Property swing upwards over next two year
Posted on April 03, 2017
QUEENSLAND is in the midst of a cyclical property upswing that will last two years before plateauing, according to experts who also see the oversupplied apartment market righting itself.
Property analyst Michael Matusik of Matusik Insights said it was the state's turn to rise in the property cycle.
"Sydney usually goes first and then Melbourne and then Brisbane ... it's following the usual pattern," he said.
"My reading is that it's recovering and that should continue over the next 12 to 24 months assuming nothing untoward happens and interest rates continue to stay low.
"After that it will plateau and (growth) will start to go down ... I think prices could move 5-10 per cent." Prices were expected to rise about 15 per cent for new house-and-land packages across SEQ by the end of next year, with about 70 per cent currently priced between $350,000 and $500,000.
Brinton Keath of Oliver Hume Queensland, who is marketing one of the biggest developments on the outskirts of Brisbane - Providence - said the first-home buyer market "has found another gear".
"It's never been a better time for young people to get in with record low rates," he said.
REIQ chief executive Antonia Mercorella said confidence was what it would take for Queensland to go to the next level.
"There was a level of fear post GFC and it has taken quite a while for our market to bounce back," he said.
"I think now we're finally at a point where because we have seen steady, consistent growth, there is that confidence.
"We've got extremely low interest rates as well." She said the State Government needed to revisit expanding the first-home owner grant towards established housing, even if only in the regions.
"There is so much established housing on the market at some of the most affordable prices they've been in a long time." Ms Mercorella expects to see Brisbane's median house price "continue to grow at a fairly reasonable pace" and for supply to outstrip demand in the next 12 to 18 months in the apartment sector.
"I think there's great cause for optimism," she said. "Great things are happening." I think prices could move five to 10 per cent MICHAEL MATUSIK There's great cause for optimism.
Published: Sat 24th September 2016 - Courier Mail
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