Brisbane’s property market has not reached the dizzying heights of Sydney and Melbourne, with median prices remaining at much more affordable levels. Data released by National Australia Bank (NAB) in their most recent Housing Insights Report reported Brisbane’s median home value remains a staggering $441,000 less than Sydney and $144,000 less than Melbourne’s median price.
The NAB report suggests the slower climb of price in Brisbane’s property market is linked to the decline in mining activities in Queensland. However, more recent improvements in tourism numbers and the retail sector have provided a boost for both Brisbane and coastal markets.
While Brisbane has seen a growth of around 4.1% in house prices in the past year, districts more dependent on mining such as the state’s Central West and Mackay, have seen drops of 6.2% and 6.8% respectively.
Brisbane remains a very affordable option in comparison to markets in Sydney and Melbourne, where first homebuyers and investors are increasingly pushed from the market as prices continue to soar.
This makes Brisbane a viable alternative for foreign investors looking for value in a tight Australian market. Added to the demand from local buyers and an improving Queensland economy, the outlook for Brisbane is mostly positive.
However, NAB analysts caution that the population growth in Queensland is likely to slow, and that unemployment is predicted to remain above 6% for the foreseeable future. Like Sydney and Melbourne, Brisbane is undergoing a residential construction boom, which will take some pressure off the market demand. Despite all of these factors, NAB predicts Brisbane will outperform other capital cities in house price growth in 2016, albeit with a slowed growth rate of 3%.
The apartment market is not predicted to fare quite as well, given the current burst of construction will lead to an impending spike in apartment supply. Last year, apartment values grew by 1.6%, but analysts suspect they will fall by 0.6% in 2016.
