Only Hobart and Canberra will join Brisbane in the growth team according to the BIS Shrapnel Residential Property Prospects 2016-2019 report released this month.
“The best prospects for median house price growth over the next three years are forecast to be in the Brisbane and Hobart markets, followed by Canberra,” BIS Shrapnel reports.
“In Brisbane, affordability has improved significantly after weak price performance. New construction has been concentrated in the apartment market, but there is expected to be an
underlying deficiency of detached houses.”
The report tips 7 per cent growth in Brisbane median house prices to 2019. By contrast, Sydney and Melbourne median house prices will drop by 1 per cent.
In real terms – after considering inflation – prices across all capital cities will be lower than they are today (just 1 per cent lower in Brisbane’s housing market).
“Although interest rates are expected to remain low, and even potentially fall further, the adverse demand/supply balance is likely to dampen price growth,” the report said.
That’s good news for buyers wanting to enter the market and those with a focus on affordability.