migration, Brisbane has managed to attract more Australians in recent years.
"It is a combination of affordability or retirees from the south who are looking for a lifestyle to date, although further improvement in the number of jobs would help to inform demographics of new Queensland residents arriving from across the border, "said HTW Residential.
Upcoming infrastructure developments, such as the Cross River Rail and the Brisbane Underground, should also lay the solid foundation for the housing market for the next decade.
Read also: What Brisbane Bay has in store for investors
Another good sign is the absorption of excess supply from the unit during the 2015-2017 period.
"Things have improved lately and with a lot of substance. These solid foundations for a positive year 2020, said HTW Residential.
According to a separate Domain market forecast, house prices in Brisbane are expected to rise above $ 600,000 by the end of the year. Median unit prices are also expected to increase 6% this year.
Downside risks in Brisbane
However, several factors could dampen any prospect of price hikes, including the uncertainty surrounding the financial landscape. However, if more credit is released this year, the demand for home loans could actually increase.
The rental regulations will also have an impact on prices in the city.
"We will avoid taking a political position on this for the time being, but if the proposed laws reach Parliament, it seems that the property rights of the owner will be diminished. Our mathematical mind forces us to think about removing some of the owner's control over their investment property will affect values, "said HTW Residential.
A potential change is the removal of the owners' right not to renew a rental agreement at the end of the term of the agreement. This would allow tenants to remain on the property indefinitely unless the owner can establish a legal reason to terminate the agreement as prescribed by law.
Other proposed measures include the removal of the owners 'rights to refuse pets and to allow tenants to modify the property without the owners' consent.
Despite these downside risks, HTW Residential said that "sustained gains" are expected this year.
Where to invest?
HTW Residential has stated that the best places to invest are in areas close to the CBD. In terms of property type, independent housing is the way to go.
"The basics indicate that buying a detached house within a reasonable distance from the city the best you can afford will be the safest approach this year. Flexible points are that you can travel further but be close to public transportation options, major services and job centers, "said HTW Residential.
For more affordable homes, buyers should consider the likes of Carseldine, Fitzgibbon, Taigum, Acacia Ridge, Runcorn and Banyo. These areas offer traditional homes with lots of space.
"These suburbs may not be suitable for everyone, but they offer reasonable housing with some long-term potential," said HTW Residential.
Investors and buyers with deeper pockets should continue to look at suburbs like Chapel Hill, Kenmore, Stafford Heights, Chermside, Holland Park, Carina Heights and Moorooka.
Top suburbs:
redcliffe
,
bligh park
,
geelong west
,
Marrickville
,
new farm
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