Across Australia’s capital cities, many analysts are predicting that Brisbane will see the biggest increase in median house prices over the short term, with some predicting a growth rate of 13% over the next three years.
I’ve been saying this for some time now and the analysts are finally catching up – but I believe their projections are far too conservative!
In my opinion, I think that house prices could climb even higher over the next three years and may increase by more than 20%, with certain pockets within Brisbane growing faster than others.
Why I’m predicting a growth rate higher than analysts
• The current median house price in Brisbane is $677,250*
• Three years ago the median house price was $595,000* (that’s 14% growth over the past 3 years)
• MY median Brisbane house price prediction by 2021: $812,700 – which is still cheap compared to Sydney and Melbourne prices right now
My reasons for this price growth
1 Brisbane’s population is predicted to have an additional 40,000 people by 2021 – where are they going to live?
2 Peak residential dwelling supply occurs this year and then falls of a cliff for the next three years
3 The current supply is largely focused on apartments or density – hence no new housing (supply and demand) which is the main driver of price
4 Major investment and infrastructure projects are in full swing, including the second airport runway and Queens Wharf Casino, boosting jobs, tourism and the economy
5 Despite banks being difficult on lending now, interest rates should remain low over the next two years
*Source: Corelogic, 2018.