BIS Oxford Economics described Brisbane as a “surprise performer” in its recent report, with expected house price growth of 2 to 3 per cent to 2019-20, before greater growth of six per cent forecast in 2020-21.
According to property commentator Terry Ryder of Hotspotting, there are growing signs of improvement in Queensland’s key economic indicators that are driving local real estate markets forward and putting Brisbane as a top performer for property:
- The Queensland economy is showing increasing signs of improvement, having led the nation on jobs creation in 2017.
- The resources sector, a big element in the state economy, is showing increasing signs of revival.
- The state is now the national leader on net gains in population from interstate migration, a feature that has traditionally made Queensland strong but which has been lacking in recent years.
- But potentially the biggest factor is the $50 billion in spending on Queensland infrastructure over the next four years, announced in the State Budget in June. Infrastructure activity is a major catalyst for economic activity, jobs creation and demand for residential real estate, as we have witnessed in Sydney in recent years.
- Investors disenchanted by the prices and yields in Sydney and Melbourne are increasingly turning their attention to the Brisbane and wider Queensland property markets.
- Brisbane appeals as a city that offers good value. Its prices are roughly half those in Sydney and its rental yields are much higher.
Source: Terry Ryder, Hotspotting