The Brisbane market appears to be rising, with the RP Data-Riskmark Daily Home Index up 5.86 per cent in Brisbane over the past 12 months.
The last reported median house price in the Brisbane area was $480,000, while the median unit price was $395,000.
RP Data senior research analyst Cameron Kusher says upgraders and investors are the main drivers of the market, currently spurred by the low mortgage rate environment.
“It will be interesting to see whether investors start to turn their attention away from Perth, Sydney and Melbourne and towards higher yielding markets that are much earlier in their value growth phase, such as Brisbane, where value growth is now becoming more evident,” he says.
Meanwhile, looking forward in terms of interest rates, the likelihood of the Reserve Bank of Australia (RBA) cutting rates further is still seemingly low, according to Kusher.
“Most economists have now pushed back the timing of their predicted future rate cuts, with most now forecasting that the next movement will be an increase,” he says.
“The RBA in its most recent decision has indicated that they see official interest rates being on hold for the foreseeable future. The housing market has been responding in quite a positive manner to the lower rates. Growth in values on a quarterly basis peaked in August last year and have been moderating since this time in line with the falls we have been witnessing in consumer sentiment.”
© Australian Property Investor magazine – www.apimagazine.com.au. Reproduced with permission.
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